Exhibit 99.1
Southern First Reports Results for
Third Quarter of 2015
Greenville, South Carolina, October
27, 2015 – Southern First Bancshares, Inc.
(NASDAQ: SFST), holding company for Southern First Bank, today reported net income
available to the common shareholders of $2.7 million, or $0.41 per diluted share
for the third quarter of 2015. In comparison, net income available to common
shareholders was $1.6 million, or $0.31 per diluted share, for the third quarter
of 2014. For the nine months ended September 30, 2015, net income to common
shareholders was $7.3 million, or $1.12 per diluted share. In comparison, net
income available to common shareholders for the nine months ended September 30,
2014 was $3.9 million, or $0.79 per diluted share.
|
2015 Third Quarter
Highlights |
| ● |
Net income to common shareholders increased 73% to $2.7 million for
Q3 2015 compared to $1.6 million for Q3 2014 |
| ● |
Core deposits increased 28% to
$713.5 million at Q3 2015, compared to $557.4 million at Q3
2014 |
| ● |
Gross loans increased 19% to
$993.2 million at Q3 2015, compared to $832.7 million at Q3
2014 |
| ● |
Total revenue increased 19% to
$12.0 million for Q3 2015, compared to $10.1 million for Q3
2014 |
| ● |
Return on average assets
increased to 0.95% for Q3 2015, compared to 0.74% for Q3 2014
|
“I’m proud of our team for its
performance in generating record earnings and over $50 million in core deposit
growth,” stated Art Seaver, the Company’s Chief Executive Officer.
|
|
|
Quarter
Ended |
|
|
|
September 30 |
|
June
30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
|
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
| Earnings ($ in thousands, except
per share data): |
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
2,727 |
|
2,560 |
|
2,028 |
|
1,983 |
|
1,826 |
| Net
income available to common shareholders |
|
|
2,727 |
|
2,560 |
|
2,028 |
|
1,766 |
|
1,573 |
| Earnings per common
share, diluted |
|
|
0.41 |
|
0.39 |
|
0.31 |
|
0.30 |
|
0.31 |
| Total
revenue(1) |
|
|
11,962 |
|
11,606 |
|
11,211 |
|
10,567 |
|
10,051 |
| Net interest margin
(tax-equivalent)(2) |
|
|
3.62% |
|
3.73% |
|
3.72% |
|
3.71% |
|
3.66% |
| Return
on average assets(3) |
|
|
0.95% |
|
0.95% |
|
0.78% |
|
0.78% |
|
0.74% |
| Return on average
equity(3) |
|
|
11.99% |
|
11.75% |
|
9.67% |
|
9.46% |
|
9.86% |
| Efficiency
ratio(4) |
|
|
57.44% |
|
57.26% |
|
66.55% |
|
63.93% |
|
60.35% |
| Balance Sheet
($ in thousands): |
|
|
|
|
|
|
|
|
|
|
|
| Loans(5) |
|
$ |
993,233 |
|
963,496 |
|
909,321 |
|
871,446 |
|
832,722 |
| Core
deposits(6) |
|
|
713,455 |
|
661,511 |
|
627,131 |
|
585,083 |
|
557,417 |
| Total
deposits |
|
|
943,918 |
|
894,524 |
|
850,310 |
|
788,907 |
|
772,760 |
| Total assets |
|
|
1,173,557 |
|
1,119,000 |
|
1,072,637 |
|
1,029,865 |
|
1,007,553 |
| Holding Company Capital Ratios(7) : |
|
|
|
|
|
|
|
|
|
|
|
| Total
risk-based capital ratio |
|
|
11.93% |
|
11.90% |
|
12.21% |
|
12.42% |
|
11.88% |
| Tier 1
risk-based capital ratio |
|
|
10.68% |
|
10.65% |
|
10.96% |
|
11.17% |
|
10.63% |
| Leverage ratio |
|
|
9.09% |
|
9.32% |
|
9.34% |
|
9.52% |
|
8.84% |
| Common
equity tier 1 ratio(8) |
|
|
9.34% |
|
9.28% |
|
9.50% |
|
9.65% |
|
7.57% |
| Tangible common
equity(9) |
|
|
7.76% |
|
7.83% |
|
7.96% |
|
8.06% |
|
6.19% |
| Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming assets as a percentage of total assets |
|
|
0.84% |
|
0.85% |
|
0.85% |
|
0.97% |
|
1.14% |
| Net
charge-offs as a percentage of average loans(5) (YTD annualized) |
|
|
0.13% |
|
0.10% |
|
0.06% |
|
0.33% |
|
0.37% |
| Allowance for loan losses as a percentage of
loans(5) |
|
|
1.35% |
|
1.34% |
|
1.35% |
|
1.35% |
|
1.36% |
| Allowance for loan losses as a
percentage of nonaccrual loans |
|
|
186.04% |
|
193.73% |
|
187.61% |
|
176.72% |
|
141.99% |
1
Operating
Results
Net interest margin for the third
quarter of 2015 was 3.62%, compared to 3.73% for the prior quarter, and 3.66%
for the third quarter of 2014. Average interest-earning assets for the third
quarter of 2015 increased by $157.1 million, compared to the third quarter of
2014, while our average interest-bearing liabilities for the third quarter of
2015 increased by $104.6 million, compared to the same period in 2014. However,
the yield on our interest-earning assets declined by eight basis points, as
compared to the third quarter of 2014, due primarily to a lower average loan
yield, and the cost of our interest-bearing liabilities declined by three basis
points driven by growth in lower-costing deposits, as compared to the same
period in 2014.
Noninterest income was $2.1 million and
$1.6 million for the three months ended September 30, 2015 and 2014,
respectively. For the nine months ended September 30, 2015 and 2014, noninterest
income was $6.4 million and $4.0 million, respectively. The increase in
noninterest income during the three and nine month periods ended September 30,
2015 relates primarily to increases in loan and mortgage fee income. A
significant portion of our loan and mortgage fee income relates to income
derived from mortgage originations of $1.3 million and $3.8 million for the
three and nine months ended September 30, 2015, respectively, and $820 thousand
and $1.7 million for the three and nine months ended September 30, 2014,
respectively.
Noninterest expense was $6.9 million
and $6.1 million for the three months ended September 30, 2015 and 2014,
respectively, and $21.0 million and $18.2 million for the nine months ended
September 30, 2015 and 2014, respectively. The increase in noninterest expense
during the 2015 periods relates primarily to an increase in salaries and
benefits, partially offset by a decrease in other noninterest expense. In
addition, real estate owned expenses increased by $907 thousand during the nine
months ended September 30, 2015, as compared to the prior year, and related
primarily to one commercial property.
During the three months ended September
30, 2015, we recorded total credit costs of $1.0 million, including an $875
thousand provision for loan losses and $148 thousand of expenses related to the
sale and management of other real estate owned. In addition, net loan
charge-offs for the third quarter of 2015 were $434 thousand, or 0.18% of
average loans, annualized. During the three months ended September 30, 2014, our
total credit costs were $1.4 million, consisting of a $1.3 million provision for
loan losses and $71 thousand of expenses related to other real estate owned. Net
loan charge-offs for the third quarter of 2014 were $1.1 million, or 0.54% of
average loans, annualized. For the nine months ended September 30, 2015 and
2014, total credit costs were $3.5 million and $3.4 million, respectively. Our
allowance for loan losses was $13.4 million, or 1.35% of loans, at September 30,
2015 which provides approximately 186% coverage of nonaccrual loans, compared to
$11.3 million, or 1.36% of loans, and approximately 142% coverage of nonaccrual
loans at September 30, 2014.
Nonperforming assets were $9.8 million,
or 0.84% of total assets, as of September 30, 2015. Comparatively, nonperforming
assets were $10.0 million, or 0.97% of total assets, at December 31, 2014, and
$11.5 million, or 1.14% of total assets, at September 30, 2014. Of the $9.8
million in total nonperforming assets as of September 30, 2015, nonperforming
loans represent $7.2 million and other real estate owned represents $2.6
million. Classified assets improved to 18% of tier 1 capital plus the allowance
for loan losses at September 30, 2015, compared to 25% at September 30,
2014.
Gross loans were $993.2 million,
excluding loans held for sale, as of September 30, 2015, compared to $871.4
million at December 31, 2014, and $832.7 million at September 30, 2014. Of the
$121.8 million of loan growth during the first nine months of 2015, $36.8
million was in the Greenville market, $29.8 million was in the Columbia market,
and $55.2 million was in the Charleston market. Core deposits, which exclude
out-of-market deposits and time deposits of $100,000 or more, increased to
$713.5 million at September 30, 2015, compared to $585.1 million at December 31,
2014 and $557.4 million at September 30, 2014. During the first nine months of
2015, core deposits grew by $128.4 million with growth of $32.9 million in the
Greenville market, $55.3 million in the Columbia market, and $40.2 million in
the Charleston market.
Shareholders’ equity totaled $91.1
million as of September 30, 2015, compared to $83.0 million at December 31,
2014, and $73.6 million as of September 30, 2014. As of September 30, 2015, our
capital ratios continue to exceed the regulatory requirements for a “well
capitalized” institution.
2
| FINANCIAL HIGHLIGHTS -
Unaudited |
|
|
Quarter Ended |
|
3rd Qtr |
|
Nine Months Ended |
|
YTD |
|
|
September 30 |
|
2015-2014 |
|
September 30 |
|
2015-2014 |
| (in thousands, except per share
data) |
|
2015 |
|
2014 |
|
% Change |
|
2015 |
|
2014 |
|
% Change |
| Earnings Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest
income |
|
$ |
11,766 |
|
10,253 |
|
14.8 |
% |
|
33,884 |
|
29,388 |
|
15.3 % |
| Interest expense |
|
|
1,928 |
|
1,762 |
|
9.4 |
% |
|
5,485 |
|
5,182 |
|
5.8 % |
| Net interest
income |
|
|
9,838 |
|
8,491 |
|
15.9 |
% |
|
28,399 |
|
24,206 |
|
17.3 % |
| Provision for loan losses |
|
|
875 |
|
1,325 |
|
(34.0 |
)% |
|
2,500 |
|
3,275 |
|
(23.7)% |
| Noninterest
income |
|
|
2,124 |
|
1,560 |
|
36.2 |
% |
|
6,380 |
|
4,048 |
|
57.6 % |
| Noninterest expense |
|
|
6,871 |
|
6,066 |
|
13.3 |
% |
|
20,977 |
|
18,151 |
|
15.6 % |
| Income before
provision for income taxes |
|
|
4,216 |
|
2,660 |
|
58.5 |
% |
|
11,302 |
|
6,828 |
|
65.5 % |
| Income tax expense |
|
|
1,489 |
|
834 |
|
78.5 |
% |
|
3,987 |
|
2,185 |
|
82.5 % |
| Net
income |
|
|
2,727 |
|
1,826 |
|
49.3 |
% |
|
7,315 |
|
4,643 |
|
57.5 % |
| Preferred stock
dividends |
|
|
- |
|
253 |
|
(100.0 |
)% |
|
- |
|
699 |
|
(100.0)% |
| Net income available to common
shareholders |
|
$ |
2,727 |
|
1,573 |
|
73.4 |
% |
|
7,315 |
|
3,944 |
|
85.5 % |
| Basic weighted average common shares |
|
|
6,238 |
|
4,830 |
|
29.2 |
% |
|
6,233 |
|
4,776 |
|
30.5 % |
| Diluted weighted
average common shares |
|
|
6,579 |
|
5,046 |
|
30.4 |
% |
|
6,543 |
|
4,985 |
|
31.3 % |
| Earnings per common share – Basic |
|
$ |
0.44 |
|
0.33 |
|
33.3 |
% |
|
1.17 |
|
0.83 |
|
41.0 % |
| Earnings per common share –
Diluted |
|
|
0.41 |
|
0.31 |
|
32.3 |
% |
|
1.12 |
|
0.79 |
|
41.8 % |
| |
|
|
Quarter Ended |
|
3rd Qtr |
|
Quarter Ended |
|
|
September 30 |
|
2015-2014 |
|
June 30 |
|
March 31 |
|
December 31 |
| (in thousands, except per share
data) |
|
2015 |
|
2014 |
|
% Change |
|
2015 |
|
2015 |
|
2014 |
| Balance Sheet Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
$ |
1,173,557 |
|
1,007,553 |
|
16.5 |
% |
|
1,119,000 |
|
1,072,637 |
|
1,029,865 |
| Investment securities |
|
|
71,878 |
|
63,391 |
|
13.4 |
% |
|
56,997 |
|
54,033 |
|
61,546 |
| Mortgage loans
held for sale |
|
|
10,887 |
|
9,372 |
|
16.2 |
% |
|
12,402 |
|
14,844 |
|
11,765 |
| Loans |
|
|
993,233 |
|
832,722 |
|
19.3 |
% |
|
963,496 |
|
909,321 |
|
871,446 |
| Allowance for
loan losses |
|
|
13,368 |
|
11,305 |
|
18.2 |
% |
|
12,927 |
|
12,241 |
|
11,752 |
| Other real estate owned |
|
|
2,657 |
|
3,549 |
|
(25.1 |
)% |
|
2,887 |
|
2,570 |
|
3,307 |
| Noninterest bearing
deposits |
|
|
173,602 |
|
131,948 |
|
31.6 |
% |
|
162,845 |
|
152,589 |
|
139,904 |
| Interest bearing
deposits |
|
|
770,316 |
|
640,812 |
|
20.2 |
% |
|
731,679 |
|
697,721 |
|
649,003 |
| Total
deposits |
|
|
943,918 |
|
772,760 |
|
22.1 |
% |
|
894,524 |
|
850,310 |
|
788,907 |
| Other borrowings |
|
|
115,200 |
|
139,600 |
|
(17.5 |
)% |
|
115,200 |
|
115,200 |
|
135,200 |
| Junior
subordinated debentures |
|
|
13,403 |
|
13,403 |
|
- |
|
13,403 |
|
13,403 |
|
13,403 |
| Tangible common equity |
|
|
91,050 |
|
62,350 |
|
46.0 |
% |
|
87,667 |
|
85,353 |
|
82,992 |
| Preferred
stock |
|
|
- |
|
11,242 |
|
(100.0 |
)% |
|
- |
|
- |
|
- |
| Total shareholders’
equity |
|
|
91,050 |
|
73,592 |
|
23.7 |
% |
|
87,667 |
|
85,353 |
|
82,992 |
| Common
Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common share |
|
$ |
14.58 |
|
12.91 |
|
12.9 |
% |
|
14.06 |
|
13.70 |
|
13.34 |
| Stock
price: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| High |
|
|
21.22 |
|
14.25 |
|
48.9 |
% |
|
18.24 |
|
18.60 |
|
17.99 |
| Low |
|
|
17.77 |
|
13.50 |
|
31.6 |
% |
|
17.00 |
|
15.78 |
|
13.80 |
| Period end |
|
|
20.49 |
|
13.94 |
|
47.0 |
% |
|
17.90 |
|
17.00 |
|
17.02 |
| Common shares outstanding |
|
|
6,243 |
|
4,830 |
|
29.3 |
% |
|
6,236 |
|
6,231 |
|
6,219 |
| Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans to
deposits |
|
|
105.22% |
|
107.76% |
|
(2.4 |
)% |
|
107.71% |
|
106.94% |
|
110.46% |
| Team members |
|
|
169 |
|
156 |
|
8.3 |
% |
|
169 |
|
162 |
|
158 |
| Average
Balances ($ in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans(5) |
|
$ |
968,767 |
|
819,386 |
|
18.2 |
% |
|
933,816 |
|
891,481 |
|
852,250 |
| Deposits |
|
|
912,901 |
|
760,465 |
|
20.0 |
% |
|
856,423 |
|
818,275 |
|
770,922 |
| Assets |
|
|
1,140,836 |
|
979,929 |
|
16.4 |
% |
|
1,080,811 |
|
1,049,049 |
|
1,005,563 |
| Equity |
|
|
90,268 |
|
73,506 |
|
22.8 |
% |
|
87,383 |
|
85,088 |
|
83,132 |
| (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 based on
quarterly net income. |
| (4) |
Noninterest expense
divided by the sum of net interest income and noninterest
income. |
| (5) |
Excludes loans held
for sale. |
| (6) |
Excludes out of market
deposits and time deposits greater than $100,000. |
| (7) |
September 30, 2015
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. |
3
| ASSET QUALITY MEASURES -
Unaudited |
|
|
|
|
|
Quarter
Ended |
|
|
|
|
|
September 30 |
|
|
June
30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
| (dollars in thousands) |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
| Nonperforming Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owner occupied
RE |
|
$ |
718 |
|
|
720 |
|
|
280 |
|
|
322 |
|
|
640 |
|
| Non-owner occupied
RE |
|
|
4,434 |
|
|
3,018 |
|
|
3,167 |
|
|
2,344 |
|
|
2,877 |
|
| Construction |
|
|
- |
|
|
- |
|
|
- |
|
|
783 |
|
|
855 |
|
| Commercial
business |
|
|
895 |
|
|
1,178 |
|
|
1,130 |
|
|
1,408 |
|
|
745 |
|
| Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate |
|
|
- |
|
|
419 |
|
|
457 |
|
|
457 |
|
|
488 |
|
| Home
equity |
|
|
250 |
|
|
250 |
|
|
188 |
|
|
188 |
|
|
188 |
|
| Construction |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Other |
|
|
1 |
|
|
1 |
|
|
2 |
|
|
1 |
|
|
3 |
|
| Nonaccruing troubled debt
restructurings |
|
|
887 |
|
|
1,087 |
|
|
1,301 |
|
|
1,147 |
|
|
2,166 |
|
| Total nonaccrual loans |
|
|
7,185 |
|
|
6,673 |
|
|
6,525 |
|
|
6,650 |
|
|
7,962 |
|
| Other real estate owned |
|
|
2,657 |
|
|
2,887 |
|
|
2,570 |
|
|
3,307 |
|
|
3,549 |
|
| Total nonperforming
assets |
|
$ |
9,842 |
|
|
9,560 |
|
|
9,095 |
|
|
9,957 |
|
|
11,511 |
|
| Nonperforming assets as a percentage of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
assets |
|
|
0.84% |
|
|
0.85% |
|
|
0.85% |
|
|
0.97% |
|
|
1.14% |
|
| Total loans |
|
|
0.99% |
|
|
0.99% |
|
|
1.00% |
|
|
1.14% |
|
|
1.38% |
|
| Accruing
troubled debt restructurings |
|
$ |
7,232 |
|
|
8,173 |
|
|
8,336 |
|
|
8,562 |
|
|
7,216 |
|
| |
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
|
|
|
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
| Allowance for Loan Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, beginning of period |
|
$ |
12,927 |
|
|
12,241 |
|
|
11,752 |
|
|
11,305 |
|
|
11,103 |
|
| Loans charged-off |
|
|
(541 |
) |
|
(354 |
) |
|
(145 |
) |
|
(584 |
) |
|
(1,138 |
) |
| Recoveries of loans previously
charged-off |
|
|
107 |
|
|
40 |
|
|
9 |
|
|
131 |
|
|
15 |
|
| Net loans
charged-off |
|
|
(434 |
) |
|
(314 |
) |
|
(136 |
) |
|
(453 |
) |
|
(1,123 |
) |
| Provision for loan losses |
|
|
875 |
|
|
1,000 |
|
|
625 |
|
|
900 |
|
|
1,325 |
|
| Balance, end of
period |
|
$ |
13,368 |
|
|
12,927 |
|
|
12,241 |
|
|
11,752 |
|
|
11,305 |
|
| Allowance for loan losses to gross loans |
|
|
1.35% |
|
|
1.34% |
|
|
1.35% |
|
|
1.35% |
|
|
1.36% |
|
| Allowance for loan losses to nonaccrual loans |
|
|
186.04% |
|
|
193.73% |
|
|
187.61% |
|
|
176.72% |
|
|
141.99% |
|
| Net charge-offs to average loans QTD
(annualized) |
|
|
0.18% |
|
|
0.14% |
|
|
0.06% |
|
|
0.21% |
|
|
0.54% |
|
| |
| AVERAGE YIELD/RATE -
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
September 30 |
|
|
June
30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
|
|
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
|
|
|
|
|
Yield/Rate(10) |
| Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal funds sold |
|
|
0.28% |
|
|
0.31% |
|
|
0.29% |
|
|
0.26% |
|
|
0.26% |
|
| Investment securities, taxable |
|
|
2.21% |
|
|
2.44% |
|
|
2.61% |
|
|
2.57% |
|
|
2.46% |
|
| Investment securities, nontaxable |
|
|
4.74% |
|
|
4.50% |
|
|
4.35% |
|
|
4.23% |
|
|
4.12% |
|
| Loans(11) |
|
|
4.61% |
|
|
4.64% |
|
|
4.67% |
|
|
4.67% |
|
|
4.71% |
|
| Total interest-earning
assets |
|
|
4.33% |
|
|
4.44% |
|
|
4.43% |
|
|
4.43% |
|
|
4.41% |
|
| Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOW
accounts |
|
|
0.15% |
|
|
0.18% |
|
|
0.18% |
|
|
0.16% |
|
|
0.16% |
|
| Savings & money market |
|
|
0.40% |
|
|
0.40% |
|
|
0.35% |
|
|
0.34% |
|
|
0.33% |
|
| Time deposits |
|
|
0.80% |
|
|
0.75% |
|
|
0.72% |
|
|
0.73% |
|
|
0.71% |
|
| Total
interest-bearing deposits |
|
|
0.50% |
|
|
0.49% |
|
|
0.46% |
|
|
0.46% |
|
|
0.45% |
|
| Note
payable and other borrowings |
|
|
3.11% |
|
|
3.10% |
|
|
2.87% |
|
|
2.80% |
|
|
3.06% |
|
| Junior subordinated
debentures |
|
|
2.46% |
|
|
2.42% |
|
|
2.42% |
|
|
2.40% |
|
|
2.40% |
|
| Total interest-bearing
liabilities |
|
|
0.88% |
|
|
0.88% |
|
|
0.86% |
|
|
0.88% |
|
|
0.91% |
|
| Net interest spread |
|
|
3.45% |
|
|
3.56% |
|
|
3.57% |
|
|
3.55% |
|
|
3.50% |
|
| Net interest income (tax equivalent) /
margin |
|
|
3.62% |
|
|
3.73% |
|
|
3.72% |
|
|
3.71% |
|
|
3.66% |
|
| (10) |
Annualized for
the respective three month period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (11) |
Includes loans held for
sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
| NONINTEREST INCOME & EXPENSE -
Unaudited |
|
|
|
Quarter Ended |
|
3rd Qtr |
|
Quarter Ended |
|
|
|
September 30 |
|
2015-2014 |
|
June
30 |
|
March 31 |
|
December 31 |
| (dollars in thousands) |
|
|
2015 |
|
2014 |
|
% Change |
|
2015 |
|
2015 |
|
2014 |
| Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan and
mortgage fee income |
|
$ |
1,426 |
|
861 |
|
65.6 |
% |
|
1,409 |
|
1,196 |
|
1,039 |
| Service fees on deposit accounts |
|
|
230 |
|
244 |
|
(5.7 |
)% |
|
219 |
|
227 |
|
234 |
| Income from bank
owned life insurance |
|
|
167 |
|
169 |
|
(1.2 |
)% |
|
165 |
|
166 |
|
169 |
| Gain on sale of investment securities |
|
|
2 |
|
- |
|
100.0 |
% |
|
36 |
|
259 |
|
- |
| Other income |
|
|
299 |
|
286 |
|
4.5 |
% |
|
286 |
|
293 |
|
291 |
| Total noninterest
income |
|
$ |
2,124 |
|
1,560 |
|
36.2 |
% |
|
2,115 |
|
2,141 |
|
1,733 |
| |
| Noninterest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
$ |
4,313 |
|
3,459 |
|
24.7 |
% |
|
4,106 |
|
4,277 |
|
3,658 |
| Occupancy |
|
|
845 |
|
777 |
|
8.8 |
% |
|
842 |
|
737 |
|
743 |
| Real estate owned expenses |
|
|
148 |
|
71 |
|
108.5 |
% |
|
93 |
|
763 |
|
551 |
| Data processing
and related costs |
|
|
588 |
|
625 |
|
(5.9 |
)% |
|
573 |
|
585 |
|
673 |
| Insurance |
|
|
215 |
|
209 |
|
2.9 |
% |
|
213 |
|
202 |
|
228 |
| Professional
fees |
|
|
180 |
|
207 |
|
(13.0 |
)% |
|
233 |
|
233 |
|
228 |
| Marketing |
|
|
217 |
|
193 |
|
12.4 |
% |
|
222 |
|
238 |
|
184 |
| Other |
|
|
365 |
|
525 |
|
(30.5 |
)% |
|
364 |
|
426 |
|
491 |
| Total noninterest
expenses |
|
$ |
6,871 |
|
6,066 |
|
13.3 |
% |
|
6,646 |
|
7,461 |
|
6,756 |
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,
the third largest bank headquartered in South Carolina. Southern First
Bancshares has been providing financial services since 1999 and now operates in
nine locations in the Greenville, Columbia, and Charleston markets of South
Carolina. Southern First Bancshares has assets of approximately $1.2 billion and
its common 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 are 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 United States 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
|
5
