UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) April 26, 2016
Southern First Bancshares, Inc. |
(Exact name of registrant as specified in its charter) |
South Carolina |
(State or other jurisdiction of incorporation) |
000-27719 | 58-2459561 | |||
(Commission File Number) | (IRS Employer Identification No.) | |||
100 Verdae Boulevard, Suite 100, Greenville, SC | 29606 | |||
(Address of principal executive offices) | (Zip Code) |
(864) 679-9000 |
(Registrant's telephone number, including area code) |
Not Applicable |
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. Results of Operations and Financial Condition
On April 26, 2016, Southern First Bancshares, Inc., holding company for Southern First Bank, issued a press release announcing its financial results for the period ended March 31, 2016. A copy of the press release is attached hereto as Exhibit 99.1.
ITEM 9.01. Financial Statements and Exhibits
(c) Exhibits | ||||
Exhibit No. | Exhibit | |||
99.1 | Earnings Press Release for period ended March 31, 2016. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SOUTHERN FIRST BANCSHARES, INC. | ||||
By: | /s/ | Michael D. Dowling | ||
Name: | Michael D. Dowling | |||
Title: | Chief Financial Officer | |||
April 26, 2016 |
EXHIBIT INDEX
Exhibit Number | Description | |||
99.1 | Earnings Press Release for the period ended March 31, 2016. |
Exhibit 99.1
Greenville, South Carolina, April 26, 2016 Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today reported net income available to the common shareholders of $3.0 million, or $0.45 per diluted share for the first quarter of 2016. In comparison, net income available to common shareholders was $2.0 million, or $0.31 per diluted share, for the first quarter of 2015.
● |
Net income to common shareholders increased 48% to $3.0 million for Q1 2016 compared to $2.0 million for Q1 2015 |
● |
Core deposits increased 21% to $853.6 million at Q1 2016, compared to $707.6 million at Q1 2015 |
● |
Gross loans increased 14% to $1.0 billion at Q1 2016, compared to $909.3 million at Q1 2015 |
● |
Total revenue increased 15% to $12.9 million for Q1 2016, compared to $11.2 million for Q1 2015 |
● |
Return on average assets increased to 1.00% for Q1 2016, compared to 0.78% for Q1 2015 |
Im proud of our Southern First team for their performance during the first quarter of 2016 as we generated over $3 million in quarterly earnings. We continue to see strong growth in new client relationships and excellent momentum from our mortgage team, stated Art Seaver, the Companys Chief Executive Officer.
Quarter Ended | |||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||
2016 | 2015 | 2015 | 2015 | 2015 | |||||||
Earnings ($ in thousands, except per share data): | |||||||||||
Net income available to common shareholders | $ | 3,006 | 2,853 | 2,727 | 2,560 | 2,028 | |||||
Earnings per common share, diluted | 0.45 | 0.43 | 0.41 | 0.39 | 0.31 | ||||||
Total revenue(1) | 12,866 | 12,166 | 11,962 | 11,606 | 11,211 | ||||||
Net interest margin (tax-equivalent)(2) | 3.64% | 3.48% | 3.62% | 3.73% | 3.72% | ||||||
Return on average assets(3) | 1.00% | 0.93% | 0.95% | 0.95% | 0.78% | ||||||
Return on average equity(3) | 12.47% | 12.11% | 11.99% | 11.75% | 9.67% | ||||||
Efficiency ratio(4) | 58.42% | 59.44% | 57.44% | 57.26% | 66.55% | ||||||
Balance Sheet ($ in thousands): | |||||||||||
Loans(5) | $ | 1,038,862 | 1,004,944 | 993,233 | 963,496 | 909,321 | |||||
Core deposits(6) | 853,636 | 840,233 | 794,207 | 741,578 | 707,632 | ||||||
Total deposits | 1,003,241 | 985,733 | 943,918 | 894,524 | 850,310 | ||||||
Total assets | 1,239,317 | 1,217,293 | 1,173,557 | 1,119,000 | 1,072,637 | ||||||
Holding Company Capital Ratios(7): | |||||||||||
Total risk-based capital ratio | 11.89% | 11.95% | 11.93% | 11.90% | 12.21% | ||||||
Tier 1 risk-based capital ratio | 10.64% | 10.70% | 10.68% | 10.65% | 10.96% | ||||||
Leverage ratio | 9.18% | 8.78% | 9.09% | 9.32% | 9.34% | ||||||
Common equity tier 1 ratio(8) | 9.39% | 9.40% | 9.34% | 9.28% | 9.50% | ||||||
Tangible common equity(9) | 7.93% | 7.74% | 7.76% | 7.83% | 7.96% | ||||||
Asset Quality Ratios: | |||||||||||
Nonperforming assets as a percentage of total assets | 0.68% | 0.75% | 0.84% | 0.85% | 0.85% | ||||||
Net charge-offs as a percentage of average loans(5) (YTD annualized) | 0.14% | 0.14% | 0.13% | 0.10% | 0.06% | ||||||
Allowance for loan losses as a percentage of loans(5) | 1.34% | 1.36% | 1.35% | 1.34% | 1.35% | ||||||
Allowance for loan losses as a percentage of nonaccrual loans | 224.56% | 205.98% | 186.04% | 193.73% | 187.61% |
(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 $250,000. |
(7) | March 31, 2016 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. |
1
Operating
Results
Net interest margin for the first quarter of 2016 was 3.64%, compared to 3.48% for the prior quarter, and 3.72%
for the first quarter of 2015. During the first quarter of 2016, our average interest-earning assets increased by
$153.1 million, compared to the first quarter of 2015; however, the yield on our interest-earning assets declined
by eight basis points. In comparison, our average interest-bearing liabilities increased by $104.2 million during the
first quarter of 2016, compared to the first quarter of 2015, with the respective cost increasing by two basis
points. While our 2016 net interest margin declined by eight basis points from the first quarter of 2015 due
primarily to lower yields on our interest-earning assets, the 16 basis point increase in net interest margin from the
fourth quarter of 2015 was driven by an 18 basis point increase in yield on our interest-earning assets due to a
$43.3 million decline in our average federal funds balances during the first quarter of 2016.
Noninterest income was $2.6 million and $2.1 million for the three months ended March 31, 2016 and 2015, respectively. The increase in noninterest income during the three month period ended March 31, 2016 relates primarily to increases in loan and mortgage fee income and other income, as well as an increase in gain on sale of investment securities. A significant portion of our loan fee income relates to income derived from mortgage originations which was 95% and 97% of total loan and mortgage fee income for the three months ended March 31, 2016 and 2015, respectively.
Noninterest expense was $7.5 million for both three-month periods ended March 31, 2016 and 2015. The slight increase in noninterest expense during the 2016 period relates primarily to increases in salaries and benefits and occupancy expenses, partially offset by a reduction in other real estate owned expenses.
During the first quarter of 2016, we recorded total credit costs of $910 thousand compared to $1.4 million during the first quarter of 2015. The $910 thousand in credit costs during the first quarter of 2016 related primarily to the $625 thousand provision for loan losses, combined with expenses of $285 thousand related to the sale and management of other real estate owned. In addition, net loan charge-offs for the first quarter of 2016 were $356 thousand, or 0.14% of average loans on an annual basis, and related primarily to two commercial and one consumer relationships. Comparatively, the $1.4 million in credit costs during the first quarter of 2015 related primarily to the $625 thousand provision for loan losses, combined with $763 thousand of expenses related to the sale and management of other real estate owned. Net loan charge-offs for the first quarter of 2015 were $136 thousand, or 0.06% of average loans on an annual basis, and related primarily to two commercial relationships. Our allowance for loan losses was $13.9 million, or 1.34% of loans, at March 31, 2016 which provides approximately 225% coverage of nonaccrual loans, compared to $12.2 million, or 1.35% of loans, and approximately 188% coverage of nonaccrual loans at March 31, 2015.
Nonperforming assets were $8.5 million, or 0.68% of total assets, as of March 31, 2016. Comparatively, nonperforming assets were $9.1 million, or 0.75% of total assets, at December 31, 2015, and $9.1 million, or 0.85% of total assets, at March 31, 2015. Of the $8.5 million in total nonperforming assets as of March 31, 2016, nonperforming loans represent $6.2 million and other real estate owned represents $2.3 million. Classified assets improved to 15% of tier 1 capital plus the allowance for loan losses at March 31, 2016, compared to 20% at March 31, 2015.
Gross loans were $1.039 billion, excluding loans held for sale, at March 31, 2016, compared to $1.005 billion at December 31, 2015, and $909.3 million at March 31, 2015. Of the $33.9 million of loan growth during the first quarter of 2016, $9.0 million was in the Greenville market, $3.4 million was in the Columbia market, and $21.5 million was in the Charleston market. Core deposits, which exclude out-of-market deposits and time deposits of $250,000 or more, increased to $853.6 million at March 31, 2016 compared to $840.2 million at December 31, 2015, and $707.7 million at March 31, 2015. During the first quarter of 2016, core deposits grew by $13.4 million with growth of $4.3 million in the Greenville market and $11.2 million in the Charleston market, partially offset by a slight decline of $2.1 million in the Columbia market.
Shareholders equity totaled $98.3 million as of March 31, 2016, compared to $94.2 million at December 31, 2015, and $85.4 million as of March 31, 2015. As of March 31, 2016, our capital ratios continue to exceed the regulatory requirements for a well capitalized institution.
2
FINANCIAL HIGHLIGHTS - Unaudited | ||||||||||||||
Quarter Ended | 1st Qtr | Quarter Ended | ||||||||||||
March 31 | 2016-2015 | December 31 | September 30 | June 30 | ||||||||||
(in thousands, except per share data) | 2016 | 2015 | % Change | 2015 | 2015 | 2015 | ||||||||
Earnings Summary | ||||||||||||||
Interest income | $ | 12,329 | 10,801 | 14.1 | % | 12,147 | 11,766 | 11,316 | ||||||
Interest expense | 2,022 | 1,731 | 16.8 | % | 2,016 | 1,928 | 1,825 | |||||||
Net interest income | 10,307 | 9,070 | 13.6 | % | 10,131 | 9,838 | 9,491 | |||||||
Provision for loan losses | 625 | 625 | - | 700 | 875 | 1,000 | ||||||||
Noninterest income | 2,559 | 2,141 | 19.5 | % | 2,036 | 2,124 | 2,115 | |||||||
Noninterest expense | 7,517 | 7,461 | 0.8 | % | 7,231 | 6,871 | 6,646 | |||||||
Income before provision for income taxes | 4,724 | 3,125 | 51.1 | % | 4,236 | 4,216 | 3,960 | |||||||
Income tax expense | 1,718 | 1,097 | 56.6 | % | 1,383 | 1,489 | 1,400 | |||||||
Net income available to common shareholders | $ | 3,006 | 2,028 | 48.2 | % | 2,853 | 2,727 | 2,560 | ||||||
Basic weighted average common shares | 6,273 | 6,225 | 0.8 | % | 6,269 | 6,238 | 6,234 | |||||||
Diluted weighted average common shares | 6,663 | 6,515 | 2.3 | % | 6,614 | 6,579 | 6,534 | |||||||
Earnings per common share Basic | $ | 0.48 | 0.33 | 45.5 | % | 0.46 | 0.44 | 0.41 | ||||||
Earnings per common share Diluted | 0.45 | 0.31 | 45.2 | % | 0.43 | 0.41 | 0.39 | |||||||
Quarter Ended | 1st Qtr | Quarter Ended | ||||||||||||
March 31 | 2016-2015 | December | September 30 | June 30 | ||||||||||
(in thousands, except per share data) | 2016 | 2015 | % Change | 2015 | 2015 | 2015 | ||||||||
Balance Sheet Highlights | ||||||||||||||
Assets | $ | 1,239,317 | 1,072,637 | 15.5 | % | 1,217,293 | 1,173,557 | 1,119,000 | ||||||
Investment securities | 82,805 | 54,033 | 53.2 | % | 95,471 | 71,878 | 56,997 | |||||||
Mortgage loans held for sale | 14,241 | 14,844 | (4.1 | )% | 4,943 | 10,887 | 12,402 | |||||||
Loans | 1,038,862 | 909,321 | 14.2 | % | 1,004,944 | 993,233 | 963,496 | |||||||
Allowance for loan losses | 13,898 | 12,241 | 13.5 | % | 13,629 | 13,368 | 12,927 | |||||||
Other real estate owned | 2,284 | 2,570 | (11.1 | )% | 2,475 | 2,657 | 2,887 | |||||||
Noninterest bearing deposits | 189,620 | 152,589 | 24.3 | % | 189,686 | 173,602 | 162,845 | |||||||
Interest bearing deposits | 813,621 | 697,721 | 16.6 | % | 796,047 | 770,316 | 731,679 | |||||||
Total deposits | 1,003,241 | 850,310 | 18.0 | % | 985,733 | 943,918 | 894,524 | |||||||
Other borrowings | 115,200 | 115,200 | - | 115,200 | 115,200 | 115,200 | ||||||||
Junior subordinated debentures | 13,403 | 13,403 | - | 13,403 | 13,403 | 13,403 | ||||||||
Tangible common equity | 98,295 | 85,353 | 15.2 | % | 94,240 | 91,050 | 87,667 | |||||||
Total shareholders equity | 98,295 | 85,353 | 15.2 | % | 94,240 | 91,050 | 87,667 | |||||||
Common Stock | ||||||||||||||
Book value per common share | $ | 15.49 | 13.70 | 13.1 | % | 14.98 | 14.58 | 14.06 | ||||||
Stock price: | ||||||||||||||
High | 25.74 | 18.60 | 38.4 | % | 22.90 | 21.22 | 18.24 | |||||||
Low | 21.66 | 15.78 | 37.3 | % | 19.52 | 17.77 | 17.00 | |||||||
Period end | 24.41 | 17.00 | 43.6 | % | 22.70 | 20.49 | 17.90 | |||||||
Common shares outstanding | 6,344 | 6,231 | 1.8 | % | 6,289 | 6,243 | 6,236 | |||||||
Other | ||||||||||||||
Loans to deposits(5) | 103.55% | 106.94% | (3.2 | )% | 101.95% | 105.22% | 107.71% | |||||||
Team members | 172 | 162 | 6.2 | % | 171 | 169 | 169 | |||||||
Average Balances ($ in thousands): | ||||||||||||||
Loans(5) | $ | 1,032,793 | 891,481 | 15.9 | % | 1,002,024 | 968,767 | 933,816 | ||||||
Deposits | 972,933 | 818,275 | 18.9 | % | 990,209 | 912,901 | 856,423 | |||||||
Assets | 1,207,501 | 1,049,049 | 15.1 | % | 1,221,814 | 1,140,836 | 1,080,811 | |||||||
Equity | 96,965 | 85,088 | 14.0 | % | 93,426 | 90,268 | 87,383 |
3
ASSET QUALITY MEASURES - Unaudited | ||||||||||||
Quarter Ended | ||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||
(dollars in thousands) | 2016 | 2015 | 2015 | 2015 | 2015 | |||||||
Nonperforming Assets | ||||||||||||
Commercial | ||||||||||||
Owner occupied RE | $ | 455 | 704 | 718 | 720 | 280 | ||||||
Non-owner occupied RE | 4,066 | 4,170 | 4,434 | 3,018 | 3,167 | |||||||
Construction | - | - | - | - | - | |||||||
Commercial business | 736 | 779 | 895 | 1,178 | 1,130 | |||||||
Consumer | ||||||||||||
Real estate | - | - | - | 419 | 457 | |||||||
Home equity | 257 | 258 | 250 | 250 | 188 | |||||||
Construction | - | - | - | - | - | |||||||
Other | - | 5 | 1 | 1 | 2 | |||||||
Nonaccruing troubled debt restructurings | 675 | 701 | 887 | 1,087 | 1,301 | |||||||
Total nonaccrual loans | 6,189 | 6,617 | 7,185 | 6,673 | 6,525 | |||||||
Other real estate owned | 2,284 | 2,475 | 2,657 | 2,887 | 2,570 | |||||||
Total nonperforming assets | $ | 8,473 | 9,092 | 9,842 | 9,560 | 9,095 | ||||||
Nonperforming assets as a percentage of: | ||||||||||||
Total assets | 0.68% | 0.75% | 0.84% | 0.85% | 0.85% | |||||||
Total loans | 0.82% | 0.90% | 0.99% | 0.99% | 1.00% | |||||||
Accruing troubled debt restructurings | $ | 6,122 | 7,266 | 7,232 | 8,173 | 8,336 | ||||||
Quarter Ended | ||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||
Allowance for Loan Losses | ||||||||||||
Balance, beginning of period | $ | 13,629 | 13,368 | 12,927 | 12,241 | 11,752 | ||||||
Loans charged-off | (394) | (468) | (541) | (354) | (145) | |||||||
Recoveries of loans previously charged-off | 38 | 29 | 107 | 40 | 9 | |||||||
Net loans charged-off | (356) | (439) | (434) | (314) | (136) | |||||||
Provision for loan losses | 625 | 700 | 875 | 1,000 | 625 | |||||||
Balance, end of period | $ | 13,898 | 13,629 | 13,368 | 12,927 | 12,241 | ||||||
Allowance for loan losses to gross loans | 1.34% | 1.36% | 1.35% | 1.34% | 1.35% | |||||||
Allowance for loan losses to nonaccrual loans | 224.56% | 205.98% | 186.04% | 193.73% | 187.61% | |||||||
Net charge-offs to average loans QTD (annualized) | 0.14% | 0.17% | 0.18% | 0.14% | 0.06% | |||||||
AVERAGE YIELD/RATE - Unaudited | ||||||||||||
Quarter Ended | ||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||
Yield/Rate(10) | ||||||||||||
Interest-earning assets | ||||||||||||
Federal funds sold | 0.64% | 0.32% | 0.28% | 0.31% | 0.29% | |||||||
Investment securities, taxable | 2.12% | 2.18% | 2.21% | 2.44% | 2.61% | |||||||
Investment securities, nontaxable | 4.32% | 4.35% | 4.74% | 4.50% | 4.35% | |||||||
Loans(11) | 4.59% | 4.57% | 4.61% | 4.64% | 4.67% | |||||||
Total interest-earning assets | 4.35% | 4.17% | 4.33% | 4.44% | 4.43% | |||||||
Interest-bearing liabilities | ||||||||||||
NOW accounts | 0.18% | 0.18% | 0.15% | 0.18% | 0.18% | |||||||
Savings & money market | 0.42% | 0.42% | 0.40% | 0.40% | 0.35% | |||||||
Time deposits | 0.82% | 0.81% | 0.80% | 0.75% | 0.72% | |||||||
Total interest-bearing deposits | 0.50% | 0.51% | 0.50% | 0.49% | 0.46% | |||||||
Note payable and other borrowings | 3.28% | 3.13% | 3.11% | 3.10% | 2.87% | |||||||
Junior subordinated debentures | 2.82% | 2.52% | 2.46% | 2.42% | 2.42% | |||||||
Total interest-bearing liabilities | 0.88% | 0.87% | 0.88% | 0.88% | 0.86% | |||||||
Net interest spread | 3.46% | 3.31% | 3.45% | 3.56% | 3.57% | |||||||
Net interest income (tax equivalent) / margin | 3.64% | 3.48% | 3.62% | 3.73% | 3.72% |
(10) | Annualized for the respective three month period. | |||||||||||
(11) | Includes loans held for sale. |
4
NONINTEREST INCOME & EXPENSE - Unaudited | ||||||||||||||
Quarter Ended | 1st Qtr | Quarter Ended | ||||||||||||
March 31 | 2016-2015 | December 31 | September 30 | June 30 | ||||||||||
(dollars in thousands) | 2016 | 2015 | % Change | 2015 | 2015 | 2015 | ||||||||
Noninterest income | ||||||||||||||
Loan and mortgage fee income | $ | 1,517 | 1,196 | 26.8 | % | 1,242 | 1,426 | 1,409 | ||||||
Service fees on deposit accounts | 220 | 227 | (3.1 | )% | 217 | 230 | 219 | |||||||
Income from bank owned life insurance | 186 | 166 | 12.0 | % | 187 | 167 | 165 | |||||||
Gain on sale of investment securities | 307 | 259 | 18.5 | % | - | 2 | 36 | |||||||
Other income | 329 | 293 | 12.3 | % | 390 | 299 | 286 | |||||||
Total noninterest income | $ | 2,559 | 2,141 | 19.5 | % | 2,036 | 2,124 | 2,115 | ||||||
Noninterest expense | ||||||||||||||
Compensation and benefits | $ | 4,551 | 4,277 | 6.4 | % | 4,352 | 4,313 | 4,106 | ||||||
Occupancy | 870 | 737 | 18.0 | % | 885 | 845 | 842 | |||||||
Real estate owned expenses | 285 | 763 | (62.6 | )% | 139 | 148 | 93 | |||||||
Data processing and related costs | 598 | 585 | 2.2 | % | 701 | 588 | 573 | |||||||
Insurance | 233 | 202 | 15.3 | % | 224 | 215 | 213 | |||||||
Professional fees | 254 | 233 | 9.0 | % | 341 | 180 | 233 | |||||||
Marketing | 231 | 238 | (2.9 | )% | 193 | 217 | 222 | |||||||
Other | 495 | 426 | 16.2 | % | 396 | 365 | 364 | |||||||
Total noninterest expenses | $ | 7,517 | 7,461 | 0.8 | % | 7,231 | 6,871 | 6,646 |
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 companys 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 SECs 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