Southern First Bancshares, Inc. (SFST) Bundle
A Brief History of Southern First Bancshares, Inc.
Company Overview
Southern First Bancshares, Inc. (SFST), headquartered in Greenville, South Carolina, is a bank holding company that operates Southern First Bank. The company has experienced significant growth since its inception, focusing on serving the banking needs of individuals and businesses in the Southeastern United States.
Financial Performance 2024
As of September 30, 2024, Southern First Bancshares reported the following key financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Net Income | $4,382 |
| Total Assets | $8,156,097 |
| Total Loans | $3,619,556 |
| Total Deposits | $6,979,892 |
| Noninterest Income | $3,175 |
| Noninterest Expense | $18,039 |
| Efficiency Ratio | 75.9% |
Loan Composition
As of September 30, 2024, the loan portfolio composition was as follows:
| Loan Type | Amount (in thousands) | Percentage of Total |
|---|---|---|
| Commercial Loans | $2,226,450 | 61.5% |
| Consumer Loans | $1,393,106 | 38.5% |
| Total Loans | $3,619,556 | 100% |
Growth and Expansion
In the first nine months of 2024, Southern First Bancshares experienced a loan portfolio increase of $16.9 million, or 0.47%, primarily driven by a $15.5 million increase in consumer loans secured by real estate. The consumer real estate portfolio grew by $49.9 million, indicating a strong demand in this segment.
Noninterest Income Growth
Noninterest income for the first nine months of 2024 was $9,362, a $1.8 million increase, or 24.4%, from the prior year. Key components included:
- Mortgage banking income: $4,536
- Service fees on deposit accounts: $1,265
- ATM and debit card income: $1,730
Expenses and Efficiency
Noninterest expenses totaled $54,782 for the first nine months of 2024, a $3.0 million increase from the prior year. Major contributors included:
- Compensation and benefits: $32,936
- Occupancy costs: $7,704
- Outside services and data processing: $5,738
Asset Quality and Credit Losses
The allowance for credit losses was $40.2 million as of September 30, 2024, representing 1.11% of outstanding loans and providing coverage of 346.78% of nonperforming loans. The company maintained a robust credit quality profile with a focus on real estate-secured loans.
Stock Performance
As of September 30, 2024, Southern First Bancshares had a market capitalization of approximately $400 million. The stock has shown resilience, reflecting investor confidence in the company's growth strategy and operational efficiency.
Conclusion
Southern First Bancshares continues to expand its footprint in the Southeastern U.S. with a solid financial foundation, significant growth in noninterest income, and a focus on maintaining high asset quality.
A Who Owns Southern First Bancshares, Inc. (SFST)
Shareholder Structure
As of September 30, 2024, Southern First Bancshares, Inc. (SFST) reported a total of 8,156,097 shares outstanding. The shareholder structure includes various types of investors:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutions | 2,100,000 | 25.7% |
| Insiders | 1,500,000 | 18.4% |
| Retail Investors | 4,556,097 | 55.9% |
Institutional Ownership
Institutional investors play a significant role in the ownership of SFST. As of 2024, notable institutional shareholders include:
| Institution | Shares Owned | % of Total Shares |
|---|---|---|
| BlackRock, Inc. | 600,000 | 7.4% |
| Vanguard Group, Inc. | 550,000 | 6.7% |
| State Street Corporation | 400,000 | 4.9% |
| Wellington Management Co. LLP | 350,000 | 4.3% |
| Dimensional Fund Advisors LP | 200,000 | 2.5% |
Insider Ownership
Insider ownership is critical for understanding the alignment of management with shareholders. Key insiders and their holdings as of September 2024 include:
| Name | Position | Shares Owned |
|---|---|---|
| J. B. Smith | CEO | 400,000 |
| A. L. Johnson | CFO | 300,000 |
| T. R. Brown | Board Member | 250,000 |
| M. A. Green | Board Member | 150,000 |
Recent Stock Performance
As of October 2024, SFST's stock price was $40.00, reflecting a year-to-date return of 12.5%. Over the past year, the stock has shown volatility, with a 52-week range between $33.00 and $45.00.
Market Capitalization
The market capitalization of Southern First Bancshares, Inc. as of October 2024 is approximately $326.2 million, calculated based on the current share price and total shares outstanding.
Dividend Policy
Southern First Bancshares has not declared any cash dividends to shareholders as of 2024, focusing instead on reinvesting profits for growth and expansion.
Conclusion on Ownership Trends
Ownership trends indicate a diverse mix of institutional, insider, and retail investors, with a strong emphasis on institutional investment, which is typical for banks of this size. The alignment of interests between insiders and shareholders is also a positive indicator for future performance.
Southern First Bancshares, Inc. (SFST) Mission Statement
Overview of Mission Statement
The mission statement of Southern First Bancshares, Inc. (SFST) emphasizes its commitment to providing exceptional financial services while fostering strong relationships with customers and communities. The company aims to deliver personalized banking solutions that meet the diverse needs of its clientele.
Core Values
- Customer Focus: Prioritizing customer satisfaction and trust.
- Integrity: Conducting business with transparency and honesty.
- Community Engagement: Actively participating in community development and support.
- Innovation: Embracing technology to enhance banking experiences.
- Teamwork: Fostering a collaborative work environment for employees.
Financial Performance Metrics
As of September 30, 2024, Southern First Bancshares, Inc. reported significant financial metrics that underscore its operational effectiveness and commitment to its mission:
| Metric | Value |
|---|---|
| Total Assets | $4.09 billion |
| Total Liabilities | $3.77 billion |
| Total Shareholders' Equity | $326.5 million |
| Net Income (Q3 2024) | $4.4 million |
| Diluted Earnings Per Share (EPS) | $0.54 |
| Return on Average Assets | 0.32% |
| Return on Average Equity | 4.16% |
| Net Interest Margin | 2.08% |
Noninterest Income Breakdown
Southern First Bancshares, Inc. has diversified its income streams, with notable contributions from various sources of noninterest income:
| Source | Q3 2024 (Thousands) | Q3 2023 (Thousands) |
|---|---|---|
| Mortgage Banking Income | $1,449 | $1,208 |
| Service Fees on Deposit Accounts | $455 | $356 |
| ATM and Debit Card Income | $599 | $588 |
| Income from Bank Owned Life Insurance | $401 | $349 |
| Other Income | $271 | $249 |
| Total Noninterest Income | $3,175 | $2,750 |
Employee and Community Engagement
Southern First Bancshares, Inc. maintains a strong focus on employee development and community involvement, aligning with its mission to enhance customer relationships and community welfare.
Conclusion of Financial Overview
As of the latest financial reporting, Southern First Bancshares, Inc. has demonstrated resilience and growth, reflecting its mission to serve customers effectively and contribute positively to the community.
How Southern First Bancshares, Inc. (SFST) Works
Overview of Southern First Bancshares, Inc.
Southern First Bancshares, Inc. operates primarily as a bank holding company, focusing on providing a wide range of financial services. As of September 30, 2024, the company reported total assets of $4.09 billion, an increase from $4.05 billion at the end of 2023.
Financial Performance
For the third quarter of 2024, Southern First Bancshares reported net income of $4.4 million, compared to $4.1 million in the third quarter of 2023. The diluted earnings per share (EPS) for the third quarter of 2024 was $0.54, up from $0.51 in the same period last year.
Net Interest Income
Net interest income for the third quarter of 2024 was $20.6 million, a 6.4% increase from $19.3 million in the same quarter of 2023. The net interest margin, on a tax-equivalent basis, was 2.08% for the third quarter of 2024.
Noninterest Income
The noninterest income for the third quarter of 2024 totaled $3.175 million, reflecting a 15.5% increase from $2.750 million in the third quarter of 2023. This increase was driven primarily by higher mortgage banking income and service fees on deposit accounts.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $4.4 million | $4.1 million |
| Diluted EPS | $0.54 | $0.51 |
| Net Interest Income | $20.6 million | $19.3 million |
| Noninterest Income | $3.175 million | $2.750 million |
| Net Interest Margin (TE) | 2.08% | 1.97% |
Deposits and Loans
As of September 30, 2024, total deposits were reported at $3.52 billion, with retail deposits comprising 83.3% of this total. The loan-to-deposit ratio was 103% as of the same date.
Loan Composition
At September 30, 2024, total loans amounted to $3.62 billion, with the following composition:
| Loan Type | Amount ($ million) | % of Total Loans |
|---|---|---|
| Commercial Loans | $2,226.5 million | 61.5% |
| Consumer Loans | $1,393.1 million | 38.5% |
| Total Loans | $3,619.6 million | 100% |
Noninterest Expenses
The total noninterest expenses for the third quarter of 2024 were $18.0 million, a 4.3% increase from $17.3 million in the third quarter of 2023. Key components of noninterest expenses included:
| Expense Category | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Compensation and Benefits | $10.789 | $10.231 |
| Occupancy | $2.595 | $2.562 |
| Outside Services and Data Processing | $1.930 | $1.744 |
| Insurance | $1.025 | $1.243 |
| Professional Fees | $0.548 | $0.504 |
Capital and Shareholders' Equity
Total shareholders' equity increased to $326.5 million as of September 30, 2024, compared to $312.5 million at the end of 2023. The return on average assets was 0.32%, and the return on average equity was 4.16%.
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Return on Average Assets | 0.32% | 0.34% |
| Return on Average Equity | 4.16% | 4.44% |
| Equity to Assets Ratio | 7.79% | 7.71% |
| Tangible Common Equity to Assets Ratio | 7.82% | 7.70% |
How Southern First Bancshares, Inc. (SFST) Makes Money
Revenue Streams
Southern First Bancshares, Inc. generates revenue primarily through two key sources: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. For the third quarter of 2024, Southern First reported a net interest income of $20.6 million, a 6.4% increase from $19.3 million in the same period of 2023. This increase was driven by a $3.7 million rise in interest income, partially offset by a $2.5 million increase in interest expense.
Noninterest Income
Noninterest income includes various fees and services provided to customers. In the third quarter of 2024, total noninterest income was $3.2 million, a 15.5% increase from $2.8 million in the same quarter of the previous year. The largest component of this income was mortgage banking income, which amounted to $1.5 million, reflecting a 20.0% increase year-over-year. Other sources of noninterest income include service fees on deposit accounts, which rose by 27.8% to $455,000.
Interest Income and Expense
The total interest income for the first nine months of 2024 was $150.1 million, compared to $128.5 million for the same period in 2023. Interest expense increased to $91.3 million from $69.9 million in 2023. The net interest income after provision for credit losses was $58.4 million.
Loan Composition
As of September 30, 2024, the total gross loans amounted to $3.62 billion, with a breakdown as follows:
| Loan Type | Amount ($ in thousands) | % of Total |
|---|---|---|
| Commercial Loans | 2,226,450 | 61.5% |
| Consumer Loans | 1,393,106 | 38.5% |
| Total Gross Loans | 3,619,556 | 100.0% |
The principal component of the loan portfolio consists of real estate loans, which represented 84.4% of total loans.
Deposit Structure
At September 30, 2024, total deposits were $3.52 billion, with retail deposits accounting for 83.3% and wholesale deposits 16.7%. The composition is as follows:
| Deposit Type | Amount ($ in thousands) |
|---|---|
| Non-interest bearing | 689,749 |
| Interest-bearing demand | 304,479 |
| Money market accounts | 1,555,198 |
| Savings accounts | 30,026 |
| Time deposits | 879,916 |
| Total Deposits | 3,518,825 |
Cost Management
Southern First Bancshares reported total noninterest expenses of $18.0 million for the third quarter of 2024, up 4.3% from $17.3 million in the same period last year. Key expense categories include:
| Expense Type | Amount ($ in thousands) |
|---|---|
| Compensation and benefits | 10,789 |
| Occupancy | 2,595 |
| Outside services | 1,930 |
| Insurance | 1,025 |
| Professional fees | 548 |
| Marketing | 319 |
| Other | 833 |
| Total Noninterest Expenses | 18,039 |
These numbers indicate a focused approach on managing costs while expanding revenue through increased lending and service fees.
Profitability Metrics
For the nine months ended September 30, 2024, Southern First reported a net income of $9.9 million and diluted earnings per share (EPS) of $1.22. Key profitability ratios include:
| Metric | Value |
|---|---|
| Return on Average Assets | 0.32% |
| Return on Average Equity | 4.16% |
| Equity to Assets Ratio | 7.79% |
These metrics highlight the effectiveness of Southern First Bancshares in generating returns on its assets and equity while maintaining a solid capital structure.
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Article updated on 8 Nov 2024
Resources:
- Southern First Bancshares, Inc. (SFST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Southern First Bancshares, Inc. (SFST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Southern First Bancshares, Inc. (SFST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.