Exhibit 99.1
Southern First Reports Results for Second Quarter of 2017
Greenville, South Carolina, July 25, 2017 – Southern First Bancshares, Inc.(NASDAQ: SFST), holding company for Southern First Bank, today reported net income available to the common shareholders of $3.6 million, or $0.49 per diluted share, for the second quarter of 2017. In comparison, net income available to common shareholders was $3.3 million, or $0.49 per diluted share, for the second quarter of 2016. For the six months ended June 30, 2017, net income to common shareholders was $6.7 million, or $0.95 per diluted share. In comparison, net income to common shareholders for the six months ended June 30, 2016 was $6.3 million, or $0.94 per diluted share.
2017 Second Quarter Highlights
● | Net income to common shareholders increased 9% to $3.6 million for Q2 2017 compared to $3.3 million for Q2 2016 |
● | Gross loans increased 22% to $1.30 billion at Q2 2017, compared to $1.07 billion at Q2 2016 |
● | Total deposits increased 24% to $1.30 billion at Q2 2017, compared to $1.05 billion at Q2 2016 |
● | Efficiency ratio remains stable at 58.8% for Q2 2017 |
● | Completed $25 million capital raise during April 2017 |
“The investments in infrastructure are bearing fruit as we generated record growth in deposits, loans and reported quarterly income of $3.6 million during the second quarter,” stated Art Seaver, the company’s Chief Executive Officer. “We are excited as we continue to recruit additional talent with new bankers joining our Atlanta, Charleston and Columbia teams.”
Quarter Ended | ||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||
Earnings($ in thousands, except per share data): | ||||||||||||||||
Net income available to common shareholders | $ | 3,604 | 3,112 | 3,291 | 3,433 | 3,306 | ||||||||||
Earnings per common share, diluted | 0.49 | 0.46 | 0.49 | 0.51 | 0.49 | |||||||||||
Total revenue(1) | 14,915 | 13,658 | 13,423 | 13,897 | 13,659 | |||||||||||
Net interest margin (tax-equivalent)(2) | 3.49 | % | 3.61 | % | 3.63 | % | 3.63 | % | 3.62 | % | ||||||
Return on average assets(3) | 0.97 | % | 0.92 | % | 1.00 | % | 1.08 | % | 1.07 | % | ||||||
Return on average equity(3) | 10.92 | % | 11.27 | % | 12.14 | % | 13.10 | % | 13.24 | % | ||||||
Efficiency ratio(4) | 58.75 | % | 61.21 | % | 59.64 | % | 56.13 | % | 57.49 | % | ||||||
Balance Sheet($ in thousands): | ||||||||||||||||
Total Loans(5) | $ | 1,299,827 | 1,218,680 | 1,163,644 | 1,114,099 | 1,065,496 | ||||||||||
Total deposits | 1,297,911 | 1,211,274 | 1,091,151 | 1,045,075 | 1,049,124 | |||||||||||
Core deposits(6) | 1,085,687 | 1,001,069 | 937,492 | 880,389 | 900,747 | |||||||||||
Total assets | 1,539,226 | 1,467,938 | 1,340,908 | 1,289,746 | 1,290,710 | |||||||||||
Holding Company Capital Ratios(7): | ||||||||||||||||
Total risk-based capital ratio | 13.42 | % | 11.93 | % | 12.11 | % | 12.11 | % | 12.00 | % | ||||||
Tier 1 risk-based capital ratio | 12.21 | % | 10.68 | % | 10.86 | % | 10.86 | % | 10.75 | % | ||||||
Leverage ratio | 10.43 | % | 9.21 | % | 9.42 | % | 9.38 | % | 9.23 | % | ||||||
Common equity tier 1 ratio(8) | 11.19 | % | 9.58 | % | 9.71 | % | 9.67 | % | 9.53 | % | ||||||
Tangible common equity(9) | 9.27 | % | 7.74 | % | 8.19 | % | 8.22 | % | 7.93 | % | ||||||
Asset Quality Ratios: | ||||||||||||||||
Nonperforming assets as a percentage of total assets | 0.37 | % | 0.47 | % | 0.46 | % | 0.58 | % | 0.59 | % | ||||||
Net charge-offs as a percentage of average loans(5)(YTD annualized) | 0.07 | % | 0.02 | % | 0.10 | % | 0.15 | % | 0.10 | % | ||||||
Allowance for loan losses as a percentage of loans(5) | 1.19 | % | 1.25 | % | 1.28 | % | 1.30 | % | 1.34 | % | ||||||
Allowance for loan losses as a percentage of nonaccrual loans | 293.75 | % | 247.43 | % | 270.95 | % | 258.30 | % | 250.63 | % |
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Operating Results
Net interest margin for the second quarter of 2017 was 3.49%, compared to 3.61% for the prior quarter and 3.62% for the second quarter of 2016. During the second quarter of 2017, our average interest-earning assets increased by $250.3 million, compared to the second quarter of 2016, while the yield on our interest-earning assets decreased by nine basis points. A contributing factor to the decrease in yield on our interest-earning assets was a $62.6 million increase in federal funds sold which traditionally yield a much lower rate than loans or investments. In comparison, our average interest-bearing liabilities increased by $169.1 million during the second quarter of 2017, compared to the second quarter of 2016, with the respective cost increasing by eight basis points.
Noninterest income was $2.6 million and $3.1 million for the three months ended June 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016, noninterest income was $4.6 million and $5.7 million, respectively. The decrease in noninterest income during the three and six-month periods ended June 30, 2017 relates primarily to a decrease in mortgage banking revenue during the 2017 periods, combined with a gain on sale of investment securities in the first quarter of 2016. Specifically, mortgage banking revenue was $1.6 million and $2.7 million for the three and six months ended June 30, 2017, respectively, and $2.2 million and $3.7 million for the three and six months ended June 30, 2016, respectively.
Noninterest expense was $8.8 million and $7.9 million for the three months ended June 30, 2017 and 2016, respectively, and $17.1 million and $15.4 million for the six months ended June 30, 2017 and 2016, respectively. The increase in noninterest expense during the three and six-month periods ended June 30, 2017 relates primarily to increases in compensation and benefits, occupancy, data processing and related costs and professional fees, partially offset by a decrease in real estate owned expenses. Included in noninterest expense are mortgage banking expenses of $1.0 million and $1.9 million for the three and six months ended June 30, 2017, respectively, and $1.3 million and $2.2 million for the three and six months ended June 30, 2016, respectively.
During the three months ended June 30, 2017, we recorded total credit costs of $497 thousand, including a $500 thousand provision for loan losses and a net $3 thousand gain related to the sale and management of other real estate owned. In addition, we had net charge-offs for the second quarter of 2017 of $343 thousand, or 0.11% of average loans, annualized. During the three months ended June 30, 2016, our total credit costs were $934 thousand, including $575 thousand provision for loan losses and $359 thousand expenses related to the sale and management of other real estate owned. Net loan charge-offs for the second quarter of 2016 were $156 thousand, or 0.06% of average loans on an annual basis. For the six months ended June 30, 2017 and 2016, total credit costs were $1.0 million and $1.8 million, respectively. Our allowance for loan losses was $15.4 million, or 1.19% of loans, at June 30, 2017, which provides approximately 294% coverage of nonaccrual loans, compared to $14.3 million, or 1.34% of loans, and approximately 251% coverage of nonaccrual loans at June 30, 2016.
Nonperforming assets were $5.7 million, or 0.37% of total assets, as of June 30, 2017. Comparatively, nonperforming assets were $7.7 million, or 0.59% of total assets, at June 30, 2016. Of the $5.7 million in total nonperforming assets as of June 30, 2017, nonperforming loans represent $5.3 million and other real estate owned represents $428 thousand. Classified assets improved to 10% of tier 1 capital plus the allowance for loan losses at June 30, 2017, compared to 16% at June 30, 2016.
Gross loans were $1.30 billion, excluding mortgage loans held for sale, as of June 30, 2017, compared to $1.07 billion at June 30, 2016. Core deposits, which exclude out-of-market deposits and time deposits of $250,000 or more, increased to $1.09 billion at June 30, 2017 compared to $900.7 million at June, 2016.
Shareholders’ equity totaled $142.7 million as of June 30, 2017, compared to $109.9 million at December 30, 2016, and $102.4 million at June 30, 2016. As of June 30, 2017, our capital ratios continue to exceed the regulatory requirements for a “well capitalized” institution.
On May 2, 2017, we issued a total of 805,000 shares of our common stock at $32.75 per share in a public offering. Proceeds from the offering were used to improve our capital structure, including to repay our former $10 million holding company line of credit, to fund future organic growth, and for working capital and other general corporate purposes.
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FINANCIAL HIGHLIGHTS - Unaudited | |||||||||||||||||||
Quarter Ended | 2ndQtr | Six Months Ended | YTD | ||||||||||||||||
June 30 | 2017-2016 | June 30 | 2017-2016 | ||||||||||||||||
(in thousands, except per share data) | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||
Earnings Summary | |||||||||||||||||||
Interest income | $ | 14,931 | 12,503 | 19.4 | % | 28,890 | 24,832 | 16.3 | % | ||||||||||
Interest expense | 2,579 | 1,990 | 29.6 | % | 4,931 | 4,012 | 22.9 | % | |||||||||||
Net interest income | 12,352 | 10,513 | 17.5 | % | 23,959 | 20,820 | 15.1 | % | |||||||||||
Provision for loan losses | 500 | 575 | (13.0 | )% | 1,000 | 1,200 | (16.7 | )% | |||||||||||
Noninterest income | 2,563 | 3,146 | (18.5 | )% | 4,614 | 5,704 | (19.1 | )% | |||||||||||
Noninterest expense | 8,763 | 7,853 | 11.6 | % | 17,123 | 15,369 | 11.4 | % | |||||||||||
Income before provision for income taxes | 5,652 | 5,231 | 8.0 | % | 10,450 | 9,955 | 5.0 | % | |||||||||||
Income tax expense | 2,048 | 1,925 | 6.4 | % | 3,734 | 3,643 | 2.5 | % | |||||||||||
Net income available to common shareholders | $ | 3,604 | 3,306 | 9.0 | % | 6,716 | 6,312 | 6.4 | % | ||||||||||
Basic weighted average common shares | 6,987 | 6,302 | 10.9 | % | 6,714 | 6,287 | 6.8 | % | |||||||||||
Diluted weighted average common shares | 7,366 | 6,703 | 9.9 | % | 7,099 | 6,683 | 6.2 | % | |||||||||||
Earnings per common share – Basic | $ | 0.52 | 0.53 | (1.9 | )% | 1.00 | 1.00 | - | |||||||||||
Earnings per common share – Diluted | 0.49 | 0.49 | - | 0.95 | 0.94 | 1.1 | % | ||||||||||||
Quarter Ended | 2nd Qtr | Quarter Ended | |||||||||||||||||
June 30 | 2017-2016 | March 31 | December 31 | September 30 | |||||||||||||||
(in thousands, except per share data) | 2017 | 2016 | % Change | 2017 | 2016 | 2016 | |||||||||||||
Balance Sheet Highlights | |||||||||||||||||||
Assets | $ | 1,539,226 | 1,290,710 | 19.3 | % | 1,467,938 | 1,340,908 | 1,289,746 | |||||||||||
Investment securities | 85,410 | 90,269 | (5.4 | )% | 68,359 | 70,222 | 73,615 | ||||||||||||
Mortgage loans held for sale | 11,480 | 14,367 | (20.1 | )% | 7,452 | 7,801 | 9,126 | ||||||||||||
Loans | 1,299,829 | 1,065,496 | 22.0 | % | 1,218,680 | 1,163,644 | 1,114,099 | ||||||||||||
Allowance for loan losses | 15,444 | 14,317 | 7.9 | % | 15,287 | 14,855 | 14,478 | ||||||||||||
Other real estate owned | 428 | 1,960 | (78.2 | )% | 669 | 639 | 1,885 | ||||||||||||
Noninterest bearing deposits | 271,669 | 195,494 | 39.0 | % | 253,320 | 235,538 | 222,165 | ||||||||||||
Interest bearing deposits | 1,026,242 | 853,630 | 20.2 | % | 957,954 | 855,613 | 822,910 | ||||||||||||
Total deposits | 1,297,911 | 1,049,124 | 23.7 | % | 1,211,274 | 1,091,151 | 1,045,075 | ||||||||||||
Other borrowings | 73,200 | 115,200 | (36.5 | )% | 117,700 | 115,200 | 115,200 | ||||||||||||
Junior subordinated debentures | 13,403 | 13,403 | - | 13,403 | 13,403 | 13,403 | |||||||||||||
Tangible common equity | 142,736 | 102,403 | 39.4 | % | 113,566 | 109,872 | 106,023 | ||||||||||||
Total shareholders’ equity | 142,736 | 102,403 | 39.4 | % | 113,566 | 109,872 | 106,023 | ||||||||||||
Common Stock | |||||||||||||||||||
Book value per common share | $ | 19.52 | 16.11 | 21.2 | % | 17.53 | 17.00 | 16.61 | |||||||||||
Stock price: | |||||||||||||||||||
High | 37.05 | 25.81 | 43.5 | % | 37.20 | 36.15 | 29.21 | ||||||||||||
Low | 31.75 | 23.71 | 33.9 | % | 32.30 | 26.00 | 24.94 | ||||||||||||
Period end | 37.05 | 24.10 | 53.7 | % | 32.65 | 36.00 | 27.58 | ||||||||||||
Common shares outstanding | 7,314 | 6,355 | 15.1 | % | 6,480 | 6,464 | 6,383 | ||||||||||||
Other | |||||||||||||||||||
Loans to deposits(5) | 100.15 | % | 101.56 | % | (1.4 | )% | 100.61 | % | 106.64 | % | 106.60 | % | |||||||
Team members | 205 | 172 | 19.2 | % | 184 | 179 | 174 | ||||||||||||
Average Balances($ in thousands): | |||||||||||||||||||
Loans(5) | $ | 1,250,077 | 1,046,725 | 19.4 | % | 1,206,088 | 1,134,613 | 1,086,237 | |||||||||||
Deposits | 1,263,844 | 1,001,083 | 26.2 | % | 1,119,043 | 1,062,634 | 1,009,245 | ||||||||||||
Assets | 1,495,312 | 1,240,165 | 20.6 | % | 1,377,362 | 1,309,696 | 1,261,927 | ||||||||||||
Equity | 132,380 | 100,449 | 31.8 | % | 111,966 | 107,832 | 104,293 |
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ASSET QUALITY MEASURES - Unaudited | ||||||||||||||||
Quarter Ended | ||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
(dollars in thousands) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||
Nonperforming Assets | ||||||||||||||||
Commercial | ||||||||||||||||
Owner occupied RE | $ | 245 | 266 | 276 | 446 | 453 | ||||||||||
Non-owner occupied RE | 2,205 | 2,514 | 2,711 | 3,941 | 3,973 | |||||||||||
Construction | - | - | - | - | - | |||||||||||
Commercial business | 1,324 | 1,616 | 686 | 244 | 513 | |||||||||||
Consumer | ||||||||||||||||
Real estate | 534 | 541 | 550 | 275 | 38 | |||||||||||
Home equity | 197 | 257 | 256 | 258 | 256 | |||||||||||
Construction | - | - | - | - | - | |||||||||||
Other | 4 | 5 | 13 | - | - | |||||||||||
Nonaccruing troubled debt restructurings | 749 | 979 | 990 | 441 | 479 | |||||||||||
Total nonaccrual loans | 5,258 | 6,178 | 5,482 | 5,605 | 5,712 | |||||||||||
Other real estate owned | 428 | 669 | 639 | 1,885 | 1,960 | |||||||||||
Total nonperforming assets | $ | 5,686 | 6,847 | 6,121 | 7,490 | 7,672 | ||||||||||
Nonperforming assets as a percentage of: | ||||||||||||||||
Total assets | 0.37 | % | 0.47 | % | 0.46 | % | 0.58 | % | 0.59 | % | ||||||
Total loans | 0.44 | % | 0.56 | % | 0.53 | % | 0.67 | % | 0.72 | % | ||||||
Accruing troubled debt restructurings | $ | 6,010 | 5,795 | 5,675 | 8,761 | 8,813 | ||||||||||
Quarter Ended | ||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
(dollars in thousands) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||
Allowance for Loan Losses | ||||||||||||||||
Balance, beginning of period | $ | 15,287 | 14,855 | 14,478 | 14,317 | 13,898 | ||||||||||
Loans charged-off | (373 | ) | (190 | ) | (186 | ) | (682 | ) | (384 | ) | ||||||
Recoveries of loans previously charged-off | 30 | 122 | 288 | 18 | 228 | |||||||||||
Net loans charged-off | (343 | ) | (68 | ) | 102 | (664 | ) | (156 | ) | |||||||
Provision for loan losses | 500 | 500 | 275 | 825 | 575 | |||||||||||
Balance, end of period | $ | 15,444 | 15,287 | 14,855 | 14,478 | 14,317 | ||||||||||
Allowance for loan losses to gross loans | 1.19 | % | 1.25 | % | 1.28 | % | 1.30 | % | 1.34 | % | ||||||
Allowance for loan losses to nonaccrual loans | 293.75 | % | 247.43 | % | 270.95 | % | 258.30 | % | 250.63 | % | ||||||
Net charge-offs to average loans QTD (annualized) | 0.11 | % | 0.02 | % | (0.04 | )% | 0.24 | % | 0.06 | % | ||||||
AVERAGE YIELD/RATE - Unaudited | ||||||||||||||||
Quarter Ended | ||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||
Yield/Rate(10) | ||||||||||||||||
Interest-earning assets | ||||||||||||||||
Federal funds sold | 1.10 | % | 0.78 | % | 0.56 | % | 0.55 | % | 0.57 | % | ||||||
Investment securities, taxable | 2.02 | % | 2.06 | % | 1.88 | % | 1.76 | % | 1.99 | % | ||||||
Investment securities, nontaxable | 3.94 | % | 4.04 | % | 3.95 | % | 3.89 | % | 4.04 | % | ||||||
Loans(11) | 4.55 | % | 4.52 | % | 4.53 | % | 4.53 | % | 4.56 | % | ||||||
Total interest-earning assets | 4.21 | % | 4.34 | % | 4.31 | % | 4.30 | % | 4.30 | % | ||||||
Interest-bearing liabilities | ||||||||||||||||
NOW accounts | 0.19 | % | 0.18 | % | 0.15 | % | 0.15 | % | 0.16 | % | ||||||
Savings & money market | 0.74 | % | 0.58 | % | 0.46 | % | 0.40 | % | 0.41 | % | ||||||
Time deposits | 0.99 | % | 0.89 | % | 0.84 | % | 0.82 | % | 0.82 | % | ||||||
Total interest-bearing deposits | 0.70 | % | 0.58 | % | 0.50 | % | 0.48 | % | 0.48 | % | ||||||
FHLB advances and other borrowings | 3.87 | % | 3.28 | % | 3.44 | % | 3.19 | % | 3.33 | % | ||||||
Junior subordinated debentures | 3.32 | % | 3.15 | % | 3.03 | % | 2.82 | % | 2.76 | % | ||||||
Total interest-bearing liabilities | 0.95 | % | 0.94 | % | 0.89 | % | 0.86 | % | 0.87 | % | ||||||
Net interest spread | 3.26 | % | 3.40 | % | 3.42 | % | 3.44 | % | 3.43 | % | ||||||
Net interest income (tax equivalent) / margin | 3.49 | % | 3.61 | % | 3.63 | % | 3.63 | % | 3.62 | % |
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NONINTEREST INCOME & EXPENSE - Unaudited | |||||||||||||||
Quarter Ended | 2nd Qtr | Quarter Ended | |||||||||||||
June 30 | 2017-2016 | March 31 | December 31 | September 30 | |||||||||||
(dollars in thousands) | 2017 | 2016 | % Change | 2017 | 2016 | 2016 | |||||||||
Noninterest income | |||||||||||||||
Mortgage banking income | $ | 1,603 | 2,235 | (28.3 | )% | 1,057 | 1,152 | 2,003 | |||||||
Service fees on deposit accounts | 284 | 244 | 16.4 | % | 278 | 269 | 269 | ||||||||
Income from bank owned life insurance | 183 | 180 | 1.7 | % | 183 | 183 | 187 | ||||||||
Gain on sale of investment securities | 1 | 19 | (94.7 | )% | - | - | 106 | ||||||||
Loss on disposal of fixed assets | (50 | ) | - | n/m | - | - | - | ||||||||
Other income | 542 | 468 | 15.8 | % | 533 | 520 | 452 | ||||||||
Total noninterest income | $ | 2,563 | 3,146 | (18.5 | )% | 2,051 | 2,124 | 3,017 | |||||||
Noninterest expense | |||||||||||||||
Compensation and benefits | $ | 5,525 | 4,855 | 13.8 | % | 5,273 | 4,616 | 4,948 | |||||||
Occupancy | 1,033 | 892 | 15.8 | % | 967 | 912 | 908 | ||||||||
Other real estate owned expenses | (3 | ) | 359 | (100.8 | )% | 13 | 490 | 81 | |||||||
Data processing and related costs | 823 | 628 | 31.1 | % | 745 | 738 | 690 | ||||||||
Insurance | 297 | 217 | 36.9 | % | 289 | 284 | 227 | ||||||||
Professional fees | 382 | 284 | 34.5 | % | 313 | 344 | 326 | ||||||||
Marketing | 196 | 199 | (1.5 | )% | 210 | 181 | 195 | ||||||||
Other | 510 | 419 | 21.7 | % | 550 | 441 | 425 | ||||||||
Total noninterest expenses | $ | 8,763 | 7,853 | 11.6 | % | 8,360 | 8,006 | 7,800 |
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 based on quarterly net income. |
(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. |
(7) | June 30, 2017 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) | Annualized for the respective three month period. |
(11) | Includes 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 third largest bank headquartered in South Carolina. Southern First Bancshares has been providing financial services since 1999 and now operates in ten locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as Raleigh, North Carolina. Southern First Bancshares has assets of approximately $1.54 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.
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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 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 |
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