Southern First Bancshares, Inc. · NASDAQ:SFST
Southern First Bancshares — Shareholder Meeting (May 2024)
15 slides from Southern First Bancshares's shareholder meeting presentation, May 21, 2024
Slide 1: Annual Shareholder Meeting
NN XXXZZ Southern ANNUAL SHAREHOLDER MEETING May 21, 2024 VIECOS OOOO WN
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS During the course of this presentation, management may make projections and forward- looking statements regarding events or the future financial performance of Southern First Bancshares, Inc. We wish to caution you that these forward-looking statements involve certain risk
Slide 3: Corporate Profile: SFST (NASDAQ)
Corporate Profile: SFST (NASDAQ) Headquartered in Greenville, SC 24 years old - 2000 de novo om, As of December 31, 2023 r Total Assets illion é Common Shares Outstanding 8.1 Million j, Book Value Per Common Share $38.63 Southern First Markets: Greenville SC 200 Columbia, SC 2007 Charleston,SC 2012
Slide 4: 2023 Year-End Highlights
2023 Year-End Highlights GROWTH & FINANCIAL PERFORMANCE 2023 Net income $13.4 million Earnings per share (diluted) $1.66 Book value $38.63 15% Deposit growth $246 million 18% Loan growth $329 million 110% Net charge-offs 0.0%
Slide 5: 2022-2024 Industry Environment
2022 -2024 Industry Environment Federal Reserve begins increasing rates to fight historically high inflation * 525 basis points from March 2022 - July 2023 + Highest and fastest rate increase in over 40 years + Fed has pulled over $1 trillion in liquidity from the system Increasing deposit costs red
Slide 6: Recent Inflation Trend Reflects the Ongoing Battle
Recent Inflation Trend Reflects the Ongoing Battle 6.00% 4.00% wll alata os 2020 2022 2024
Slide 7: The Most Aggressive Tightening Cycle in Decades
The Most Aggressive The Battle to Tame Inflation Tightening Cycle in Decades Changes in the federal funds target rate * Unprecedented action by the Fed in past tightening cycles (in percentage points) * Utilizing monetary policy to slow = 1983 = 1988 = 1994 = 1999 = 2004 = 2015 = 2022 economy 6.00 +
Slide 8: Impact of Fed Actions on Inflation
Impact of Fed Actions on Inflation -- Inflation -- Fed Funds rate + Monetary policy is working + Inflation reduced from 9% to 3% * Current inflation is bumpy
Slide 9: Regional bank shares vs the US stock market
Regional bank shares vs the US stock market Ine year after the SVB troubles emerged, regional bank stocks broadly have yet to catch up SeP 500 bor 10 sup 500 banks index ° -0 Kew Regional -20 Banking index “20 Feb. March April May June July Aug Sept. Oct, Now Dee. Jan. 2023 2024 Bource: SEG data | G
Slide 10: Q1 2024 Results
Q1 2024 RESULTS Net income of $2.5 million » $0.31 diluted EPS Deposit growth of $81 million Loan growth of $41 million Book value increased 4% since Q1 2023 - $38.65 as of Q1 2024 Margin increased Superb asset quality Capital accretion - solid capital strength
Slide 11: SFST Strategic Initiatives
SFST Strategic Initiatives Wisely manage the storm - well positioned when the Fed pivots Continue demonstrated excellence in managing credit risk Improve margin * Loan yields should continue increasing * Deposit costs seem to have peaked Manage capital Invest in the client experience / continue recr
Slide 12: SFST Strategic Initiatives
SFST Strategic Initiatives * Improve margin - loan yield expectations: * New loan yields exceed 8.00% * Almost $1 billion of fixed rate portfolio with yields less than 5.00% will be reinvested at current rates before end of 2027 * Maturities, amortizations, payoffs * Represents approximately 40% of
Slide 13: SFST - Focused on growing shareholder value
SFST - Focused on growing shareholder value Growth Performance Model Organic strength in arning Technology/highly a efficient st Markets Attractive markets in SC, NC, & GA Leadership Performance driven
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Slide 15: Addendum: SFST Governance / Executive Compensation
Addendum: SFST Governance / Executive Compensation fon Committee tominating £0 . 4 Board Ci Board declassification process continuing Board-approved Clawback Policy covers Executive Officers Change-in-control agreements modified * Clarified “good reason” definition Updated insider trading policy - p
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