Southern First Bancshares, Inc. · NASDAQ:SFST
Southern First Bancshares — KBW Carolina Bank Conference 2011
15 slides from Southern First Bancshares's conference presentation, Nov 15, 2011
Slide 1: Southern First Bancshares, Inc. (SFST) - KBW Carolina Bank Conference
A FIRST Southern First Bancshares, Inc. (SFST) Art Seaver — Chief Executive Officer Justin Strickland — President Mike Dowling — Chief Financial Officer KBW KEEFE, BRUYETTE & WOODS Specialists in Financial Services KBW Carolina Bank Conference Tuesday November 15, 2011
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: Southern First Bancshares — Corporate Profile
Southern First Bancshares — Corporate Profile 4 7 ua aoe *Charlotte NC =z) Greenville =\— peal? S “lp SC # Atianta B Columbia ¢ Established in 2000— Greenville, SC GA 4 - $758 million in total assets (*) 7% Jargest bank headquartered in SC * Greenville SC market — 4 offices «largest banking market i
Slide 4: SFST: Investment Profile
SFST: Investment Profile z Superior Asset Quality ), y y y Growing Client Relationships ay y Earnings Momentum HS) Ks Leadership Team Unique / Efficient Model ) y NY y Stable / Growing Markets n= Sou | Hern FIRST
Slide 5: Superior Asset Quality
: Superior Asset Quality Q3 2011 Highlights: + NPA’s = 1.65% + 5 straight improving quarters * Charge-offs = .62% YTD + ALLL covers 95% of NPL’s * YTD credit costs down 18% a}- —~ Sou CELL FIRST Non-performing Assets % 3.00% - 2.50% --2.40% 224% 2.03% 4 HOR. 1.95% ; 1.73% 1.50% 4 1.65% 1.00% + Jun S
Slide 6: NPA Trend Analysis
NPA Trend Analysis: NPA Composite: ($ mil) * Bank has total of 10 OREO properties as of Q3 2011 ~ $16.7 $18 $16 $14 7 $12 $10 $8) 96 /~ $4 $2 $0 $14.9 $14.9 $13.1 $12.5 $ = NPL's $ ~ OREO Sep 'l10 Dec '10 Mar '11 Jun '11 Sep'11
Slide 7: Construction / Development only 3% of portfolio
* Construction / Development = only 3% of portfolio Consumer Consumer 2% Real Estate Business 9% 21% Consumer HELOC Construction/ 19% Development 3% Non Owner Occupied CRE 24% Owner Occupied CRE 22% Ni LSU FIRST 7
Slide 8: Growing Client Relationships
z Growing Client Relationships Q3 2011 Highlights: * $13.1 million in loan growth ° 32% increase in new transaction accounts + Retail deposits increased $59 million YTD — 17.5% annualized growth rate * Columbia deposits now exceed $140 million — 2 offices Ni Sou TERME FIRST Retail Deposits ($ mil) $
Slide 9: Earnings Momentum
ia : z Earnings Momentum Quarterly Net income ($ 000) * Q3 Net income = $483 thousand (Pre tax./pre-provision)”* * 43% increase over Q3 2010 $2,400 $2,345 * YTD Net income up 266% $2,200 7 compared to same period 2010 8000 ye 3 $1,800 * Q3 margin = 3.36% Sas W. * 36 bps increase over Q3 2010 > —F1.
Slide 10: Leadership Team / Unique / Efficient Model
| L eadership Team + Significant market experience * Community involvement and reputation * Relationship builders * Proven ability to outperform peers | U nique / Efficient Model « od _ wocT Assets $6.0 Lent IRS ii per Southern FIRST $8.0 5 Employee $40 (Smil) $2.0 $0.0 $7.0) $4.2) Southern SC Banks
Slide 11: Vision & Focus: Improve core earnings strength
Vision & Focus 4 Improve core earnings strength * Continue lowering credit costs and NPA’s ¢ Drive margin improvement * Protect asset yields ¢ Lower funding costs o $195 million in CD’s mature in the next year o 70+ bps cost savings ste Southern FIRST
Slide 12: Vision & Focus: Execute growth strategies
Vision & Focus 4 Execute growth strategies * Organic growth * Loan growth momentum is expanding * Core deposit and market share growth * Banker acquisition strategy ¢ Market expansion opportunities * Strategic opportunities * Well positioned for future opportunities eer Chent@IRST.
Slide 13: Vision & Focus: Monitor our capital plan
Vision & Focus 2 Monitor our capital plan: * TARP dividend increases in 2014 * Current capital is sufficient for current organic growth plan * Internally generated capital is expanding quickly * Valuation / dilution ste Southern FIRST
Slide 14: Vision & Focus
Vision & Focus a Lower regulatory risk profile & 3 strengthen infrastructure: * Create unforgettable client experiences ¢ Risk management systems * Credit underwriting / post funding monitoring * Learn lessons / keep focus * Prepare for future opportunities ste Southern FIRST
Slide 15: SFST: Investment Profile
SFST: Investment Profile z Superior Asset Quality ), y y y Growing Client Relationships ay y Earnings Momentum HS) Ks Leadership Team Unique / Efficient Model ) y NY y Stable / Growing Markets n= Sou | Hern FIRST
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