Southern First Bancshares, Inc. · NASDAQ:SFST
Southern First Bancshares — KBW Twelfth Annual Community Bank Investor Conference 2011
16 slides from Southern First Bancshares's conference presentation, Aug 3, 2011
Slide 1: Southern First Bancshares, Inc. (SFST) - KBW Community Bank Investor Conference
Sood FIRST Southern First Bancshares, Inc. (SFST) Art Seaver — Chief Executive Officer Justin Strickland - President KBW KEEFE, BRUYETTE & WOODS Specialists in Financial Services u TWELFTH ANNUAL COMMUNITY BANK INVESTOR CONFERENCE AUGUST 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 - $758 million in total assets (*) 7% Jargest bank headquartered in SC * Greenville SC market — 4 offices «largest banking market i
Slide 4: SFST: Investment Value
SFST: Investment Value Earnings = Momentum — Current Asset Valuation Quality | Southern \ | FIRST Leadership Core / Vision Deposits = ~ Efficient — Model
Slide 5: Earnings Momentum
Earnings Momentum Quarterly Earnings ($ 000) * Q2 earnings = $628 thousand $700 $618 — 568% increase over Q2 2010 $600 $537 a — 17% imcrease over prior quarter $500 SH, * Q2 margin = 3.28% sie $337 — 49 bp increase over Q2 2010 $300 Vi $200 ¢ YTD Net interest income up 16% g100 $18 8 compared to sam
Slide 6: Asset Quality Trends
Asset Quality Trends Q2 2011 Q2 2010 Non-performing assets / assets 1.73% 2.40% Annualized net charge-offs 36% 1.08% ALLL as a % of NPL’s 85% 68% YTD credit costs $2.4 million $3.7 million 4 OW, Non-performing Assets % 00% - | 4 consecutive | 250% 2a a quarters of 2.00% (<a ecco declining NPA’s | 1.
Slide 7: 2nd Quarter 2011 Asset Quality Ratios
2"¢ Quarter 2011 ASSET QUALITY RATIOS Net charge offs / loans Non-performing assets / assets Non-performing loans / loans ALLL / loans ALLL Coverage / Non- performing loans * FDIC — March 2011 ** SNL March 2011 Southern First 1.54% 5.38% 5.51% 2.19% 39.8%
Slide 8: Loan Portfolio Mix: June 2011
a, ey ans Loan Portfolio Mix: June 2011 * Construction / Development = only 3% of portfolio Consumer Consumer 2% Real Estate Business 10% 19% Consumer HELOC Construction/ 14% Development 3% Non Owner Occupied CRE 28% Owner Occupied CRE 25%
Slide 9: Core Deposits / Strong Client Growth
Core Deposits / Strong Client Growth * $159 million growth in retail deposits in last 18 months — 46% growth in retail deposits — 81% growth in transaction account balances ¢ $104 million in new client transaction accounts in last 18 months Retail Deposits ($ mil) Transaction Accounts ($ mil) $550 $
Slide 10: Corporate Model: Sustainable Efficiencies
Corporate Model: Sustainable Efficiencies Clhent |IRST Assets / Employee (Smil) » Targeted Focus © Relationship Team sro a Structure $6.0 » Drives client growth $5.0 $42 » Provides superior client so | service “| . $2.0 » Produces sustainable $1.0 | | efficiencies $0.0 - __ » Highly Experienced Team
Slide 11: Leadership / Vision
4 Leadership / Vision: os ¢ Leadership Team: ¢ Deep market experience and community involvement * Relationship builders * Proven ability to outperform peers ¢ Depth of risk management * Competitive and enthusiastic * Vision * Grow deep client relationships ¢ Be unique and generate long term value AP
Slide 12: SFST: Market Valuation
ST: Market Valuation P| une 30,2010 | June 30,2011 | Stock Price $6.59 $8.50 SFST Book Value $12.94 $13.25 Price / Book Value 51% 64% Southern First Bancshares, Inc. - Price Change (%) —sest 29.05% Kew Bank (04.77%) 49 Price Change (%)
Slide 13: 2011 Focused Game Plan
2011 Focused Game Plan: * Lower credit costs and nonperforming assets * Preserve sound capital ratios ¢ Improve margin and generate earnings momentum * Continue momentum in client growth and retail deposits * Lower regulatory risk profile * Create unforgettable client experiences * Communicate the S
Slide 14: Strategic Vision — The Road Ahead
ws Ad aye Strategic Vision — The Road Ahead Banking Landscape Changing rapidly and permanently Strategic Focus Create a distinguishing value for the client Intense focus on asset quality and risk management Build a talented team recognized for market experience, depth of risk management and ability
Slide 15: Strategic Vision — The Road Ahead: Growth and Capital Plan
Strategic Vision — The Road Ahead ws Ad aye Growth Plan * Proven ability to grow organically * Continue momentum in client growth and core deposits * Banker acquisition / market disruption * Strategic opportunities — Industry consolidation Capital Plan ¢ TARP repayment — Timing / dilution of additio
Slide 16: SFST: Investment Value
SFST: Investment Value Earnings = Momentum — Current Asset Valuation Quality | Southern \ | FIRST Leadership Core / Vision Deposits = ~ Efficient — Model
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