Southern First Bancshares, Inc. · NASDAQ:SFST
Southern First Bancshares — Q4 2023 Earnings Presentation
25 slides from Southern First Bancshares's earnings presentation, Jan 18, 2024
Slide 1: 2023 Results
Southern 2023 RESULTS January 18, 2024 VTS SECA EC CLEC
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: Our Philosophy
OUR PHILOSOPHY En 920 Our Mission Our Purpose Our Culture Our mission is to impact We exist to enable We focus on the things that lives in the communities dreams, earn trust, and matter most: family, we serve. exceed expectations. community, and teamwork.
Slide 4: Investment Thesis
INVESTMENT THESIS
Slide 5: Corporate Profile
CORPORATE PROFILE RAYMOND JAMES*® Community Bankers Cup Greensboro pon Raleigh NORTH CAROLINA PIPER|SANDLER % sours 2022 SM-ALL STARS Greenville CAROLINA Columbia 4 Atlanta Summerville % Charleston. _ é SOUTHERN FIRST MARKETS RANKING BANKING Greenville, SC 2000 GEORGIA Columbia, SC 2007 Charleston,
Slide 6: High-Growth Markets
6 HIGH-GROWTH MARKETS GDP Growth 2020-2021 7.6% 8.0% 2,0% oo ai “1 a - FS CF SF SF SF ES s & X x Ss se & Ss & PF gt & e Employment Growth 2020-2022 14.4% 11.5% a in | 1% 3.7% — RS a s & £ RS a SS a es & SF & SS & os ra . Source: U.S. Census, U.S. Bureau of Labor Statistics, National Association of R
Slide 7: High-Growth Markets
HIGH-GROWTH MARKETS Market Rank Greenville-Anderson, SC Charleston-North Charleston, SC Atlanta-Sandy Springs-Alpharetta, GA. Columbia, SC Raleigh-Cary, NC Greensboro-High Point, NC Charlotte-Concord-Gastonia, NC-SC Deposits in Market ($M) $1,385,520 $596,581 $338,687 $316,055 $159,423 $76,718 $17,9
Slide 8: Executive Team
EXECUTIVE TEAM Art Seaver Chief Executive Officer Art is the Founder and CEO of Southern First. After raising $11.5 million in initial equity, the bank opened in early 2000 with a focus on the client experience, growing organically, and recruiting passionate bankers with an entrepreneurial spirit an
Slide 9: Executive Team
EXECUTIVE TEAM Will Aiken Chief Risk Officer Will joined Southern First in 2020 after 10 years at South State Bank, also in Greenville, SC. He has over 25 years of experience in banking. Prior to specializing in credit for the past 16 years, Will spent 10 years as a commercial banker, giving him a u
Slide 10: Highlights
HIGHLIGHTS » Net income was $4.2 million and diluted earnings per common share were $0.51 for Q4 2023 * Book value per common share increased to $38.63 at Q4 2023, or 5%, over Q4 2022 * Total loans increased 5% (annualized) to $3.6 billion at Q4 2023, compared to Q3 2023 and increased 10%, from $3.3
Slide 11: Proactive Balance Sheet Management
PROACTIVE BALANCE SHEET MANAGEMENT « We continued to balance current earnings decisions with long term balance sheet management considerations: Increased the percentage of variable rate loans to total loan production Modestly reduced reliance on higher cost municipal deposits Consistently optimized
Slide 12: Loans & Deposits
Millions 12 LOANS & DEPOSITS Total Loans $3,800 $3,600 $3.54 B $3.55 $3.42B $3,400 $3.27B $3,200 $3.03 B #000 $2.85 B $2,800 g> 66g $2,600 $2,400 $2,200 $2,000 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 p $3.60 B *Total loans excludes mortgage loans held for sale. $3,600 $3,400
Slide 13: Loan & Deposit Yields
5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 13 LOAN & DEPOSIT YIELDS Total Loans 4.86% 425% 4.69% 4.47% 4.25% 4.01% 3.77% 382% : Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 *Total loans excludes mortgage loans held for sale. 4.50% 4,00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.0
Slide 14: Loan Composition
LOAN COMPOSITION Q4 2022 Construction Other Hone eduity 1% Owner Con occupied RE 19% Real estate 29% Total Loans $3.27 Billion Non-owner occupied RE 26% Business | \ 14% — Construction = Commercial, 63% = ™| Consumer, 37% 14 *Total loans excludes mortgage loans held for sale. Q4 2023 Construction Ot
Slide 15: Total Office Credit Exposure
TOTAL OFFICE CREDIT EXPOSURE Total Credit Exposure by Market $74,458 Total Credit Exposure by Office Type $20,256 $52,528 $178,546 $163,891 = Medical Office , = Office - Multiple Tenant = Office - Single Tenant $117,253 Retail/Office with Residential $184,917 15 *Number in thousands ROG
Slide 16: Total Office Credit Exposure
TOTAL OFFICE CREDIT EXPOSURE Total Credit Exposure by Office Type: Owner Occupied $13,468 = Medical Office = Office - Multiple Tenant = Office - Single Tenant Retail/Office with Residential $51,188 16 *Number in thousands Total Credit Exposure by Office Type: Non-Owner Occupied $6,788 $38,796 = Medi
Slide 17: Loan Summary
LOAN SUMMARY Total Number of Office Loans Loans by Collateral Type aT WAVG LTV Loans Maturing before January-25 i Medical Office-Dr/Dent/Opt/etc. 139 200,878,065, 72% 508,407 49% Office Bldg-Multiple Tenant 144 $ 184,916,589 61% 6 $ 6,150,220 38% Office Bldg-Single Tenant 258 = $ 163,891,304 68% 18
Slide 18: Deposit Composition
DEPOSIT COMPOSITION Q4 2022 Q4 2023 Wholesale CDs 8% Wholesale CDs Retail CDs 7% Savings 1% Total Deposits $3.13 Billion 11% Checking 36% Retail CDs Checking 11% 29% Savings 1% Total Deposits $3.38 Billion Money Market Money Market, 48%
Slide 19: New Account Openings
2,500 2,000 1,500 1,000 500 1,502 Q1 2022 NEW ACCOUNT OPENINGS 2,252 1,892 1,758 1,622 1,553 1,300 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 1,240 Q4 2023 Ww Mae, KN Ne
Slide 20: Tangible Book Value Per Share
20 YE 2016 TANGIBLE BOOK VALUE PER SHARE $23.29 $20.37 | YE 2017 YE 2018 YE 2019 YE 2020 YE 2021 YE 2022 YE 2023
Slide 21: Asset Quality
ASSET QUALITY Net charge-offs (recoveries)/average Loans 30 days or more past due/loans* 0.40% 0.37% loans* (YTD Annualized) 0.04% 0.08% 0.30% 0.00% 0.20% 0.13% 5 904 0.11% 0.11% 0.1 0.10% 0.07% 0.07% -0,04% 0.00% -0.08% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 22: Capital Ratios
CAPITAL RATIOS Holding Company Capital Ratios: Q4 2023 03/2023 (OZ 2023 01/2023 Q4 2022 Total risk-based capital ratio 12.56% 12.56% 12.40% 12.67% 12.91% Tier 1 risk-based capital ratio 10.59% 10.58% 10.42% 10.66% 10.88% Leverage ratio 8.14% 8.17% 8.48% 8.80% 9.17% Common equity tier 1 ratio 10.18%
Slide 23: Consistently optimizing loan, deposit, and wholesale pricing
23 Consistently optimizing loan, deposit, and wholesale pricing Ongoing conversations with top performers in existing markets in preparation for a more normalized environment Staying consistent to our philosophy of relationship banking and organic growth
Slide 24: Our Culture of Success
OUR CULTURE OF SUCCESS Relationship driven with a focus on star talent Embrace technology and the evolution of our industry Committed to organic growth versus M&A Superb at managing risk - credit risk and enterprise risks Highly efficient delivery - branch light footprint Located in larger higher-gr
Slide 25: Southern
Southern VTS SECA EC CLEC
Southern First Bancshares — Q4 2023 Earnings Presentation on 6ix