Southern First Bancshares, Inc. · NASDAQ:SFST
Southern First Bancshares — Shareholder Meeting (May 2012)
17 slides from Southern First Bancshares's shareholder meeting presentation, May 16, 2012
Slide 1: Annual Shareholders Meeting May 15, 2012
Southern First Bancshares, Inc. Ip Annual Shareholders Meeting Ip = May 15", 2012 = Southern Greeti
Slide 2: Forward Looking Statements
yD »Y f\, My ¥, Y \ N 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 statemen
Slide 3: Southern First Bancshares — Corporate Profile
dy y " Southern First Bancshares — Corporate Profile tt a ?) apy oe * Charlotte NC me ." Greenville Ss o “ele sc # Atlanta A “ Columbia * Greenville First Bank opened in 2000 GA a wr ¢ $770 million in total assets (1) 9th largest bank headquartered in SC °$608 million in total net loans °$567 millio
Slide 4: Southern First (SFST): Investment Value
x7 4 Southern First (SFST): Investment Value ** The market is beginning to reward our performance ** SFST — 32.3% KBW Bank — 24.0% S&P 500 — 11.6% o a c a = 6) o ° = a
Slide 5: 2011 Accomplishments
2011 Accomplishments: - Earnings increased 135% to $2.1 million dy Y ity =a DD nn dy ) NYY N Da »)Y tity dy Y itt dy y tity Net interest margin improved 33 basis points to 3.36% Core deposit balances increased 16% Loans increased by over $26 million Nonperforming assets improved to 1.82% Stock price
Slide 6: 2011 Accomplishments: Earnings Momentum
2011 Accomplishments: Earnings Momentum ¢ Solid revenue growth ¢ Significant margin expansion * Reducing credit costs remains the key to solid profitability * Overhead expenses remain well below peer levels ($ thousands) 2011 2010 % increase Net interest income $23,288 $20,212 15.2% Provision expens
Slide 7: 2011 Accomplishments: Client / Deposit Growth
7 . . BB 2011 Accomplishments: Client / Deposit Growth * $67 million in total retail deposit growth ¢ 19% increase in core transaction accounts ¢ $47 million in new client transaction accounts Retail Deposits ($ mil) Transaction Accounts ($ mil) $525 $350 $500 - $325 - $475 - $300 - $450 - $275 - $4
Slide 8: Comparable Performance — FDIC bank data
de to y EARNINGS Return on avg. assets Return on avg. equity ASSET QUALITY Net charge offs / loans Non performing assets / assets ALLL coverage of non- performing loans EFFICIENCY Assets per employee 33% 3.46% 81% 1.82% 86.96% $6.90 mil a Comparable Performance — FDIC bank data 2011 year-end data So
Slide 9: 2012 Focused Game Plan: Earnings Plan
2012 Focused Game Plan: ¢ Earnings Plan ¢ Grow revenue — Margin expansion should continue — Growth in noninterest income ¢ Lower credit costs — Continue improvement in nonperforming assets ¢ Maintain overhead efficiencies * Generate earnings momentum
Slide 10: Earnings Plan — Grow Revenue
Earnings Plan — Grow Revenue (S$ thousands) °Q1 2012 revenue up 17% over Q1 2011 $2,600 $2,400 — = iad... : Ce ] —_)—- a -f- Other Income $2,000 jj —_———_|]- mi 2-9 --f- iT " lil vatthnaccatttt = Net $1,800 mm i j—)— HH SSC teen e eee en Interest | | | nl Income $1,600 rae Hi I-18 -]--1-]--]--1-)--)
Slide 11: 2012 Focused Game Plan: Capital Plan
2012 Focused Game Plan: ¢ Capital Plan: ¢ Manage balance sheet growth ¢ Preserve sound capital ratios * Generate internal capital through earnings * Develop TARP repayment plan — Timing and dilution are critical considerations — Monitor TARP auctions by US Treasury — Begin partial repayment through
Slide 12: 2012 Focused Game Plan: Growth Plan
¥ 2012 Focused Game Plan: ¢ Growth Plan: * Existing capital levels and earnings enable growth * Continue growing core deposit market share — Intense focus on the client experience Chent-IRST ¢ Expand Columbia footprint with Forest Drive office ¢ Strong loan pipeline and market reputation ¢ Banker ac
Slide 13: Greenville County Market Share — June 2011
Greenville County Market Share — June 2011 // 23 Others, 15% SCBT 2% Da ™~ GREER STATE ~ I~ WELLS FARGO BANK 3% » . 31% FIRST CITIZENS / <= »—, 3% =. PALMETTO BANK 3% SUNTRUST 4% BANK OF AMERICA 12% SOUTHERN FIRST 4% BANK OF T.R. 4% TD BANK o 7% BB&T 11%
Slide 14: 2012 Focused Game Plan: Communication Plan
2012 Focused Game Plan: ¢ Communication Plan: ¢ Capital markets becoming more receptive to banking industry ¢ Proactive communication of the Southern First story — 10% stock dividend favorably received by investors — Performance versus peer banks — Earnings momentum — Attractive valuation
Slide 15: 2012 Focused Game Plan: 1st Quarter Results
¥ 2012 Focused Game Plan: 1*t Quarter Results Q1 Results: Earnings : (before TARP expenses) Net interest margin: Nonperforming assets / assets: Net charge-offs / loans: Core deposits: Gross Loans: Tangible common equity %: Book value per share: 2012 $688 thousand 3.45% 1.79% 62% $430 million $608 mi
Slide 16: Strategic Vision — The Road Ahead
a Strategic Vision — The Road Ahead Our Vision — One Chance / One Step: Create a distinguishing value for the client Client | RST Develop an earnings engine that creates value for our owners Maintain an intense focus on asset quality and risk management Build a talented team recognized for market ex
Slide 17: SFST: Investment Value
SFST: Investment Value Earnings Momentum Attractive Unique Valuation Model Souther Tl FIRST Leadership Asset Depth Quality Core Deposits
Southern First Bancshares — Shareholder Meeting (May 2012) on 6ix