Southern First Bancshares, Inc. · NASDAQ:SFST
Southern First Bancshares — Investor Presentation (November 2012)
19 slides from Southern First Bancshares's investor presentation, Nov 6, 2012
Slide 1: Southern First Bancshares, Inc. (SFST) Investor Presentation
Sova FIRST Southern First Bancshares, Inc. (SFST) Art Seaver — Chief Executive Officer Justin Strickland — President Investor Presentation November 6" — 7', 2012
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 ris
Slide 3: Headquartered in Greenville SC
Headquartered in Greenville SC ¢ 121 total employees $780 million in total assets (*) + 9th largest bank headquartered in SC Greenville SC market — 4 offices * largest banking market in SC ¢ #6 market share out of 34 banks (**) Columbia SC market — 2 offices ¢ 24 Jargest banking market in SC * surpa
Slide 4: Recent Strategic Accomplishments
es Sih NYY y Recent Strategic Accomplishments: Exited TARP with successful US Treasury auction in June 2012 Partially redeemed $1 million of TARP preferred stock during auction Retired warrants associated with TARP Announced strategic expansion to Charleston SC market ml ie Sor, LSVU FIRST
Slide 5: SFST: Why Charleston?
we i »)y x AY) N SFST: Why Charleston? Charleston County Market Share June 2012 June 2010 No. of Deposits Market Market Deposits Market Offices $0 Share $0 Share $0 Share Institution Name ELLS FARGO BANK 20) 1,785,089, 22.94% 1,899,069 24.79% 2,201,827| 27.73% IFIRST FEDERAL 22| 1,190,386 15.30% 1,2
Slide 6: SFST: Investment Profile
SFST: Investment Profile - - 1 NYY we DX yy y) NYY yy y NYY Performance Superb asset quality / strong earnings momentum Model Proven organic growth / excellent efficiency Leadership Market experience / performance driven Valuation 74% TBV / exited TARP and retired warrants ml IA So LALA TU FIRST
Slide 7: Q3 2012 Performance Highlights
ae Cho Q3 2012 Performance Highlights: Q3 net income increased 153% to $1.2 million Net interest margin increased to 3.72% compared to 3.36% in Q3 2011 Loan balances have increased $47 million or 8% since Q3 2011 Nonperforming assets improved to 1.43% Vi Southern FIRST
Slide 8: Performance: Asset Quality
Performance ae, J) tN Superb asset quality / strong earnings momentum Southern All SC Southern First Banks First YE 2011 YE 2011 Sep 2012 ASSET QUALITY Net charge offs / 81% 1.79% 71% loans Non performing 1.82% 5.20% 1.43% assets / assets ALLL coverage of 87% 42% 100% non-performing loans FDIC data
Slide 9: Performance: Loan Portfolio Composition
Performance Superb asset quality / strong earnings momentum Consumer Consumer 1% Real Estate Business 13% 17% Consumer HELOC Construction / 12% 4% Consumer Construction 2% Non Owner Occupied CRE Owner Occupied 25% Sep 2012 data FIRST
Slide 10: Performance: Revenue and Net Earnings
Performance Superb asset quality / strong earnings momentum * Revenue growing Net Earnings — Net interest income up 12% YTD 2012 — 8% loan growth in last year ¢ Margin expanding — 3.72% for Q3 2012 vs. 3.36% in 2011 ¢ Fee income increasing — Up 19% in 2011 — Up 35% thru Q3 2012 $1,226 $1,200 $1,000
Slide 11: Model
Model Proven organic growth / excellent efficiency ¢ Focus — Professional target ~-r |e Structure — Relationship team ¢ Bankers — Provide a superior client experience ¢ Culture — Consistent / low turnover Southern FIRST
Slide 12: Model: Retail Deposits and Loan Balances
Model Proven organic growth / excellent efficiency Retail Deposits ($ mil) Loan Balances ($ mil) $600 $650 $638 $561 $550 $517 $625 $598 $502 $600 $500 $458 $575 $450 $550 $400 1 1 1 $525 1 1 1 Dec Sep Dec Sep Dec Sep Dec Sep 10 ‘ll 'll '12 10 "ll 11 12 Southern N
Slide 13: Model: Efficiency Ratio and Assets per Employee
Model Proven organic growth / excellent efficiency Efficiency Ratio Assets / Employee ($ mil) 75% 70% 65% 62% 62% 60% 55% 50% Sep Dec Dec 10 "1 11 12 Sep 88 $6.5 $7 $6 $5 $4.1 $4 $3 $2 1 Southern SC Banks (1) First (1) FDIC June 2012 13
Slide 14: Leadership
Leadership Market experience / performance driven Greenville Art Seaver, CEO 26 years Fred Gilmer, EVP 25 years Columbi Mike Dowling, CFO 18 years ie" Mike Strickland, EVP 25 years Justin Strickland, President Charleston 26 years Len Howell, EVP 20 years Souther FIRST
Slide 15: Performance, Model, Leadership, Valuation Summary
Performance | ¢ Superb asset quality ¢ Strong earnings momentum * Growing margin ¢ Increasing fee income SFST currently trades at 74% of tangible book value | Valuation 74% TBV/ exited TARP and retired warrants r Model Leadership | Team Unique * Deep focus market Solid loan knowledge growth * Commun
Slide 16: SFST: Current Focus
SFST: Current Focus Improve core earnings strength Grow revenue and margin / lower credit costs Execute growth strategies Organic markets / Charleston expansion Monitor our capital plan Payoff additional preferred shares from earnings Strengthen infrastructure Service capabilities / risk management
Slide 17: SFST: Capital Structure — Q3 2012
SFST: Capital Structure — Q3 2012 ($ 000) $100,000 $82.9 million of Total Capital $80,000 wonnnnea Total Risk Based Capital — 12.98% $74 .9 million of Tier 1 Capital Tier 1 Risk Based - 11.73% Tier 1 Leverage - 9.75% Tier 1 Common - 6.02% $60,000 $40,000 m= Allowable Loan Loss Reserve = Tier 1 TRUPS
Slide 18: SFST: Capital Plan
SFST: Capital Plan $100,000 « Manage growth to maintain strong $80,000 $7,995 regulatory capital ratios “Wierd * Continue earnings momentum — ler ° : $74.9 M generate strong internal capital $60,000 - ¢ Target additional preferred share repayments from earnings $40,000 ¢ Continue dialog with new pre
Slide 19: South Carolina
South Carolina Sow SF FI wh Performance — Outperforming peers with excellent momentum Model — Organic growth with unique efficiencies Leadership — Market experience and performance reputation Valuation — 74% of TBV
Southern First Bancshares — Investor Presentation (November 2012) on 6ix