Southern First Bancshares, Inc. · NASDAQ:SFST
Southern First Bancshares — Q2 2023 Earnings Presentation
25 slides from Southern First Bancshares's earnings presentation, Jul 25, 2023
Slide 1: Second Quarter Results 2023
NN XXX XO KZ Southern SECOND QUARTER RESULTS 2023 July 25, 2023 VISE OOO
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 Mission
e Our Mission Our mission is to impact lives in the communities we serve. OUR PHILOSOPHY Our Purpose We exist to enable dreams, earn trust, and exceed expectations. O 929 Our Culture We focus on the things that matter most: family, community, and teamwork. rf
Slide 4: Investment Thesis
INVESTMENT THESIS
Slide 5: Corporate Profile
CORPORATE PROFILE Community Bankers Cup PIPER | SANDLER fj 2022 SM-ALL STARS RANKING BANKING. SOUTHERN FIRST MARKETS. 2000 enville, SC Columbia, SC 2007 teston, SC leigh, NC 2016 Atlanta, GA 2017 Summervile,sC 2018 Greensboro.NC 2018 Charlotte, NC 2021 ¥
Slide 6: High-Growth Markets
HIGH-GROWTH MARKETS GDP Growth 2020-2021 Triiiri ie LIL CESS? Employment Growth 202020: sce LILCE LE? Population Growth 3.9% 3.6% ‘oni = eo os PS ra a FS . . LIS SLPS Inbound Move Rate ‘ors a am HON ae saon 5408 |_| | | | | | a i a aoe
Slide 7: Executive Team
EXECUTIVE TEAM BB
Slide 8: Executive Team
EXECUTIVE TEAM Will Aiken Dave Favela Silvia King
Slide 9: Highlights
HIGHLIGHTS + Net income was $2.5 million and diluted earnings per common share were $0.31 for Q2 2023 + Total deposits increased 20% to $3.4 billion at Q2 2023 vs. $2.9 billion at Q2 2022 + Total loans increased 24% to $3.5 billion at Q2 2023 vs. $2.8 billion at Q2 2022 ion in Q2 2023 vs. $145 milli
Slide 10: Proactive Balance Sheet Management
PROACTIVE BALANCE SHEET MANAGEMENT + SST remains liability sensitive, however we actively reduced rates up risk through: = multiple FHLB {$150 milion at an averagi 3.3%, with an average life of 2.5-3yrs; April and May execution Executed a p. p increasing fair value on $200 million of 1-4 family mort
Slide 11: Loans & Deposits
LOANS & DEPOSITS Total Loans Total Deposits 53600 $3.49053.458 $3400 $3200 ae $300 BSc sare z $2200 ane 52.600 S250. 52436 $2400 2200 2000 a a @ a3 a a a @ oF mai 20 722 202 22 2 WA 2023 wet 20a m2 a2 M2 2 22 203
Slide 12: Loan & Deposit Yields
LOAN & DEPOSIT YIELDS Total Loans 450% “ame 400% 359% -_ BER a7q 382% 350% 300% 250% a a 3 mo @ oar 001 azz zzz 222002 2003. 2023 Total Deposits @ a og a 8 og a ee 20r1 2021 2022 202 202 222 223-20
Slide 13: Loan Composition
LOAN COMPOSITION Q2.2022 Q2.2023 Total Loans $3.53 Billion Total Loans $2.84 Billion = Commercial, 62% Consumer, 38% ¥
Slide 14: Total Office Credit Exposure
TOTAL OFFICE CREDIT EXPOSURE Total Credit Exposure by Market Total Credit Exposure by Office Type s19.4s3
Slide 15: Total Office Credit Exposure
TOTAL OFFICE CREDIT EXPOSURE Total Credit Exposure by Office Type: Total Credit Exposure by Office Type: wner Occupie Non-Owner Occupied s13521 55.983 = Medical office 1 Medical office = Office - Multiple Tenant Retaivoie wth Residential RetalvOtie with Residential, _— r
Slide 16: Loan Summary
LOAN SUMMARY
Slide 17: Deposit Composition
DEPOSIT COMPOSITION 92.2023 bay’ cmos Total Deposits $2.87 Billion Total Deposits $3.43 Billion
Slide 18: Deposit / Funding Details
DEPOSIT / FUNDING DETAILS The strategic direction during 2Q 2023 was to use term and structure to minimize costs over the next 12-18 months, while providing a bridge away from recent industry dynamics ‘Two large accounts were responsible for approximately $50 million of decline in transaction accoun
Slide 19: New Account Openings
2.500 1492 932021 NEW ACCOUNT OPENINGS 1.622 1,502 | 2021 an202 22022 1,992 93.2022 1,553 Q¢2022 2,282 12023 1,758 22.2023
Slide 20: Tangible Book Value Per Share
TANGIBLE BOOK VALUE PER SHARE $20.37 $17.00 1 Ye2016 YEa017~«—=«YEOIB«=«=«YE2OI9.«=«YE000«=«YEO2 «EO 2M03, %
Slide 21: Asset Quality
ASSET QUALITY Loans 30 days or more past due/loans* 013% 1196 011% 210% gory 01% ON Moore 0.08% 3921 4921 1922 2022 3922 4922 1023 2023 ‘Net charge-offs (recoveriesyvaverage loans* (YTD Annualized) 0.06% 3921 4921 1922 2922 3922 4922 1023 2023 Classified allowance for loan losses 3021 4021 1922 2022
Slide 22: Capital Ratios
CAPITAL RATIOS Holding Company Capital Ratios: | Q22023 | Q12023 | Q42022 | Q32022 | Q22022 Total risk-based capital ratio 12.38% 12.67% 12.91% 13.58% 13.97% Tier 1 risk-based capital ratio 10.40% 10.66% 10.88% 11.49% 11.83% Leverage ratio 8.48% 8.80% 9.17% 9.44% 9.71% Common equity tier 1 ratio ® 9
Slide 23: Consistently optimizing loan, deposit, and wholesale pricing
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: NN XXX XO KZ
NN XXX XO KZ Southern VISE OOO
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