# EDGAR Filing Document

**Accession Number:** 0001090009
**File Stem:** 0001206774-23-000050
**Filing Date:** 2023-1
**Character Count:** 42030
**Document Hash:** 9a1eedd267a7c706a7bdb783db79900c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001206774-23-000050.hdr.sgml**: 20230124

**ACCESSION NUMBER**: 0001206774-23-000050

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 25

**CONFORMED PERIOD OF REPORT**: 20230124

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230124

**DATE AS OF CHANGE**: 20230124

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SOUTHERN FIRST BANCSHARES INC
- **CENTRAL INDEX KEY:** 0001090009
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 582459561
- **STATE OF INCORPORATION:** SC
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-27719
- **FILM NUMBER:** 23545984

**BUSINESS ADDRESS:**
- **STREET 1:** 6 VERDAE BOULEVARD
- **CITY:** GREENVILLE
- **STATE:** SC
- **ZIP:** 29607
- **BUSINESS PHONE:** 8646799000

**MAIL ADDRESS:**
- **STREET 1:** 6 VERDAE BOULEVARD
- **CITY:** GREENVILLE
- **STATE:** SC
- **ZIP:** 29607

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GREENVILLE FIRST BANCSHARES INC
- **DATE OF NAME CHANGE:** 19990707

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 8-K**

**CURRENT REPORT PURSUANT**

**TO SECTION 13 OR 15(D) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

Date of report (Date of earliest event reported)<u>&nbsp;&nbsp;&nbsp;&nbsp; January 24, 2023&nbsp;&nbsp;&nbsp;&nbsp;</u>![](southernfirst4154951x1x1.jpg)

**Southern First Bancshares, Inc.**

(Exact name of registrant as specified in its charter)

**South Carolina**

(State or other jurisdiction of incorporation)

---

| | |
|:---|:---|
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;000-27719&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 58-2459561&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** |
| (Commission File Number) | (IRS Employer Identification No.) |
| **6 Verdae Boulevard, Greenville, SC** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29607&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** |
| (Address of principal executive offices) | (Zip Code) |

---

**(864) 679-9000**

(Registrant's telephone number, including area code)

**100 Verdae Boulevard, Suite 100, Greenville, SC**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

&nbsp;&nbsp;&nbsp;&nbsp;□ Written communications pursuant to Rule 425 under
 the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
 (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under
 the Exchange Act (17CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under
 the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock | SFST | The Nasdaq Global Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**ITEM 2.02. Results of Operations and Financial Condition.**

On January 24, 2023, Southern First Bancshares, Inc., holding company for Southern First Bank, issued a press release announcing its financial results for the period ended December 31, 2022. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

**ITEM 7.01 Regulation FD Disclosure.**

A copy of a slide presentation also highlighting Southern First Bancshares, Inc. financial results for the period ended December 31, 2022 is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation also will be available on our website, www.southernfirst.com, under the "Investor Relations" section.

**ITEM 9.01. Financial Statements and Exhibits.**

(d) Exhibits The following exhibit index lists the exhibits that are either filed or furnished with the Current Report on Form 8-K.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| Exhibit No. | Description |
| [99.1](southernfirst4154951-ex991.htm) | &nbsp;&nbsp;&nbsp;[Earnings Press Release for period ended December 31, 2022.](southernfirst4154951-ex991.htm) |
| [99.2](southernfirst4154951-ex992.htm) | &nbsp;&nbsp;&nbsp;[Slide Presentation.](southernfirst4154951-ex992.htm) |
| 104 | &nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **SOUTHERN FIRST BANCSHARES, INC.** | **SOUTHERN FIRST BANCSHARES, INC.** |
|  | By: /s/ Michael D. Dowling&nbsp;&nbsp;&nbsp;&nbsp; | By: /s/ Michael D. Dowling&nbsp;&nbsp;&nbsp;&nbsp; |
|  | Name:&nbsp;&nbsp;&nbsp;&nbsp; | Michael D. Dowling |
|  | Title: | Chief Financial Officer |
| January 24, 2023 |  |  |

---

------

## Exhibit 99.1

Exhibit 99.1

![](southernfirst4154951x4x1.jpg)

**Southern First Reports Results for Fourth Quarter 2022**

**Greenville, South Carolina, January 24, 2023** – Southern First Bancshares, Inc. **(NASDAQ: SFST)**, holding company for Southern First Bank, today announced its financial results for the three and twelve months ended December 31, 2022.

"Southern First continues to attract talented bankers, and clients are moving their relationships to Southern First at a record pace," stated Art Seaver, the company's Chief Executive Officer. "In the fourth quarter of 2022, our team generated the largest loan growth quarter in our company's history. While this transitional interest rate cycle of the Federal Reserve is weakening our current margin, we continue to grow book value and are excited about our momentum as we head into the new year."

**<u>2022 Fourth Quarter Highlights</u>**

● **Net income was $5.5 million, compared to $12.0 million for Q4 2021** 

● **Diluted earnings per common share were $0.68 per share, compared to $1.49 for Q4 2021** 

● **Total loans increased 31% to $3.3 billion, compared to $2.5 billion at Q4 2021** 

● **Total deposits increased 22% to $3.1 billion at Q4 2022, compared to $2.6 billion at Q4 2021** 

● **Book value per common share increased to $36.76, or 5%, over Q4 2021** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| | **December 31**<br>**2022** | **September 30**<br>**2022** | **June 30**<br>**2022** | **March 31**<br>**2022** | **December 31**<br>**2021** |
| **Earnings** ($ in thousands, except per share data): |  |  |  |  |  |
| Net income available to common shareholders | $5492 | 8413 | 7240 | 7970 | 12005 |
| Earnings per common share, diluted | 0.68 | 1.04 | 0.90 | 0.98 | 1.49 |
| Total revenue<sup>(1)</sup> | 25826 | 28134 | 27149 | 26091 | 26194 |
| Net interest margin (tax-equivalent)<sup>(2)</sup> | 2.88% | 3.19% | 3.35% | 3.37% | 3.35% |
| Return on average assets<sup>(3)</sup> | 0.63% | 1.00% | 0.92% | 1.10% | 1.66% |
| Return on average equity<sup>(3)</sup> | 7.44% | 11.57% | 10.31% | 11.60% | 17.61% |
| Efficiency ratio<sup>(4)</sup> | 63.55% | 57.03% | 58.16% | 56.28% | 56.25% |
| Noninterest expense to average assets<sup>(3)</sup> | 1.87% | 1.92% | 2.02% | 2.03% | 2.06% |
| **Balance Sheet** ($ in thousands): |  |  |  |  |  |
| Total loans<sup>(5)</sup> | $3273363 | 3030027 | 2845205 | 2660675 | 2489877 |
| Total deposits | 3133864 | 3001452 | 2870158 | 2708174 | 2563826 |
| Core deposits<sup>(6)</sup> | 2759112 | 2723592 | 2588283 | 2541113 | 2479412 |
| Total assets | 3691981 | 3439669 | 3287663 | 3073234 | 2925548 |
| Book value per common share | 36.76 | 35.99 | 35.39 | 34.90 | 35.07 |
| Loans to deposits | 104.45% | 100.95% | 99.13% | 98.25% | 97.12% |
| **Holding Company Capital Ratios<sup>(7)</sup>:** |  |  |  |  |  |
| Total risk-based capital ratio | 12.91% | 13.58% | 13.97% | 14.37% | 14.90% |
| Tier 1 risk-based capital ratio | 10.88% | 11.49% | 11.83% | 12.18% | 12.65% |
| Leverage ratio | 9.17% | 9.44% | 9.71% | 10.12% | 10.18% |
| Common equity tier 1 ratio<sup>(8)</sup> | 10.44% | 11.02% | 11.33% | 11.65% | 12.09% |
| Tangible common equity<sup>(9)</sup> | 7.98% | 8.37% | 8.60% | 9.06% | 9.50% |
| **Asset Quality Ratios:** |  |  |  |  |  |
| Nonperforming assets/ total assets | 0.07% | 0.08% | 0.09% | 0.15% | 0.17% |
| Classified assets/tier one capital plus allowance for credit losses | 4.71% | 5.24% | 7.29% | 7.83% | 12.61% |
| Loans 30 days or more past due/ loans<sup>(5)</sup> | 0.11% | 0.07% | 0.10% | 0.13% | 0.09% |
| Net charge-offs (recoveries)/average loans<sup>(5)</sup> (YTD annualized) | (0.05%) | (0.06%) | 0.02% | 0.00% | 0.06% |
| Allowance for credit losses/loans<sup>(5)</sup> | 1.18% | 1.20% | 1.20% | 1.24% | 1.22% |
| Allowance for credit losses/nonaccrual loans | 1,470.74% | 1,388.87% | 1,166.70% | 726.88% | 625.16% |

---

[Footnotes to table located on page 6]

------

#### income statements – Unaudited

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | | | | | | **December 31** | **December 31** |
| <br>(in thousands, except per share data) | **Dec 31**<br>**2022** | **Sept 30**<br>**2022** | **Jun 30**<br>**2022** | **Mar 31**<br>**2022** | **Dec 31**<br>**2021** | **2022** | **2021** |
| **Interest income** |  |  |  |  |  |  |  |
| Loans | $33939 | 29752 | 26610 | 23931 | 23661 | 114233 | 91599 |
| Investment securities | 562 | 506 | 448 | 474 | 410 | 1990 | 1335 |
| Federal funds sold | 525 | 676 | 180 | 59 | 66 | 1439 | 233 |
| &nbsp;&nbsp;&nbsp;Total interest income | 35026 | 30934 | 27238 | 24464 | 24137 | 117662 | 93167 |
| **Interest expense** |  |  |  |  |  |  |  |
| Deposits | 10329 | 5021 | 1844 | 908 | 900 | 18102 | 3909 |
| Borrowings | 578 | 459 | 510 | 392 | 380 | 1939 | 1526 |
| &nbsp;&nbsp;&nbsp;Total interest expense | &nbsp;&nbsp;&nbsp;&nbsp;10907 | &nbsp;&nbsp;&nbsp;&nbsp;5480 | &nbsp;&nbsp;&nbsp;&nbsp;2354 | &nbsp;&nbsp;&nbsp;&nbsp;1300 | 1280 | 20041 | 5435 |
| Net interest income | 24119 | 25454 | 24884 | 23164 | 22857 | 97621 | 87732 |
| Provision (reversal) for loan losses | &nbsp;&nbsp;&nbsp;&nbsp;2325 | &nbsp;&nbsp;&nbsp;&nbsp;950 | &nbsp;&nbsp;&nbsp;&nbsp;1775 | &nbsp;&nbsp;&nbsp;&nbsp;1105 | (4200) | 6155 | (12400) |
| Net interest income after provision for loan losses | 21794 | 24504 | 23109 | 22059 | 27057 | 91466 | 100132 |
| **Noninterest income** |  |  |  |  |  |  |  |
| Mortgage banking income | 291 | 1230 | 1184 | 1494 | 1931 | 4198 | 11376 |
| Service fees on deposit accounts | 187 | 194 | 209 | 191 | 200 | 782 | 757 |
| ATM and debit card income | 575 | 559 | 563 | 528 | 560 | 2225 | 2092 |
| Income from bank owned life insurance | 344 | 315 | 315 | 315 | 312 | 1289 | 1231 |
| Loss on disposal of fixed assets |  |  | (394) |  |  | (394) |  |
| Other income | 310 | 382 | 388 | 399 | 334 | 1480 | 1645 |
| &nbsp;&nbsp;&nbsp;Total noninterest income | 1707 | 2680 | 2265 | 2927 | 3337 | 9580 | 17101 |
| **Noninterest expense** |  |  |  |  |  |  |  |
| Compensation and benefits | 9576 | 9843 | 9915 | 9456 | 9208 | 38790 | 36103 |
| Occupancy | 2666 | 2442 | 2219 | 1778 | 2081 | 9105 | 6956 |
| Other real estate owned expenses |  |  |  |  |  |  | 385 |
| Outside service and data processing costs | 1521 | 1529 | 1528 | 1533 | 1395 | 6112 | 5468 |
| Insurance | 551 | 507 | 367 | 260 | 342 | 1686 | 1149 |
| Professional fees | 788 | 555 | 693 | 599 | 682 | 2635 | 2589 |
| Marketing | 282 | 338 | 329 | 269 | 260 | 1216 | 905 |
| Other | 1029 | 832 | 737 | 790 | 767 | 3389 | 2875 |
| &nbsp;&nbsp;&nbsp;Total noninterest expenses | 16413 | 16046 | 15788 | 14685 | 14735 | 62933 | 56430 |
| Income before provision for income taxes | 7088 | 11138 | 9586 | 10301 | 15659 | 38113 | 60803 |
| **Income tax expense** | 1596 | 2725 | 2346 | 2331 | 3654 | 8998 | 14092 |
| **Net income available to common shareholders** | $5492 | 8413 | 7240 | 7970 | 12005 | 29115 | 46711 |
| Earnings per common share – Basic | $0.69 | 1.06 | 0.91 | 1.00 | 1.52 | 3.66 | 5.96 |
| Earnings per common share – Diluted | 0.68 | 1.04 | 0.90 | 0.98 | 1.49 | 3.61 | 5.85 |
| Basic weighted average common shares | 7971 | 7972 | 7945 | 7932 | 7877 | 7958 | 7844 |
| Diluted weighted average common shares | 8071 | 8065 | 8075 | 8096 | 8057 | 8072 | 7989 |

---

[Footnotes to table located on page 6]

Net income for the fourth quarter of 2022 was $5.5 million, or $0.68 per diluted share, a $2.9 million decrease from the third quarter of 2022 and a $6.5 million decrease from the fourth quarter of 2021. Net interest income decreased $1.3 million for the fourth quarter of 2022, compared to the third quarter of 2022, and increased $1.3 million, or 5.5%, compared to the fourth quarter of 2021. The decrease in net interest income from the prior quarter was driven by an increase in interest expense on our deposit accounts related to the Federal Reserve's 425-basis point increase in the federal funds rate. The increase in net interest income from the fourth quarter of 2021 related to growth in our loan portfolio, partially offset by the higher interest expense on our deposit accounts.

The provision for credit losses was $2.3 million for the fourth quarter of 2022, compared to $950 thousand for the third quarter of 2022 and a reversal of $4.2 million for the fourth quarter of 2021. The provision expense during the fourth quarter of 2022, calculated under the Current Expected Credit Loss ("CECL") methodology adopted effective January 1, 2022, includes a $2.3 million provision for loan losses and a $25 thousand provision for unfunded commitments. The increased provision during the fourth quarter was driven by $243.3 million of loan growth. The reversal in the provision during the fourth quarter of 2021 was driven by improvement in economic conditions after the onset of the pandemic.

------

Noninterest income totaled $1.7 million for the fourth quarter of 2022, a $973 thousand decrease from the third quarter of 2022 and a $1.6 million decrease from the fourth quarter of 2021. In prior quarters, mortgage banking income has been the largest component of our noninterest income; however, due to lower mortgage origination volume during the past 12 months, combined with our strategy to keep a larger percentage of these loans in our portfolio, mortgage banking income decreased to $291 thousand from prior quarter income of $1.2 million and from income of $1.9 million for the prior year.

Noninterest expense for the fourth quarter of 2022 was $16.4 million, a $367 thousand increase from the third quarter of 2022, and a $1.7 million increase from the fourth quarter of 2021. The increase in noninterest expense from the previous quarter was driven by increases in occupancy, professional fees, and other noninterest expenses, while the increase from the prior year related to increases in compensation and benefits, occupancy, insurance and other noninterest expenses. In comparison to the prior quarter, the increases in occupancy, professional fees and other noninterest expenses were due to higher property tax expenses, an increase in legal and accounting/audit costs, as well as an increase in FDIC insurance premiums. Compensation and benefits expense increased from the prior year primarily due to the hiring of new team members, combined with annual salary increases, while the increase in occupancy expense relates to costs associated with the relocation of our headquarters. In addition, our insurance costs increased during 2022 due to higher FDIC insurance premiums and our noninterest expense increase reflects higher travel and entertainment costs as well as an increase in fraud losses.

Our effective tax rate was 22.5% for the fourth quarter, a decrease from 24.5% for the prior quarter of 2022 and 23.3% for the fourth quarter of 2021. The lower tax rate in the fourth quarter of 2022 relates to the greater impact of our tax-exempt and equity compensation transactions on our tax rate during the quarter.

**Net interest income and margin -** **Unaudited**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| <br>(dollars in thousands) | **Average<br> Balance** | **Income/<br> Expense** | **Yield/<br> Rate<sup>(3)</sup>** | **Average<br> Balance** | **Income/<br> Expense** | **Yield/<br> Rate<sup>(3)</sup>** | **Average<br> Balance** | **Income/<br> Expense** | **Yield/<br> Rate<sup>(3)</sup>** |
| **Interest-earning assets** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal funds sold and interest-bearing deposits | $60176 | $525 | 3.46% | $122071 | $676 | 2.20% | $138103 | $66 | 0.19% |
| &nbsp;&nbsp;&nbsp;Investment securities, taxable | 86594 | 515 | 2.36% | 91462 | 449 | 1.95% | 107181 | 351 | 1.30% |
| &nbsp;&nbsp;&nbsp;Investment securities, nontaxable<sup>(2)</sup> | 9987 | 61 | 2.42% | 10160 | 74 | 2.89% | 11695 | 75 | 2.56% |
| &nbsp;&nbsp;&nbsp;Loans<sup>(10)</sup> | 3165061 | 33939 | 4.25% | 2941350 | 29752 | 4.01% | 2452677 | 23661 | 3.83% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 3321818 | 35040 | 4.18% | 3165043 | 30951 | 3.88% | 2709656 | 24153 | 3.54% |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-earning assets | 162924 |  |  | 159233 |  |  | 153284 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $3484742 |  |  | $3324726 |  |  | $2862940 |  |  |
| **Interest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | $343541 | 379 | 0.44% | $361500 | 178 | 0.20% | $330067 | 64 | 0.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings & money market | 1529532 | 7657 | 1.99% | 1417181 | 3663 | 1.03% | 1278930 | 637 | 0.20% |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 405907 | 2293 | 2.24% | 361325 | 1180 | 1.30% | 155708 | 199 | 0.51% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 2278980 | 10329 | 1.80% | 2140006 | 5021 | 0.93% | 1764705 | 900 | 0.20% |
| &nbsp;&nbsp;&nbsp;FHLB advances and other borrowings | 7594 | 81 | 4.23% | 1357 | 10 | 2.92% |  |  | -% |
| &nbsp;&nbsp;&nbsp;Subordinated debentures | 36197 | 497 | 5.45% | 36169 | 449 | 4.93% | 36089 | 380 | 4.18% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 2322771 | 10907 | 1.86% | 2177532 | 5480 | 1.00% | 1800794 | 1280 | 0.28% |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing liabilities | 869314 |  |  | 858202 |  |  | 791700 |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders' equity | 292657 |  |  | 288542 |  |  | 270446 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $3484742 |  |  | $3324276 |  |  | $2862940 |  |  |
| Net interest spread |  |  | 2.32% |  |  | 2.88% |  |  | 3.26% |
| Net interest income (tax equivalent) / margin |  | $24133 | 2.88% |  | $25471 | 3.19% |  | $22873 | 3.35% |
| Less: tax-equivalent adjustment<sup>(2)</sup> |  | 14 |  |  | 17 |  |  | 16 |  |
| Net interest income |  | $24119 |  |  | $25454 |  |  | $22857 |  |

---

[Footnotes to table located on page 6]

Net interest income was $24.1 million for the fourth quarter of 2022, a $1.3 million decrease from the third quarter, driven by a $5.4 million increase in interest expense, partially offset by a $4.1 million increase in interest income, on a taxable basis.

------

The increase in interest expense was driven by $139.0 million growth in average interest-bearing deposit balances at an average rate of 1.80%, an 87-basis points increase over the previous quarter, partially offset by $223.7 million growth in average loan balances at a yield of 4.25%, an increase of 24-basis points from the third quarter of 2022. In comparison to the fourth quarter of 2021, net interest income increased $1.3 million, resulting primarily from $712.4 million growth in average loan balances during 2022, combined with a 42-basis point increase in loan yield. Our net interest margin, on a tax-equivalent basis, was 2.88% for the fourth quarter of 2022, a 31-basis point decrease from 3.19% from the third quarter of 2022 and a 47-basis point decrease from 3.35% for the fourth quarter of 2021. As a result of the Federal Reserve's 425-basis point interest rate hikes during 2022, the yield on our interest-earning assets has increased by 64-basis points during the fourth quarter of 2022 in comparison to the fourth quarter of 2021. However, the rate on our interest-bearing liabilities, specifically our interest-bearing deposits, has increased by 158-basis points during the same time period, resulting in the lower net interest margin during the fourth quarter of 2022.

**Balance sheets -** **Unaudited**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Ending Balance** | **Ending Balance** | **Ending Balance** | **Ending Balance** | **Ending Balance** |
| <br>(in thousands, except per share data) | **December 31**<br>**2022** | **September 30**<br>**2022** | **June 30**<br>**2022** | **March 31**<br>**2022** | **December 31**<br>**2021** |
| **Assets** |  |  |  |  |  |
| Cash and cash equivalents: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $18788 | 16530 | 21090 | 20992 | 21770 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 101277 | 139544 | 124462 | 95093 | 86882 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with banks | 50809 | 4532 | 36538 | 33131 | 58557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 170874 | 160606 | 182090 | 149216 | &nbsp;&nbsp;&nbsp;167209 |
| Investment securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities available for sale | 93347 | 91521 | 98991 | 106978 | 120281 |
| &nbsp;&nbsp;&nbsp;Other investments | 10833 | 5449 | 5065 | 4104 | 4021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | 104180 | 96970 | 104056 | 111082 | 124302 |
| Mortgage loans held for sale | 3917 | 9243 | 18329 | 17840 | 13556 |
| Loans<sup>(5)</sup> | 3273363 | 3030027 | 2845205 | 2660675 | 2489877 |
| Less allowance for credit losses | (38639) | (36317) | (34192) | (32944) | (30408) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, net | 3234724 | 2993710 | 2811013 | 2627731 | 2459469 |
| Bank owned life insurance | 51122 | 50778 | 50463 | 50148 | 49833 |
| Property and equipment, net | 99183 | 99530 | 96674 | 95129 | 92370 |
| Deferred income taxes | 12522 | 18425 | 15078 | 10635 | 8397 |
| Other assets | 15459 | 10407 | 9960 | 10859 | 10412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $3691981 | 3439669 | 3287663 | 3072640 | 2925548 |
| **Liabilities** |  |  |  |  |  |
| Deposits | $3133864 | 3001452 | 2870158 | 2708174 | 2563826 |
| FHLB Advances | 175000 | 60000 | 50000 |  |  |
| Subordinated debentures | 36214 | 36187 | 36160 | 36133 | 36106 |
| Other liabilities | 52391 | 54245 | 48708 | 49809 | 47715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 3397469 | 3151884 | 3005026 | 2794116 | 2647647 |
| **Shareholders' equity** |  |  |  |  |  |
| Preferred stock - $.01 par value; 10,000,000 shares authorized |  |  |  |  |  |
| Common Stock - $.01 par value; 10,000,000 shares authorized | 80 | 80 | 80 | 80 | 79 |
| Nonvested restricted stock | (3306) | (3348) | (3230) | (3425) | (1435) |
| Additional paid-in capital | 119027 | 118433 | 117714 | 117286 | 114226 |
| Accumulated other comprehensive loss | (13410) | (14009) | (10143) | (6393) | (740) |
| Retained earnings | 192121 | 186629 | 178216 | 170976 | 165771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 294512 | 287785 | 282637 | 278524 | 277901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $&nbsp;&nbsp;&nbsp;&nbsp;3691981 | &nbsp;&nbsp;&nbsp;&nbsp;3439669 | &nbsp;&nbsp;&nbsp;&nbsp;3287663 | &nbsp;&nbsp;&nbsp;&nbsp;3072640 | 2925548 |
| **Common Stock** |  |  |  |  |  |
| Book value per common share | $36.76 | 35.99 | 35.39 | 34.90 | 35.07 |
| Stock price: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;High | 49.50 | 47.16 | 50.09 | 65.02 | 64.73 |
| &nbsp;&nbsp;&nbsp;Low | 41.46 | 41.66 | 42.25 | 50.84 | 52.73 |
| &nbsp;&nbsp;&nbsp;Period end | 45.75 | 41.66 | 43.59 | 50.84 | 62.49 |
| Common shares outstanding | 8011 | 7997 | 7986 | 7981 | 7925 |

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[Footnotes to table located on page 6]

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**Asset quality measures -** **Unaudited**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| <br>(dollars in thousands) | **December 31**<br>**2022** | **September 30**<br>**2022** | **June 30**<br>**2022** | **March 31**<br>**2022** | **December 31**<br>**2021** |
| **Nonperforming Assets** |  |  |  |  |  |
| **Commercial** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-owner occupied RE | $247 | 253 | 259 | 265 | 270 |
| &nbsp;&nbsp;&nbsp;Commercial business | 182 | 79 |  |  |  |
| **Consumer** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Real estate | 207 |  | 183 | 739 | 989 |
| &nbsp;&nbsp;&nbsp;Home equity | 195 | 197 | 200 | 815 | 653 |
| Nonaccruing troubled debt restructurings | 1796 | 2086 | 2289 | 2713 | 2952 |
| Total nonaccrual loans | 2627 | 2615 | 2931 | 4532 | 4864 |
| Other real estate owned | - | - | - | - | - |
| Total nonperforming assets | $2627 | 2615 | 2931 | 4532 | 4864 |
| Nonperforming assets as a percentage of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | 0.07% | 0.08% | 0.09% | 0.15% | 0.17% |
| &nbsp;&nbsp;&nbsp;Total loans | 0.08% | 0.09% | 0.10% | 0.17% | 0.20% |
| Accruing troubled debt restructurings (TDRs) | $4503 | 4683 | 3558 | 3241 | 3299 |
| Classified assets/tier 1 capital plus allowance for credit losses | 4.71% | 5.24% | 7.29% | 7.83% | 12.61% |
|  | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
|  | **December 31** | **September 30** | **June 30** | **March 31** | **December 31** |
| (dollars in thousands) | **2022** | **2022** | **2022** | **2022** | **2021** |
| **Allowance for Credit Losses** |  |  |  |  |  |
| Balance, beginning of period | $36317 | 34192 | 32944 | 30408 | 36075 |
| CECL adjustment |  |  |  | 1500 |  |
| Loans charged-off |  |  | (316) | (169) | (1509) |
| Recoveries of loans previously charged-off | 22 | 1600 | 39 | 180 | 42 |
| &nbsp;&nbsp;&nbsp;Net loans (charged-off) recovered | 22 | 1600 | (277) | 11 | (1467) |
| Provision for credit losses | 2300 | 525 | 1525 | 1025 | (4200) |
| Balance, end of period | $38639 | 36317 | 34192 | 32944 | 30408 |
| Allowance for credit losses to gross loans | 1.18% | 1.20% | 1.20% | 1.24% | 1.22% |
| Allowance for credit losses to nonaccrual loans | 1,470.74% | 1,388.87% | 1,166.70% | 726.88% | 625.22% |
| Net charge-offs to average loans QTD (annualized) | 0.00% | (0.22%) | 0.04% | 0.00% | 0.24% |

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Total nonperforming assets remained at $2.6 million for the fourth quarter of 2022, representing 0.07% of total assets, compared to 0.08% in the third quarter of 2022. During the fourth quarter of 2022, our classified asset ratio improved to 4.71% from 12.61% in the fourth quarter of 2021. The improvement over the fourth quarter of 2021 was primarily the result of six hotel loans, or $18.5 million in the aggregate, we upgraded from substandard during 2022.

Effective January 1, 2022, we early adopted the CECL methodology for estimating credit losses, which resulted in an increase of $1.5 million to our allowance for credit losses and an increase of $2.0 million to our reserve for unfunded commitments. The tax-effected impact of these two items totaled $2.8 million and was recorded as an adjustment to our retained earnings as of January 1, 2022.

On December 31, 2022, the allowance for credit losses was $38.6 million, or 1.18% of total loans, compared to $36.3 million, or 1.20% of total loans, at September 30, 2022, and $30.4 million, or 1.22% of total loans, at December 31, 2021. We had negligible net recoveries of $22 thousand for the fourth quarter of 2022 compared to net recoveries of $1.6 million for the third quarter of 2022 and net charge-offs of $1.5 million for the fourth quarter of 2021. There was a provision for credit losses of $2.3 million for the fourth quarter of 2022 compared to a provision of $525 thousand for the third quarter of 2022 and a reversal of $4.2 million for the fourth quarter of 2021.

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**LOAN COMPOSITION -** **Unaudited**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| <br>(dollars in thousands) | **December 31**<br>&nbsp;&nbsp;**2022** | **September 30**<br>&nbsp;&nbsp;**2022** | **June 30**<br>&nbsp;&nbsp;**2022** | **March 31**<br>&nbsp;&nbsp;**2022** | **December 31**<br>&nbsp;&nbsp;**2021** |
| **Commercial** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Owner occupied RE | $612901 | 572972 | 551544 | 527776 | 488965 |
| &nbsp;&nbsp;&nbsp;Non-owner occupied RE | 862579 | 799569 | 741263 | 705811 | 666833 |
| &nbsp;&nbsp;&nbsp;Construction | 109726 | 85850 | 84612 | 75015 | 64425 |
| &nbsp;&nbsp;&nbsp;Business | 468112 | 419312 | 389790 | 352932 | 333049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans | 2053318 | 1877703 | 1767209 | 1661534 | 1553272 |
| **Consumer** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Real estate | 931278 | 873471 | 812130 | 745667 | 694401 |
| &nbsp;&nbsp;&nbsp;Home equity | 179300 | 171904 | 161512 | 155678 | 154839 |
| &nbsp;&nbsp;&nbsp;Construction | 80415 | 77798 | 76878 | 72627 | 59846 |
| &nbsp;&nbsp;&nbsp;Other | 29052 | 29151 | 27476 | 25169 | 27519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 1220045 | 1152324 | 1077996 | 999141 | 936605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross loans, net of deferred fees | 3273363 | 3030027 | 2845205 | 2660675 | 2489877 |
| Less—allowance for credit losses | (38639) | (36317) | (34192) | (32944) | (30408) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net | $3234724 | 2993710 | 2811013 | 2627731 | 2459469 |

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**DEPOSIT COMPOSITION -** **Unaudited**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| <br>(dollars in thousands) | **December 31**<br>**2022** | **September 30**<br>**2022** | **June 30**<br>**2022** | **March 31**<br>**2022** | **December 31**<br>**2021** |
| Non-interest bearing | $804115 | 791050 | 799169 | 779262 | 768650 |
| Interest bearing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;NOW accounts | 318030 | 357862 | 364189 | 416322 | 401788 |
| &nbsp;&nbsp;&nbsp;Money market accounts | 1506418 | 1452958 | 1320329 | 1238866 | 1201099 |
| &nbsp;&nbsp;&nbsp;Savings | 40673 | 42335 | 41944 | 41630 | 39696 |
| &nbsp;&nbsp;&nbsp;Time, less than $250,000 | 32469 | 79387 | 62340 | 57972 | 61122 |
| &nbsp;&nbsp;&nbsp;Time and out-of-market deposits, $250,000 and over | 432159 | 277860 | 282187 | 174122 | 91471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $3133864 | 3001452 | 2870158 | 2708174 | 2563826 |

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| | |
|:---|:---|
| **Footnotes to tables:** | **Footnotes to tables:** |
| (1) | Total revenue is the sum of net interest income and noninterest income. |
| (2) | The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis. |
| (3) | Annualized for the respective three-month period. |
| (4) | Noninterest expense divided by the sum of net interest income and noninterest income. |
| (5) | Excludes mortgage loans held for sale. |
| (6) | Excludes out of market deposits and time deposits greater than $250,000. |
| (7) | December 31, 2022 ratios are preliminary. |
| (8) | The common equity tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets. |
| (9) | The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets. |
| (10) | Includes mortgage loans held for sale. |

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**About Southern First Bancshares**

Southern First Bancshares, Inc., Greenville, South Carolina is a registered bank holding company incorporated under the laws of South Carolina. The company's wholly owned subsidiary, Southern First Bank, is the second largest bank headquartered in South Carolina. Southern First Bank has been providing financial services since 1999 and now operates in 12 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Charlotte, Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately $3.7 billion and its common stock is traded on The NASDAQ Global Market under the symbol "SFST." More information can be found at <u>www.southernfirst.com</u>.

**FORWARD-LOOKING STATEMENTS**

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are identified by words such as "believe," "expect," "anticipate," "estimate," "intend," "plan," "target," and "project," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved.

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The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which the company conducts operations may be different than expected; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan and deposit growth as well as pricing of each product, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, changes affecting oversight of the financial services industry or consumer protection; (5) the impact of changes to Congress on the regulatory landscape and capital markets; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the company; (7) changes in interest rates, which may affect the company's net income, interest expense, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of the company's assets, including its investment securities; and (8) changes in accounting principles, policies, practices, or guidelines. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

FINANCIAL CONTACT: MIKE DOWLING 864-679-9070

MEDIA CONTACT: ART SEAVER 864-679-9010

WEB SITE: <u>www.southernfirst.com</u>

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## Exhibit 99.2

![](southernfirst4154951x11x1.jpg)

Exhibit 99.2 FOURTH QUARTER RESULTS 2022January 24, 2023

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![](southernfirst4154951x12x1.jpg)

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 risks and uncertainties, including a variety of factors (including a downturn in the economy, greater than expected non-interest expenses, increased competition, fluctuations in interest rates, regulatory actions, excessive loan losses and other factors) that may cause Southern First's actual results to differ materially from the anticipated results expressed or implied in these forward-looking statements. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. Investors are cautioned not to place undue reliance on these forward-looking statements and are advised to review the risk factors that may affect Southern First's operating results in documents filed by Southern First Bancshares, Inc. with the Securities and Exchange Commission, including the annual report on Form 10-K and other required filings. Southern First assumes no duty to update the forward-looking statements made in this presentation.

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![](southernfirst4154951x13x1.jpg)

CORPORATE PROFILE Southern First Markets: Greenville, SC2000 Columbia, SC2007 Charleston, SC2012 Raleigh, NC2016 Atlanta, GA2017 Summerville, SC2018 Greensboro, NC2018 Charlotte, NC2021

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![](southernfirst4154951x14x1.jpg)

HIGHLIGHTS • Net income was $5.5 million, compared to $12.0 million for Q4 2021 • Diluted earnings per common share were $0.68 per share, compared to $1.49 for Q4 2021 • Total loans increased 31% to $3.3 billion, compared to $2.5 billion at Q4 2021 • Total deposits increased 22% to $3.1 billion at Q4 2022, compared to $2.6 billion at Q4 2021 • Book value per common share increased to $36.76, or 5%, over Q4 2021

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![](southernfirst4154951x15x1.jpg)

LOANS & DEPOSITS Total Loans Millions $2.49 B $2.66 B $2.85 B $3.03 B $3.27 B $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 $3,200 $3,400 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Total Deposits Millions $2.56 B $2.71 B $2.87 B $3.00 B $3.13 B $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 $3,200 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 \*Total loans excludes mortgage loans held for sale.

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![](southernfirst4154951x16x1.jpg)

NET INTEREST MARGIN Thousands Net Interest Income Net Interest Margin\* $22,857 $23,164 $24,884 $25,454 $24,119 3.35% 3.37% 3.35% 3.19% 2.88% 2.00% 2.50% 3.00% 3.50% 4.00% $21,500 $22,000 $22,500 $23,000 $23,500 $24,000 $24,500 $25,000 $25,500 $26,000 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 \*Annualized for the respective three-month period. Tax equivalent.

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![](southernfirst4154951x17x1.jpg)

TANGIBLE BOOK VALUE PER SHARE $35.07 $34.90 $35.39 $35.99 $36.76 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022

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![](southernfirst4154951x18x1.jpg)

CAPITAL RATIOS Holding Company Capital Ratios: (1) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Total risk-based capital ratio 12.91% 13.58% 13.97% 14.37% 14.90% Tier 1 risk-based capital ratio 10.88% 11.49% 11.83% 12.18% 12.65% Leverage ratio 9.17% 9.44% 9.71% 10.12% 10.18% Common equity tier 1 ratio (2) 10.44% 11.02% 11.33% 11.65% 12.09% Tangible common equity (3) 7.98% 8.37% 8.60% 9.06% 9.50% (1) December 31, 2022ratios are preliminary. (2) The common equity tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets. (3) The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets.

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![](southernfirst4154951x19x1.jpg)

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