10-Q 1 sfst4259241-10q.htm QUARTERLY REPORT
false 2023 --12-31 Q3 0001090009 SC 0001090009 2023-01-01 2023-09-30 0001090009 2023-10-31 0001090009 2023-09-30 0001090009 2022-12-31 0001090009 2023-07-01 2023-09-30 0001090009 2022-07-01 2022-09-30 0001090009 2022-01-01 2022-09-30 0001090009 us-gaap:CommonStockMember 2022-06-30 0001090009 us-gaap:PreferredStockMember 2022-06-30 0001090009 sfst:NonvestedRestrictedStockMember 2022-06-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001090009 us-gaap:RetainedEarningsMember 2022-06-30 0001090009 2022-06-30 0001090009 us-gaap:CommonStockMember 2023-06-30 0001090009 us-gaap:PreferredStockMember 2023-06-30 0001090009 sfst:NonvestedRestrictedStockMember 2023-06-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-06-30 0001090009 us-gaap:RetainedEarningsMember 2023-06-30 0001090009 2023-06-30 0001090009 us-gaap:CommonStockMember 2021-12-31 0001090009 us-gaap:PreferredStockMember 2021-12-31 0001090009 sfst:NonvestedRestrictedStockMember 2021-12-31 0001090009 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001090009 us-gaap:RetainedEarningsMember 2021-12-31 0001090009 2021-12-31 0001090009 us-gaap:CommonStockMember 2022-12-31 0001090009 us-gaap:PreferredStockMember 2022-12-31 0001090009 sfst:NonvestedRestrictedStockMember 2022-12-31 0001090009 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001090009 us-gaap:RetainedEarningsMember 2022-12-31 0001090009 us-gaap:CommonStockMember 2022-07-01 2022-09-30 0001090009 us-gaap:PreferredStockMember 2022-07-01 2022-09-30 0001090009 sfst:NonvestedRestrictedStockMember 2022-07-01 2022-09-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-07-01 2022-09-30 0001090009 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0001090009 us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001090009 us-gaap:PreferredStockMember 2023-07-01 2023-09-30 0001090009 sfst:NonvestedRestrictedStockMember 2023-07-01 2023-09-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-09-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-07-01 2023-09-30 0001090009 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0001090009 us-gaap:CommonStockMember 2022-01-01 2022-09-30 0001090009 us-gaap:PreferredStockMember 2022-01-01 2022-09-30 0001090009 sfst:NonvestedRestrictedStockMember 2022-01-01 2022-09-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-09-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-09-30 0001090009 us-gaap:RetainedEarningsMember 2022-01-01 2022-09-30 0001090009 us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001090009 us-gaap:PreferredStockMember 2023-01-01 2023-09-30 0001090009 sfst:NonvestedRestrictedStockMember 2023-01-01 2023-09-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-09-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-09-30 0001090009 us-gaap:RetainedEarningsMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommonStockMember 2022-09-30 0001090009 us-gaap:PreferredStockMember 2022-09-30 0001090009 sfst:NonvestedRestrictedStockMember 2022-09-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-09-30 0001090009 us-gaap:RetainedEarningsMember 2022-09-30 0001090009 2022-09-30 0001090009 us-gaap:CommonStockMember 2023-09-30 0001090009 us-gaap:PreferredStockMember 2023-09-30 0001090009 sfst:NonvestedRestrictedStockMember 2023-09-30 0001090009 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001090009 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-09-30 0001090009 us-gaap:RetainedEarningsMember 2023-09-30 0001090009 us-gaap:CorporateBondSecuritiesMember 2023-09-30 0001090009 us-gaap:USTreasurySecuritiesMember 2023-09-30 0001090009 us-gaap:AgencySecuritiesMember 2023-09-30 0001090009 us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-09-30 0001090009 us-gaap:AssetBackedSecuritiesMember 2023-09-30 0001090009 us-gaap:MortgageBackedSecuritiesMember us-gaap:FederalHomeLoanBankCertificatesAndObligationsFHLBMember 2023-09-30 0001090009 us-gaap:MortgageBackedSecuritiesMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2023-09-30 0001090009 us-gaap:MortgageBackedSecuritiesMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2023-09-30 0001090009 us-gaap:MortgageBackedSecuritiesMember 2023-09-30 0001090009 us-gaap:SecuritiesInvestmentMember us-gaap:MortgageBackedSecuritiesMember 2023-09-30 0001090009 us-gaap:CorporateBondSecuritiesMember 2022-12-31 0001090009 us-gaap:USTreasurySecuritiesMember 2022-12-31 0001090009 us-gaap:AgencySecuritiesMember 2022-12-31 0001090009 us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-12-31 0001090009 us-gaap:AssetBackedSecuritiesMember 2022-12-31 0001090009 us-gaap:MortgageBackedSecuritiesMember us-gaap:FederalHomeLoanBankCertificatesAndObligationsFHLBMember 2022-12-31 0001090009 us-gaap:MortgageBackedSecuritiesMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2022-12-31 0001090009 us-gaap:MortgageBackedSecuritiesMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2022-12-31 0001090009 us-gaap:MortgageBackedSecuritiesMember 2022-12-31 0001090009 us-gaap:SecuritiesInvestmentMember us-gaap:MortgageBackedSecuritiesMember 2022-12-31 0001090009 us-gaap:SecuritiesInvestmentMember 2023-09-30 0001090009 us-gaap:SecuritiesInvestmentMember 2022-12-31 0001090009 sfst:CorporateBondsMember 2023-09-30 0001090009 sfst:USTreasuresMember 2023-09-30 0001090009 us-gaap:MortgageBackedSecuritiesOtherMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2023-09-30 0001090009 us-gaap:MortgageBackedSecuritiesOtherMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2023-09-30 0001090009 us-gaap:MortgageBackedSecuritiesOtherMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2023-09-30 0001090009 sfst:TotalInvestmentSecuritiesMember 2023-09-30 0001090009 sfst:CorporateBondsMember 2022-12-31 0001090009 sfst:USTreasuresMember 2022-12-31 0001090009 us-gaap:MortgageBackedSecuritiesOtherMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2022-12-31 0001090009 us-gaap:MortgageBackedSecuritiesOtherMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2022-12-31 0001090009 us-gaap:MortgageBackedSecuritiesOtherMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2022-12-31 0001090009 sfst:TotalInvestmentSecuritiesMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:CommercialRealEstateMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:CommercialRealEstateMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:CommercialRealEstateMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:CommercialRealEstateMember 2022-01-01 2022-12-31 0001090009 us-gaap:ResidentialRealEstateMember us-gaap:CommercialLoanMember 2023-09-30 0001090009 us-gaap:ResidentialRealEstateMember us-gaap:CommercialLoanMember 2023-01-01 2023-09-30 0001090009 us-gaap:ResidentialRealEstateMember us-gaap:CommercialLoanMember 2022-12-31 0001090009 us-gaap:ResidentialRealEstateMember us-gaap:CommercialLoanMember 2022-01-01 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionLoansMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionLoansMember 2022-01-01 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessLoanMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessLoanMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessLoanMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessLoanMember 2022-01-01 2022-12-31 0001090009 us-gaap:CommercialLoanMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember 2022-01-01 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember 2022-01-01 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember 2022-01-01 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember 2022-01-01 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherConsumerMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherConsumerMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherConsumerMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherConsumerMember 2022-01-01 2022-12-31 0001090009 us-gaap:ConsumerLoanMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember 2022-01-01 2022-12-31 0001090009 sfst:OwnerOccupiedReMember sfst:OneYearOrLessMember 2023-09-30 0001090009 sfst:OwnerOccupiedReMember sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 sfst:OwnerOccupiedReMember sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 sfst:OwnerOccupiedReMember sfst:AfterFifteenYearsMember 2023-09-30 0001090009 sfst:OwnerOccupiedReMember 2023-09-30 0001090009 sfst:NonOwnerOccupiedReMember sfst:OneYearOrLessMember 2023-09-30 0001090009 sfst:NonOwnerOccupiedReMember sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 sfst:NonOwnerOccupiedReMember sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 sfst:NonOwnerOccupiedReMember sfst:AfterFifteenYearsMember 2023-09-30 0001090009 sfst:NonOwnerOccupiedReMember 2023-09-30 0001090009 us-gaap:ConstructionMember sfst:OneYearOrLessMember 2023-09-30 0001090009 us-gaap:ConstructionMember sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 us-gaap:ConstructionMember sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 us-gaap:ConstructionMember sfst:AfterFifteenYearsMember 2023-09-30 0001090009 us-gaap:ConstructionMember 2023-09-30 0001090009 sfst:BusinessMember sfst:OneYearOrLessMember 2023-09-30 0001090009 sfst:BusinessMember sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 sfst:BusinessMember sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 sfst:BusinessMember sfst:AfterFifteenYearsMember 2023-09-30 0001090009 sfst:BusinessMember 2023-09-30 0001090009 sfst:OneYearOrLessMember 2023-09-30 0001090009 sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 sfst:AfterFifteenYearsMember 2023-09-30 0001090009 us-gaap:RealEstateMember sfst:OneYearOrLessMember 2023-09-30 0001090009 us-gaap:RealEstateMember sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 us-gaap:RealEstateMember sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 us-gaap:RealEstateMember sfst:AfterFifteenYearsMember 2023-09-30 0001090009 us-gaap:RealEstateMember 2023-09-30 0001090009 sfst:HomeEquitysMember sfst:OneYearOrLessMember 2023-09-30 0001090009 sfst:HomeEquitysMember sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 sfst:HomeEquitysMember sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 sfst:HomeEquitysMember sfst:AfterFifteenYearsMember 2023-09-30 0001090009 sfst:HomeEquitysMember 2023-09-30 0001090009 sfst:OtherMember sfst:OneYearOrLessMember 2023-09-30 0001090009 sfst:OtherMember sfst:AfterOneButWithinFiveYearsMember 2023-09-30 0001090009 sfst:OtherMember sfst:AfterFiveButWithinFifteenYearsMember 2023-09-30 0001090009 sfst:OtherMember sfst:AfterFifteenYearsMember 2023-09-30 0001090009 sfst:OtherMember 2023-09-30 0001090009 sfst:OwnerOccupiedReMember sfst:OneYearOrLessMember 2022-12-31 0001090009 sfst:OwnerOccupiedReMember sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 sfst:OwnerOccupiedReMember sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 sfst:OwnerOccupiedReMember sfst:AfterFifteenYearsMember 2022-12-31 0001090009 sfst:OwnerOccupiedReMember 2022-12-31 0001090009 sfst:NonOwnerOccupiedReMember sfst:OneYearOrLessMember 2022-12-31 0001090009 sfst:NonOwnerOccupiedReMember sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 sfst:NonOwnerOccupiedReMember sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 sfst:NonOwnerOccupiedReMember sfst:AfterFifteenYearsMember 2022-12-31 0001090009 sfst:NonOwnerOccupiedReMember 2022-12-31 0001090009 us-gaap:ConstructionMember sfst:OneYearOrLessMember 2022-12-31 0001090009 us-gaap:ConstructionMember sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 us-gaap:ConstructionMember sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 us-gaap:ConstructionMember sfst:AfterFifteenYearsMember 2022-12-31 0001090009 us-gaap:ConstructionMember 2022-12-31 0001090009 sfst:BusinessMember sfst:OneYearOrLessMember 2022-12-31 0001090009 sfst:BusinessMember sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 sfst:BusinessMember sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 sfst:BusinessMember sfst:AfterFifteenYearsMember 2022-12-31 0001090009 sfst:BusinessMember 2022-12-31 0001090009 sfst:OneYearOrLessMember 2022-12-31 0001090009 sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 sfst:AfterFifteenYearsMember 2022-12-31 0001090009 us-gaap:RealEstateMember sfst:OneYearOrLessMember 2022-12-31 0001090009 us-gaap:RealEstateMember sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 us-gaap:RealEstateMember sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 us-gaap:RealEstateMember sfst:AfterFifteenYearsMember 2022-12-31 0001090009 us-gaap:RealEstateMember 2022-12-31 0001090009 sfst:HomeEquitysMember sfst:OneYearOrLessMember 2022-12-31 0001090009 sfst:HomeEquitysMember sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 sfst:HomeEquitysMember sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 sfst:HomeEquitysMember sfst:AfterFifteenYearsMember 2022-12-31 0001090009 sfst:HomeEquitysMember 2022-12-31 0001090009 sfst:OtherMember sfst:OneYearOrLessMember 2022-12-31 0001090009 sfst:OtherMember sfst:AfterOneButWithinFiveYearsMember 2022-12-31 0001090009 sfst:OtherMember sfst:AfterFiveButWithinFifteenYearsMember 2022-12-31 0001090009 sfst:OtherMember sfst:AfterFifteenYearsMember 2022-12-31 0001090009 sfst:OtherMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember us-gaap:PassMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember sfst:WatchMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember us-gaap:SubstandardMember 2023-09-30 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember us-gaap:PassMember 2023-09-30 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember sfst:WatchMember 2023-09-30 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember us-gaap:SubstandardMember 2023-09-30 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember us-gaap:PassMember 2023-09-30 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember sfst:WatchMember 2023-09-30 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember us-gaap:SubstandardMember 2023-09-30 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember us-gaap:PassMember 2023-09-30 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember sfst:WatchMember 2023-09-30 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember us-gaap:SubstandardMember 2023-09-30 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember us-gaap:PassMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember sfst:WatchMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember us-gaap:SubstandardMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember us-gaap:PassMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember sfst:WatchMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember us-gaap:SubstandardMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember us-gaap:PassMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember sfst:WatchMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember us-gaap:SubstandardMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember us-gaap:PassMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:WatchMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember us-gaap:SpecialMentionMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember us-gaap:SubstandardMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember us-gaap:PassMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember sfst:WatchMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ResidentialRealEstateMember us-gaap:SubstandardMember 2022-12-31 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember us-gaap:PassMember 2022-12-31 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember sfst:WatchMember 2022-12-31 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 us-gaap:CommercialRealEstateMember us-gaap:CommercialLoanMember us-gaap:SubstandardMember 2022-12-31 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember us-gaap:PassMember 2022-12-31 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember sfst:WatchMember 2022-12-31 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 us-gaap:ConstructionLoansMember us-gaap:CommercialLoanMember us-gaap:SubstandardMember 2022-12-31 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember us-gaap:PassMember 2022-12-31 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember sfst:WatchMember 2022-12-31 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember us-gaap:SubstandardMember 2022-12-31 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember us-gaap:PassMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember sfst:WatchMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateLoanMember us-gaap:SubstandardMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember us-gaap:PassMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember sfst:WatchMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember us-gaap:SubstandardMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember us-gaap:PassMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember sfst:WatchMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionLoansMember us-gaap:SubstandardMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember us-gaap:PassMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:WatchMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember us-gaap:SpecialMentionMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember us-gaap:SubstandardMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2022-12-31 0001090009 2022-01-01 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:NonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2023-09-30 0001090009 sfst:Accruing3059DaysPastDueMember 2023-09-30 0001090009 sfst:Accruing6089DaysPastDueMember 2023-09-30 0001090009 sfst:Accruing90DaysOrMorePastDueMember 2023-09-30 0001090009 sfst:NonaccrualLoansMember 2023-09-30 0001090009 sfst:AccruingCurrentMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2022-12-31 0001090009 sfst:BusinessMember us-gaap:CommercialLoanMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:NonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2022-12-31 0001090009 sfst:Accruing3059DaysPastDueMember 2022-12-31 0001090009 sfst:Accruing6089DaysPastDueMember 2022-12-31 0001090009 sfst:Accruing90DaysOrMorePastDueMember 2022-12-31 0001090009 sfst:NonaccrualLoansMember 2022-12-31 0001090009 sfst:AccruingCurrentMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:ConstructionMember sfst:TotalNonaccrualLoansMember us-gaap:CommercialLoanMember 2022-12-31 0001090009 sfst:BusinessMember sfst:NonaccrualLoansWithNoAllowanceMember us-gaap:CommercialLoanMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 sfst:TotalNonaccrualLoansMember us-gaap:CommercialLoanMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 sfst:NonaccrualLoansWithNoAllowanceMember 2023-09-30 0001090009 sfst:NonaccrualLoansWithAnAllowanceMember 2023-09-30 0001090009 sfst:TotalNonaccrualLoansMember 2023-09-30 0001090009 sfst:NonaccrualLoansWithNoAllowanceMember 2022-12-31 0001090009 sfst:NonaccrualLoansWithAnAllowanceMember 2022-12-31 0001090009 sfst:TotalNonaccrualLoansMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember 2023-07-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2023-06-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2023-06-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2023-06-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2023-06-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2023-06-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2023-06-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2023-06-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2023-06-30 0001090009 sfst:CommercialAndConsumerMember 2023-06-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2023-07-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2023-07-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2023-07-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2023-07-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2023-07-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2023-07-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2023-07-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2023-07-01 2023-09-30 0001090009 sfst:CommercialAndConsumerMember 2023-07-01 2023-09-30 0001090009 sfst:CommercialAndConsumerMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2022-06-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2022-06-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2022-06-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2022-06-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2022-06-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2022-06-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2022-06-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2022-06-30 0001090009 sfst:CommercialAndConsumerMember 2022-06-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2022-07-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2022-07-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2022-07-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2022-07-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2022-07-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2022-07-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2022-07-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2022-07-01 2022-09-30 0001090009 sfst:CommercialAndConsumerMember 2022-07-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2022-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2022-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2022-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2022-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2022-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2022-09-30 0001090009 sfst:CommercialAndConsumerMember 2022-09-30 0001090009 sfst:CommercialAndConsumerMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2023-01-01 2023-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2023-01-01 2023-09-30 0001090009 sfst:CommercialAndConsumerMember 2023-01-01 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2021-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2021-12-31 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2021-12-31 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2021-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2021-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2021-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2021-12-31 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2021-12-31 0001090009 sfst:CommercialAndConsumerMember 2021-12-31 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2022-01-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2022-01-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember us-gaap:ConstructionMember 2022-01-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:BusinessMember 2022-01-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:RealEstateMember 2022-01-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:HomeEquitysMember 2022-01-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:ConstructionMember 2022-01-01 2022-09-30 0001090009 us-gaap:ConsumerLoanMember sfst:OtherMember 2022-01-01 2022-09-30 0001090009 sfst:CommercialAndConsumerMember 2022-01-01 2022-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2023-09-30 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember 2023-09-30 0001090009 us-gaap:CommercialLoanMember sfst:OwnerOccupiedReMember 2022-12-31 0001090009 us-gaap:CommercialLoanMember sfst:NonOwnerOccupiedReMember 2022-12-31 0001090009 us-gaap:ConsumerLoanMember us-gaap:HomeEquityLoanMember 2022-12-31 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2023-06-30 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2022-06-30 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2023-07-01 2023-09-30 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2022-07-01 2022-09-30 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2023-09-30 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2022-09-30 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2022-12-31 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2021-12-31 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2023-01-01 2023-09-30 0001090009 sfst:AllowanceForCreditLossesUnfundedLoanCommitmentsMember 2022-01-01 2022-09-30 0001090009 sfst:PayFixedPortfolioMember 2023-06-30 0001090009 us-gaap:DesignatedAsHedgingInstrumentMember 2023-09-30 0001090009 us-gaap:InterestRateSwapMember 2023-09-30 0001090009 sfst:FixedRateAssetMember 2023-09-30 0001090009 sfst:FixedRateAssetMember 2022-12-31 0001090009 us-gaap:SwapMember 2023-09-30 0001090009 us-gaap:SwapMember 2023-01-01 2023-09-30 0001090009 us-gaap:InterestRateLockCommitmentsMember 2023-09-30 0001090009 us-gaap:InterestRateLockCommitmentsMember 2023-01-01 2023-09-30 0001090009 us-gaap:SecuritiesSoldNotYetPurchasedMember 2023-09-30 0001090009 us-gaap:SecuritiesSoldNotYetPurchasedMember 2023-01-01 2023-09-30 0001090009 us-gaap:DerivativeMember 2023-09-30 0001090009 us-gaap:InterestRateLockCommitmentsMember 2022-12-31 0001090009 us-gaap:InterestRateLockCommitmentsMember 2022-01-01 2022-12-31 0001090009 us-gaap:SecuritiesSoldNotYetPurchasedMember 2022-12-31 0001090009 us-gaap:SecuritiesSoldNotYetPurchasedMember 2022-01-01 2022-12-31 0001090009 us-gaap:DerivativeMember 2022-12-31 0001090009 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2023-09-30 0001090009 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2023-09-30 0001090009 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-09-30 0001090009 us-gaap:FairValueMeasurementsRecurringMember 2023-09-30 0001090009 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001090009 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001090009 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001090009 us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001090009 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember 2023-09-30 0001090009 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember 2023-09-30 0001090009 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2023-09-30 0001090009 us-gaap:FairValueMeasurementsNonrecurringMember 2023-09-30 0001090009 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember 2022-12-31 0001090009 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember 2022-12-31 0001090009 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2022-12-31 0001090009 us-gaap:FairValueMeasurementsNonrecurringMember 2022-12-31 0001090009 srt:MinimumMember 2023-01-01 2023-09-30 0001090009 srt:MaximumMember 2023-01-01 2023-09-30 0001090009 us-gaap:FairValueInputsLevel1Member 2023-09-30 0001090009 us-gaap:FairValueInputsLevel2Member 2023-09-30 0001090009 us-gaap:FairValueInputsLevel3Member 2023-09-30 0001090009 us-gaap:FairValueInputsLevel1Member 2022-12-31 0001090009 us-gaap:FairValueInputsLevel2Member 2022-12-31 0001090009 us-gaap:FairValueInputsLevel3Member 2022-12-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure sfst:Integer

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2023

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                      to

Commission file number 000-27719

 

Southern First Bancshares, Inc.

(Exact name of registrant as specified in its charter)

 

South Carolina   58-2459561
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)
     
6 Verdae Boulevard    
Greenville, S.C.   29607
(Address of principal executive offices)   (Zip Code)

864-679-9000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address, and former fiscal year, if changed since last report)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer x
Non-accelerated filer ¨ Smaller Reporting Company ¨
    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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

8,088,638 shares of common stock, par value $0.01 per share, were issued and outstanding as of October 31, 2023. 

 

 

 

   

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY

September 30, 2023 Form 10-Q

INDEX

    Page
       
PART I – CONSOLIDATED FINANCIAL INFORMATION    
       
Item 1. Consolidated Financial Statements    
       
  Consolidated Balance Sheets   3
       
  Consolidated Statements of Income   4
       
  Consolidated Statements of Comprehensive Income   5
       
  Consolidated Statements of Shareholders’ Equity   6
       
  Consolidated Statements of Cash Flows   7
       
  Notes to Unaudited Consolidated Financial Statements   8
       
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   29
       
Item 3. Quantitative and Qualitative Disclosures about Market Risk   45
       
Item 4. Controls and Procedures   46
       
PART II – OTHER INFORMATION    
       
Item 1. Legal Proceedings   46
       
Item 1A. Risk Factors   46
       
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds   46
       
Item 3. Defaults upon Senior Securities   47
       
Item 4. Mine Safety Disclosures   47
       
Item 5. Other Information   47
       
Item 6. Exhibits   47

2

PART I. CONSOLIDATED FINANCIAL INFORMATION

Item 1. CONSOLIDATED FINANCIAL STATEMENTS

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

         
 
   September 30,   December 31, 
(dollars in thousands, except share data)  2023   2022 
   (Unaudited)   (Audited) 
ASSETS          
Cash and cash equivalents:          
Cash and due from banks  $17,395    18,788 
Federal funds sold   127,714    101,277 
Interest-bearing deposits with banks   7,283    50,809 
Total cash and cash equivalents   152,392    170,874 
Investment securities:          
Investment securities available for sale   144,035    93,347 
Other investments   19,600    10,833 
Total investment securities   163,635    104,180 
Mortgage loans held for sale   7,117    3,917 
Loans   3,553,632    3,273,363 
Less allowance for credit losses   (41,131)   (38,639)
Loans, net   3,512,501    3,234,724 
Bank owned life insurance   52,140    51,122 
Property and equipment, net   95,743    99,183 
Deferred income taxes, net   13,078    12,522 
Other assets   23,351    15,459 
Total assets  $4,019,957    3,691,981 
LIABILITIES          
Deposits  $3,347,771    3,133,864 
FHLB advances and related debt   275,000    175,000 
Subordinated debentures   36,295    36,214 
Other liabilities   56,993    52,391 
Total liabilities   3,716,059    3,397,469 
SHAREHOLDERS’ EQUITY          
Preferred stock, par value $.01 per share, 10,000,000 shares authorized   -    - 
Common stock, par value $.01 per share, 10,000,000 shares authorized, 8,088,638 and 8,011,045 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively   81    80 
Nonvested restricted stock   (4,065)   (3,306)
Additional paid-in capital   121,757    119,027 
Accumulated other comprehensive loss   (15,255)   (13,410)
Retained earnings   201,380    192,121 
Total shareholders’ equity   303,898    294,512 
Total liabilities and shareholders’ equity  $4,019,957    3,691,981 

See notes to consolidated financial statements that are an integral part of these consolidated statements.

3

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

                 
 
   For the three months   For the nine months 
   ended September 30,   ended September 30, 
(dollars in thousands, except share data)  2023   2022   2023   2022 
Interest income                    
Loans  $43,542    29,752    121,380    80,294 
Investment securities   1,470    506    2,788    1,428 
Federal funds sold and interest-bearing deposits with banks   2,435    676    4,295    915 
Total interest income   47,447    30,934    128,463    82,637 
Interest expense                    
Deposits   25,130    5,021    64,245    7,773 
Borrowings   2,972    459    5,623    1,362 
Total interest expense   28,102    5,480    69,868    9,135 
Net interest income   19,345    25,454    58,595    73,502 
Provision for credit losses   (500)   950    2,235    3,830 
Net interest income after provision for credit losses   19,845    24,504    56,360    69,672 
Noninterest income                    
Mortgage banking income   1,208    1,230    3,167    3,907 
Service fees on deposit accounts   356    318    1,011    949 
ATM and debit card income   588    542    1,680    1,604 
Income from bank owned life insurance   349    315    1,018    945 
Loss on disposal of fixed assets   -    -    -    (394)
Gain on sale of securities   -    -    -    12 
Other income   249    275    653    850 
Total noninterest income   2,750    2,680    7,529    7,873 
Noninterest expenses                    
Compensation and benefits   10,231    9,843    30,874    29,214 
Occupancy   2,562    2,442    7,537    6,439 
Outside service and data processing costs   1,744    1,529    5,078    4,591 
Insurance   1,243    507    2,829    1,134 
Professional fees   504    555    1,914    1,848 
Marketing   293    338    994    934 
Other   725    832    2,573    2,360 
Total noninterest expenses   17,302    16,046    51,799    46,520 
Income before income tax expense   5,293    11,138    12,090    31,025 
Income tax expense   1,195    2,725    2,831    7,402 
Net income  $4,098    8,413    9,259    23,623 
Earnings per common share                    
Basic  $0.51    1.06    1.15    2.97 
Diluted   0.51    1.04    1.15    2.93 
Weighted average common shares outstanding                    
Basic   8,052,926    7,972,146    8,043,410    7,954,025 
Diluted   8,072,408    8,065,087    8,077,830    8,071,988 

See notes to consolidated financial statements that are an integral part of these consolidated statements.

4

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

                 
     
   For the three months
ended September 30,
   For the nine months
ended September 30,
 
(dollars in thousands)  2023   2022   2023   2022 
Net income  $4,098    8,413    9,259    23,623 
Other comprehensive loss:                    
Unrealized loss on securities available for sale:                    
Unrealized holding loss arising during the period, pretax   (3,221)   (4,894)   (2,333)   (16,783)
Tax expense   676    1,028    488    3,524 
Reclassification of realized gain   -    -    -    (12)
Tax benefit   -    -    -    2 
Other comprehensive loss   (2,545)   (3,866)   (1,845)   (13,269)
Comprehensive income  $1,553    4,547    7,414    10,354 

See notes to consolidated financial statements that are an integral part of these consolidated statements.

5

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

                                                           
   For the three months ended September 30, 
   Common stock   Preferred stock   Nonvested
restricted
   Additional
paid-in
   Accumulated
other
comprehensive
   Retained     
(dollars in thousands, except share data)  Shares   Amount   Shares   Amount   stock   capital   income (loss)   earnings   Total 
June 30, 2022   7,985,644   $80    -    -   $(3,230)  $117,714   $(10,143)  $178,216   $282,637 
Net income    -    -    -    -    -    -    -    8,413    8,413 
Proceeds from exercise of stock options   3,000    -    -    -    -    87    -    -    87 
Issuance of restricted stock   8,700    -    -    -    (405)   405    -    -    - 
Compensation expense related to restricted stock, net of tax   -    -    -    -    287    -    -    -    287 
Compensation expense related to stock options, net of tax   -    -    -    -    -    227    -    -    227 
Other comprehensive loss   -    -    -    -    -    -    (3,866)   -    (3,866)
                                             
September 30, 2022   7,997,344   $80    -   $-   $(3,348)  $118,433   $(14,009)  $186,629   $287,785 
June 30, 2023   8,058,438   $81    -   $-   $(4,051)  $120,912   $(12,710)  $197,282   $301,514 
Net income   -    -    -    -    -    -    -    4,098    4,098 
Proceeds from exercise of stock options   14,250    -    -    -    -    312    -    -    312 
Issuance of restricted stock, net of forfeitures   15,950    -    -    -    (388)   388    -    -    - 
Compensation expense related to restricted stock, net of tax   -    -    -    -    374    -    -    -    374 
Compensation expense related to stock options, net of tax   -    -    -    -    -    145    -    -    145 
Other comprehensive loss   -    -    -    -    -    -    (2,545)   -    (2,545)
                                              
September 30, 2023   8,088,638   $81    -   $-   $(4,065)  $121,757   $(15,255)  $201,380   $303,898 

 

   For the nine months ended September 30, 
   Common stock   Preferred stock   Nonvested
restricted
   Additional
paid-in
   Accumulated
other
comprehensive
   Retained     
(dollars in thousands, except share data)  Shares   Amount   Shares   Amount   stock   capital   income (loss)   earnings   Total 
December 31, 2021    7,925,819   $79    -    -   $(1,435)  $114,226   $(740)  $165,771   $277,901 
Net income    -    -    -    -    -    -    -    23,623    23,623 
Proceeds from exercise of stock options   24,750    1    -    -    -    793    -    -    794 
Issuance of restricted stock   46,775    -    -    -    (2,710)   2,710    -    -    - 
Adoption of ASU 2016-13   -    -    -    -    -    -    -    (2,765)   (2,765)
Compensation expense related to restricted stock, net of tax   -    -    -    -    797    -    -    -    797 
Compensation expense related to stock options, net of tax   -    -    -    -    -    704    -    -    704 
Other comprehensive loss   -    -    -    -    -    -    (13,269)   -    (13,269)
                                              
September 30, 2022   7,997,344   $80    -   $-   $(3,348)  $118,433   $(14,009)  $186,629   $287,785 
December 31, 2022   8,011,045   $80    -   $-   $(3,306)  $119,027   $(13,410)  $192,121   $294,512 
Net income   -    -    -    -    -    -    -    9,259    9,259 
Proceeds from exercise of stock options   25,250    -    -    -    -    497    -    -    497 
Issuance of restricted stock   52,343    1    -    -    (1,824)   1,823    -    -    - 
Compensation expense related to restricted stock, net of tax   -    -    -    -    1,065    -    -    -    1,065 
Compensation expense related to stock options, net of tax   -    -    -    -    -    410    -    -    410 
Other comprehensive loss   -    -    -    -    -    -    (1,845)   -    (1,845)
                                             
September 30, 2023   8,088,638   $81    -   $-   $(4,065)  $121,757   $(15,255)  $201,380   $303,898 

See notes to consolidated financial statements that are an integral part of these consolidated statements.

6

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

         
 
   For the nine months ended
September 30,
 
(dollars in thousands)  2023   2022 
Operating activities          
Net income  $9,259    23,623 
Adjustments to reconcile net income to cash provided by operating activities:          
Provision for credit losses   2,235    3,830 
Depreciation and other amortization   3,611    2,521 
Accretion and amortization of securities discounts and premium, net   142    554 
Loss on sale of fixed assets   -    394 
Gain on sale of securities   -    (12)
Net change in operating leases   188    814 
Compensation expense related to stock options and restricted stock grants   1,475    1,501 
Gain on sale of loans held for sale   (2,793)   (2,700)
Loans originated and held for sale   (112,930)   (191,448)
Proceeds from sale of loans held for sale   112,523    198,461 
Increase in cash surrender value of bank owned life insurance   (1,018)   (945)
Increase in deferred tax asset   (66)   (5,766)
(Increase) decrease in other assets   (7,892)   5 
Increase in other liabilities   6,059    6,006 
Net cash provided by operating activities   10,793    36,838 
Investing activities          
Increase (decrease) in cash realized from:          
Increase in loans, net   (280,627)   (538,816)
Purchase of property and equipment   (1,120)   (13,134)
Purchase of investment securities:          
Available for sale   (58,204)   (10,094)
Other investments   (49,949)   (15,235)
Payments and maturities, calls and repayments of investment securities:          
Available for sale   5,039    21,517 
Other investments   41,182    13,806 
Proceeds from sale of fixed assets   -    95 
Net cash used for investing activities   (343,679)   (541,861)
Financing activities          
Increase in cash realized from:          
Increase in deposits, net   213,907    437,626 
Increase in Federal Home Loan Bank advances and other borrowings, net   100,000    60,000 
Proceeds from the exercise of stock options   497    794 
Net cash provided by financing activities   314,404    498,420 
Net decrease in cash and cash equivalents   (18,482)   (6,603)
Cash and cash equivalents at beginning of the period   170,874    167,209 
Cash and cash equivalents at end of the period  $152,392    160,606 
Supplemental information          
Cash paid for          
Interest  $64,390    9,155 
Income taxes   586    8,270 
Schedule of non-cash transactions          
Unrealized gain (loss) on securities, net of income taxes   (1,845)   (13,259)
Right-of-use assets obtained in exchange for lease obligations:          
Operating leases   147    237 

See notes to consolidated financial statements that are an integral part of these consolidated statements.

7

SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – Summary of Significant Accounting Policies

Nature of Business

Southern First Bancshares, Inc. (the “Company”) is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the “Bank”) and all of the stock of Greenville First Statutory Trusts I and II (collectively, the “Trusts”). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank’s primary federal regulator is the Federal Deposit Insurance Corporation (the “FDIC”). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine-month periods ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 13, 2023. The consolidated financial statements include the accounts of the Company and the Bank. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation,” the financial statements related to the Trusts have not been consolidated.

Business Segments

The Company, through the Bank, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, and Georgia. These services include demand, time and savings deposits, lending services and ATM processing and mortgage banking services. While the Company’s management periodically reviews limited production information for these revenue streams, that information is not complete as it does not include a full allocation of revenue, costs and capital from key corporate functions. Management will continue to evaluate these lines of business for separate reporting as facts and circumstances change.  Accordingly, the Company’s various banking operations are not considered by management to constitute more than one reportable operating segment.

Risk and Uncertainties

There were three significant bank failures in the first five months of 2023, primarily due to the failed banks’ lack of liquidity as depositors sought to withdraw their deposits. Due to rising interest rates, the failed banks were unable to sell investment securities held to meet liquidity needs without realizing substantial losses. As a result of the March 2023 bank closures and in an effort to strengthen public confidence in the banking system and protect depositors, regulators announced that any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law, which has and could continue to increase the cost of our FDIC insurance assessments. Additionally, the Federal Reserve announced the creation of a new Bank Term Funding Program in an effort to minimize the need for banks to sell securities at a loss in times of stress. The continued impact of these bank failures on the economy, financial institutions and their depositors, as well as any governmental regulatory responses or actions resulting from the same, is difficult to predict at this time.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are

8

particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, real estate acquired in the settlement of loans, fair value of financial instruments, and valuation of deferred tax assets.

Reclassifications

Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders’ equity or net income.

Subsequent Events

Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date.

Adoption of New Accounting Standard

In January 2023, the Company adopted ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, for public business entities, the guidance requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20. The Company adopted the guidance using the modified retrospective method. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective cohort and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the allowance. The difference between the allowance previously determined and the current allowance was not material to the Company’s financial statements.

In January 2023, the Company adopted ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method”, which intended to better align hedge accounting with an organization’s risk management strategies. The ASU became applicable to the Company in the second quarter of 2023 when we entered into a fair value hedge using the portfolio layer method.

Newly Issued, But Not Yet Effective Accounting Standards

In December 2022, the FASB issued amendments to defer the sunset date of the Reference Rate Reform Topic of the Accounting Standards Codification from December 31, 2022 to December 31, 2024, because the current relief in Reference Rate Reform Topic may not cover a period of time during which a significant number of modifications may take place. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements.

9

NOTE 2 – Investment Securities

The amortized costs and fair value of investment securities are as follows:

                               
 
   September 30, 2023 
   Amortized   Gross Unrealized   Fair 
(dollars in thousands)  Cost   Gains   Losses   Value 
Available for sale                    
Corporate bonds  $2,153    -