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Here are 1-2 brief analogies for Southern First Bancshares (SFST):

• Think of it as a regional Bank of America, focused on businesses and individuals in the Carolinas and Georgia.
• It's like a smaller, more localized Truist, serving communities across the Southeast.

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• Commercial Lending: Providing loans and lines of credit to businesses for various purposes such as working capital, equipment, and expansion.
• Commercial Real Estate Lending: Offering financing for the acquisition, development, and refinancing of commercial properties.
• Consumer Lending: Extending loans to individuals for personal needs, including residential mortgages, home equity lines, auto loans, and personal loans.
• Deposit Services: Offering a range of checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Treasury Management Services: Delivering solutions for businesses to optimize cash flow, including payment processing, fraud protection, and account management.

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Southern First Bancshares (SFST) operates as a bank holding company for Southern First Bank, providing a range of banking and financial services. As a financial institution, it does not have a few "major customers" in the traditional sense of selling products or services to a limited number of other large companies. Instead, its customer base is broad and diverse, consisting of various categories of individuals and businesses.

The company primarily sells to individuals and businesses, and its customer categories can be described as follows:

• Individual Consumers: This category includes individuals and households who utilize the bank's retail banking services, such as checking and savings accounts, mortgages, home equity loans, personal loans, and wealth management services.
• Small and Medium-sized Businesses (SMBs): Southern First provides a range of commercial banking services to local and regional businesses. This includes commercial loans (e.g., for real estate, equipment, working capital), business checking and savings accounts, treasury management services, and other tailored financial solutions to support business operations and growth.
• Commercial Real Estate Developers and Investors: A significant portion of many regional banks' portfolios involves lending to developers and investors for commercial real estate projects, including acquisition, development, and construction loans for various property types (e.g., office, retail, multi-family, industrial).

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R. Arthur "Art" Seaver, Jr., Chief Executive Officer

R. Arthur "Art" Seaver, Jr. is the founder and Chief Executive Officer of Southern First Bank and its holding company, Southern First Bancshares, a role he has held since 1999. He possesses over 37 years of banking experience. Prior to founding Southern First, Mr. Seaver held various positions with The Citizens & Southern National Bank of South Carolina from 1986 to 1992. From 1992 to February 1999, he was with Greenville National Bank, which was acquired by Regions Bank in 1998, serving as Senior Vice President in lending and managing deposit strategies before departing to establish Southern First Bank. Mr. Seaver graduated from Clemson University in 1986 with a bachelor's degree in financial management.

Christian J. Zych, Chief Financial Officer

Christian J. Zych has served as the Chief Financial Officer of Southern First Bancshares and Southern First Bank since May 2024. He holds a Master of Business Administration from Wake Forest University School of Business and a bachelor's degree in finance from Bentley University.

Calvin C. Hurst, President

Calvin C. Hurst has been the President of Southern First Bancshares and Southern First Bank since August 2022. He previously served as the Chief Banking Officer since March 2019. Mr. Hurst has over 18 years of banking experience, having worked for several large financial institutions from 2006 to 2019 in roles such as Commercial Underwriter, Commercial Relationship Manager, and Regional Vice President for TD Bank. He is a 2005 graduate of Furman University with a bachelor's degree in business administration and economics.

Julie A. Fairchild, Chief Accounting Officer

Julie A. Fairchild has served as Chief Accounting Officer and Principal Accounting Officer of Southern First Bancshares and Southern First Bank since October 2024. She joined the bank in 2005, holding various positions including Executive Vice President of Accounting and Finance. Before joining Southern First, Ms. Fairchild was an Audit Manager for Elliott Davis LLC. She holds a Bachelor of Science degree in accounting from Bob Jones University and is a Certified Public Accountant.

Silvia T. King, Chief Human Resources Officer

Silvia T. King has been the Chief Human Resources Officer of Southern First Bancshares and Southern First Bank since March 2018. Ms. King brings over 20 years of human resources leadership experience, having held various human resource and senior management roles with Monsanto Company and Select Comfort Corporation.

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The key risks to Southern First Bancshares (SFST) include its high real estate exposure, geographic concentration, and the absence of a dividend policy.

1. High Real Estate Exposure: A significant portion of Southern First Bancshares' loan portfolio is concentrated in real estate, including commercial real estate, construction real estate, consumer real estate, and home equity loans. This high exposure to real estate markets makes the company vulnerable to fluctuations and downturns in property values, potentially leading to increased loan losses and impaired asset quality.
2. Geographic Concentration Risk: Southern First Bancshares primarily operates in the Southeastern United States, with a strong presence in South Carolina and expansion into Georgia and North Carolina. This geographic concentration exposes the bank to regional economic conditions, regulatory changes, and local market specificities. Any adverse economic trends or unforeseen events in this region could disproportionately impact the company's financial performance and growth prospects.
3. Lack of Dividend: Unlike many regional bank stocks that appeal to income-focused investors, Southern First Bancshares does not pay a dividend. This policy means that shareholders are solely dependent on share price appreciation for returns, potentially limiting the stock's appeal to a broad base of investors, particularly those seeking regular income. This could also impact the stock's liquidity and valuation compared to dividend-paying peers in the sector.

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Clear Emerging Threats for Southern First Bancshares (SFST)

• Disruption from Fintech Companies and Neobanks: Emerging digital-first financial institutions (fintechs and neobanks) pose a significant threat. These companies offer highly convenient, often lower-cost, and seamlessly integrated banking services (deposits, payments, lending, and wealth management) entirely through mobile applications and online platforms. They directly challenge traditional community banks like SFST by attracting customers, particularly younger demographics, who prioritize digital convenience and streamlined experiences over physical branch networks. This trend can erode SFST's deposit base, diminish opportunities for consumer and small business lending, and compress margins as customers migrate to more agile, technology-driven alternatives.
• Expansion of Big Tech into Financial Services: Large technology companies, including Apple (e.g., Apple Card, Apple Pay Later), Google (e.g., Google Wallet), and Amazon (e.g., Amazon Pay, lending to sellers), are increasingly embedding financial services directly into their vast ecosystems. These companies leverage their immense user bases, extensive data, and advanced technological capabilities to offer integrated payment solutions, consumer credit, and other financial products with unparalleled convenience. This encroaches upon traditional banking territory, potentially disintermediating SFST from customer relationships for payments, consumer credit, and various transactional services by providing alternative, seamless financial pathways outside of traditional banking channels.

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Southern First Bancshares (SFST) primarily operates in Commercial and Retail Banking, and Mortgage Banking. The company's main geographic markets are South Carolina, North Carolina, and Georgia, with its headquarters in Greenville, South Carolina.

Here are the addressable market sizes for their main products or services in the regions identified:

• Commercial Banking: The market size for the Commercial Banking industry in South Carolina is estimated to be $13.4 billion in 2025.
• Real Estate Loans & Collateralized Debt: The market size for Real Estate Loans & Collateralized Debt in South Carolina is $4.1 billion in 2025. This category encompasses various forms of real estate lending, which aligns with Southern First's commercial and mortgage lending activities.

While specific market sizes for "Retail Banking" in South Carolina, and for all products in North Carolina and Georgia, were not readily available as distinct, quantifiable addressable markets in the provided search results, the available data for commercial banking and real estate loans in South Carolina offer a partial view of the addressable market for Southern First Bancshares' core offerings.

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Southern First Bancshares (SFST) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Strong Loan and Deposit Growth: Southern First Bancshares has demonstrated robust growth in its loan portfolio and deposits. In Q2 2025, total loans grew to $3.75 billion, up 7% annualized from Q1 2025, and deposits also increased significantly. The company's total assets reached $4.36 billion in Q3 2025, reflecting a strong expansion in its financial position, largely attributed to a larger loan portfolio and an increase in interest-bearing deposits. This organic growth in its core banking activities is a primary driver of increased net interest income.
2. Expansion in High-Growth Southeastern Markets: The company operates in high-growth Southeastern markets, with South Carolina, its home state, identified as having the top-performing economy in the nation at the start of 2025 due to employment growth, stable inflation, and rising wages. This favorable geographic footprint provides a fertile ground for continued customer acquisition and expansion of its banking services, including commercial, consumer, and mortgage loans.
3. Net Interest Margin Expansion: Management has focused on margin expansion, with the net interest margin improving to 2.50% in Q2 2025. Net interest income increased to $27.529 million in Q3 2025, up year-over-year, reflecting higher loan yields and lower interest expense. The balance sheet is positioned for the current interest rate environment, with a significant portion of deposits and assets expected to reprice in 2025, which could further contribute to margin improvement.
4. Growth in Non-Interest Income: While not as prominently detailed as loan growth, the company has seen a rise in non-interest income. For example, in Q3 2025, noninterest income saw a modest rise, contributing to the overall revenue growth. Continued strategic focus on diversifying revenue streams beyond traditional lending, potentially through increased service charges or other fee-based services, could further bolster revenue.

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Share Repurchases

• Southern First Bancshares authorized a new $5 million share repurchase plan on June 18, 2025, which is effective until March 22, 2026. This plan represents approximately 2% of the company's outstanding common stock.
• Prior to this authorization, no share repurchases were made under the 2021 Repurchase Plan before its expiration on March 31, 2022.
• Additionally, no repurchases were made under the 2022 Repurchase Plan, which had authorized the repurchase of up to 375,000 shares.

Share Issuance

• On January 24, 2025, Southern First Bancshares amended its 2020 Equity Incentive Plan to streamline the administrative requirements for awarding restricted stock units. This amendment facilitates the granting of equity awards to attract, retain, and motivate employees.

Capital Expenditures

• Southern First Bancshares makes significant investments in its IT systems and technology offerings to clients to drive low-cost deposit growth.
• The company's strategy focuses on maintaining a smaller number of brick-and-mortar offices compared to peers, yet they continue to invest in their branch network.