Regional economic downturn
Borrower repayment capacity and collateral values depend on local market conditions.
- Scope
- Primary markets in South Carolina, North Carolina, and Georgia
- Materiality
- high
Southern First Bancshares, Inc
Southern First Bancshares, Inc. is a South Carolina-based bank holding company whose main subsidiary is Southern First Bank, a state-chartered commercial bank. Through its branch network in South Carolina, North Carolina, and Georgia, the company provides deposit accounts, commercial lending, consumer lending, and mortgage lending, along with related banking services.
483,4 %
+13,0 %
| % | |
|---|---|
| Deposit products | 20% Transaction and savings accounts used to fund lending and client relationships. |
| Commercial lending | 45% Loans to businesses, including owner-occupied, non-owner-occupied, construction, and business loans. |
| Consumer lending | 25% Residential real estate, home equity, construction, and other consumer credit products. |
| Mortgage lending | 5% Mortgage origination and related loan production activities for residential borrowers. |
| Fee-based banking services | 5% Cash management, card, wire, ATM, and digital banking services that support clients. |
The bank serves commercial clients, business owners, and consumers in its Southeast regional markets...
- Commercial and business clientsprimary
Businesses that borrow for operations, real estate, and expansion and use cash management and deposits.
- Commercial real estate borrowersprimary
Owner-occupied and non-owner-occupied property borrowers that require secured lending.
- Consumer banking clientssecondary
Households that use deposit accounts, mortgage loans, home equity credit, and digital banking.
- Mortgage borrowerssecondary
Residential customers using mortgage origination and related loan production services.
Southern First Bancshares operates primarily in the Southeast United States through retail offices in South Carolina,...
- •Headquartered in South Carolina
- •Retail offices in South Carolina, North Carolina, and Georgia
- •Core markets include Greenville, Columbia, Charleston, Raleigh, Greensboro, Charlotte, and Atlanta
- •Regional footprint creates exposure to Southeast economic cycles
- •Digital and card networks extend client access nationally
The company’s strategy centers on relationship banking, local market knowledge, and a differentiated client experience...
01
Strengthen relationship banking in core marketsshort-term
Local service and market familiarity are central to winning deposits and loans against larger banks.
02
Increase digital and remote deposit adoptionmedium-term
Technology improves convenience, retention, and deposit gathering efficiency.
03
Expand branch and market presence selectivelymedium-term
Physical presence supports relationship growth and deposit gathering in targeted Southeast markets.
As a regional bank, the company is exposed to local economic conditions, borrower credit quality, collateral values,...
Commercial real estate concentration
A large share of lending is tied to property values and tenant/business performance.
- Scope
- Non-owner occupied RE, owner-occupied RE, and construction lending
- Materiality
- high
Interest-rate and funding mix sensitivity
Bank earnings depend on deposit costs, loan yields, and balance-sheet repricing.
- Scope
- Deposit-funded commercial bank model
- Materiality
- high
Competition from larger banks
National and regional banks can compete aggressively on pricing, products, and scale.
- Scope
- Core Southeast deposit and lending markets
- Materiality
- medium
Vendor and cybersecurity dependence
Core processing, ATM, and digital banking rely on third-party systems and controls.
- Scope
- FIS core processing and outsourced ATM services
- Materiality
- medium
Allowance for credit losses
Affects provision expense, net income, and capital
Commercial real estate valuation
Can change credit loss estimates and charge-offs
Letters of credit
Affects off-balance-sheet disclosure and credit risk assessment
Fee income recognition
Affects noninterest income timing
: 29.4.2026