Southern First Bancshares Inc. (SFST, Financial) filed Quarterly Report for the period ended 2009-06-30.
Greenville First Bancshares Inc. is the holding company for Greenville First Bank N.A. a national banking association chartered under the laws of the United States. Southern First Bancshares Inc. has a market cap of $24.36 million; its shares were traded at around $8 with a P/E ratio of 40 and P/S ratio of 0.61.
Our net income was $355,000 and $862,000 for the three months ended June 30, 2009 and 2008, respectively, a decrease of $507,000, or 58.8%. The decrease in net income resulted primarily from increases of $778,000 in noninterest expenses and $275,000 in provision for loan losses, partially offset by increases of $140,000 in net interest income and $144,000 in noninterest income and a $262,000 decrease in income tax expense. Our efficiency ratio, excluding real estate owned activity, was 72.9% for the three months ended June 30, 2009 compared to 61.9% for the same period in 2008. The higher efficiency ratio relates primarily to the additional FDIC insurance costs during the second quarter of 2009 as well as administrative costs associated with our two new retail offices.
Our net income was $843,000 and $1.6 million for the six months ended June 30, 2009 and 2008, respectively, a decrease of $765,000, or 47.6%. The decrease in net income resulted primarily from increases of $1.2 million in noninterest expenses and $425,000 in the provision for loan losses, partially offset by increases of $208,000 in net interest income and $247,000 in noninterest income and a decrease of $426,000 in income tax expense. Our efficiency ratio, excluding real estate owned activity, was 71.7% for the six months ended June 30, 2009 from 62.3% for the same period in 2008. The higher efficiency ratio relates primarily to the additional FDIC insurance costs during 2009 as well as administrative costs associated with our two new retail offices.
Our level of net interest income is determined by the level of earning assets and the management of our net interest margin. For the three months ended June 30, 2009 and 2008, our net interest income was $4.9 million and $4.8 million, respectively. Our average earning assets increased $13.0 million during the three months ended June 30, 2009 compared to the average for the three months ended June 30, 2008, while our interest bearing liabilities increased only $4.0 million. The lesser increase in average interest bearing liabilities is due to the utilization of $17.3 million received for the issuance of preferred stock under the Treasurys Capital Purchase Program.
Our net interest income was $9.4 million and $9.2 million for the six month periods ended June 30, 2009 and 2008, respectively. During the six months ended June 30, 2009, our average earning assets increased $25.9 million and our average interest bearing liabilities increased $24.6 million compared to the six months ended June 30, 2008. The increase in average earning assets is primarily related to a $28.9 million increase in our average loans, while the increase in average interest-bearing liabilities is related to an increase in our time deposits, specifically, wholesale certificates of deposit.
The $12.9 million increase in noninterest-earning assets during the three months ended June 30, 2009 compared to the same period in 2008 is due primarily to a $4.4 million increase in property and equipment related to the construction of our new regional headquarters facility in Columbia, SC as well as increases of $4.5 million in bank-owned life insurance and $1.7 million in other real estate owned. In addition, the $19.1 million increase in shareholders equity during the 2009 period is primarily related to the $17.3 million received for the issuance of preferred stock under the Treasurys Capital Purchase Program.
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Greenville First Bancshares Inc. is the holding company for Greenville First Bank N.A. a national banking association chartered under the laws of the United States. Southern First Bancshares Inc. has a market cap of $24.36 million; its shares were traded at around $8 with a P/E ratio of 40 and P/S ratio of 0.61.
Highlight of Business Operations:
In response to the above regulatory initiatives, we entered into the CPP Purchase Agreement with the Treasury Department on February 27, 2009, pursuant to which we sold 17,299 shares of our Series T Preferred Stock and the CPP Warrant to purchase 330,554 shares of our common stock for an aggregate purchase price of $17.3 million in cash. The Series T Preferred Stock will qualify as Tier 1 capital and will be entitled to cumulative dividends at a rate of 5% per annum for the first five years, and 9% per annum thereafter. We must consult with the OCC before we may redeem the Series T Preferred Stock but, contrary to the original restrictions in the EESA, will not necessarily be required to raise additional equity capital in order to redeem this stock. The CPP Warrant has a 10-year term and is immediately exercisable upon its issuance, with an exercise price, subject to anti-dilution adjustments equal to $7.85 per share of the common stock. The fair value allocation of the $17.3 million between the shares of Series T Preferred Stock and the CPP Warrant resulted in $15.9 million allocated to the shares of Series T Preferred Stock and $1.4 million allocated to the CPP Warrant.Our net income was $355,000 and $862,000 for the three months ended June 30, 2009 and 2008, respectively, a decrease of $507,000, or 58.8%. The decrease in net income resulted primarily from increases of $778,000 in noninterest expenses and $275,000 in provision for loan losses, partially offset by increases of $140,000 in net interest income and $144,000 in noninterest income and a $262,000 decrease in income tax expense. Our efficiency ratio, excluding real estate owned activity, was 72.9% for the three months ended June 30, 2009 compared to 61.9% for the same period in 2008. The higher efficiency ratio relates primarily to the additional FDIC insurance costs during the second quarter of 2009 as well as administrative costs associated with our two new retail offices.
Our net income was $843,000 and $1.6 million for the six months ended June 30, 2009 and 2008, respectively, a decrease of $765,000, or 47.6%. The decrease in net income resulted primarily from increases of $1.2 million in noninterest expenses and $425,000 in the provision for loan losses, partially offset by increases of $208,000 in net interest income and $247,000 in noninterest income and a decrease of $426,000 in income tax expense. Our efficiency ratio, excluding real estate owned activity, was 71.7% for the six months ended June 30, 2009 from 62.3% for the same period in 2008. The higher efficiency ratio relates primarily to the additional FDIC insurance costs during 2009 as well as administrative costs associated with our two new retail offices.
Our level of net interest income is determined by the level of earning assets and the management of our net interest margin. For the three months ended June 30, 2009 and 2008, our net interest income was $4.9 million and $4.8 million, respectively. Our average earning assets increased $13.0 million during the three months ended June 30, 2009 compared to the average for the three months ended June 30, 2008, while our interest bearing liabilities increased only $4.0 million. The lesser increase in average interest bearing liabilities is due to the utilization of $17.3 million received for the issuance of preferred stock under the Treasurys Capital Purchase Program.
Our net interest income was $9.4 million and $9.2 million for the six month periods ended June 30, 2009 and 2008, respectively. During the six months ended June 30, 2009, our average earning assets increased $25.9 million and our average interest bearing liabilities increased $24.6 million compared to the six months ended June 30, 2008. The increase in average earning assets is primarily related to a $28.9 million increase in our average loans, while the increase in average interest-bearing liabilities is related to an increase in our time deposits, specifically, wholesale certificates of deposit.
The $12.9 million increase in noninterest-earning assets during the three months ended June 30, 2009 compared to the same period in 2008 is due primarily to a $4.4 million increase in property and equipment related to the construction of our new regional headquarters facility in Columbia, SC as well as increases of $4.5 million in bank-owned life insurance and $1.7 million in other real estate owned. In addition, the $19.1 million increase in shareholders equity during the 2009 period is primarily related to the $17.3 million received for the issuance of preferred stock under the Treasurys Capital Purchase Program.
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