Southern First Bancshares Inc. (SFST, Financial) filed Quarterly Report for the period ended 2010-03-31.
Southern First Bancshares Inc. has a market cap of $24.8 million; its shares were traded at around $8 with and P/S ratio of 0.6. Southern First Bancshares Inc. had an annual average earning growth of 12.8% over the past 5 years.
A public-private investment fund program that is intended to leverage public and private capital with public financing to purchase up to $500 billion to $1 trillion of legacy toxic assets from financial institutions; and
The second plan is the Securities Program, which is administered by the Treasury and involves the creation of public-private investment funds to target investments in eligible residential mortgage-backed securities and commercial mortgage-backed securities issued before 2009 that originally were rated AAA or the equivalent by two or more nationally recognized statistical rating organizations, without regard to rating enhancements (collectively, Legacy Securities). Legacy Securities must be directly secured by actual mortgage loans, leases or other assets, and may be purchased only from financial institutions that meet TARP eligibility requirements. Treasury received over 100 unique applications to participate in the Legacy Securities PPIP and in July 2009 selected nine public-private investment fund managers. As of December 31, 2009, public-private investment funds have completed initial and subsequent closings on approximately $6.2 billion of private sector equity capital, which was matched 100% by Treasury, representing $12.4 billion of total equity capital. Treasury has also provided $12.4 billion of debt capital, representing $24.8 billion of total purchasing power. As of December 31, 2009, public-private investment funds have drawn-down approximately $4.3 billion of total capital which has been invested in certain non-agency residential mortgage backed securities and commercial mortgage backed securities and cash equivalents pending investment.
Our net income for the three months ended March 31, 2010 was $18,000, a 96.3% decrease from $487,000 for the three months ended March 31, 2009. The $469,000 decrease in net income resulted primarily from a $650,000 increase in the provision for loan losses and a $579,000 increase in noninterest expenses, partially offset by increases of $320,000 in net interest income, $156,000 in noninterest income and a $284,000 reduction in income tax expense. Our efficiency ratio, excluding real estate owned activity, was 75.1% for the three months ended March 31, 2010 compared to 70.2% for the same period in 2009. The deterioration in the efficiency ratio is due primarily to the additional FDIC insurance costs as well as administrative costs associated with our new regional headquarters in Columbia, South Carolina.
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 March 31, 2010 and 2009, our net interest income was $4.8 million and $4.5 million, respectively. Our average earning assets increased $21.8 million during the three months ended March 31, 2010 compared to the average for the three months ended March 31, 2009, while our interest bearing liabilities increased only $9.2 million. The primary reason that earning assets increased by $12.6 million more than interest bearing liabilities is due to the issuance of preferred stock on February 27, 2009 under the CPP. The increase in average earning assets is primarily related to a $13.1 million increase in our average loans, while the increase in average interest-bearing liabilities is related to an increase in our interest-bearing deposits, specifically, time deposits.
Our net interest margin is calculated as net interest income, on an annualized basis, divided by average interest-earning assets. Our net interest margin, on a tax-equivalent basis, for the three months ended March 31, 2010 was 2.83% compared to 2.72% for the three months ended March 31, 2009. Despite lower interest income as a result of additional loans being placed on nonaccrual and an increase in our investment portfolio, which traditionally yields lower earnings, our net interest margin has increased throughout the past 18 months from 2.62% for the fourth quarter of 2008 to 2.83% for the first quarter of 2010. During the first quarter of 2010, interest-earning assets averaged $690.0 million compared to $668.2 million in the first quarter of 2009.
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Southern First Bancshares Inc. has a market cap of $24.8 million; its shares were traded at around $8 with and P/S ratio of 0.6. Southern First Bancshares Inc. had an annual average earning growth of 12.8% over the past 5 years.
Highlight of Business Operations:
EESA also increased FDIC deposit insurance on most accounts from $100,000 to $250,000. This increase is in place until the end of 2013 and is not covered by deposit insurance premiums paid by the banking industry.A public-private investment fund program that is intended to leverage public and private capital with public financing to purchase up to $500 billion to $1 trillion of legacy toxic assets from financial institutions; and
The second plan is the Securities Program, which is administered by the Treasury and involves the creation of public-private investment funds to target investments in eligible residential mortgage-backed securities and commercial mortgage-backed securities issued before 2009 that originally were rated AAA or the equivalent by two or more nationally recognized statistical rating organizations, without regard to rating enhancements (collectively, Legacy Securities). Legacy Securities must be directly secured by actual mortgage loans, leases or other assets, and may be purchased only from financial institutions that meet TARP eligibility requirements. Treasury received over 100 unique applications to participate in the Legacy Securities PPIP and in July 2009 selected nine public-private investment fund managers. As of December 31, 2009, public-private investment funds have completed initial and subsequent closings on approximately $6.2 billion of private sector equity capital, which was matched 100% by Treasury, representing $12.4 billion of total equity capital. Treasury has also provided $12.4 billion of debt capital, representing $24.8 billion of total purchasing power. As of December 31, 2009, public-private investment funds have drawn-down approximately $4.3 billion of total capital which has been invested in certain non-agency residential mortgage backed securities and commercial mortgage backed securities and cash equivalents pending investment.
Our net income for the three months ended March 31, 2010 was $18,000, a 96.3% decrease from $487,000 for the three months ended March 31, 2009. The $469,000 decrease in net income resulted primarily from a $650,000 increase in the provision for loan losses and a $579,000 increase in noninterest expenses, partially offset by increases of $320,000 in net interest income, $156,000 in noninterest income and a $284,000 reduction in income tax expense. Our efficiency ratio, excluding real estate owned activity, was 75.1% for the three months ended March 31, 2010 compared to 70.2% for the same period in 2009. The deterioration in the efficiency ratio is due primarily to the additional FDIC insurance costs as well as administrative costs associated with our new regional headquarters in Columbia, South Carolina.
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 March 31, 2010 and 2009, our net interest income was $4.8 million and $4.5 million, respectively. Our average earning assets increased $21.8 million during the three months ended March 31, 2010 compared to the average for the three months ended March 31, 2009, while our interest bearing liabilities increased only $9.2 million. The primary reason that earning assets increased by $12.6 million more than interest bearing liabilities is due to the issuance of preferred stock on February 27, 2009 under the CPP. The increase in average earning assets is primarily related to a $13.1 million increase in our average loans, while the increase in average interest-bearing liabilities is related to an increase in our interest-bearing deposits, specifically, time deposits.
Our net interest margin is calculated as net interest income, on an annualized basis, divided by average interest-earning assets. Our net interest margin, on a tax-equivalent basis, for the three months ended March 31, 2010 was 2.83% compared to 2.72% for the three months ended March 31, 2009. Despite lower interest income as a result of additional loans being placed on nonaccrual and an increase in our investment portfolio, which traditionally yields lower earnings, our net interest margin has increased throughout the past 18 months from 2.62% for the fourth quarter of 2008 to 2.83% for the first quarter of 2010. During the first quarter of 2010, interest-earning assets averaged $690.0 million compared to $668.2 million in the first quarter of 2009.
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