Southern First Bancshares Inc. (SFST, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $23.4 million; its shares were traded at around $7.7 with a P/E ratio of 28.5 and P/S ratio of 0.6.
Our net income was $424,000 for the three months ended September 30, 2009, an increase of $550,000, over a net loss of $126,000 for the same period in 2008. The increase in net income resulted primarily from the $1.8 million pre-tax impairment charge on Fannie Mae preferred stock during the three months ended September 30, 2008. Partially offsetting the impairment charge were increases of $825,000 in noninterest expenses, $435,000 in provision for loan losses, and $257,000 in income tax expense. Our efficiency ratio, excluding real estate owned activity and the impairment charge, was 69.1% for the three months ended September 30, 2009 compared to 57.8% for the same period in 2008. The higher efficiency ratio relates primarily to the additional FDIC insurance costs during the third quarter of 2009 as well as administrative costs associated with our two new retail offices.
Our net income was $1.3 million and $1.5 million for the nine months ended September 30, 2009 and 2008, respectively, a decrease of $215,000, or 14.5%. The decrease in net income resulted primarily from increases of $2.1 million in noninterest expenses and $860,000 in the provision for loan losses, partially offset by increases of $315,000 in net interest income and $2.2 million in noninterest income and a decrease of $169,000 in income tax expense. Our efficiency ratio, excluding real estate owned activity and the impairment charge, was 70.8% for the nine months ended September 30, 2009 from 60.8% 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 September 30, 2009 and 2008, our net interest income was $5.0 million and $4.8 million, respectively. Our average earning assets increased $30.8 million during the three months ended September 30, 2009 compared to the average for the three months ended September 30, 2008, while our interest bearing liabilities increased only $15.4 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 $14.3 million and $14.0 million for the nine month periods ended September 30, 2009 and 2008, respectively. During the nine months ended September 30, 2009, our average earning assets increased $27.6 million and our average interest bearing liabilities increased $21.0 million compared to the nine months ended September 30, 2008. The increase in average earning assets is primarily related to a $25.2 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 $9.8 million increase in average noninterest-earning assets during the three months ended September 30, 2009 compared to the same period in 2008 is due primarily to a $6.5 million increase in property and equipment related to the construction of our new regional headquarters facility in Columbia, SC. In addition, the $21.1 million increase in average 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 $23.4 million; its shares were traded at around $7.7 with a P/E ratio of 28.5 and P/S ratio of 0.6.
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 qualifies as Tier 1 capital and is 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 $424,000 for the three months ended September 30, 2009, an increase of $550,000, over a net loss of $126,000 for the same period in 2008. The increase in net income resulted primarily from the $1.8 million pre-tax impairment charge on Fannie Mae preferred stock during the three months ended September 30, 2008. Partially offsetting the impairment charge were increases of $825,000 in noninterest expenses, $435,000 in provision for loan losses, and $257,000 in income tax expense. Our efficiency ratio, excluding real estate owned activity and the impairment charge, was 69.1% for the three months ended September 30, 2009 compared to 57.8% for the same period in 2008. The higher efficiency ratio relates primarily to the additional FDIC insurance costs during the third quarter of 2009 as well as administrative costs associated with our two new retail offices.
Our net income was $1.3 million and $1.5 million for the nine months ended September 30, 2009 and 2008, respectively, a decrease of $215,000, or 14.5%. The decrease in net income resulted primarily from increases of $2.1 million in noninterest expenses and $860,000 in the provision for loan losses, partially offset by increases of $315,000 in net interest income and $2.2 million in noninterest income and a decrease of $169,000 in income tax expense. Our efficiency ratio, excluding real estate owned activity and the impairment charge, was 70.8% for the nine months ended September 30, 2009 from 60.8% 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 September 30, 2009 and 2008, our net interest income was $5.0 million and $4.8 million, respectively. Our average earning assets increased $30.8 million during the three months ended September 30, 2009 compared to the average for the three months ended September 30, 2008, while our interest bearing liabilities increased only $15.4 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 $14.3 million and $14.0 million for the nine month periods ended September 30, 2009 and 2008, respectively. During the nine months ended September 30, 2009, our average earning assets increased $27.6 million and our average interest bearing liabilities increased $21.0 million compared to the nine months ended September 30, 2008. The increase in average earning assets is primarily related to a $25.2 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 $9.8 million increase in average noninterest-earning assets during the three months ended September 30, 2009 compared to the same period in 2008 is due primarily to a $6.5 million increase in property and equipment related to the construction of our new regional headquarters facility in Columbia, SC. In addition, the $21.1 million increase in average 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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