Overview

• US regional bank's Q2 revenue rose 25% yr/yr on strong loan growth and margin expansion

• Q2 diluted EPS rose yr/yr to $1.20; net income up 70% to $11.2 mln

• Company raised $65.2 mln in capital, boosting CET1 ratio to 12.8%

Outlook

• Company did not provide specific financial guidance for future quarters or the full year in press release

Result Drivers

• LOAN GROWTH - Net interest income rose 28% yr/yr, driven primarily by new loan volume

• MARGIN EXPANSION - Net interest margin increased to 2.87% from 2.50% a year ago

• RETAIL DEPOSIT GROWTH - Retail client deposits increased by $184 mln in Q2, a 22% annualized growth rate

Company press release: ID:nPn8ynYNva

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$35.88 mln	$30.50 mln (1 Analyst)
Q2 EPS		$1.20
Q2 Net Income		$11.20 mln
Q2 CET1 Capital Ratio		12.82%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Southern First Bancshares Inc is $66.50, about 8.3% above its July 20 closing price of $61.39

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 20 - SmartFinancial Q2 profit rises as loan growth lifts net interest income

• July 21 - KeyCorp quarterly profit rises on interest income strength

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