| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 35.21 | -36 |
| Intrinsic value (DCF) | 32.54 | -41 |
| Graham-Dodd Method | 50.50 | -8 |
| Graham Formula | 40.99 | -25 |
Southern First Bancshares, Inc. (NASDAQ: SFST) is a regional bank holding company operating through its subsidiary, Southern First Bank, across South Carolina, North Carolina, and Georgia. The company offers a comprehensive suite of banking products, including commercial and retail banking, mortgage banking, and corporate operations. Its deposit products range from checking and savings accounts to time deposits, while its loan portfolio includes commercial real estate, construction loans, and consumer lending solutions. With a focus on digital banking, Southern First provides internet banking, cash management, and mobile banking services. Headquartered in Greenville, South Carolina, the bank operates 12 retail offices in key markets, positioning itself as a community-focused financial institution in the Southeastern U.S. As a regional player in the financial services sector, Southern First Bancshares competes by leveraging personalized service and local market expertise in a competitive banking landscape.
Southern First Bancshares presents a moderate investment opportunity with a market cap of ~$294M and a beta of 0.77, indicating lower volatility than the broader market. The company reported $201.2M in revenue and $15.5M in net income for the latest fiscal year, with diluted EPS of $1.91. While the bank maintains a solid operating cash flow of $25.6M, its lack of dividend payments may deter income-focused investors. The regional banking model offers stability, but SFST faces intense competition from larger national and regional banks. Investors should weigh its niche Southeastern presence against potential growth constraints in a rising interest rate environment.
Southern First Bancshares operates in the highly competitive regional banking sector, where it differentiates itself through localized service and community banking relationships. Its competitive advantage lies in its deep regional knowledge of South Carolina, North Carolina, and Georgia markets, allowing for tailored financial solutions. The bank's three-segment structure (Commercial/Retail Banking, Mortgage Banking, Corporate Operations) provides diversified revenue streams. However, with only 12 retail offices, SFST lacks the scale of larger regional competitors, potentially limiting its ability to compete on pricing and technology investments. The company's $293M market cap positions it as a small player in the regional banking space, requiring it to compete on service quality rather than scale. Its mortgage banking segment faces particular pressure from non-bank lenders, while commercial banking competes with both local community banks and national players expanding in the Southeast. The lack of dividend payments may make SFST less attractive compared to dividend-paying peers, though this could indicate reinvestment for growth.