SOUTHERN FIRST BANCSHARES INC Segments Disclosure
NOTE 24 – Reportable Segments
The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning purposes by management. The three segments include Commercial and Retail Banking, Mortgage Banking, and Corporate Operations. The following schedule presents financial information for each reportable segment.
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Year ended December 31, 2021 | ||||||||||||||||||||
|
(dollars in thousands) |
Commercial and Retail Banking |
Mortgage Banking |
Corporate Operations |
Eliminations |
Consolidated | |||||||||||||||
|
Interest income |
$ |
91,952 |
1,215 |
17 |
(17 |
) |
93,167 | |||||||||||||
|
Interest expense |
3,929 |
- |
1,523 |
(17 |
) |
5,435 | ||||||||||||||
|
Net interest income (loss) |
88,023 |
1,215 |
(1,506 |
) |
- |
87,732 | ||||||||||||||
|
Provision for loan losses |
(12,400 |
) |
- |
- |
- |
(12,400) | ||||||||||||||
|
Noninterest income |
5,725 |
11,376 |
- |
- |
17,101 | |||||||||||||||
|
Noninterest expense |
47,392 |
8,753 |
285 |
- |
56,430 | |||||||||||||||
|
Net income (loss) before taxes |
58,756 |
3,838 |
(1,791 |
) |
- |
60,803 | ||||||||||||||
|
Income tax provision (benefit) |
13,662 |
806 |
(376 |
) |
- |
14,092 | ||||||||||||||
|
Net income (loss) |
$ |
45,094 |
3,032 |
(1,415 |
) |
- |
46,711 | |||||||||||||
|
Total assets |
$ |
2,899,047 |
26,076 |
314,281 |
(313,856 |
) |
2,925,548 | |||||||||||||
|
Year ended December 31, 2020 | |||||||||||||||||||
|
Commercial and Retail Banking |
Mortgage Banking |
Corporate Operations |
Eliminations |
Consolidated | |||||||||||||||
|
Interest income |
$ |
93,640 |
1,178 |
17 |
(17 |
) |
94,818 | ||||||||||||
|
Interest expense |
13,317 |
- |
1,708 |
(17 |
) |
15,008 | |||||||||||||
|
Net interest income (loss) |
80,323 |
1,178 |
(1,691 |
) |
- |
79,810 | |||||||||||||
|
Provision for loan losses |
29,600 |
- |
- |
- |
29,600 | ||||||||||||||
|
Noninterest income |
7,568 |
19,785 |
- |
- |
27,353 | ||||||||||||||
|
Noninterest expense |
43,563 |
9,898 |
283 |
- |
53,744 | ||||||||||||||
|
Net income (loss) before taxes |
14,728 |
11,065 |
(1,974 |
) |
- |
23,819 | |||||||||||||
|
Income tax expense (benefit) |
3,582 |
2,324 |
(415 |
) |
- |
5,491 | |||||||||||||
|
Net income (loss) |
$ |
11,146 |
8,741 |
(1,559 |
) |
- |
18,328 | ||||||||||||
|
Total assets |
$ |
2,419,245 |
62,910 |
264,566 |
(264,134 |
) |
2,482,587 | ||||||||||||
Commercial and retail banking. The Company’s primary business is to provide traditional deposit and lending products and services to its commercial and retail banking clients.
Mortgage banking. The mortgage banking segment provides mortgage loan origination services for loans that will be sold in the secondary market to investors.
Corporate operations. Corporate operations is comprised primarily of compensation and benefits for certain members of management and interest on parent company debt.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Mar 4, 2022 | Showing above |
| 2020 | Mar 2, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 3, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.