8-K: Southern First Bancshares CFO Resigns, Effective March 29

Southern First Bancshares' Chief Financial Officer, D. Andrew Borrmann, has resigned, effective March 29, 2024.

Summary

• D. Andrew Borrmann, the Chief Financial Officer of Southern First Bancshares, has resigned from his position.
• His resignation is effective March 29, 2024.
• Mr. Borrmann has served as the company's CFO since April 2023.
• Prior to joining Southern First, he held the position of Chief Financial Officer and Chief Strategy Officer at Colony Bank.
• He had been with Colony Bank since 2011, including its merger with SouthCrest Bank in 2021.
• The company's CEO, Art Seaver, expressed appreciation for Mr. Borrmann's contributions and wished him well in his future endeavors.

Sentiment

Score: 5

Explanation: The document is neutral in tone, reporting a change in personnel. While the departure of a CFO is significant, the language used is professional and does not indicate any underlying issues.

Positives

• The company's CEO expressed gratitude for Mr. Borrmann's contributions and wished him well.
• Mr. Borrmann stated he is proud of the work he did and confident in the company's future.

Negatives

• The company is losing its Chief Financial Officer.
• The resignation is effective in approximately one month, which may require a quick transition.

Risks

• The departure of the CFO could create a period of uncertainty for the company.
• The company will need to find a suitable replacement for the CFO in a timely manner.
• There is a risk of disruption during the transition period.

Management Comments

• Mr. Borrmann stated, 'I am proud to have been part of this great company and leave with mixed emotions: excited about the opportunity in front of me, but very sad to leave Southern Firsts outstanding team.'
• Mr. Borrmann added, 'I am proud of the work we did through a dynamic period, and I am fully confident that the Company has a strong future, winning great relationships throughout its footprint.'
• Art Seaver, Chief Executive Officer, said, 'We will miss Andy and appreciate his leadership and partnership over the last year.'
• Art Seaver also stated, 'We are excited for Andy in his new opportunity and are grateful for the friendship that continues.'

Industry Context

The resignation of a CFO is a significant event for any financial institution and is not uncommon. The banking industry is currently facing various challenges, including interest rate fluctuations and regulatory changes, which can impact personnel decisions.

Comparison to Industry Standards

• CFO turnover is a common occurrence in the banking industry, with various factors influencing these changes, such as career progression, personal reasons, or strategic shifts within the company.
• Comparable companies such as First Citizens BancShares and Truist Financial have also experienced CFO changes in recent years, highlighting the dynamic nature of executive roles in the sector.
• The timing of the resignation, approximately one month from the announcement, is relatively standard, allowing for a transition period.

Management Changes

Stakeholder Impact

• Shareholders may react to the news of the CFO's departure, potentially impacting the stock price.
• Employees may experience some uncertainty during the transition period.
• The company's leadership team will need to manage the transition effectively to maintain stability.

Next Steps

• Southern First will need to begin the process of finding a new Chief Financial Officer.
• The company will need to ensure a smooth transition of responsibilities before Mr. Borrmann's departure.

Key Dates

Keywords

CFO, resignation, Southern First Bancshares, financial officer, management change, banking