Exhibit 99.1

Southern First Reports Results for Fourth Quarter of 2011;

Announces 10% Stock Dividend

Greenville, South Carolina, January 24, 2012 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, N.A. (also doing business as Greenville First Bank), today announced that net income for the fourth quarter of 2011 was $440 thousand compared to $441 thousand for the fourth quarter of 2010.  After dividends paid to the US Treasury on preferred stock, net income available to the common shareholders was $152 thousand compared to $157 thousand for the fourth quarter of 2010.  For the year ended December 31, 2011, net income was $2.1 million and net income to common shareholders was $944 thousand.  In comparison, net income for the year ended December 31, 2010 was $890 thousand and the net loss to common shareholders was $235 thousand.

2011 Fourth Quarter and Year-end Highlights

•         Net income remains flat at $440 thousand for the 4^th quarter and improved to $2.1 million for the year

•         Net interest margin for the 4^th quarter increased to 3.36%  compared to 3.03% in the prior year

•         Loan balances increased for the quarter and ended the year at $598.6 million compared to $572.4 million at year end 2010

•         Core deposit balances increased $18.5 million during the 4^th quarter and $56.5 million for the year

•         Nonperforming assets, while increasing for the quarter, improved to 1.82% at year end compared to 2.03% at year end 2010

“We are excited about our accomplishments during the fourth quarter as we continue to build positive momentum heading into 2012,” stated Art Seaver, the company’s CEO. “Based on this momentum, we are pleased to announce a 10% stock dividend for our shareholders and believe that this will improve the overall liquidity of their investment in SFST.”   Shareholders of record on February 3, 2012 will receive the additional shares on February 17, 2012, with fractional shares paid in cash. The earnings per share and book value per share amounts for all periods presented have been adjusted to reflect the 10% stock dividend.

Net interest margin for the fourth quarter of 2011 remained steady at 3.36%, unchanged from the previous quarter of 2011 and increased significantly from 3.03% for the fourth quarter of 2010.  The net interest margin for the year ended December 31, 2011 was 3.30% compared to 2.91% for the year ended December 31, 2010. 

During the fourth quarter of 2011, the company recorded total credit costs of $2.1 million compared to $1.3 million during the fourth quarter of 2010.  Of the $2.1 million in credit costs, $2.2 million related to the provision for loan losses while there was income of $117 thousand related to the sale and management of other real estate owned.  Comparatively, the company recorded a loan loss provision of $635 thousand and expenses related to real estate owned of $611 thousand during the same period in 2010.  For the year ended December 31, 2011, total credit costs were $6.2 million, consisting of a $5.3 million provision for loan losses and expenses of $940 thousand related to expenses from the sale and management of other real estate owned.  Total credit costs were $6.3 million during the year ended December 31, 2010 and related to a $5.6 million provision for loan losses and $674 thousand of expenses from the sale and management of other real estate owned.  The company’s allowance for loan losses was $8.9 million, or 1.49%, of loans at December 31, 2011 which provides approximately 87% coverage of non-performing loans.  

Noninterest income was $873 thousand and $739 thousand for the three months ended December 31, 2011 and 2010, respectively.  For the years ended December 31, 2011 and 2010, noninterest income was $2.8 million and $3.0 million, respectively.  The increase in noninterest income during the three month period is related primarily to rental income we now receive from tenants who lease space in one of our regional headquarter buildings.  During the twelve month period of 2011, noninterest income decreased due primarily to a $1.1 million gain on sale of investment securities recorded in the second quarter of 2010, partially offset by a $450 thousand other-than-temporary impairment recorded during the third quarter of 2010.  In addition, our noninterest expense was $4.2 million and $4.8 million for the three months ended December 31, 2011 and 2010, respectively.  Noninterest expense for the years ended December 31, 2011 and 2010 was $17.9 million and $16.6 million, respectively.  The decrease in noninterest expense during the three month period related primarily to income from the sale and management of real estate owned of $117 thousand during the 2011 period, compared to expenses on real estate owned of $611 thousand during the 2010 period, while increased compensation and benefits expenses contributed to the higher noninterest expense for the twelve months ended December 31, 2011. 

Nonperforming assets decreased to $14.0 million, or 1.82%, of total assets as of December 31, 2011 compared to $15.0 million, or 2.03%, December 31, 2010.  Of the $14.0 million in total nonperforming assets as of December 31, 2011, nonperforming loans represent $10.3 million and other real estate owned represents $3.7 million.  During 2011, the company recorded $4.7 million in net charge-offs, or 0.81% of average loans on an annualized basis.

Total loans were $598.6 million as of December 31, 2011, a $7.6 million increase compared to September 30, 2011 and a $26.2 million increase from December 31, 2010.  Core deposits increased $56.5 million to $413.1 million at December 31, 2011 compared to December 31, 2010.  The increase in retail funding continued to enable the company to reduce its wholesale funding by over $40 million during the last twelve month period. Brokered deposits now represent only 5.9% of total funding for the bank compared to 11.7% at December 31, 2010.  

Shareholders’ equity totaled $62.5 million as of December 31, 2011, a $3.3 million increase from the same period in 2010. With a tier 1 leverage ratio of 9.62% and total risk based capital ratio of 13.34%, the company’s capital ratios exceed the regulatory requirements for a “well capitalized” institution.

During the third quarter of 2011, the Company determined that it had been accounting for its preferred stock and related discount accretion in error.  All amounts and ratios related to preferred stock, discount accretion, net income (loss) to common shareholders and earnings (loss) per common share have been restated for periods prior to September 30, 2011.  The error was not material to the interim and annual financial statements.

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                Financial Highlights - Unaudited

                (Dollars in thousands, except per share data)

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                    Asset quality measures - Unaudited

                    (Dollars in thousands)

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About Southern First Bancshares

Southern First Bancshares, Inc., Greenville, South Carolina is a registered bank holding company incorporated under the laws of South Carolina.  The Company consists of Southern First Bank, N.A., the 7th largest bank headquartered in South Carolina; which also does business as Greenville First Bank, N.A. in Greenville County.  Since 1999 Southern First Bancshares has been providing financial services and now operates in six locations in the Greenville and Columbia markets of South Carolina.  Southern First Bancshares has assets of approximately $768 million and its stock is traded under the symbol SFST in the NASDAQ Global Market.  More information can be found at www.southernfirst.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective.  Such forward-looking statements include but are not limited to (1) statements with respect to our expectations regarding the Company’s net interest margin that are not historical facts, and (2) other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” as well as similar expressions.  Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate.  Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized.  The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company’s loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in the U.S. legal and regulatory framework; and (5) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the company.  Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).  All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above.  We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

FINANCIAL CONTACT: MIKE DOWLING  864-679-9070

MEDIA CONTACT: ART SEAVER  864-679-9010

WEB SITE: www.southernfirst.com

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