What are Southern First Bancshares Inc's Business Segments?
Commercial
Commercial loans are assessed for estimated losses by grading each loan using
various risk factors identified through periodic reviews. The Company applies
historic grade-specific loss factors to each loan class. In the development of
statistically derived loan grade loss factors, the Company observes historical
losses over 20 quarters for each loan grade. These loss estimates are adjusted
as appropriate based on additional analysis of external loss data or other risks
identified from current economic conditions and credit quality trends. The allowance
also includes an amount for the estimated impairment on nonaccrual commercial
loans and commercial loans modified in a TDR, whether on accrual or nonaccrual
status.
Consumer
For consumer loans, the Company determines the allowance on a collective basis
utilizing historical losses over 20 quarters to represent its best estimate
of inherent loss. The Company pools loans, generally by loan class with similar
risk characteristics. The allowance also includes an amount for the estimated
impairment on nonaccrual consumer loans and consumer loans modified in a TDR,
whether on accrual or nonaccrual status.
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