Southern First Bancshares SFST Fixed rate loan commitment

Commitments to extend credit are agreements to lend to a client so long as there is no violation of any material condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. At December 31, 2025, unfunded commitments to extend credit were approximately $843.6 million, of which $81.4 million is at fixed rates and $762.2 million is at variable rates. At December 31, 2024, unfunded commitments to extend credit were approximately $719.1 million, of which $57.5 million is at fixed rates and $661.6 million is at variable rates. The Company evaluates each client’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral varies but may include accounts receivable, inventory, property, plant and equipment, and commercial and residential real estate. See Note 4 – Loans and Allowance for Credit Losses for additional information on unfunded commitments.