Calvin C. Hurst
About Calvin C. Hurst
Calvin C. Hurst, 43, is President of Southern First Bancshares, Inc. and Southern First Bank since August 2022; he previously served as Chief Banking Officer from March 2019 and has ~18 years of banking experience, including Regional Vice President at TD Bank beginning in 2016 and earlier roles in commercial underwriting and relationship management . He holds a B.A. in Business Administration and Economics from Furman University (2005) . Company performance tied to executive pay emphasizes tangible book value growth, cumulative net charge-offs, and total shareholder return; in 2024, SFST net income grew 15.7% year-over-year to $15.5 million, TBV per share rose 4.0%, and the three-year incentive plan awarded “four stars” driven by TBV target achievement and maximum-level charge-off performance . The company reports cumulative TSR and TBV growth in its pay-versus-performance disclosure framework, with CAP (compensation actually paid) aligned to equity values and TSR .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| TD Bank | Regional Vice President | Began 2016 | Led commercial banking across region; prior roles in commercial underwriting and relationship management contributed to credit quality and growth . |
| Large Financial Institutions | Commercial Underwriter; Commercial Relationship Manager | 2006–2016 | Built underwriting rigor and client acquisition experience applicable to SFST’s core banking strategy . |
External Roles
No external board or civic roles disclosed for Mr. Hurst.
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $300,000 | $309,000 | $355,000 |
| Bonus ($) | $155,000 | $100,000 | $125,000 |
| Stock Awards ($) | $91,710 | $86,900 | $185,364 |
| All Other Compensation ($) | $46,683 | $45,668 | $47,664 |
| Total ($) | $602,729 | $541,568 | $719,003 |
Additional fixed-pay context:
- Base salary increased ~14.9% to $355,000 in 2024 vs. 2023, consistent with role scope and market alignment .
- Perquisites include bank-owned automobile, club dues, and insurance benefits; 2024 employer 401(k) contribution of $13,256 and medical insurance premiums of $15,069 are included in “All Other Compensation” .
Performance Compensation
| Component | Metric | Target | Actual/Award | Payout Mechanics | Vesting |
|---|---|---|---|---|---|
| Annual Incentive (Cash) | Holistic review of: net income, deposit growth, loan growth, charge-offs %, NPA ratio, NIM, talent acquisition, compliance | Not formulaic; committee judgment | 2024 bonus $125,000 | Discretionary, based on multi-metric review rather than fixed targets | Cash paid following year |
| Long-Term Equity (3-year framework) | TBV growth; cumulative net charge-offs; TSR | TBV: 15% target; 20% stretch; 30% max; Charge-offs: <75bps / <55bps / <40bps; TSR: 15% / 20% / 30% | 2024 award = “four stars”: TBV target achieved (1 star); charge-offs maximum achieved (3 stars) | Four-star payout equals 40% of base salary in RSAs/RSUs; Hurst received ~3,850 shares based on $36.80 grant-date price on Feb 1, 2025 | Vests ratably over four years to support retention |
| 2024 Time-Based Equity | Restricted Stock Award | n/a | 4,995 shares granted Jan 16, 2024; grant-date fair value $185,364 | Time-based alignment with shareholder value | Four-year ratable vesting |
Notes:
- Company emphasizes pay-for-performance, capped payouts, no option repricing, no excise tax gross-ups, and double-trigger CoC benefits .
- Clawback policy (Nov 21, 2023) mandates recovery of erroneously awarded incentive-based compensation for both “Big R” and “little r” restatements .
Equity Ownership & Alignment
| Ownership Detail | Value |
|---|---|
| Shares owned (direct/indirect) | 11,995 |
| Options – exercisable | 22,000 (4,000 @ $35.35 exp 4/16/2029; 4,000 @ $42.72 exp 1/21/2030; 8,000 @ $25.10 exp 5/19/2030; 6,000 @ $39.45 exp 1/19/2031) |
| Options – unexercisable | 2,000 @ $39.45 exp 1/19/2031 |
| Unvested stock awards | 7,495 shares; market value $297,926 (as of 12/31/2024) |
| Beneficial ownership (%) | 0.42% of outstanding shares |
| Hedging & pledging | Hedging prohibited; pledging discouraged and requires preclearance; no pledges disclosed for Hurst |
| Stock ownership guidelines | None implemented for executives; board periodically reviews ownership |
Implications for selling pressure:
- Time-based RSAs/RSUs vest 25% annually over four years; the 4,995-share 2024 grant and ~3,850-share 2025 grant imply scheduled vesting that can add supply incrementally if shares are sold upon vesting (subject to trading windows and preclearance) .
Employment Terms
| Term | Detail |
|---|---|
| Role & tenure | President since Aug 2022; previously Chief Banking Officer since Mar 2019 |
| Contract length | Two-year rolling employment agreement; renews annually on Jan 31 |
| Base salary (as of Mar 15, 2025) | $355,000 (subject to board increases) |
| Severance (without cause) | 12 months of base salary plus accrued/unpaid bonus; equity awards vest immediately |
| Change-in-control (double trigger) | 2x base salary paid over 12 months plus accrued bonus; 18 months COBRA at employee-rate; immediate vesting of options/incentives |
| Non-compete | 12 months post-termination; depository institution within 30-mile radius of any SFST office; 1% passive investment cap |
| Non-solicit | Clients contacted and employees for 12 months post-termination |
| SERP/Salary Continuation | Annual benefit at retirement age: $75,000; present value accrued $52,374 as of 12/31/2024 |
Grants, Vesting Schedules, and Award Details
| Grant Date | Type | Shares | Grant-Date FMV ($) | Vesting |
|---|---|---|---|---|
| Jan 18, 2022 | Restricted Stock | 1,500 | See SCT (aggregated) | Ratable over 4 years |
| Jan 17, 2023 | Restricted Stock | 2,000 | See SCT (aggregated) | Ratable over 4 years |
| Jan 16, 2024 | Restricted Stock | 4,995 | $185,364 (price $37.11) | Ratable over 4 years |
| Feb 1, 2025 | Performance-Based Equity | ~3,850 | Based on $36.80/share | Ratable over 4 years |
Outstanding awards (12/31/2024):
- Unvested shares: 7,495 ($297,926 market value) .
- Options: 22,000 exercisable; 2,000 unexercisable with 4-year graded vesting on initial grant and 10-year expirations .
Compensation Structure Analysis
- Shift toward equity: Stock awards increased to $185,364 in 2024 (from $86,900 in 2023), reflecting greater alignment with long-term shareholder value and the star-based LTI framework .
- At-risk pay maintained: Annual cash incentives are discretionary across multi-metric performance, while equity is explicitly tied to three-year TBV, charge-offs, and TSR outcomes; no options granted in 2024, with preference for RSAs/RSUs .
- Governance protections: No excise tax gross-ups; clawback policy adopted Nov 2023; hedging prohibited; pledging discouraged with preclearance; double-trigger CoC terms .
Say-On-Pay & Shareholder Feedback
- 2024 Say-on-Pay support: 73.7% approval at the 2024 annual meeting; company continues annual advisory votes and ongoing investor engagement .
- Compensation consultant: McLagan engaged in 2021 for peer group and program design insights; committee relied on broader surveys for benchmarking .
Risk Indicators & Red Flags
- No hedging and restricted pledging practices reduce misalignment risks; no pledging disclosed for Hurst .
- Lack of formal stock ownership guidelines for executives may be viewed as a governance gap despite board’s periodic review of holdings .
- Leadership transitions: CFO change in 2024 (Borrmann resigned; Zych appointed) and CRO resignation in March 2025 could present execution continuity risk across finance and risk functions .
Equity Ownership & Alignment
| Alignment Factor | Assessment |
|---|---|
| Skin in the game | 11,995 shares owned plus 22,000 exercisable options; 7,495 unvested shares indicate ongoing alignment via vesting . |
| Ownership % | 0.42% of outstanding shares; meaningful but not controlling . |
| Pledging/Hedging | Hedging prohibited; pledging discouraged and requires preclearance; no pledging disclosed for Hurst . |
| Ownership guidelines | No formal executive stock ownership guidelines; board reviews alignment periodically . |
Performance & Track Record
- 2024 financials: Net income rose to $15.5 million (+15.7% YoY); loans and deposits grew modestly; TBV per share increased 4.0%; net charge-offs/average loans were 0.04% .
- LTI performance award (2025 grants for 2022–2024 performance): Four stars awarded—TBV target met; charge-offs maximum met; TSR did not contribute to stars; payout was ~40% of base salary in shares .
Employment Terms (Summary Table)
| Provision | Regular Termination | Change-in-Control (Double Trigger) |
|---|---|---|
| Severance | 12 months salary + accrued bonus; immediate vesting of options/incentives | 2x salary over 12 months + accrued bonus; immediate vesting; 18 months COBRA at active-employee rate |
| Restrictive Covenants | 12-month non-compete (30-mile radius), client and employee non-solicit | Same |
Investment Implications
- Alignment: Increased equity awards and four-year vesting create retention and long-duration alignment; the star-based LTI plan linked to TBV and credit performance is supportive of conservative banking discipline .
- Near-term supply dynamics: Scheduled vesting from 2024 and 2025 grants (25% annually) may incrementally add tradable shares if sold upon vesting, though insider preclearance and trading windows apply; monitor Form 4 filings for timing and magnitude of sales .
- Governance: Strong policies (clawback, anti-hedging, double-trigger CoC, no tax gross-ups) are positives; absence of formal ownership guidelines is a mild governance gap but board asserts alignment through periodic review .
- Execution risk: Management transitions in finance and risk functions warrant monitoring for continuity; compensation remains tied to TBV and charge-offs, reinforcing prudent performance over growth-at-all-costs .