SZB Southfirst Bancshares

SouthFirst Bancshares, Inc. (AMEX:SZB) (the "Company "), today announced net income of $24,449 for the three months ended December 31, 2005, representing a decrease of $97,726, or 79.9%, when compared to the same period during fiscal year 2005. Further, basic earnings per weighted average common share, based on 708,885 shares outstanding for the three-month period ended December 31, 2005, and 709,406 shares outstanding for the three-month period ended December 31, 2004, was $0.03 and $0.17, respectively. Sandra H. Stephens, CEO, commented that "the decrease in our three-month earnings is primarily the result of a decrease in net interest income, before provision for loan losses, of approximately $120,000 and a decrease in non-interest income for the three month period ended December 31, 2005." Ms Stephens further stated, "Non-interest income decreased approximately $23,000, which was attributable to a decrease in fees generated from the sale of loans due to decreased loan production in a rising rate environment. This was partially offset by a decrease in non-interest expense of approximately $14,000, which resulted from a decrease in compensation and benefits, data processing and legal fees." Ms. Stephens additionally commented, "Pension & Benefit Trust Company continues to contribute non-interest income through the generation of fees from its trust and retirement plan services. Management is striving to improve the Company's core earnings by addressing additional expense reductions in combination with our continued efforts in generating additional income from our banking operations and other wholly-owned subsidiaries." In addition, Ms. Stephens stated that "the Company, as previously announced, declared a regular dividend of $0.10 per share for our fiscal quarter ended December 31, 2005. This dividend is payable on February 20, 2006 to shareholders of record on February 4, 2006. This is the forty-fifth consecutive quarterly dividend to be declared by the Company since the consummation, on February 13, 1995, of the Company's initial public offering of shares of its common stock. SouthFirst Bancshares, Inc. is a thrift holding company that owns all of the outstanding shares of stock of SouthFirst Bank, formerly known as First Federal of the South with offices located in Sylacauga, Talladega, Clanton and Birmingham. Please contact Sandra H. Stephens, Chief Executive Officer, at (256) 245-4365, with any questions or requests for additional information. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Certain statements in the release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as "may," "will," "expect," "estimate," "anticipate," "believe," "target," "plan," "project," "continue," or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management's plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors, in some cases, have affected, and in the future could affect, the Company's financial performance and could cause actual results for 2005 and beyond to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.