Southern First Reports Second Quarter 2026 Results

Rhea-AI Summary

Southern First (NASDAQ: SFST) reported second quarter 2026 net income of $11.2 million and diluted EPS of $1.20, up $0.39 or 48% year-over-year and slightly above the first quarter. Total revenue rose 25% to $35.9 million, with net interest income up 28%, driven primarily by new loan volume and margin expansion to a 2.87% tax-equivalent net interest margin.

Total loans reached $4.03 billion, growing 9% annualized from the prior quarter, while retail deposits increased $184 million, or 22% annualized. Asset quality remained stable, with nonperforming assets at 0.27% of total assets and net charge-offs at 0.01% of average loans, annualized. Capital strengthened through a $65.2 million common equity raise and issuance of 1.2 million shares, supporting a tangible common equity ratio of 9.62% and Common Equity Tier 1 ratio of 12.82%.

Positive

• Net income $11.2 million, up 70.1% year-over-year in Q2 2026
• Diluted EPS $1.20, an increase of $0.39 or 48.2% versus Q2 2025
• Total revenue $35.9 million, up 25.3% year-over-year
• Net interest income $32.4 million, up 28.0% year-over-year, driven by loan growth
• Retail deposits $3.56 billion, up $184 million or 22% annualized from Q1 2026
• Total loans $4.03 billion, up $88 million or 9% annualized from Q1 2026
• Tangible common equity ratio 9.62%, up from 8.02% in Q2 2025
• CET1 ratio 12.82%, up 211 basis points year-over-year
• Efficiency ratio 56.84%, improved from 67.54% in Q2 2025
• Nonperforming assets 0.27% of total assets with net charge-offs at 0.01% of average loans

Negative

• Provision for credit losses $1.0 million, up $325 thousand or 46.4% year-over-year
• Noninterest expense $20.4 million, up $1.1 million or 5.5% year-over-year
• Mortgage banking income $1.32 million, down $246 thousand or 15.7% year-over-year
• Diluted weighted average shares 9.32 million, up 14.7% year-over-year following the equity issuance
• Net interest margin 2.87%, down 1 basis point from the first quarter of 2026

Market Context

SFST's five tag-specific earnings events all aligned with positive 24-hour reactions, averaging 4.66...

Analysis

SFST's five tag-specific earnings events all aligned with positive 24-hour reactions, averaging 4.66%. The active S-3 shelf and recent net selling add context; subsequent reports warrant attention to asset quality and capital.

Key Figures

Net Interest Income Growth: 28% Net Income: $11.2 million Diluted EPS: $1.20 +5 more

8 metrics

Net Interest Income Growth 28% Second quarter 2026 year over year

Net Income $11.2 million Second quarter 2026

Diluted EPS $1.20 Second quarter 2026; up 48% year over year

Return on Average Assets 0.96% Second quarter 2026; up 33 basis points year over year

Tangible Common Equity Ratio 9.62% Second quarter 2026

Retail Deposit Increase $184 million Second quarter 2026

Gross Capital Raise Proceeds $65.2 million Earlier in the second quarter of 2026

Nonperforming Assets 0.27% Second quarter 2026 of total assets

Previous Earnings Reports

5 past events · Latest: Apr 21 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 21	First-quarter earnings	Positive	+0.6%	Net income, EPS, net interest income, loans, and retail deposits increased year over year.
Jan 22	Fourth-quarter earnings	Positive	+3.4%	Profitability, margin, loans, deposits, book value, and tangible equity improved year over year.
Oct 28	Third-quarter earnings	Positive	+6.1%	Revenue, profitability, margin, loans, tangible equity, and asset quality metrics strengthened.
Jul 22	Second-quarter earnings	Positive	+9.1%	Net income, revenue, margin, loans, deposits, efficiency, and book value improved year over year.
Apr 22	First-quarter earnings	Positive	+4.1%	Net income, margin, loans, deposits, asset quality, and capital ratios improved.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

SFST's tag-specific earnings announcements were followed by positive 24-hour reactions in all five available events, averaging 4.66%.

Key Terms

net interest margin, net charge-offs, tangible common equity, common equity tier 1 ratio, +1 more

5 terms

net interest margin financial

"Net interest margin was 2.87%, a 37-basis point increase"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

net charge-offs financial

"Net charge-offs were approximately $96 thousand"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

tangible common equity financial

"tangible common equity to assets was 9.62%"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

common equity tier 1 ratio regulatory

"Common Equity Tier 1 ratio (CET1) was 12.81%"

The common equity tier 1 ratio is a measure of a bank's financial strength, showing how much high-quality core capital it has compared to its total risk-weighted assets. Think of it as a safety buffer or cushion that helps ensure the bank can withstand economic shocks. For investors, a higher ratio indicates a stronger, more resilient bank, making it a key indicator of its financial health.

allowance for credit losses financial

"allowance for credit losses represented 1.10% of loans"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

GREENVILLE, S.C., July 21, 2026 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced its financial results for the three months ended June 30, 2026. Strong loan growth and continued margin expansion drove year-over-year net interest income growth of 28%. Net income was $11.2 million and diluted earnings per share was $1.20, representing a $0.39, or 48% increase over the second quarter of 2025, and a slight increase from the first quarter of 2026. Return on average assets was 0.96%, up 33 basis points over the second quarter of last year, and tangible common equity to assets was 9.62%, up 160 basis points from the second quarter of 2025. Key asset quality metrics were consistent both on a linked quarter and year-over-year basis. Net charge-offs were approximately $96 thousand, or 0.01% of average loans, annualized, and nonperforming assets were 0.27% of total assets. Provision for credit losses decreased by $275 thousand from the prior quarter, and the allowance for credit losses represented 1.10% of loans.

"Our second quarter 2026 results continue to show impressive momentum. We increased retail client deposits by $184 million in the second quarter, representing a 22% annualized growth rate, and our loan portfolio grew at an annualized rate of 9% during the quarter. Our efficient business model, vibrant markets, and focus on organic growth are creating value for our clients and our shareholders. Our second quarter net income was $11.2 million, a 70% increase from the same quarter last year and a 13% increase over the first quarter of 2026. We also strengthened our capital position by raising gross proceeds of $65.2 million and issuing 1.2 million additional common shares earlier in the quarter to support our strong growth expectations. As planned, we redeemed a portion of our subordinated notes, which were subject to phase-out from regulatory capital treatment and carried a higher interest rate. We are proud of our team and our accomplishments this quarter, which we believe positions us for continued success in the second half of 2026," stated Art Seaver, Chief Executive Officer.

Financial Highlights – Second Quarter 2026:

Earnings

• Diluted earnings per common share was $1.20, up $0.39 or 48% compared to the second quarter of 2025 and up by $0.01 from the first quarter of 2026
• Net income improved to $11.2 million, a $4.6 million increase or 70% compared to the second quarter of 2025 and a $1.3 million increase or 13%, compared to the first quarter of 2026
• Total revenue was $35.9 million, an increase of $7.2 million or 25% year-over-year and $2.1 million on a linked quarter basis
• Net interest income improved by $7.1 million or 28% year-over-year driven primarily by new loan volume
• Net interest margin was 2.87%, a 37-basis point increase from 2.50% for the second quarter of 2025 and a one basis point decrease from the first quarter of 2026, which included a one-time increase in interest income from the repayment of a $5.1 million nonperforming loan
• Noninterest income was $3.5 million compared to $3.3 million for the second quarter of 2025
• Service fees on deposit accounts increased 53% compared to the second quarter of 2025 and 15% from last quarter due in part to an increased focus on treasury management services
• Noninterest expense to average assets was 1.75%, compared to 1.86% for the second quarter of 2025
• Return on average equity was 10.28%, compared to 7.71% for the second quarter of 2025
• Return on average assets was 0.96%, compared to 0.63% for the second quarter of 2025

Balance Sheet

• Total loans were $4.0 billion, up $88 million or 9% (annualized) from the first quarter of 2026
• Retail deposits were $3.6 billion, up $184 million or 22% (annualized) from the first quarter of 2026
• Wholesale deposits were reduced by $181.3 million, or 32% from the second quarter of 2025 and $122.3 million or 98% (annualized) from the first quarter of 2026
• Book value per common share was $47.77, an increase of 15% (annualized) from the first quarter of 2026
• Tangible common equity (TCE) ratio was 9.62%, up 133 basis points on a linked quarter basis and up from 8.02% for the second quarter of 2025
• Common Equity Tier 1 ratio (CET1) was 12.81%, up 178 basis points from the first quarter of 2026 and up from 10.71% for the second quarter 2025
• Book value per share, tangible common equity ratio and Common Equity Tier 1 ratio were each positively affected by our recent capital raise of $65.2 million

Asset Quality

• Nonperforming assets to total assets were 0.27%, compared to 0.26% for the linked quarter, while accruing loans 30 days or more past due to total loans decreased to 0.10%, compared to 0.20% for the first quarter
• Classified assets/Tier 1 capital plus allowance for credit losses was 3.15% compared to 3.25% for the linked quarter end
• Provision for credit losses was $1.0 million and includes a $950 thousand provision for loan losses and a $75 thousand provision for unfunded commitments driven by new loan growth; allowance for credit losses to total loans remained at 1.10% for the quarter
• Net charge-offs were 0.01% as a percentage of average loans on an annualized basis

SELECTED FINANCIAL DATA
		Quarter Ended
		June 30	March 31	December 31	September 30		June 30		2Q26 vs 2Q25
		2026	2026	2025	2025		2025		$ Change	% Change
Income Statement Summary ($ in thousands):
Net interest income	$	32,370	30,259	28,744	27,529		25,295		7,075	28.0 %
Noninterest income		3,508	3,540	3,090	3,600		3,334		174	5.2 %
Total Revenue		35,878	33,799	31,834	31,129		28,629		7,249	25.3 %
Provision for credit losses		1,025	1,300	650	850		700		325	46.4 %
Noninterest expense		20,393	20,015	18,416	18,946		19,336		1,057	5.5 %
Income before income tax expense		14,460	12,484	12,768	11,333		8,593		5,867	68.3 %
Income tax expense		3,265	2,597	2,911	2,671		2,012		1,253	62.3 %
Net income available to common shareholders		11,195	9,887	9,857	8,662		6,581		4,614	70.1 %
Earnings ($ in thousands, except per share data):
Earnings per common share, diluted		1.20	1.19	1.20	1.06		0.81		0.39	48.2 %
Net interest margin (tax-equivalent)(1)		2.87 %	2.88 %	2.72 %	2.62 %		2.50 %		­­—	­­—
Return on average assets(2)		0.96 %	0.91 %	0.90 %	0.80 %		0.63 %		­­—	­­—
Return on average equity(2)		10.28 %	10.67 %	10.77 %	9.78 %		7.71 %		­­—	­­—
Efficiency ratio(3)		56.84 %	59.22 %	57.85 %	60.86 %		67.54 %		­­—	­­—
Noninterest expense to average assets (2)		1.75 %	1.84 %	1.68 %	1.74 %		1.86 %		­­—	­­—
Balance Sheet ($ in thousands):
Total loans(4)	$	4,030,255	3,942,219	3,845,124	3,789,021		3,746,841		283,414	7.6 %
Total deposits		3,935,452	3,873,455	3,716,803	3,676,417		3,636,329		299,123	8.2 %
Retail deposits(5)		3,556,045	3,371,721	3,163,914	3,108,411		3,075,631		480,414	15.6 %
Total assets		4,700,171	4,578,402	4,403,494	4,358,589		4,308,067		392,104	9.1 %
Book value per common share		47.77	46.00	44.89	43.51		42.23		5.54	13.1 %
Loans to deposits		102.41 %	101.78 %	103.45 %	103.06 %		103.04 %		­­—	­­—
Holding Company Capital Ratios(6):
Total risk-based capital ratio		14.42 %	12.83 %	12.89 %	12.79 %		12.63 %		­­—	­­—
Tier 1 risk-based capital ratio		13.19 %	11.40 %	11.44 %	11.26 %		11.11 %		­­—	­­—
Leverage ratio		10.11 %	9.05 %	8.93 %	8.72 %		8.73 %		­­—	­­—
Common Equity Tier 1 ratio(7)		12.82 %	11.03 %	11.06 %	10.88 %		10.71 %		­­—	­­—
Tangible common equity(8)		9.62 %	8.29 %	8.37 %	8.18 %		8.02 %		­­—	­­—
Asset Quality Ratios:
Nonperforming assets/total assets		0.27 %	0.26 %	0.32 %	0.27 %		0.27 %		­­—	­­—
Classified assets/Tier 1 capital plus allowance for credit losses		3.15 %	3.25 %	4.28 %	3.97 %		4.35 %		­­—	­­—
Accruing loans 30 days or more past due/loans(4)		0.10 %	0.20 %	0.14 %	0.18 %		0.14 %		­­—	­­—
Net charge-offs (recoveries)/average loans(4) (YTD annualized)		0.01 %	0.01 %	0.00 %	0.00 %		0.00 %		­­—	­­—
Allowance for credit losses/loans(4)		1.10 %	1.10 %	1.10 %	1.10 %		1.10 %		­­—	­­—
Allowance for credit losses/nonaccrual loans		395.41 %	378.22 %	305.65 %	364.50 %		362.35 %		­­—	­­—

INCOME STATEMENTS – Unaudited
		Quarter Ended
		Jun 30	Mar 31	Dec 31	Sept 30	Jun 30		2Q26 vs 2Q25
(in thousands, except per share data)		2026	2026	2025	2025	2025		$ Change	% Change
Interest income
Loans	$	53,077	51,257	51,069	50,999	48,992		4,085	8.3 %
Investment securities		1,504	1,399	1,268	1,342	1,357		147	10.8 %
Federal funds sold		3,550	1,955	2,193	2,645	1,969		1,581	80.3 %
Total interest income		58,131	54,611	54,530	54,986	52,318		5,813	11.1 %
Interest expense
Deposits		23,094	21,697	23,052	24,703	24,300		(1,206)	(5.0 %)
Borrowings		2,667	2,655	2,734	2,754	2,723		(56)	(2.1 %)
Total interest expense		25,761	24,352	25,786	27,457	27,023		(1,262)	(4.7 %)
Net interest income		32,370	30,259	28,744	27,529	25,295		7,075	28.0 %
Provision for credit losses		1,025	1,300	650	850	700		325	46.4 %
Net interest income after provision for credit losses		31,345	28,959	28,094	26,679	24,595		6,750	27.4 %
Noninterest income
Mortgage banking income		1,323	1,493	1,689	1,600	1,569		(246)	(15.7 %)
Service fees on deposit accounts		866	756	634	625	567		299	52.7 %
ATM and debit card income		651	588	638	601	586		65	11.1 %
Income from bank owned life insurance		457	446	450	439	413		44	10.7 %
Loss on sale of securities		-	-	(515)	-	-		-	0.0 %
Other income		211	257	194	335	199		12	6.0 %
Total noninterest income		3,508	3,540	3,090	3,600	3,334		174	5.2 %
Noninterest expense
Compensation and benefits		12,252	11,980	10,529	11,299	11,674		578	5.0 %
Occupancy		2,551	2,490	2,465	2,447	2,523		28	1.1 %
Outside service and data processing costs		2,416	2,267	2,144	2,158	2,189		227	10.4 %
Insurance		858	892	994	961	910		(52)	(5.7 %)
Professional fees		782	675	732	605	609		173	28.4 %
Marketing		423	399	346	412	397		26	6.5 %
Other		1,111	1,312	1,206	1,064	1,034		77	7.4 %
Total noninterest expenses		20,393	20,015	18,416	18,946	19,336		1,057	5.5 %
Income before provision for income taxes		14,460	12,484	12,768	11,333	8,593		5,867	68.3 %
Income tax expense		3,265	2,597	2,911	2,671	2,012		1,253	62.3 %
Net income available to common shareholders	$	11,195	9,887	9,857	8,662	6,581		4,614	70.1 %
Earnings per common share – Basic	$	1.22	1.21	1.22	1.07	0.81		0.41	50.6 %
Earnings per common share – Diluted		1.20	1.19	1.20	1.06	0.81		0.39	48.2 %
Basic weighted average common shares		9,185	8,163	8,106	8,091	8,090		1,095	13.5 %
Diluted weighted average common shares		9,319	8,293	8,229	8,176	8,124		1,195	14.7 %
[Footnotes to table located on page 6]

NET INTEREST INCOME AND MARGIN - Unaudited
				For the Three Months Ended
	June 30, 2026			March 31, 2026			June 30, 2025
(dollars in thousands)	Average Balance	Income/ Expense	Yield/ Rate(2)	Average Balance	Income/ Expense	Yield/ Rate(2)	Average Balance	Income/ Expense	Yield/ Rate(2)
Interest-earning assets
Federal funds sold and interest- bearing deposits	$     384,694	$     3,550	3.70 %	$     211,039	$     1,956	3.76 %	$     179,095	$     1,969	4.41 %
Investment securities, taxable	147,886	1,473	4.00 %	141,309	1,368	3.93 %	141,898	1,315	3.72 %
Investment securities, nontaxable(1)	6,283	40	2.57 %	6,332	40	2.58 %	7,740	55	2.83 %
Loans(9)	3,978,639	53,077	5.35 %	3,899,002	51,257	5.33 %	3,724,064	48,992	5.28 %
Total interest-earning assets	4,517,502	58,140	5.16 %	4,257,682	54,621	5.20 %	4,052,797	52,331	5.18 %
Noninterest-earning assets	157,905			156,466			154,051
Total assets	$4,675,407			$4,414,148			$4,206,848
Interest-bearing liabilities
NOW accounts	$   500,978	1,738	1.39 %	$   421,527	1,102	1.06 %	$   331,811	752	0.91 %
Savings & money market	1,752,548	12,908	2.95 %	1,649,248	11,819	2.91 %	1,566,345	13,398	3.43 %
Time deposits	871,563	8,448	3.89 %	895,101	8,776	3.98 %	942,880	10,150	4.32 %
Total interest-bearing deposits	3,125,089	23,094	2.96 %	2,965,876	21,697	2.97 %	2,841,036	24,300	3.43 %
FHLB advances and other borrowings	240,000	2,252	3.76 %	240,000	2,245	3.79 %	240,000	2,270	3.79 %
Subordinated debentures	24,777	415	6.72 %	24,903	411	6.69 %	24,903	453	7.30 %
Total interest-bearing liabilities	3,389,866	25,761	3.05 %	3,230,779	24,353	3.06 %	3,105,939	27,023	3.49 %
Noninterest-bearing liabilities	848,704			807,686			758,626
Shareholders' equity	436,837			375,683			342,283
Total liabilities and shareholders' equity	$4,675,407			$4,414,148			$4,206,848
Net interest spread			2.11 %			2.15 %			1.69 %
Net interest income (tax equivalent) / margin		$32,379	2.87 %		$30,268	2.88 %		$25,308	2.50 %
Less: tax-equivalent adjustment(1)		9			9			13
Net interest income		$32,370			$30,259			$25,295
[Footnotes to table located on page 6]

BALANCE SHEETS - Unaudited
		Ending Balance
		Jun 30	Mar 31	Dec 31	Sept 30		Jun 30		2Q26 vs 2Q25
(in thousands, except per share data)		2026	2026	2025	2025		2025		$ Change	% Change
Assets
Cash and cash equivalents:
Cash and due from banks	$	30,102	32,723	27,821	24,600		25,184		4,918	19.5 %
Federal funds sold		259,049	228,235	183,473	178,534		180,834		78,215	43.3 %
Interest-bearing deposits with banks		72,483	81,818	58,289	79,769		65,014		7,469	11.5 %
Total cash and cash equivalents		361,634	342,776	269,583	282,903		271,032		90,602	33.4 %
Investment securities:
Investment securities available for sale		144,388	124,224	127,730	131,040		128,867		15,521	12.0 %
Other investments		20,484	20,377	20,063	20,066		19,906		578	2.9 %
Total investment securities		164,872	144,601	147,793	151,106		148,773		16,099	10.8 %
Mortgage loans held for sale		8,594	13,723	11,569	6,906		10,739		(2,145)	(20.0 %)
Loans (4)		4,030,255	3,942,219	3,845,124	3,789,021		3,746,841		283,414	7.6 %
Less allowance for credit losses		(44,232)	(43,378)	(42,280)	(41,799)		(41,285)		(2,947)	7.1 %
Loans, net		3,986,023	3,898,841	3,802,844	3,747,222		3,705,556		280,467	7.6 %
Bank owned life insurance		56,677	56,221	55,775	55,324		54,886		1,792	3.3 %
Property and equipment, net		88,006	88,580	83,465	84,586		85,921		2,085	2.4 %
Deferred income taxes		13,946	13,812	13,702	12,657		12,971		975	7.5 %
Other assets		20,419	19,848	18,763	17,885		18,189		2,229	12.3 %
Total assets	$	4,700,171	4,578,402	4,403,494	4,358,589		4,308,067		392,104	9.1 %
Liabilities
Deposits	$	3,935,452	3,873,455	3,716,803	3,676,417		3,636,329		299,123	8.2 %
FHLB Advances		240,000	240,000	240,000	240,000		240,000		-	0.0 %
Subordinated debentures		13,403	24,903	24,903	24,903		24,903		(11,500)	(46.2 %)
Other liabilities		59,048	60,631	53,131	60,921		61,373		(2,325)	(3.8 %)
Total liabilities		4,247,903	4,198,989	4,034,837	4,002,241		3,962,605		285,298	7.2 %
Shareholders' equity
Preferred stock - $.01 par value; 10,000,000 shares authorized		-	-	-	-		-		-	-
Common Stock - $.01 par value; 10,000,000 shares authorized		95	82	82	82		82		13	15.9 %
Nonvested restricted stock		(912)	(1,302)	(1,338)	(1,929)		(2,774)		1,862	(67.1 %)
Additional paid-in capital		188,932	127,168	125,924	125,035		124,839		64,093	51.3 %
Accumulated other comprehensive loss		(8,372)	(7,865)	(7,454)	(8,426)		(9,609)		1,237	(12.9 %)
Retained earnings		272,525	261,330	251,443	241,586		232,924		39,601	17.0 %
Total shareholders' equity		452,268	379,413	368,657	356,348		345,462		106,806	30.9 %
Total liabilities and shareholders' equity	$	4,700,171	4,578,402	4,403,494	4,358,589		4,308,067		392,104	9.1 %
Common Stock
Book value per common share	$	47.77	46.00	44.89	43.51		42.23		5.54	13.1 %
Stock price:
High		61.51	61.08	55.50	45.54		38.51		23.00	59.7 %
Low		54.95	51.26	41.15	38.74		30.61		24.34	79.5 %
Period end		61.10	54.50	51.52	44.12		38.03		23.07	60.7 %
Common shares outstanding		9,468	8,248	8,213	8,189		8,181		1,287	15.7 %
[Footnotes to table located on page 6]

ASSET QUALITY MEASURES - Unaudited
		Quarter Ended
		June 30	March 31	December 31	September 30	June 30
(dollars in thousands)		2026	2026	2025	2025	2025
Nonperforming Assets
Commercial
Owner occupied RE	$	2,667	2,317	259	262	-
Non-owner occupied RE		2,030	1,712	6,917	6,911	6,941
Commercial business		1,330	909	189	195	717
Consumer
Real estate		4,805	5,786	5,763	3,394	3,028
Home equity		354	745	705	705	708
Total nonaccrual loans		11,186	11,469	13,833	11,467	11,394
Other real estate owned		1,375	475	275	275	275
Total nonperforming assets	$	12,561	11,944	14,108	11,742	11,669
Nonperforming assets as a percentage of:
Total assets		0.27 %	0.26 %	0.32 %	0.27 %	0.27 %
Total loans		0.31 %	0.30 %	0.37 %	0.31 %	0.31 %
Classified assets/Tier 1 capital plus allowance for credit losses		3.15 %	3.25 %	4.28 %	3.97 %	4.35 %
Accruing loans 30 days or more past due/loans(4)		0.10 %	0.20 %	0.14 %	0.18 %	0.14 %
		Quarter Ended
		June 30	March 31	December 31	September 30	June 30
(dollars in thousands)		2026	2026	2025	2025	2025
Allowance for Credit Losses
Balance, beginning of period	$	43,378	42,280	41,799	41,285	40,687
Loans charged-off		(155)	(78)	(150)	(55)	(68)
Recoveries of loans previously charged-off		59	26	81	69	16
Net loans (charged-off) recovered		(96)	(52)	(69)	14	(52)
Provision for credit losses		950	1,150	550	500	650
Balance, end of period	$	44,232	43,378	42,280	41,799	41,285
Allowance for credit losses to gross loans		1.10 %	1.10 %	1.10 %	1.10 %	1.10 %
Allowance for credit losses to nonaccrual loans		395.41 %	378.22 %	305.65 %	364.50 %	362.35 %
Net charge-offs (recoveries) to average loans QTD (annualized)		0.01 %	0.01 %	0.01 %	0.00 %	0.01 %
[Footnotes to table located on page 6]

LOAN COMPOSITION - Unaudited
		Quarter Ended
		Jun 30	Mar 31	Dec 31	Sept 30	Jun 30		2Q26 vs 2Q25
(dollars in thousands)		2026	2026	2025	2025	2025		$ Change	% Change
Commercial
Owner occupied RE	$	755,419	759,602	736,979	705,383	686,424		68,995	10.1 %
Non-owner occupied RE		967,698	950,696	956,812	943,304	939,163		28,535	3.0 %
Construction		66,105	69,463	63,666	71,928	68,421		(2,316)	(3.4 %)
Business		713,017	677,742	619,667	604,411	589,661		123,356	20.9 %
Total commercial loans		2,502,239	2,457,503	2,377,124	2,325,026	2,283,669		218,570	9.6 %
Consumer
Real estate		1,167,282	1,148,129	1,153,285	1,159,693	1,164,187		3,095	0.3 %
Home equity		273,017	262,530	248,685	239,996	234,608		38,409	16.4 %
Construction		36,371	33,879	24,997	25,842	25,210		11,161	44.3 %
Other		51,346	40,178	41,033	38,464	39,167		12,179	31.1 %
Total consumer loans		1,528,016	1,484,716	1,468,000	1,463,995	1,463,172		64,844	4.4 %
Total gross loans, net of deferred fees		4,030,255	3,942,219	3,845,124	3,789,021	3,746,841		283,414	7.6 %
Less—allowance for credit losses		(44,232)	(43,378)	(42,280)	(41,799)	(41,285)		(2,947)	7.1 %
Total loans, net	$	3,986,023	3,898,841	3,802,844	3,747,222	3,705,556		280,467	7.6 %
Yield on average loans		5.35 %	5.33 %	5.29 %	5.35 %	5.28 %		­­—	­­—

DEPOSIT COMPOSITION - Unaudited
		Quarter Ended
		Jun 30	Mar 31		Dec 31	Sept 30	Jun 30		2Q26 vs 2Q25
(dollars in thousands)		2026	2026		2025	2025	2025		$ Change	% Change
Non-interest bearing	$	799,246	799,692		732,287	736,518	761,492		37,754	5.0 %
Interest bearing:
NOW accounts		538,443	495,657		423,270	343,615	341,903		196,540	57.5 %
Money market accounts		1,765,697	1,652,125		1,573,039	1,572,738	1,537,400		228,297	14.8 %
Savings		29,460	30,332		29,470	29,381	32,334		(2,874)	(8.9 %)
Time deposits, less than $250,000		175,971	170,496		180,783	202,353	194,064		(18,093)	(9.3 %)
Time deposits, $250,000 and over(10)		626,635	725,153		777,954	791,812	769,136		(142,501)	(18.5 %)
Total deposits	$	3,935,452	3,873,455		3,716,803	3,676,417	3,636,329		299,123	8.2 %
Total retail deposits		3,556,045	3,371,721		3,163,914	3,108,411	3,075,631		480,414	15.6 %
Total wholesale deposits		379,407	501,734		552,889	568,006	560,697		(181,290)	(32.3 %)
Cost of average deposits		2.37 %	2.37 %		2.50 %	2.69 %	2.75 %		­­—	­­—
Cost of average retail deposits		2.11 %	2.06 %		2.18 %	2.36 %	2.42 %		­­—	­­—
Loans to deposits		102.41 %	101.78 %		103.45 %	103.06 %	103.04 %		­­—	­­—

Footnotes to tables:
(1) The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis.
(2) Annualized for the respective three-month period.
(3) Noninterest expense divided by the sum of net interest income and noninterest income.
(4) Excludes mortgage loans held for sale.
(5) Excludes out of market (wholesale) deposits totaling $379.4 million.
(6) June 30, 2026 ratios are preliminary.
(7) The Common Equity Tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets.
(8) The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets.
(9) Includes mortgage loans held for sale.
(10) Includes out of market deposits

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's wholly owned subsidiary, Southern First Bank, is the second largest bank headquartered in South Carolina. Southern First Bank has been providing financial services since 1999 and now operates in 12 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Charlotte, Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately $4.7 billion, and its common stock is traded on The NASDAQ Global Market under the symbol "SFST."  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 are identified by words such as "believe," "expect," "anticipate," "estimate," "preliminary", "intend," "plan," "target," "continue," "lasting," and "project," 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 the company conducts operations may be different than expected; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan and deposit growth as well as pricing of each product, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, changes affecting oversight of the financial services industry or consumer protection; (5) the impact of changes to Congress and the office of the President on the regulatory landscape and capital markets; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (7) changes in interest rates, which may continue to affect the company's net income, interest expense, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of the company's assets, including its investment securities; (8) trade wars, government shutdowns, or a potential recession which may cause adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; (9) any increase in FDIC assessments which have increased and may continue to increase our cost of doing business; and (10) changes in accounting principles, policies, practices, or guidelines. 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 are 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, except as required by law.

MEDIA CONTACT:
ART SEAVER 864-679-9010

FINANCIAL CONTACT:
CHRIS ZYCH 864-679-9070

WEB SITE: www.southernfirst.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/southern-first-reports-second-quarter-2026-results-302829683.html

SOURCE Southern First Bancshares, Inc.

FAQ

How did Southern First (NASDAQ: SFST) perform in the second quarter of 2026?

Southern First reported Q2 2026 net income of $11.2 million and diluted EPS of $1.20. According to Southern First, this represents a 70.1% year-over-year net income increase and a 48.2% rise in diluted EPS, supported by 25.3% total revenue growth.

What drove Southern First’s earnings growth in Q2 2026 for SFST shareholders?

Earnings growth was driven by higher net interest income and margin expansion. According to Southern First, net interest income increased 28.0% year-over-year to $32.4 million, primarily from new loan volume, while the tax-equivalent net interest margin rose to 2.87% from 2.50% a year earlier.

How did loans and deposits change at Southern First (SFST) in Q2 2026?

Southern First grew both loans and core deposits in Q2 2026. According to Southern First, total loans reached $4.03 billion, up 9% annualized from Q1 2026, while retail deposits rose to $3.56 billion, a $184 million increase or 22% annualized over the prior quarter.

What is Southern First’s capital position after the Q2 2026 equity raise?

Southern First’s capital ratios improved following a $65.2 million common equity raise. According to Southern First, the tangible common equity ratio increased to 9.62% and the Common Equity Tier 1 ratio reached 12.82%, both higher than in Q2 2025 and Q1 2026.

How strong was Southern First’s asset quality in the second quarter of 2026?

Asset quality metrics remained stable in Q2 2026. According to Southern First, nonperforming assets were 0.27% of total assets, net charge-offs were about 0.01% of average loans annualized, and the allowance for credit losses equaled 1.10% of total loans.

Did Southern First (SFST) issue new shares in Q2 2026, and how did it affect shareholders?

Yes, Southern First issued approximately 1.2 million additional common shares during Q2 2026. According to Southern First, this capital raise generated $65.2 million in gross proceeds, increasing diluted weighted average shares 14.7% year-over-year while strengthening regulatory capital ratios.

How did Southern First’s funding mix and deposit costs change in Q2 2026?

Southern First grew retail deposits and reduced wholesale funding while lowering deposit costs year-over-year. According to Southern First, retail deposits increased to $3.56 billion, wholesale deposits declined, and deposit interest expense fell 5.0% versus Q2 2025 to $23.1 million.