Southern First Q3 2026 earnings rise 41.2%
Retail deposits increased 19.6% year over year as net interest margin rose to 3.02% in the third quarter.
Sentiment and the balance of points
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Rhea-AI Filing Summary
Southern First Bancshares (SFST) reported third-quarter 2026 net income available to common shareholders of $12.227 million, up 41.2% year over year, and diluted EPS of $1.28, up 20.8%. Total revenue was $37.530 million, 20.6% higher; net interest income rose 25.9% to $34.666 million. Net interest margin was 3.02%, compared with 2.62% a year earlier and 2.87% in the prior quarter.
As of September 30, 2026, total loans were $4.176 billion, up 10.2% year over year, and deposits were $4.105 billion, up 11.7%. Retail deposits were $3.719 billion, up 19.6%; wholesale deposits were $386.528 million, down 32.0%. Noninterest income fell 20.4% to $2.864 million as the company retained a larger percentage of mortgage loans rather than selling them to the secondary market. Provision for credit losses was $1.4 million. Nonperforming assets were 0.30% of total assets, compared with 0.27% a year earlier; the allowance for credit losses was 1.07% of loans.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet income rose 41.2% year over year to $12.227 million.
- Moderate pointTotal revenue increased 20.6% year over year to $37.530 million.
Negative
- None.
Filing Explained
The presentation says Southern First completed a
8-K Event Classification
Key Figures
Key Terms
Net interest margin financial
tax-equivalent adjustment financial
Tangible common equity ratio financial
Allowance for credit losses financial
Earnings Snapshot
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest
event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
| |
|
| (Commission File Number) | (IRS Employer Identification No.) |
| | |
| (Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
ITEM 2.02. Results of Operations and Financial Condition.
On October 20, 2026, Southern First Bancshares, Inc., holding company for Southern First Bank, issued a press release announcing its financial results for the period ended September 30, 2026. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
ITEM 7.01 Regulation FD Disclosure.
A copy of a slide presentation also highlighting Southern First Bancshares, Inc. financial results for the period ended September 30, 2026 is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation also will be available on our website, www.southernfirst.com, under the “Investor Relations” section.
ITEM 9.01. Financial Statements and Exhibits.
| (d) Exhibits | The following exhibit index lists the exhibits that are either filed or furnished with the Current Report on Form 8-K. |
EXHIBIT INDEX
| Exhibit No. | Description |
| 99.1 | Earnings Press Release for the period ended September 30, 2026. |
| 99.2 | Slide Presentation. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SOUTHERN FIRST BANCSHARES, INC. | |||
| By: | /s/ Christian J. Zych | ||
| Name: | Christian J. Zych | ||
| Title: | Chief Financial Officer | ||
| October 20, 2026 | |||
Exhibit 99.1
 | Southern First Reports Third Quarter 2026 Results |
Greenville, South Carolina, October 20, 2026 – Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced its financial results for the three months ended September 30, 2026. Strong loan growth and continued margin expansion drove year-over-year net interest income growth of 26%. Net income was $12.2 million and diluted earnings per share was $1.28, representing a $0.22, or 21% increase over the third quarter of 2025, and an $0.08 increase from the second quarter of 2026. Return on average assets was 1.03%, up 23 basis points over the third quarter of last year, and tangible common equity to assets was 9.47%, up 129 basis points from the third quarter of 2025. Key asset quality metrics were consistent both on a linked quarter and year-over-year basis. Net charge-offs were approximately $719 thousand, or 0.07% of average loans, annualized, and nonperforming assets were 0.30% of total assets. Provision for credit losses increased by $375 thousand from the prior quarter, and the allowance for credit losses represented 1.07% of loans.
“The consistent high performance of our company continued in the third quarter. We increased retail client deposits by $163 million, representing an 18% annualized growth rate, while our loan portfolio grew by $145 million or 14% annualized growth during the quarter. Our team’s focus on organic growth and delivering an excellent client experience is creating tremendous value for our company and its shareholders. We capitalized on profitable growth opportunities and robust business activity across our markets while maintaining disciplined expense management. As a result, we further expanded margin and improved overall profitability metrics. Our third quarter net income was $12.2 million, a 41% increase from the same quarter last year and a 9% increase over the second quarter of 2026. We are proud of our accomplishments in the third quarter, which we believe put us in a great position to finish strong in 2026,” stated Art Seaver, Chief Executive Officer.
Financial Highlights – Third Quarter 2026:
Earnings
| · | Diluted earnings per common share was $1.28, up $0.22 or 21% compared to the third quarter of 2025 and up by $0.08 from the second quarter of 2026 | |
| · | Net income improved to $12.2 million, a $3.6 million increase or 41% compared to the third quarter of 2025 and a $1.0 million increase or 9%, compared to the second quarter of 2026 | |
| · | Total revenue was $37.5 million, an increase of $6.4 million or 21% year-over-year and $1.7 million on a linked quarter basis | |
| · | Net interest income improved by $7.1 million or 26% year-over-year driven primarily by new loan volume | |
| · | Net interest margin was 3.02%, a 40-basis point increase from 2.62% for the third quarter of 2025 and a 15-basis point increase from the second quarter of 2026 | |
| · | Noninterest income was $2.9 million compared to $3.6 million for the third quarter of 2025, due to retaining a larger percentage of mortgage loans rather than selling to the secondary market | |
| · | Service fees on deposit accounts increased 45% compared to the third quarter of 2025 and 5% from last quarter due in part to an increased focus on treasury management services | |
| · | Noninterest expense to average assets was 1.71%, compared to 1.74% for the third quarter of 2025 | |
| · | Return on average equity was 10.54%, compared to 9.78% for the third quarter of 2025 | |
| · | Return on average assets was 1.03%, compared to 0.80% for the third quarter of 2025 |
Balance Sheet
| · | Total loans were $4.2 billion, up $145 million or 14% (annualized) from the second quarter of 2026 | |
| · | Retail deposits were $3.7 billion, up $163 million or 18% (annualized) from the second quarter of 2026 | |
| · | Wholesale deposits were reduced by $181.5 million, or 32% from the third quarter of 2025 and increased by only $7 million from the second quarter of 2026 | |
| · | Book value per common share was $48.68, an increase of 8% (annualized) from the second quarter of 2026 | |
| · | Tangible common equity (TCE) ratio was 9.47%, down 15 basis points on a linked quarter basis and up from 8.18% for the third quarter of 2025 |
| · | Common Equity Tier 1 ratio (CET1) was 12.75%, down seven basis points from the second quarter of 2026 and up from 10.88% for the third quarter of 2025 |
Asset Quality
| · | Nonperforming assets to total assets were 0.30%, compared to 0.27% for the linked quarter, while accruing loans 30 days or more past due to total loans decreased to 0.09%, compared to 0.10% for the second quarter of 2026 | |
| · | Classified assets/Tier 1 capital plus allowance for credit losses was 3.25% compared to 3.15% for the linked quarter end | |
| · | Provision for credit losses was $1.4 million and includes a $1.2 million provision for loan losses and a $220 thousand provision for unfunded commitments driven by new loan growth; allowance for credit losses to total loans was 1.07% for the quarter | |
| · | Net charge-offs were 0.07% as a percentage of average loans on an annualized basis |
SELECTED FINANCIAL DATA - Unaudited
| Quarter Ended | ||||||||||
| Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | 3Q26 vs 3Q25 | |||||
| 2026 | 2026 | 2026 | 2025 | 2025 | $ Change | % Change | ||||
| Income Statement Summary ($ in thousands): | ||||||||||
| Net interest income | $ | 34,666 | 32,370 | 30,259 | 28,744 | 27,529 | 7,137 | 25.9% | ||
| Noninterest income | 2,864 | 3,508 | 3,540 | 3,090 | 3,600 | (736) | (20.4%) | |||
| Total Revenue | 37,530 | 35,878 | 33,799 | 31,834 | 31,129 | 6,401 | 20.6% | |||
| Provision for credit losses | 1,400 | 1,025 | 1,300 | 650 | 850 | 550 | 64.7% | |||
| Noninterest expense | 20,304 | 20,393 | 20,015 | 18,416 | 18,946 | 1,358 | 7.2% | |||
| Income before income tax expense | 15,826 | 14,460 | 12,484 | 12,768 | 11,333 | 4,493 | 39.6% | |||
| Income tax expense | 3,599 | 3,265 | 2,597 | 2,911 | 2,671 | 928 | 34.7% | |||
| Net income available to common shareholders | 12,227 | 11,195 | 9,887 | 9,857 | 8,662 | 3,565 | 41.2% | |||
| Earnings ($ in thousands, except per share data): | ||||||||||
| Earnings per common share, diluted | 1.28 | 1.20 | 1.19 | 1.20 | 1.06 | 0.22 | 20.8% | |||
| Net interest margin (tax-equivalent)(1) | 3.02% | 2.87% | 2.88% | 2.72% | 2.62% | — | — | |||
| Return on average assets(2) | 1.03% | 0.96% | 0.91% | 0.90% | 0.80% | — | — | |||
| Return on average equity(2) | 10.54% | 10.28% | 10.67% | 10.77% | 9.78% | — | — | |||
| Efficiency ratio(3) | 54.10% | 56.84% | 59.22% | 57.85% | 60.86% | — | — | |||
| Noninterest expense to average assets (2) | 1.71% | 1.75% | 1.84% | 1.68% | 1.74% | — | — | |||
| Balance Sheet ($ in thousands): | ||||||||||
| Total loans(4) | $ | 4,175,526 | 4,030,255 | 3,942,219 | 3,845,124 | 3,789,021 | 386,505 | 10.2% | ||
| Total deposits | 4,105,204 | 3,935,452 | 3,873,455 | 3,716,803 | 3,676,417 | 428,787 | 11.7% | |||
| Retail deposits(5) | 3,718,676 | 3,556,045 | 3,371,721 | 3,163,914 | 3,108,411 | 610,265 | 19.6% | |||
| Total assets | 4,880,902 | 4,700,171 | 4,578,402 | 4,403,494 | 4,358,589 | 522,313 | 12.0% | |||
| Book value per common share | 48.68 | 47.77 | 46.00 | 44.89 | 43.51 | 5.17 | 11.9% | |||
| Loans to deposits | 101.71% | 102.41% | 101.78% | 103.45% | 103.06% | — | — | |||
| Holding Company Capital Ratios(6): | ||||||||||
| Total risk-based capital ratio | 14.29% | 14.42% | 12.83% | 12.89% | 12.79% | — | — | |||
| Tier 1 risk-based capital ratio | 13.09% | 13.19% | 11.40% | 11.44% | 11.26% | — | — | |||
| Leverage ratio | 10.30% | 10.11% | 9.05% | 8.93% | 8.72% | — | — | |||
| Common Equity Tier 1 ratio(7) | 12.74% | 12.82% | 11.03% | 11.06% | 10.88% | — | — | |||
| Tangible common equity(8) | 9.47% | 9.62% | 8.29% | 8.37% | 8.18% | — | — | |||
| Asset Quality Ratios: | ||||||||||
| Nonperforming assets/total assets | 0.30% | 0.27% | 0.26% | 0.32% | 0.27% | — | — | |||
| Classified assets/Tier 1 capital plus allowance for credit losses | 3.25% | 3.15% | 3.25% | 4.28% | 3.97% | — | — | |||
| Accruing loans 30 days or more past due/loans(4) | 0.09% | 0.10% | 0.20% | 0.14% | 0.18% | — | — | |||
| Net charge-offs (recoveries)/average loans(4) (YTD annualized) | 0.03% | 0.01% | 0.01% | 0.00% | 0.00% | — | — | |||
| Allowance for credit losses/loans(4) | 1.07% | 1.10% | 1.10% | 1.10% | 1.10% | — | — | |||
| Allowance for credit losses/nonaccrual loans | 350.76% | 395.41% | 378.22% | 305.65% | 364.50% | — | — | |||
[Footnotes to table located on page 7]
2
income statements – Unaudited
| Quarter Ended | ||||||||||
| Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | 3Q26 vs 3Q25 | |||||
| (in thousands, except per share data) | 2026 | 2026 | 2026 | 2025 | 2025 | $ Change | % Change | |||
| Interest income | ||||||||||
| Loans | $ | 56,081 | 53,077 | 51,257 | 51,069 | 50,999 | 5,082 | 10.0% | ||
| Investment securities | 1,666 | 1,504 | 1,399 | 1,268 | 1,342 | 324 | 24.1% | |||
| Federal funds sold | 2,754 | 3,550 | 1,955 | 2,193 | 2,645 | 109 | 4.1% | |||
| Total interest income | 60,501 | 58,131 | 54,611 | 54,530 | 54,986 | 5,515 | 10.0% | |||
| Interest expense | ||||||||||
| Deposits | 23,356 | 23,094 | 21,697 | 23,052 | 24,703 | (1,347) | (5.5%) | |||
| Borrowings | 2,479 | 2,667 | 2,655 | 2,734 | 2,754 | (275) | (10.0%) | |||
| Total interest expense | 25,835 | 25,761 | 24,352 | 25,786 | 27,457 | (1,622) | (5.9%) | |||
| Net interest income | 34,666 | 32,370 | 30,259 | 28,744 | 27,529 | 7,137 | 25.9% | |||
| Provision for credit losses | 1,400 | 1,025 | 1,300 | 650 | 850 | 550 | 64.7% | |||
| Net interest income after provision for credit losses | 33,266 | 31,345 | 28,959 | 28,094 | 26,679 | 6,587 | 24.7% | |||
| Noninterest income | ||||||||||
| Mortgage banking income | 638 | 1,323 | 1,493 | 1,689 | 1,600 | (962) | (60.1%) | |||
| Service fees on deposit accounts | 906 | 866 | 756 | 634 | 625 | 281 | 45.0% | |||
| ATM and debit card income | 622 | 651 | 588 | 638 | 601 | 21 | 3.5% | |||
| Income from bank owned life insurance | 481 | 457 | 446 | 450 | 439 | 42 | 9.6% | |||
| Loss on sale of securities | - | - | - | (515) | - | - | 0.0% | |||
| Other income | 217 | 211 | 257 | 194 | 335 | (118) | (35.2%) | |||
| Total noninterest income | 2,864 | 3,508 | 3,540 | 3,090 | 3,600 | (736) | (20.4%) | |||
| Noninterest expense | ||||||||||
| Compensation and benefits | 12,078 | 12,252 | 11,980 | 10,529 | 11,299 | 779 | 6.9% | |||
| Occupancy | 2,553 | 2,551 | 2,490 | 2,465 | 2,447 | 106 | 4.3% | |||
| Outside service and data processing costs | 2,403 | 2,416 | 2,267 | 2,144 | 2,158 | 245 | 11.4% | |||
| Insurance | 939 | 858 | 892 | 994 | 961 | (22) | (2.3%) | |||
| Professional fees | 758 | 782 | 675 | 732 | 605 | 153 | 25.3% | |||
| Marketing | 420 | 423 | 399 | 346 | 412 | 8 | 1.9% | |||
| Other | 1,153 | 1,111 | 1,312 | 1,206 | 1,064 | 89 | 8.4% | |||
| Total noninterest expenses | 20,304 | 20,393 | 20,015 | 18,416 | 18,946 | 1,358 | 7.2% | |||
| Income before provision for income taxes | 15,826 | 14,460 | 12,484 | 12,768 | 11,333 | 4,493 | 39.6% | |||
| Income tax expense | 3,599 | 3,265 | 2,597 | 2,911 | 2,671 | 928 | 34.7% | |||
| Net income available to common shareholders | $ | 12,227 | 11,195 | 9,887 | 9,857 | 8,662 | 3,565 | 41.2% | ||
| Earnings per common share – Basic | $ | 1.30 | 1.22 | 1.21 | 1.22 | 1.07 | 0.23 | 21.5% | ||
| Earnings per common share – Diluted | 1.28 | 1.20 | 1.19 | 1.20 | 1.06 | 0.22 | 20.8% | |||
| Basic weighted average common shares | 9,426 | 9,185 | 8,163 | 8,106 | 8,091 | 1,335 | 16.5% | |||
| Diluted weighted average common shares | 9,567 | 9,319 | 8,293 | 8,229 | 8,176 | 1,391 | 17.0% | |||
[Footnotes to table located on page 7]
3
Net interest income and margin - Unaudited
| For the Three Months Ended | |||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 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 | $ | 291,431 | $ | 2,754 | 3.75% | $ | 384,694 | $ | 3,550 | 3.70% | $ | 238,552 | $ | 2,645 | 4.40% | ||||||||
| Investment securities, taxable | 162,554 | 1,635 | 3.99% | 147,886 | 1,473 | 4.00% | 141,143 | 1,307 | 3.67% | ||||||||||||||
| Investment securities, nontaxable(1) | 6,004 | 40 | 2.66% | 6,283 | 40 | 2.57% | 7,811 | 45 | 2.31% | ||||||||||||||
| Loans(9) | 4,102,292 | 56,081 | 5.42% | 3,978,639 | 53,077 | 5.35% | 3,783,885 | 50,999 | 5.35% | ||||||||||||||
| Total interest-earning assets | 4,562,281 | 60,510 | 5.26% | 4,517,502 | 58,140 | 5.16% | 4,171,391 | 54,996 | 5.23% | ||||||||||||||
| Noninterest-earning assets | 158,185 | 157,905 | 150,552 | ||||||||||||||||||||
| Total assets | $ | 4,720,466 | $ | 4,675,407 | $ | 4,321,943 | |||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||
| NOW accounts | $ | 536,071 | 2,080 | 1.54% | $ | 500,978 | 1,738 | 1.39% | $ | 329,301 | 746 | 0.90% | |||||||||||
| Savings & money market | 1,816,413 | 13,856 | 3.03% | 1,752,548 | 12,908 | 2.95% | 1,599,710 | 13,509 | 3.35% | ||||||||||||||
| Time deposits | 768,768 | 7,420 | 3.83% | 871,563 | 8,448 | 3.89% | 984,078 | 10,448 | 4.21% | ||||||||||||||
| Total interest-bearing deposits | 3,121,252 | 23,356 | 2.97% | 3,125,089 | 23,094 | 2.96% | 2,913,089 | 24,703 | 3.36% | ||||||||||||||
| FHLB advances and other borrowings | 240,043 | 2,272 | 3.76% | 240,000 | 2,252 | 3.76% | 240,087 | 2,296 | 3.79% | ||||||||||||||
| Subordinated debentures | 13,403 | 207 | 6.13% | 24,777 | 415 | 6.72% | 24,903 | 458 | 7.30% | ||||||||||||||
| Total interest-bearing liabilities | 3,374,698 | 25,835 | 3.04% | 3,389,866 | 25,761 | 3.05% | 3,178,079 | 27,457 | 3.43% | ||||||||||||||
| Noninterest-bearing liabilities | 885,686 | 848,704 | 792,575 | ||||||||||||||||||||
| Shareholders’ equity | 460,082 | 436,837 | 351,289 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 4,720,466 | $ | 4,675,407 | $ | 4,321,943 | |||||||||||||||||
| Net interest spread | 2.23% | 2.11% | 1.80% | ||||||||||||||||||||
| Net interest income (tax equivalent) / margin | $ | 34,675 | 3.02% | $ | 32,379 | 2.87% | $ | 27,539 | 2.62% | ||||||||||||||
| Less: tax-equivalent adjustment(1) | 9 | 9 | 10 | ||||||||||||||||||||
| Net interest income | $ | 34,666 | $ | 32,370 | $ | 27,529 | |||||||||||||||||
[Footnotes to table located on page 7]
4
Balance sheets - Unaudited
| Ending Balance | ||||||||||
| Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | 3Q26 vs 3Q25 | |||||
| (in thousands, except per share data) | 2026 | 2026 | 2026 | 2025 | 2025 | $ Change | % Change | |||
| Assets | ||||||||||
| Cash and cash equivalents: | ||||||||||
| Cash and due from banks | $ | 21,615 | 30,102 | 32,723 | 27,821 | 24,600 | (2,985) | (12.1%) | ||
| Federal funds sold | 268,891 | 259,049 | 228,235 | 183,473 | 178,534 | 90,357 | 50.6% | |||
| Interest-bearing deposits with banks | 108,993 | 72,483 | 81,818 | 58,289 | 79,769 | 29,224 | 36.6% | |||
| Total cash and cash equivalents | 399,499 | 361,634 | 342,776 | 269,583 | 282,903 | 116,596 | 41.2% | |||
| Investment securities: | ||||||||||
| Investment securities available for sale | 146,321 | 144,388 | 124,224 | 127,730 | 131,040 | 15,281 | 11.7% | |||
| Other investments | 20,473 | 20,484 | 20,377 | 20,063 | 20,066 | 407 | 2.0% | |||
| Total investment securities | 166,794 | 164,872 | 144,601 | 147,793 | 151,106 | 15,688 | 10.4% | |||
| Mortgage loans held for sale | 2,678 | 8,594 | 13,723 | 11,569 | 6,906 | (4,228) | (61.2%) | |||
| Loans (4) | 4,175,526 | 4,030,255 | 3,942,219 | 3,845,124 | 3,789,021 | 386,505 | 10.2% | |||
| Less allowance for credit losses | (44,693) | (44,232) | (43,378) | (42,280) | (41,799) | (2,894) | 6.9% | |||
| Loans, net | 4,130,833 | 3,986,023 | 3,898,841 | 3,802,844 | 3,747,222 | 383,611 | 10.2% | |||
| Bank owned life insurance | 57,159 | 56,677 | 56,221 | 55,775 | 55,324 | 1,835 | 3.3% | |||
| Property and equipment, net | 87,524 | 88,006 | 88,580 | 83,465 | 84,586 | 2,938 | 3.5% | |||
| Deferred income taxes | 15,020 | 13,946 | 13,812 | 13,702 | 12,657 | 2,363 | 18.7% | |||
| Other assets | 21,395 | 20,419 | 19,848 | 18,763 | 17,885 | 3,510 | 19.6% | |||
| Total assets | $ | 4,880,902 | 4,700,171 | 4,578,402 | 4,403,494 | 4,358,589 | 522,313 | 12.0% | ||
| Liabilities | ||||||||||
| Deposits | $ | 4,105,204 | 3,935,452 | 3,873,455 | 3,716,803 | 3,676,417 | 428,787 | 11.7% | ||
| FHLB Advances | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | - | 0.0% | |||
| Subordinated debentures | 13,403 | 13,403 | 24,903 | 24,903 | 24,903 | (11,500) | (46.2%) | |||
| Other liabilities | 60,243 | 59,048 | 60,631 | 53,131 | 60,921 | (678) | (1.1%) | |||
| Total liabilities | 4,418,850 | 4,247,903 | 4,198,989 | 4,034,837 | 4,002,241 | 416,609 | 10.4% | |||
| Shareholders’ equity | ||||||||||
| Preferred stock - $.01 par value; 10,000,000 shares authorized | - | - | - | - | - | - | - | |||
| Common Stock - $.01 par value; 20,000,000 shares authorized | 95 | 95 | 82 | 82 | 82 | 13 | 15.9% | |||
| Nonvested restricted stock | (185) | (912) | (1,302) | (1,338) | (1,929) | 1,744 | (90.4%) | |||
| Additional paid-in capital | 189,801 | 188,932 | 127,168 | 125,924 | 125,035 | 64,766 | 51.8% | |||
| Accumulated other comprehensive loss | (12,411) | (8,372) | (7,865) | (7,454) | (8,426) | (3,985) | 47.3% | |||
| Retained earnings | 284,752 | 272,525 | 261,330 | 251,443 | 241,586 | 43,166 | 17.9% | |||
| Total shareholders’ equity | 462,052 | 452,268 | 379,413 | 368,657 | 356,348 | 105,704 | 29.7% | |||
| Total liabilities and shareholders’ equity | $ | 4,880,902 | 4,700,171 | 4,578,402 | 4,403,494 | 4,358,589 | 522,313 | 12.0% | ||
| Common Stock | ||||||||||
| Book value per common share | $ | 48.68 | 47.77 | 46.00 | 44.89 | 43.51 | 5.17 | 11.9% | ||
| Stock price: | ||||||||||
| High | 64.60 | 61.51 | 61.08 | 55.50 | 45.54 | 19.06 | 41.9% | |||
| Low | 59.26 | 54.95 | 51.26 | 41.15 | 38.74 | 20.52 | 53.0% | |||
| Period end | 59.26 | 61.10 | 54.50 | 51.52 | 44.12 | 15.14 | 34.3% | |||
| Common shares outstanding | 9,491 | 9,468 | 8,248 | 8,213 | 8,189 | 1,302 | 15.9% | |||
[Footnotes to table located on page 7]
5
Asset quality measures - Unaudited
| Quarter Ended | ||||||
| September 30 | June 30 | March 31 | December 31 | September 30 | ||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |
| Nonperforming Assets | ||||||
| Commercial | ||||||
| Owner occupied RE | $ | 4,100 | 2,667 | 2,317 | 259 | 262 |
| Non-owner occupied RE | 2,013 | 2,030 | 1,712 | 6,917 | 6,911 | |
| Commercial business | 1,376 | 1,330 | 909 | 189 | 195 | |
| Consumer | ||||||
| Real estate | 4,901 | 4,805 | 5,786 | 5,763 | 3,394 | |
| Home equity | 352 | 354 | 745 | 705 | 705 | |
| Total nonaccrual loans | 12,742 | 11,186 | 11,469 | 13,833 | 11,467 | |
| Other real estate owned | 1,693 | 1,375 | 475 | 275 | 275 | |
| Total nonperforming assets | $ | 14,435 | 12,561 | 11,944 | 14,108 | 11,742 |
| Nonperforming assets as a percentage of: | ||||||
| Total assets | 0.30% | 0.27% | 0.26% | 0.32% | 0.27% | |
| Total loans | 0.35% | 0.31% | 0.30% | 0.37% | 0.31% | |
| Classified assets/Tier 1 capital plus allowance for credit losses | 3.25% | 3.15% | 3.25% | 4.28% | 3.97% | |
| Accruing loans 30 days or more past due/loans(4) | 0.09% | 0.10% | 0.20% | 0.14% | 0.18% | |
| Quarter Ended | ||||||
| September 30 | June 30 | March 31 | December 31 | September 30 | ||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |
| Allowance for Credit Losses | ||||||
| Balance, beginning of period | $ | 44,232 | 43,378 | 42,280 | 41,799 | 41,285 |
| Loans charged-off | (727) | (155) | (78) | (150) | (55) | |
| Recoveries of loans previously charged-off | 8 | 59 | 26 | 81 | 69 | |
| Net loans (charged-off) recovered | (719) | (96) | (52) | (69) | 14 | |
| Provision for credit losses - loans | 1,180 | 950 | 1,150 | 550 | 500 | |
| Balance, end of period | $ | 44,693 | 44,232 | 43,378 | 42,280 | 41,799 |
| Allowance for credit losses to gross loans | 1.07% | 1.10% | 1.10% | 1.10% | 1.10% | |
| Allowance for credit losses to nonaccrual loans | 350.76% | 395.41% | 378.22% | 305.65% | 364.50% | |
| Net charge-offs (recoveries) to average loans QTD (annualized) | 0.07% | 0.01% | 0.01% | 0.01% | 0.00% | |
[Footnotes to table located on page 7]
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LOAN COMPOSITION - Unaudited
| Quarter Ended | |||||||||
| Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | 3Q26 vs 3Q25 | ||||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | $ Change | % Change | ||
| Commercial | |||||||||
| Owner occupied RE | $ | 776,310 | 755,419 | 759,602 | 736,979 | 705,383 | 70,927 | 10.1% | |
| Non-owner occupied RE | 1,035,079 | 967,698 | 950,696 | 956,812 | 943,304 | 91,775 | 9.7% | ||
| Construction | 78,346 | 66,105 | 69,463 | 63,666 | 71,928 | 6,418 | 8.9% | ||
| Business | 720,487 | 713,017 | 677,742 | 619,667 | 604,411 | 116,076 | 19.2% | ||
| Total commercial loans | 2,610,222 | 2,502,239 | 2,457,503 | 2,377,124 | 2,325,026 | 285,196 | 12.3% | ||
| Consumer | |||||||||
| Real estate | 1,184,127 | 1,167,282 | 1,148,129 | 1,153,285 | 1,159,693 | 24,434 | 2.1% | ||
| Home equity | 289,725 | 273,017 | 262,530 | 248,685 | 239,996 | 49,729 | 20.7% | ||
| Construction | 44,377 | 36,371 | 33,879 | 24,997 | 25,842 | 18,535 | 71.7% | ||
| Other | 47,075 | 51,346 | 40,178 | 41,033 | 38,464 | 8,611 | 22.4% | ||
| Total consumer loans | 1,565,304 | 1,528,016 | 1,484,716 | 1,468,000 | 1,463,995 | 101,309 | 6.9% | ||
| Total gross loans, net of deferred fees | 4,175,526 | 4,030,255 | 3,942,219 | 3,845,124 | 3,789,021 | 386,505 | 10.2% | ||
| Less—allowance for credit losses | (44,693) | (44,232) | (43,378) | (42,280) | (41,799) | (2,894) | 6.9% | ||
| Total loans, net | $ | 4,130,833 | 3,986,023 | 3,898,841 | 3,802,844 | 3,747,222 | 383,611 | 10.2% | |
| Yield on average loans | 5.42% | 5.35% | 5.33% | 5.29% | 5.35% | — | — | ||
DEPOSIT COMPOSITION - Unaudited
| Quarter Ended | |||||||||
| Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | 3Q26 vs 3Q25 | ||||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | $ Change | % Change | ||
| Non-interest bearing | $ | 823,165 | 799,246 | 799,692 | 732,287 | 736,518 | 86,647 | 11.8% | |
| Interest bearing: | |||||||||
| NOW accounts | 567,855 | 538,443 | 495,657 | 423,270 | 343,615 | 224,240 | 65.3% | ||
| Money market accounts | 1,871,255 | 1,765,697 | 1,652,125 | 1,573,039 | 1,572,738 | 298,517 | 19.0% | ||
| Savings | 29,792 | 29,460 | 30,332 | 29,470 | 29,381 | 411 | 1.4% | ||
| Time deposits, less than $250,000 | 173,487 | 175,971 | 170,496 | 180,783 | 202,353 | (28,866) | (14.3%) | ||
| Time deposits, $250,000 and over(10) | 639,650 | 626,635 | 725,153 | 777,954 | 791,812 | (152,162) | (19.2%) | ||
| Total deposits | $ | 4,105,204 | 3,935,452 | 3,873,455 | 3,716,803 | 3,676,417 | 428,787 | 11.7% | |
| Total retail deposits | 3,718,676 | 3,556,045 | 3,371,721 | 3,163,914 | 3,108,411 | 610,265 | 19.6% | ||
| Total wholesale deposits | 386,528 | 379,407 | 501,734 | 552,889 | 568,006 | (181,478) | (32.0%) | ||
| Cost of average deposits | 2.35% | 2.37% | 2.37% | 2.50% | 2.69% | — | — | ||
| Cost of average retail deposits | 2.16% | 2.11% | 2.06% | 2.18% | 2.36% | — | — | ||
| Loans to deposits | 101.71% | 102.41% | 101.78% | 103.45% | 103.06% | — | — | ||
| 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 $386.5 million. | |
| (6) September 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 $4.9 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.
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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
SOURCE: Southern First Bancshares, Inc.
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