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Southern First Reports First Quarter 2025 Results
GREENVILLE, S.C., April 22, 2025 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three months ended March 31, 2025.
"We are pleased to report our first quarter results, which reflect our continued momentum and a great start to the year. We had exceptional loan and deposit growth and another quarter of solid margin expansion. We are well positioned for any additional Fed moves but are confident in our ability to increase profitability without them. Asset quality, which has always been a strength of our company, remains excellent. Our capital ratios are strong and provide the balance sheet strength and support we need for continued growth and increasing performance. We are prepared for the uncertainty and potential instability in our immediate operating environment and in the broader economy based on recent trade and tariff events," stated Art Seaver, Chief Executive Officer. "We recently celebrated the 25th anniversary of our grand opening, and I am extremely proud of our great team and the company they've built. Our people are highly energized and ready to drive our future success through impacting lives in our markets. Our business opportunities have continued to increase, we have continued to hire experienced and successful bankers to expand our markets, and we remain focused on supporting our communities and enhancing value for our shareholders."
2025 First Quarter Highlights
- Net income of $5.3 million and diluted earnings per common share of $0.65, up 109% compared to Q1 2024
- Net interest margin of 2.41%, compared to 2.25% for Q4 2024 and 1.94% for Q1 2024
- Total loans of $3.7 billion, up 6% (annualized) over Q4 2024
- Core deposits of $2.8 billion, up 23% (annualized) over Q4 2024
- Nonperforming assets to total assets of 0.26% and past due loans to total loans of 0.27%
- Book value per common share of $41.33 and a Tangible Common Equity (TCE) ratio of 7.88%
| | | Quarter Ended | ||||
| | | March 31 | December 31 | September 30 | June 30 | March 31 |
| | | 2025 | 2024 | 2024 | 2024 | 2024 |
| Earnings ($ in thousands, except per share data): | | | | | | |
| Net income available to common shareholders | $ | 5,266 | 5,627 | 4,382 | 2,999 | 2,522 |
| Earnings per common share, diluted | | 0.65 | 0.70 | 0.54 | 0.37 | 0.31 |
| Total revenue(1) | | 26,497 | 25,237 | 23,766 | 23,051 | 21,309 |
| Net interest margin (tax-equivalent)(2) | | 2.41 % | 2.25 % | 2.08 % | 1.98 % | 1.94 % |
| Return on average assets(3) | | 0.52 % | 0.54 % | 0.43 % | 0.29 % | 0.25 % |
| Return on average equity(3) | | 6.38 % | 6.80 % | 5.40 % | 3.81 % | 3.22 % |
| Efficiency ratio(4) | | 71.08 % | 73.48 % | 75.90 % | 80.87 % | 84.94 % |
| Noninterest expense to average assets (3) | | 1.87 % | 1.78 % | 1.75 % | 1.81 % | 1.81 % |
| Balance Sheet ($ in thousands): | | | | | | |
| Total loans(5) | $ | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | 3,643,766 |
| Total deposits | | 3,620,886 | 3,435,765 | 3,518,825 | 3,459,869 | 3,460,681 |
| Core deposits(6) | | 2,820,194 | 2,661,736 | 2,705,429 | 2,788,223 | 2,807,473 |
| Total assets | | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 |
| Book value per common share | | 41.33 | 40.47 | 40.04 | 39.09 | 38.65 |
| Loans to deposits | | 101.74 % | 105.70 % | 102.86 % | 104.70 % | 105.29 % |
| Holding Company Capital Ratios(7): | | | | | | |
| Total risk-based capital ratio | | 12.69 % | 12.70 % | 12.61 % | 12.77 % | 12.59 % |
| Tier 1 risk-based capital ratio | | 11.15 % | 11.16 % | 10.99 % | 10.80 % | 10.63 % |
| Leverage ratio | | 8.79 % | 8.55 % | 8.50 % | 8.27 % | 8.44 % |
| Common equity tier 1 ratio(8) | | 10.75 % | 10.75 % | 10.58 % | 10.39 % | 10.22 % |
| Tangible common equity(9) | | 7.88 % | 8.08 % | 7.82 % | 7.76 % | 7.68 % |
| Asset Quality Ratios: | | | | | | |
| Nonperforming assets/total assets | | 0.26 % | 0.27 % | 0.28 % | 0.27 % | 0.09 % |
| Classified assets/tier one capital plus allowance for credit losses | | 4.24 % | 4.25 % | 4.35 % | 4.22 % | 3.99 % |
| Accruing loans 30 days or more past due/loans(5) | | 0.27 % | 0.18 % | 0.09 % | 0.06 % | 0.32 % |
| Net charge-offs (recoveries)/average loans(5) (YTD annualized) | | 0.00 % | 0.04 % | 0.05 % | 0.07 % | 0.03 % |
| Allowance for credit losses/loans(5) | | 1.10 % | 1.10 % | 1.11 % | 1.11 % | 1.11 % |
| Allowance for credit losses/nonaccrual loans | | 378.09 % | 366.94 % | 346.78 % | 357.95 % | 1,109.13 % |
| [Footnotes to table located on page 6] | ||||||
INCOME STATEMENTS – Unaudited
| | | | | | | | | |
| | | Quarter Ended | | Mar 31 2025 - | ||||
| | | Mar 31 | Dec 31 | Sept 30 | Jun 30 | Mar 31 | | Mar 31 2024 |
| (in thousands, except per share data) | | 2025 | 2024 | 2024 | 2024 | 2024 | | % Change |
| Interest income | | | | | | | | |
| Loans | $ | 47,085 | 47,163 | 47,550 | 46,545 | 45,605 | | 3.25 % |
| Investment securities | | 1,403 | 1,504 | 1,412 | 1,418 | 1,478 | | (5.07 %) |
| Federal funds sold | | 1,159 | 2,465 | 2,209 | 2,583 | 1,280 | | (9.45 %) |
| Total interest income | | 49,647 | 51,132 | 51,171 | 50,546 | 48,363 | | 2.65 % |
| Interest expense | | | | | | | | |
| Deposits | | 23,569 | 25,901 | 27,725 | 28,216 | 26,932 | | (12.49 %) |
| Borrowings | | 2,695 | 2,773 | 2,855 | 2,802 | 2,786 | | (3.27 %) |
| Total interest expense | | 26,264 | 28,674 | 30,580 | 31,018 | 29,718 | | (11.62 %) |
| Net interest income | | 23,383 | 22,458 | 20,591 | 19,528 | 18,645 | | 25.41 % |
| Provision (reversal) for credit losses | | 750 | (200) | - | 500 | (175) | | (528.57 %) |
| Net interest income after provision for credit losses | | 22,633 | 22,658 | 20,591 | 19,028 | 18,820 | | 20.26 % |
| Noninterest income | | | | | | | | |
| Mortgage banking income | | 1,424 | 1,024 | 1,449 | 1,923 | 1,164 | | 22.34 % |
| Service fees on deposit accounts | | 539 | 499 | 455 | 423 | 387 | | 39.28 % |
| ATM and debit card income | | 552 | 607 | 599 | 587 | 544 | | 1.47 % |
| Income from bank owned life insurance | | 402 | 407 | 401 | 384 | 377 | | 6.63 % |
| Other income | | 197 | 242 | 271 | 206 | 192 | | 2.60 % |
| Total noninterest income | | 3,114 | 2,779 | 3,175 | 3,523 | 2,664 | | 16.89 % |
| Noninterest expense | | | | | | | | |
| Compensation and benefits | | 11,304 | 10,610 | 10,789 | 11,290 | 10,857 | | 4.12 % |
| Occupancy | | 2,548 | 2,587 | 2,595 | 2,552 | 2,557 | | (0.35 %) |
| Outside service and data processing costs | | 2,037 | 2,003 | 1,930 | 1,962 | 1,846 | | 10.35 % |
| Insurance | | 1,010 | 1,077 | 1,025 | 965 | 955 | | 5.76 % |
| Professional fees | | 509 | 656 | 548 | 582 | 618 | | (17.64 %) |
| Marketing | | 374 | 335 | 319 | 389 | 369 | | 1.36 % |
| Other | | 1,054 | 1,276 | 833 | 903 | 898 | | 17.26 % |
| Total noninterest expenses | | 18,836 | 18,544 | 18,039 | 18,643 | 18,100 | | 4.07 % |
| Income before provision for income taxes | | 6,911 | 6,893 | 5,727 | 3,908 | 3,384 | | 104.23 % |
| Income tax expense | | 1,645 | 1,266 | 1,345 | 909 | 862 | | 90.84 % |
| Net income available to common shareholders | $ | 5,266 | 5,627 | 4,382 | 2,999 | 2,522 | | 108.80 % |
| | | | | | | | | |
| Earnings per common share – Basic | $ | 0.65 | 0.70 | 0.54 | 0.37 | 0.31 | | |
| Earnings per common share – Diluted | | 0.65 | 0.70 | 0.54 | 0.37 | 0.31 | | |
| Basic weighted average common shares | | 8,078 | 8,023 | 8,064 | 8,126 | 8,110 | | |
| Diluted weighted average common shares | | 8,111 | 8,097 | 8,089 | 8,141 | 8,142 | | |
| [Footnotes to table located on page 6] | ||||||||
Net income for the first quarter of 2025 was $5.3 million, or $0.65 per diluted share, a $361 thousand decrease from the fourth quarter of 2024 and a $2.7 million increase from the first quarter of 2024. Net interest income increased $925 thousand during the first quarter of 2025, compared to the fourth quarter of 2024, and increased $4.7 million, compared to the first quarter of 2024. The increase in net interest income from the prior quarter and prior year was primarily driven by a decrease in interest expense on deposits. In addition, an increase in loan interest income also drove the increase in net interest income from the first quarter of the prior year.
The provision for credit losses was $750 thousand for the first quarter of 2025 compared to a reversal of $200 thousand for the fourth quarter of 2024 and a reversal of $175 thousand for the first quarter of 2024. The provision during the first quarter of 2025 includes a $750 thousand provision for credit losses and no provision for the reserve for unfunded commitments. The provision for credit losses in the first quarter of 2025 was primarily driven by a $52.2 million increase in our loan portfolio.
Noninterest income was $3.1 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $2.7 million for the first quarter of 2024. Mortgage banking income continues to be the largest component of our noninterest income at $1.4 million in fee revenue for the first quarter of 2025, $1.0 million for the fourth quarter of 2024, and $1.2 million for the first quarter of 2024. Mortgage origination volume increased in the first quarter of 2025, driving the increase in revenue from the prior quarter and prior year.
Noninterest expense for the first quarter of 2025 was $18.8 million, a $292 thousand increase from the fourth quarter of 2024, and a $736 thousand increase from the first quarter of 2024. The increase in noninterest expense from the previous quarter was driven by an increase in compensation and benefits, offset in part by decreases in professional fees and other noninterest expense. The increase in noninterest expense from the previous year related primarily to increases in compensation and benefits, outside service and data processing costs, and other noninterest expenses.
Our effective tax rate was 23.8% for the first quarter of 2025, 18.4% for the fourth quarter of 2024, and 25.5% for the first quarter of 2024. The changes in the effective tax rate are driven by the effect of equity compensation transactions and return to provision differences on our actual tax rate during the quarter compared to what was estimated during the year.
NET INTEREST INCOME AND MARGIN - Unaudited
| | | | | ||||||
| | For the Three Months Ended | ||||||||
| | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||
| (dollars in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ |
| Interest-earning assets | | | | | | | | | |
| Federal funds sold and interest-bearing deposits | $ 107,821 | $ 1,159 | 4.36 % | $ 203,065 | $ 2,465 | 4.83 % | $ 89,969 | $ 1,280 | 5.71 % |
| Investment securities, taxable | 143,609 | 1,361 | 3.84 % | 145,932 | 1,462 | 3.99 % | 137,271 | 1,436 | 4.20 % |
| Investment securities, nontaxable(2) | 7,914 | 55 | 2.80 % | 7,988 | 55 | 2.72 % | 8,097 | 55 | 2.70 % |
| Loans(10) | 3,673,912 | 47,085 | 5.20 % | 3,620,765 | 47,163 | 5.18 % | 3,622,972 | 45,605 | 5.05 % |
| Total interest-earning assets | 3,933,256 | 49,660 | 5.12 % | 3,977,750 | 51,145 | 5.12 % | 3,858,309 | 48,376 | 5.03 % |
| Noninterest-earning assets | 157,053 | | | 158,779 | | | 159,813 | | |
| Total assets | $4,090,309 | | | $4,136,529 | | | $4,018,122 | | |
| Interest-bearing liabilities | | | | | | | | | |
| NOW accounts | $ 306,707 | 597 | 0.79 % | $ 300,902 | 693 | 0.92 % | $ 295,774 | 660 | 0.90 % |
| Savings & money market | 1,520,632 | 12,750 | 3.40 % | 1,492,534 | 13,525 | 3.61 % | 1,620,521 | 16,299 | 4.03 % |
| Time deposits | 930,282 | 10,222 | 4.46 % | 992,335 | 11,683 | 4.68 % | 801,734 | 9,973 | 4.99 % |
| Total interest-bearing deposits | 2,757,621 | 23,569 | 3.47 % | 2,785,771 | 25,901 | 3.70 % | 2,718,029 | 26,932 | 3.97 % |
| FHLB advances and other borrowings | 240,000 | 2,244 | 3.79 % | 240,000 | 2,295 | 3.80 % | 241,319 | 2,229 | 3.71 % |
| Subordinated debentures | 24,903 | 451 | 7.34 % | 24,903 | 478 | 7.64 % | 36,333 | 557 | 6.15 % |
| Total interest-bearing liabilities | 3,022,524 | 26,264 | 3.52 % | 3,050,674 | 28,674 | 3.74 % | 2,995,681 | 29,718 | 3.98 % |
| Noninterest-bearing liabilities | 732,761 | | | 756,636 | | | 707,890 | | |
| Shareholders' equity | 335,024 | | | 329,219 | | | 314,551 | | |
| Total liabilities and shareholders' equity | $4,090,309 | | | $4,136,529 | | | $4,018,122 | | |
| Net interest spread | | | 1.60 % | | | 1.38 % | | | 1.05 % |
| Net interest income (tax equivalent) / margin | | $23,396 | 2.41 % | | $22,471 | 2.25 % | | $18,658 | 1.94 % |
| Less: tax-equivalent adjustment(2) | | 13 | | | 13 | | | 13 | |
| Net interest income | | $23,383 | | | $22,458 | | | $18,645 | |
| [Footnotes to table located on page 6] | |||||||||
Net interest income was $23.4 million for the first quarter of 2025, a $925 thousand increase from the fourth quarter of 2024, driven by a $2.4 million decrease in interest expense, partially offset by a $1.5 million decrease in interest income. The decrease in interest expense was driven by a 23 basis point reduction in rate on our interest-bearing deposits over the previous quarter. In comparison to the first quarter of 2024, net interest income increased $4.7 million, resulting primarily from a 50 basis point decrease in the cost of our interest-bearing deposits. Our net interest margin, on a tax-equivalent basis, was 2.41% for the first quarter of 2025, a 16 basis point increase from 2.25% for the fourth quarter of 2024 and a 47 basis point increase from 1.94% for the first quarter of 2024.
BALANCE SHEETS - Unaudited
| | | | | | | | |||
| | | Ending Balance | | Mar 31 2025 – | |||||
| | | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | | Mar 31 2024 | |
| (in thousands, except per share data) | | 2025 | 2024 | 2024 | 2024 | 2024 | | % Change | |
| Assets | | | | | | | | | |
| Cash and cash equivalents: | | | | | | | | | |
| Cash and due from banks | $ | 24,904 | 22,553 | 25,289 | 21,567 | 13,925 | | 78.84 % | |
| Federal funds sold | | 263,612 | 128,452 | 226,110 | 164,432 | 144,595 | | 82.31 % | |
| Interest-bearing deposits with banks | | 16,541 | 11,858 | 9,176 | 8,828 | 8,789 | | 88.20 % | |
| Total cash and cash equivalents | | 305,057 | 162,863 | 260,575 | 194,827 | 167,309 | | 82.33 % | |
| Investment securities: | | | | | | | | | |
| Investment securities available for sale | | 131,290 | 132,127 | 134,597 | 121,353 | 125,996 | | 4.20 % | |
| Other investments | | 19,927 | 19,490 | 19,640 | 18,653 | 18,499 | | 7.72 % | |
| Total investment securities | | 151,217 | 151,617 | 154,237 | 140,006 | 144,495 | | 4.65 % | |
| Mortgage loans held for sale | | 11,524 | 4,565 | 8,602 | 14,759 | 11,842 | | (2.69 %) | |
| Loans (5) | | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | 3,643,766 | | 1.10 % | |
| Less allowance for credit losses | | (40,687) | (39,914) | (40,166) | (40,157) | (40,441) | | 0.61 % | |
| Loans, net | | 3,643,232 | 3,591,853 | 3,579,390 | 3,582,364 | 3,603,325 | | 1.11 % | |
| Bank owned life insurance | | 54,473 | 54,070 | 53,663 | 53,263 | 52,878 | | 3.02 % | |
| Property and equipment, net | | 87,369 | 88,794 | 90,158 | 91,533 | 93,007 | | (6.06 %) | |
| Deferred income taxes | | 13,080 | 13,467 | 11,595 | 12,339 | 12,321 | | 6.16 % | |
| Other assets | | 18,359 | 20,364 | 16,411 | 20,758 | 20,527 | | (10.56 %) | |
| Total assets | $ | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 | | 4.35 % | |
| Liabilities | | | | | | | | | |
| Deposits | $ | 3,620,886 | 3,435,765 | 3,518,825 | 3,459,869 | 3,460,681 | | 4.63 % | |
| FHLB Advances | | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | | 0.00 % | |
| Subordinated debentures | | 24,903 | 24,903 | 24,903 | 36,376 | 36,349 | | (31.49 %) | |
| Other liabilities | | 60,924 | 56,481 | 64,365 | 54,856 | 53,418 | | 14.05 % | |
| Total liabilities | | 3,946,713 | 3,757,149 | 3,848,093 | 3,791,101 | 3,790,448 | | 4.12 % | |
| Shareholders' equity | | | | | | | | | |
| Preferred stock - $.01 par value; 10,000,000 shares authorized | | - | - | - | - | - | | | |
| Common Stock - $.01 par value; 10,000,000 shares authorized | | 82 | 82 | 82 | 82 | 82 | | | |
| Nonvested restricted stock | | (3,372) | (3,884) | (4,219) | (4,710) | (5,257) | | (35.86 %) | |
| Additional paid-in capital | | 124,561 | 124,641 | 124,288 | 124,174 | 124,159 | | 0.32 % | |
| Accumulated other comprehensive loss | | (10,016) | (11,472) | (9,063) | (11,866) | (11,797) | | (15.10 %) | |
| Retained earnings | | 226,343 | 221,077 | 215,450 | 211,068 | 208,069 | | 8.78 % | |
| Total shareholders' equity | | 337,598 | 330,444 | 326,538 | 318,748 | 315,256 | | 7.09 % | |
| Total liabilities and shareholders' equity | $ | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 | | 4.35 % | |
| Common Stock | | | | | | | | | |
| Book value per common share | $ | 41.33 | 40.47 | 40.04 | 39.09 | 38.65 | | 6.99 % | |
| Stock price: | | | | | | | | | |
| High | | 38.50 | 44.86 | 36.45 | 30.36 | 38.71 | | (0.54 %) | |
| Low | | 31.88 | 33.26 | 27.70 | 25.70 | 29.80 | | 6.98 % | |
| Period end | | 32.92 | 39.75 | 34.08 | 29.24 | 31.76 | | 3.65 % | |
| Common shares outstanding | | 8,169 | 8,165 | 8,156 | 8,155 | 8,156 | | 0.16 % | |
| [Footnotes to table located on page 6] | |||||||||
| | | | | | | | | | |
ASSET QUALITY MEASURES - Unaudited
| | | Quarter Ended | ||||
| | | March 31 | December 31 | September 30 | June 30 | March 31 |
| (dollars in thousands) | | 2025 | 2024 | 2024 | 2024 | 2024 |
| Nonperforming Assets | | | | | | |
| Commercial | | | | | | |
| Non-owner occupied RE | $ | 6,950 | 7,641 | 7,904 | 7,949 | 1,410 |
| Commercial business | | 1,087 | 1,016 | 838 | 829 | 488 |
| Consumer | | | | | | |
| Real estate | | 2,414 | 1,908 | 2,448 | 1,875 | 1,380 |
| Home equity | | 310 | 312 | 393 | 565 | 367 |
| Other | | - | - | - | - | 1 |
| Total nonaccrual loans | | 10,761 | 10,877 | 11,583 | 11,218 | 3,646 |
| Other real estate owned | | 275 | - | - | - | - |
| Total nonperforming assets | $ | 11,036 | 10,877 | 11,583 | 11,218 | 3,646 |
| Nonperforming assets as a percentage of: | | | | | | |
| Total assets | | 0.26 % | 0.27 % | 0.28 % | 0.27 % | 0.09 % |
| Total loans | | 0.30 % | 0.30 % | 0.32 % | 0.31 % | 0.10 % |
| Classified assets/tier 1 capital plus allowance for credit losses | | 4.24 % | 4.25 % | 4.35 % | 4.22 % | 3.99 % |
| | | Quarter Ended | ||||
| | | March 31 | December 31 | September 30 | June 30 | March 31 |
| (dollars in thousands) | | 2025 | 2024 | 2024 | 2024 | 2024 |
| Allowance for Credit Losses | | | | | | |
| Balance, beginning of period | $ | 39,914 | 40,166 | 40,157 | 40,441 | 40,682 |
| Loans charged-off | | (78) | (143) | (118) | (1,049) | (424) |
| Recoveries of loans previously charged-off | | 101 | 141 | 127 | 15 | 183 |
| Net loans (charged-off) recovered | | 23 | (2) | 9 | (1,034) | (241) |
| Provision for (reversal of) credit losses | | 750 | (250) | - | 750 | - |
| Balance, end of period | $ | 40,687 | 39,914 | 40,166 | 40,157 Für dich aus unserer Redaktion zusammengestelltHinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Weitere Artikel des AutorsThemen im Trend | |