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Southern First Reports Fourth Quarter 2024 Results
GREENVILLE, S.C., Jan. 28, 2025 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three and twelve months ended December 31, 2024.
"Our financial performance this quarter reflects continued momentum in margin and gives us great optimism as a starting point for 2025. Asset quality remained outstanding with excellent performance metrics and a positive outlook. Our balance sheet performed as we expected with the Fed's interest rate cuts, and our margin continued to expand each quarter this year. Our capital ratios remain strong, and we are pleased with our growth in book value to $40.47 to end the year." stated Art Seaver, Chief Executive Officer. "After 25 years, we are proud of the company we have built and our continued mission to impact lives in the communities we serve. We are well-positioned with a strong balance sheet and healthy pipelines to continue the positive trends in performance and generating value for our shareholders."
2024 Fourth Quarter Highlights
- Net income of $5.6 million and diluted earnings per common share of $0.70, up 30% over last quarter and 37% compared to Q4 2023
- Total loans of $3.6 billion and total deposits of $3.4 billion
- Nonperforming assets to total assets of 0.27% and past due loans to total loans of 0.25%
- Net interest margin of 2.25%, compared to 2.08% for Q3 2024 and 1.92% for Q4 2023
- Book value per common share of $40.47 and a TCE ratio of 8.08%
| | | Quarter Ended | ||||
| | | December 31 | September 30 | June 30 | March 31 | December 31 |
| | | 2024 | 2024 | 2024 | 2024 | 2023 |
| Earnings ($ in thousands, except per share data): | | | | | | |
| Net income available to common shareholders | $ | 5,627 | 4,382 | 2,999 | 2,522 | 4,167 |
| Earnings per common share, diluted | | 0.70 | 0.54 | 0.37 | 0.31 | 0.51 |
| Total revenue(1) | | 25,237 | 23,766 | 23,051 | 21,309 | 21,390 |
| Net interest margin (tax-equivalent)(2) | | 2.25 % | 2.08 % | 1.98 % | 1.94 % | 1.92 % |
| Return on average assets(3) | | 0.54 % | 0.43 % | 0.29 % | 0.25 % | 0.40 % |
| Return on average equity(3) | | 6.80 % | 5.40 % | 3.81 % | 3.22 % | 5.39 % |
| Efficiency ratio(4) | | 73.48 % | 75.90 % | 80.87 % | 84.94 % | 79.61 % |
| Noninterest expense to average assets (3) | | 1.78 % | 1.75 % | 1.81 % | 1.81 % | 1.64 % |
| Balance Sheet ($ in thousands): | | | | | | |
| Total loans(5) | $ | 3,631,767 | 3,619,556 | 3,622,521 | 3,643,766 | 3,602,627 |
| Total deposits | | 3,435,765 | 3,518,825 | 3,459,869 | 3,460,681 | 3,379,564 |
| Core deposits(6) | | 2,661,736 | 2,705,429 | 2,788,223 | 2,807,473 | 2,811,499 |
| Total assets | | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 | 4,055,789 |
| Book value per common share | | 40.47 | 40.04 | 39.09 | 38.65 | 38.63 |
| Loans to deposits | | 105.70 % | 102.86 % | 104.70 % | 105.29 % | 106.60 % |
| Holding Company Capital Ratios(7): | | | | | | |
| Total risk-based capital ratio | | 12.70 % | 12.61 % | 12.77 % | 12.59 % | 12.56 % |
| Tier 1 risk-based capital ratio | | 11.16 % | 10.99 % | 10.80 % | 10.63 % | 10.59 % |
| Leverage ratio | | 8.55 % | 8.50 % | 8.27 % | 8.44 % | 8.14 % |
| Common equity tier 1 ratio(8) | | 10.75 % | 10.58 % | 10.39 % | 10.22 % | 10.18 % |
| Tangible common equity(9) | | 8.08 % | 7.82 % | 7.76 % | 7.68 % | 7.70 % |
| Asset Quality Ratios: | | | | | | |
| Nonperforming assets/total assets | | 0.27 % | 0.28 % | 0.27 % | 0.09 % | 0.10 % |
| Classified assets/tier one capital plus allowance for credit losses | | 4.25 % | 4.35 % | 4.22 % | 3.99 % | 4.25 % |
| Loans 30 days or more past due/loans(5) | | 0.25 % | 0.16 % | 0.30 % | 0.36 % | 0.37 % |
| Net charge-offs (recoveries)/average loans(5) (YTD annualized) | | 0.04 % | 0.05 % | 0.07 % | 0.03 % | 0.00 % |
| Allowance for credit losses/loans(5) | | 1.10 % | 1.11 % | 1.11 % | 1.11 % | 1.13 % |
| Allowance for credit losses/nonaccrual loans | | 366.94 % | 346.78 % | 357.95 % | 1,109.13 % | 1,026.58 % |
| [Footnotes to table located on page 6] | ||||||
| INCOME STATEMENTS – Unaudited | |||||||||
| | | Quarter Ended | | Twelve Months Ended | |||||
| | | Dec 31 | Sept 30 | Jun 30 | Mar 31 | Dec 31 | | December 31 | |
| (in thousands, except per share data) | | 2024 | 2024 | 2024 | 2024 | 2023 | | 2024 | 2023 |
| Interest income | | | | | | | | | |
| Loans | $ | 47,163 | 47,550 | 46,545 | 45,605 | 44,758 | | 186,863 | 166,137 |
| Investment securities | | 1,504 | 1,412 | 1,418 | 1,478 | 1,674 | | 5,812 | 4,463 |
| Federal funds sold | | 2,465 | 2,209 | 2,583 | 1,280 | 2,703 | | 8,537 | 6,998 |
| Total interest income | | 51,132 | 51,171 | 50,546 | 48,363 | 49,135 | | 201,212 | 177,598 |
| Interest expense | | | | | | | | | |
| Deposits | | 25,901 | 27,725 | 28,216 | 26,932 | 27,127 | | 108,774 | 91,373 |
| Borrowings | | 2,773 | 2,855 | 2,802 | 2,786 | 2,948 | | 11,216 | 8,571 |
| Total interest expense | | 28,674 | 30,580 | 31,018 | 29,718 | 30,075 | | 119,990 | 99,944 |
| Net interest income | | 22,458 | 20,591 | 19,528 | 18,645 | 19,060 | | 81,222 | 77,654 |
| Provision (reversal) for credit losses | | (200) | - | 500 | (175) | (975) | | 125 | 1,260 |
| Net interest income after provision for credit losses | | 22,658 | 20,591 | 19,028 | 18,820 | 20,035 | | 81,097 | 76,394 |
| Noninterest income | | | | | | | | | |
| Mortgage banking income | | 1,024 | 1,449 | 1,923 | 1,164 | 868 | | 5,560 | 4,036 |
| Service fees on deposit accounts | | 499 | 455 | 423 | 387 | 371 | | 1,764 | 1,382 |
| ATM and debit card income | | 607 | 599 | 587 | 544 | 565 | | 2,337 | 2,245 |
| Income from bank owned life insurance | | 407 | 401 | 384 | 377 | 361 | | 1,569 | 1,379 |
| Other income | | 242 | 271 | 206 | 192 | 165 | | 911 | 818 |
| Total noninterest income | | 2,779 | 3,175 | 3,523 | 2,664 | 2,330 | | 12,141 | 9,860 |
| Noninterest expense | | | | | | | | | |
| Compensation and benefits | | 10,610 | 10,789 | 11,290 | 10,857 | 9,401 | | 43,546 | 40,275 |
| Occupancy | | 2,587 | 2,595 | 2,552 | 2,557 | 2,718 | | 10,291 | 10,255 |
| Outside service and data processing costs | | 2,003 | 1,930 | 1,962 | 1,846 | 2,000 | | 7,741 | 7,078 |
| Insurance | | 1,077 | 1,025 | 965 | 955 | 937 | | 4,022 | 3,766 |
| Professional fees | | 656 | 548 | 582 | 618 | 581 | | 2,404 | 2,496 |
| Marketing | | 335 | 319 | 389 | 369 | 364 | | 1,412 | 1,357 |
| Other | | 1,276 | 833 | 903 | 898 | 1,027 | | 3,910 | 3,600 |
| Total noninterest expenses | | 18,544 | 18,039 | 18,643 | 18,100 | 17,028 | | 73,326 | 68,827 |
| Income before provision for income taxes | | 6,893 | 5,727 | 3,908 | 3,384 | 5,337 | | 19,912 | 17,427 |
| Income tax expense | | 1,266 | 1,345 | 909 | 862 | 1,170 | | 4,382 | 4,001 |
| Net income available to common shareholders | $ | 5,627 | 4,382 | 2,999 | 2,522 | 4,167 | | 15,530 | 13,426 |
| | | | | | | | | | |
| Earnings per common share – Basic | $ | 0.70 | 0.54 | 0.37 | 0.31 | 0.51 | | 1.92 | 1.67 |
| Earnings per common share – Diluted | | 0.70 | 0.54 | 0.37 | 0.31 | 0.51 | | 1.91 | 1.66 |
| Basic weighted average common shares | | 8,023 | 8,064 | 8,126 | 8,110 | 8,056 | | 8,081 | 8,047 |
| Diluted weighted average common shares | | 8,097 | 8,089 | 8,141 | 8,142 | 8,080 | | 8,117 | 8,078 |
| [Footnotes to table located on page 6] | |||||||||
Net income for the fourth quarter of 2024 was $5.6 million, or $0.70 per diluted share, a $1.2 million increase from the third quarter of 2024 and a $1.5 million increase from the fourth quarter of 2023. Net interest income increased $1.9 million during the fourth quarter of 2024, compared to the third quarter of 2024, and increased $3.4 million, compared to the fourth quarter of 2023. The increase in net interest income from the prior quarter and prior year was primarily driven by an increase in interest income on loans and a decrease in interest expense on deposits.
There was a reversal of the provision for credit losses of $200 thousand for the fourth quarter of 2024, compared to no provision for credit losses during the third quarter of 2024 and a reversal of the provision for credit losses of $975 thousand during the fourth quarter of 2023. The provision reversal during the fourth quarter of 2024 includes a $250 thousand reversal of the provision for credit losses and a $50 thousand increase in the reserve for unfunded commitments. The reversal of the provision for credit losses was driven by lower expected loss rates and few charge-offs, while the increase in the reserve for unfunded commitments was driven by an increase in the balance of unfunded commitments at December 31, 2024, compared to the previous quarter and year.
Noninterest income was $2.8 million for the fourth quarter of 2024, compared to $3.2 million for the third quarter of 2024, and $2.3 million for the fourth quarter of 2023. Mortgage banking income continues to be the largest component of our noninterest income at $1.0 million in fee revenue for the fourth quarter of 2024, $1.4 million for the third quarter of 2024, and $868 thousand for the fourth quarter of 2023. Mortgage closing volume increased in the fourth quarter of 2024; however, the linked quarter decrease in fee revenue is attributable to more loans being held in the loan portfolio with fewer sold into the secondary market.
Noninterest expense for the fourth quarter of 2024 was $18.5 million, a $505 thousand increase from the third quarter of 2024, and a $1.5 million increase from the fourth quarter of 2023. The increase in noninterest expense from the previous quarter was driven by an increase in professional fees and other noninterest expense, which includes increases in business tax expense, collection costs and dues and subscription expenses. The increase in noninterest expense from the previous year related primarily to increases in compensation and benefits, insurance, and other noninterest expenses.
Our effective tax rate was 18.4% for the fourth quarter of 2024, 23.5% for the third quarter of 2024, and 21.9% for the fourth quarter of 2023. The lower tax rate in the fourth quarter of 2023 compared to the prior quarter and prior year primarily relates to 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 | |||||||
| | December 31, 2024 | September 30, 2024 | December 31,2023 | ||||||
| (dollars in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ |
| Interest-earning assets | | | | | | | | | |
| Federal funds sold and interest-bearing deposits | $ 203,065 | $ 2,465 | 4.83 % | $ 158,222 | $ 2,209 | 5.55 % | $ 197,482 | $ 2,703 | 5.43 % |
| Investment securities, taxable | 145,932 | 1,462 | 3.99 % | 137,087 | 1,370 | 3.98 % | 151,969 | 1,632 | 4.26 % |
| Investment securities, nontaxable(2) | 7,988 | 55 | 2.72 % | 8,047 | 55 | 2.70 % | 7,831 | 55 | 2.76 % |
| Loans(10) | 3,620,765 | 47,163 | 5.18 % | 3,629,050 | 47,550 | 5.21 % | 3,586,863 | 44,758 | 4.95 % |
| Total interest-earning assets | 3,977,750 | 51,145 | 5.12 % | 3,932,406 | 51,184 | 5.18 % | 3,944,145 | 49,148 | 4.94 % |
| Noninterest-earning assets | 158,779 | | | 158,550 | | | 174,717 | | |
| Total assets | $4,136,529 | | | $4,090,956 | | | $4,118,862 | | |
| Interest-bearing liabilities | | | | | | | | | |
| NOW accounts | $ 300,902 | 693 | 0.92 % | $ 314,669 | 835 | 1.06 % | $ 301,424 | 656 | 0.86 % |
| Savings & money market | 1,492,534 | 13,525 | 3.61 % | 1,523,834 | 15,287 | 3.99 % | 1,697,144 | 17,042 | 3.98 % |
| Time deposits | 992,335 | 11,683 | 4.68 % | 909,192 | 11,603 | 5.08 % | 759,839 | 9,429 | 4.92 % |
| Total interest-bearing deposits | 2,785,771 | 25,901 | 3.70 % | 2,747,695 | 27,725 | 4.01 % | 2,758,407 | 27,127 | 3.90 % |
| FHLB advances and other borrowings | 240,000 | 2,295 | 3.80 % | 240,065 | 2,297 | 3.81 % | 257,880 | 2,387 | 3.67 % |
| Subordinated debentures | 24,903 | 478 | 7.64 % | 36,261 | 558 | 6.12 % | 36,305 | 561 | 6.13 % |
| Total interest-bearing liabilities | 3,050,674 | 28,674 | 3.74 % | 3,024,021 | 30,580 | 4.02 % | 3,052,592 | 30,075 | 3.91 % |
| Noninterest-bearing liabilities | 756,636 | | | 744,025 | | | 759,413 | | |
| Shareholders' equity | 329,219 | | | 322,910 | | | 306,857 | | |
| Total liabilities and shareholders' equity | $4,136,529 | | | $4,090,956 | | | $4,118,862 | | |
| Net interest spread | | | 1.38 % | | | 1.16 % | | | 1.04 % |
| Net interest income (tax equivalent) / margin | | $22,471 | 2.25 % | | $20,604 | 2.08 % | | $19,073 | 1.92 % |
| Less: tax-equivalent adjustment(2) | | 13 | | | 13 | | | 13 | |
| Net interest income | | $22,458 | | | $20,591 | | | $19,060 | |
| [Footnotes to table located on page 6] | |||||||||
Net interest income was $22.5 million for the fourth quarter of 2024, a $1.9 million increase from the third quarter of 2024, driven by a $1.9 million decrease in interest expense. The decrease in interest expense was driven by a 31 basis point reduction in rate on our interest-bearing deposits over the previous quarter. In comparison to the fourth quarter of 2023, net interest income increased $3.4 million, resulting primarily from an 18-basis point increase in the average yield on our interest-earning assets. Our net interest margin, on a tax-equivalent basis, was 2.25% for the fourth quarter of 2024, a 17 basis point increase from 2.08% for the third quarter of 2024 and a 33 basis point increase from 1.92% for the fourth quarter of 2023.
| BALANCE SHEETS - Unaudited | |||||||
| | | Ending Balance | |||||
| | | December 31 | September 30 | June 30 | March 31 | December 31 | |
| (in thousands, except per share data) | | 2024 | 2024 | 2024 | 2024 | 2023 | |
| Assets | | | | | | | |
| Cash and cash equivalents: | | | | | | | |
| Cash and due from banks | $ | 22,553 | 25,289 | 21,567 | 13,925 | 28,020 | |
| Federal funds sold | | 128,452 | 226,110 | 164,432 | 144,595 | 119,349 | |
| Interest-bearing deposits with banks | | 11,858 | 9,176 | 8,828 | 8,789 | 8,801 | |
| Total cash and cash equivalents | | 162,863 | 260,575 | 194,827 | 167,309 | 156,170 | |
| Investment securities: | | | | | | | |
| Investment securities available for sale | | 132,127 | 134,597 | 121,353 | 125,996 | 134,702 | |
| Other investments | | 19,490 | 19,640 | 18,653 | 18,499 | 19,939 | |
| Total investment securities | | 151,617 | 154,237 | 140,006 | 144,495 | 154,641 | |
| Mortgage loans held for sale | | 4,565 | 8,602 | 14,759 | 11,842 | 7,194 | |
| Loans (5) | | 3,631,767 | 3,619,556 | 3,622,521 | 3,643,766 | 3,602,627 | |
| Less allowance for credit losses | | (39,914) | (40,166) | (40,157) | (40,441) | (40,682) | |
| Loans, net | | 3,591,853 | 3,579,390 | 3,582,364 | 3,603,325 | 3,561,945 | |
| Bank owned life insurance | | 54,070 | 53,663 | 53,263 | 52,878 | 52,501 | |
| Property and equipment, net | | 88,794 | 90,158 | 91,533 | 93,007 | 94,301 | |
| Deferred income taxes | | 13,467 | 11,595 | 12,339 | 12,321 | 12,200 | |
| Other assets | | 20,364 | 16,411 | 20,758 | 20,527 | 16,837 | |
| Total assets | $ | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 | 4,055,789 | |
| Liabilities | | | | | | | |
| Deposits | $ | 3,435,765 | 3,518,825 | 3,459,869 | 3,460,681 | 3,379,564 | |
| FHLB Advances | | 240,000 | 240,000 | 240,000 | 240,000 | 275,000 | |
| Subordinated debentures | | 24,903 | 24,903 | 36,376 | 36,349 | 36,322 | |
| Other liabilities | | 56,481 | 64,365 | 54,856 | 53,418 | 52,436 | |
| Total liabilities | | 3,757,149 | 3,848,093 | 3,791,101 | 3,790,448 | 3,743,322 | |
| 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 | 81 | |
| Nonvested restricted stock | | (3,884) | (4,219) | (4,710) | (5,257) | (3,596) | |
| Additional paid-in capital | | 124,641 | 124,288 | 124,174 | 124,159 | 121,777 | |
| Accumulated other comprehensive loss | | (11,472) | (9,063) | (11,866) | (11,797) | (11,342) | |
| Retained earnings | | 221,077 | 215,450 | 211,068 | 208,069 | 205,547 | |
| Total shareholders' equity | | 330,444 | 326,538 | 318,748 | 315,256 | 312,467 | |
| Total liabilities and shareholders' equity | $ | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 | 4,055,789 | |
| Common Stock | | | | | | | |
| Book value per common share | $ | 40.47 | 40.04 | 39.09 | 38.65 | 38.63 | |
| Stock price: | | | | | | | |
| High | | 44.86 | 36.45 | 30.36 | 38.71 | 37.15 | |
| Low | | 33.26 | 27.70 | 25.70 | 29.80 | 25.16 | |
| Period end | | 39.75 | 34.08 | 29.24 | 31.76 | 37.10 | |
| Common shares outstanding | | 8,165 | 8,156 | 8,155 | 8,156 | 8,088 | |
| [Footnotes to table located on page 6] | |||||||
| | | | | | | | |
| ASSET QUALITY MEASURES - Unaudited | ||||||
| | | Quarter Ended | ||||
| | | December 31 | September 30 | June 30 | March 31 | December 31 |
| (dollars in thousands) | | 2024 | 2024 | 2024 | 2024 | 2023 |
| Nonperforming Assets | | | | | | |
| Commercial | | | | | | |
| Non-owner occupied RE | $ | 7,641 | 7,904 | 7,949 | 1,410 | 1,423 |
| Commercial business | | 1,016 | 838 | 829 | 488 | 319 |
| Consumer | | | | | | |
| Real estate | | 1,908 | 2,448 | 1,875 | 1,380 | 985 |
| Home equity | | 312 | 393 | 565 | 367 | 1,236 |
| Other | | - | - | - | 1 | - |
| Total nonaccrual loans | | 10,877 | 11,583 | 11,218 | 3,646 | 3,963 |
| Other real estate owned | | - | - | - | - | - |
| Total nonperforming assets | $ | 10,877 | 11,583 | 11,218 | 3,646 | 3,963 |
| Nonperforming assets as a percentage of: | | | | | | |
| Total assets | | 0.27 % | 0.28 % | 0.27 % | 0.09 % | 0.10 % |
| Total loans | | 0.30 % | 0.32 % | 0.31 % | 0.10 % | 0.11 % |
| Classified assets/tier 1 capital plus allowance for credit | | 4.25 % | 4.35 % | 4.22 % | 3.99 % | 4.25 % |
| | | Quarter Ended | ||||
| | | December 31 | September 30 | June 30 | March 31 | December 31 |
| (dollars in thousands) | | 2024 | 2024 | 2024 | 2024 | 2023 |
| Allowance for Credit Losses | | | | | | |
| Balance, beginning of period | $ | 40,166 | 40,157 | 40,441 | 40,682 | 41,131 |
| Loans charged-off | | (143) | (118) | (1,049) | (424) | (119) |
| Recoveries of loans previously charged-off | | 141 | 127 | 15 | 183 | 310 |
| Net loans (charged-off) recovered | | (2) | 9 | (1,034) | (241) | 191 |
| Provision for (reversal of) credit losses | | (250) | - | 750 | - | (640) |
| Balance, end of period | $ | 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 | ||