Top-News
Quelle: - ©unsplash.com:
Southern First Reports Second Quarter 2025 Results
GREENVILLE, S.C., July 22, 2025 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the six months ended June 30, 2025.
"Our second quarter results reflect the strength of our team who continues to generate high-quality, profitable growth in our vibrant markets. We had another quarter of solid margin expansion, a testament to our pricing focus and discipline on both sides of the balance sheet. This quarter was one of the highest revenue generating quarters in our 25-year history with total revenue growing 24% over the same quarter a year ago. Our business pipelines are strong, which will provide for healthy growth in the foreseeable future, supported by our solid balance sheet. Our asset quality is among the best in the industry. We are not immune to the potential effects of the broader and ever-changing operating environment, but we are confident in our ability to deliver improving financial performance as we have demonstrated so far this year," stated Art Seaver, Chief Executive Officer. "This quarter we were proud to announce the addition of three new Board members, who are located across our markets and have already begun to make valuable contributions to the leadership of our company through their incredible backgrounds of community involvement and professional expertise. We also continue to attract highly talented and experienced bankers who share our passion for impacting lives by delivering the highest level of client and community service. They provide excellent opportunities to add depth in existing areas and to expand within our footprint. We have a great sense of enthusiasm and optimism about our outlook for the remainder of this year and beyond."
2025 Second Quarter Highlights
- Diluted earnings per common share of $0.81, up $0.16, or 25%, from Q1 2025, and $0.44, or 119%, compared to Q2 2024
- Net interest margin of 2.50%, compared to 2.41% for Q1 2025 and 1.98% for Q2 2024
- Total loans of $3.7 billion, up 7% (annualized) from Q1 2025; core deposits of $2.9 billion, up 7% (annualized) from Q1 2025
- Nonperforming assets to total assets of 0.27% and past due loans to total loans of 0.14%
- Book value per common share of $42.23 increased 9% (annualized) from Q1 2025 and 8% compared to Q2 2024; Tangible Common Equity (TCE) ratio of 8.02%
| | | Quarter Ended | ||||
| | | June 30 | March 31 | December 31 | September 30 | June 30 |
| | | 2025 | 2025 | 2024 | 2024 | 2024 |
| Earnings ($ in thousands, except per share data): | | | | | | |
| Net income available to common shareholders | $ | 6,581 | 5,266 | 5,627 | 4,382 | 2,999 |
| Earnings per common share, diluted | | 0.81 | 0.65 | 0.70 | 0.54 | 0.37 |
| Total revenue(1) | | 28,629 | 26,497 | 25,237 | 23,766 | 23,051 |
| Net interest margin (tax-equivalent)(2) | | 2.50 % | 2.41 % | 2.25 % | 2.08 % | 1.98 % |
| Return on average assets(3) | | 0.63 % | 0.52 % | 0.54 % | 0.43 % | 0.29 % |
| Return on average equity(3) | | 7.71 % | 6.38 % | 6.80 % | 5.40 % | 3.81 % |
| Efficiency ratio(4) | | 67.54 % | 71.08 % | 73.48 % | 75.90 % | 80.87 % |
| Noninterest expense to average assets (3) | | 1.86 % | 1.87 % | 1.78 % | 1.75 % | 1.81 % |
| Balance Sheet ($ in thousands): | | | | | | |
| Total loans(5) | $ | 3,746,841 | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 |
| Total deposits | | 3,636,329 | 3,620,886 | 3,435,765 | 3,518,825 | 3,459,869 |
| Core deposits(6) | | 2,867,193 | 2,820,194 | 2,661,736 | 2,705,429 | 2,788,223 |
| Total assets | | 4,308,067 | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 |
| Book value per common share | | 42.23 | 41.33 | 40.47 | 40.04 | 39.09 |
| Loans to deposits | | 103.04 % | 101.74 % | 105.70 % | 102.86 % | 104.70 % |
| Holding Company Capital Ratios(7): | | | | | | |
| Total risk-based capital ratio | | 12.63 % | 12.69 % | 12.70 % | 12.61 % | 12.77 % |
| Tier 1 risk-based capital ratio | | 11.11 % | 11.15 % | 11.16 % | 10.99 % | 10.80 % |
| Leverage ratio | | 8.73 % | 8.79 % | 8.55 % | 8.50 % | 8.27 % |
| Common equity tier 1 ratio(8) | | 10.71 % | 10.75 % | 10.75 % | 10.58 % | 10.39 % |
| Tangible common equity(9) | | 8.02 % | 7.88 % | 8.08 % | 7.82 % | 7.76 % |
| Asset Quality Ratios: | | | | | | |
| Nonperforming assets/total assets | | 0.27 % | 0.26 % | 0.27 % | 0.28 % | 0.27 % |
| Classified assets/tier one capital plus allowance for credit losses | | 4.28 % | 4.24 % | 4.25 % | 4.35 % | 4.22 % |
| Accruing loans 30 days or more past due/loans(5) | | 0.14 % | 0.27 % | 0.18 % | 0.09 % | 0.06 % |
| Net charge-offs (recoveries)/average loans(5) (YTD annualized) | | 0.00 % | 0.00 % | 0.04 % | 0.05 % | 0.07 % |
| Allowance for credit losses/loans(5) | | 1.10 % | 1.10 % | 1.10 % | 1.11 % | 1.11 % |
| Allowance for credit losses/nonaccrual loans | | 362.35 % | 378.09 % | 366.94 % | 346.78 % | 357.95 % |
| [Footnotes to table located on page 6] | ||||||
| INCOME STATEMENTS – Unaudited | ||||||||
| | ||||||||
| | | Quarter Ended | | Jun 30 2025 - | ||||
| | | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | | Jun 30 2024 |
| (in thousands, except per share data) | | 2025 | 2025 | 2024 | 2024 | 2024 | | % Change |
| Interest income | | | | | | | | |
| Loans | $ | 48,992 | 47,085 | 47,163 | 47,550 | 46,545 | | 5.26 % |
| Investment securities | | 1,357 | 1,403 | 1,504 | 1,412 | 1,418 | | (4.30 %) |
| Federal funds sold | | 1,969 | 1,159 | 2,465 | 2,209 | 2,583 | | (23.77 %) |
| Total interest income | | 52,318 | 49,647 | 51,132 | 51,171 | 50,546 | | 3.51 % |
| Interest expense | | | | | | | | |
| Deposits | | 24,300 | 23,569 | 25,901 | 27,725 | 28,216 | | (13.88 %) |
| Borrowings | | 2,723 | 2,695 | 2,773 | 2,855 | 2,802 | | (2.82 %) |
| Total interest expense | | 27,023 | 26,264 | 28,674 | 30,580 | 31,018 | | (12.88 %) |
| Net interest income | | 25,295 | 23,383 | 22,458 | 20,591 | 19,528 | | 29.53 % |
| Provision (reversal) for credit losses | | 700 | 750 | (200) | - | 500 | | 40.00 % |
| Net interest income after provision for credit losses | | 24,595 | 22,633 | 22,658 | 20,591 | 19,028 | | 29.26 % |
| Noninterest income | | | | | | | | |
| Mortgage banking income | | 1,569 | 1,424 | 1,024 | 1,449 | 1,923 | | (18.41 %) |
| Service fees on deposit accounts | | 567 | 539 | 499 | 455 | 423 | | 34.04 % |
| ATM and debit card income | | 586 | 552 | 607 | 599 | 587 | | (0.17 %) |
| Income from bank owned life insurance | | 413 | 403 | 407 | 401 | 384 | | 7.55 % |
| Other income | | 199 | 196 | 242 | 271 | 206 | | (3.40 %) |
| Total noninterest income | | 3,334 | 3,114 | 2,779 | 3,175 | 3,523 | | (5.36 %) |
| Noninterest expense | | | | | | | | |
| Compensation and benefits | | 11,674 | 11,304 | 10,610 | 10,789 | 11,290 | | 3.40 % |
| Occupancy | | 2,523 | 2,548 | 2,587 | 2,595 | 2,552 | | (1.14 %) |
| Outside service and data processing costs | | 2,189 | 2,037 | 2,003 | 1,930 | 1,962 | | 11.57 % |
| Insurance | | 910 | 1,010 | 1,077 | 1,025 | 965 | | (5.70 %) |
| Professional fees | | 609 | 509 | 656 | 548 | 582 | | 4.64 % |
| Marketing | | 397 | 374 | 335 | 319 | 389 | | 2.06 % |
| Other | | 1,034 | 1,054 | 1,276 | 833 | 903 | | 14.40 % |
| Total noninterest expenses | | 19,336 | 18,836 | 18,544 | 18,039 | 18,643 | | 3.72 % |
| Income before provision for income taxes | | 8,593 | 6,911 | 6,893 | 5,727 | 3,908 | | 119.88 % |
| Income tax expense | | 2,012 | 1,645 | 1,266 | 1,345 | 909 | | 121.34 % |
| Net income available to common shareholders | $ | 6,581 | 5,266 | 5,627 | 4,382 | 2,999 | | 119.44 % |
| | | | | | | | | |
| Earnings per common share – Basic | $ | 0.81 | 0.65 | 0.70 | 0.54 | 0.37 | | |
| Earnings per common share – Diluted | | 0.81 | 0.65 | 0.70 | 0.54 | 0.37 | | |
| Basic weighted average common shares | | 8,119 | 8,078 | 8,023 | 8,064 | 8,126 | | |
| Diluted weighted average common shares | | 8,134 | 8,111 | 8,097 | 8,089 | 8,141 | | |
| [Footnotes to table located on page 6] | ||||||||
Net income for the second quarter of 2025 was $6.6 million, or $0.81 per diluted share, a $1.3 million increase from the first quarter of 2025 and a $3.6 million increase from the second quarter of 2024. Net interest income increased $1.9 million during the second quarter of 2025, compared to the first quarter of 2025, and increased $5.8 million, compared to the second quarter of 2024. The increase in net interest income from the prior quarter and prior year was primarily driven by an increase in interest income on loans, combined with a decrease in interest expense on deposits.
The provision for credit losses was $700 thousand for the second quarter of 2025 compared to a provision for credit losses of $750 thousand for the first quarter of 2025 and $500 thousand for the second quarter of 2024. The provision during the second quarter of 2025 includes a $650 thousand provision for credit losses and a $50 thousand provision for the reserve for unfunded commitments. The provision for credit losses in the second quarter of 2025 was primarily driven by a $62.9 million increase in total loans.
Noninterest income was $3.3 million for the second quarter of 2025, compared to $3.1 million for the first quarter of 2025, and $3.5 million for the second quarter of 2024. Mortgage banking income continues to be the largest component of noninterest income at $1.6 million in fee revenue for the second quarter of 2025, $1.4 million for the first quarter of 2025, and $1.9 million for the second quarter of 2024. Mortgage origination volume increased slightly in the second quarter of 2025, driving the increase in revenue from the prior quarter.
Noninterest expense for the second quarter of 2025 was $19.3 million, a $500 thousand increase from the first quarter of 2025, and a $693 thousand increase from the second quarter of 2024. The increase in noninterest expense from the previous quarter was driven by an increase in compensation and benefits, outside service and data processing costs, and professional fees, offset in part by a decrease in insurance 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.
The effective tax rate was 23.4% for the second quarter of 2025, 23.8% for the first quarter of 2025, and 23.3% for the second quarter of 2024. The changes in the effective tax rate are driven by the effect of equity compensation transactions during the quarter.
| NET INTEREST INCOME AND MARGIN - Unaudited | |||||||||
| | |||||||||
| | | For the Three Months Ended | |||||||
| | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||
| (dollars in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ |
| Interest-earning assets | | | | | | | | | |
| Federal funds sold and interest- | $ 179,095 | $ 1,969 | 4.41 % | $ 107,821 | $ 1,159 | 4.36 % | $ 186,584 | $ 2,583 | 5.57 % |
| Investment securities, taxable | 141,898 | 1,315 | 3.72 % | 143,609 | 1,361 | 3.84 % | 133,507 | 1,376 | 4.15 % |
| Investment securities, nontaxable(2) | 7,740 | 55 | 2.83 % | 7,914 | 55 | 2.80 % | 8,027 | 55 | 2.73 % |
| Loans(10) | 3,724,064 | 48,992 | 5.28 % | 3,673,912 | 47,085 | 5.20 % | 3,645,595 | 46,545 | 5.14 % |
| Total interest-earning assets | 4,052,797 | 52,331 | 5.18 % | 3,933,256 | 49,660 | 5.12 % | 3,973,713 | 50,559 | 5.12 % |
| Noninterest-earning assets | 154,051 | | | 157,053 | | | 165,093 | | |
| Total assets | $4,206,848 | | | $4,090,309 | | | $4,138,806 | | |
| Interest-bearing liabilities | | | | | | | | | |
| NOW accounts | $ 331,811 | 752 | 0.91 % | $ 306,707 | 597 | 0.79 % | $ 302,881 | 621 | 0.82 % |
| Savings & money market | 1,566,345 | 13,398 | 3.43 % | 1,520,632 | 12,750 | 3.40 % | 1,611,991 | 16,324 | 4.07 % |
| Time deposits | 942,880 | 10,150 | 4.32 % | 930,282 | 10,222 | 4.46 % | 898,878 | 11,271 | 5.04 % |
| Total interest-bearing deposits | 2,841,036 | 24,300 | 3.43 % | 2,757,621 | 23,569 | 3.47 % | 2,813,750 | 28,216 | 4.03 % |
| FHLB advances and other borrowings | 240,000 | 2,270 | 3.79 % | 240,000 | 2,244 | 3.79 % | 240,000 | 2,247 | 3.77 % |
| Subordinated debentures | 24,903 | 453 | 7.30 % | 24,903 | 451 | 7.34 % | 36,360 | 555 | 6.14 % |
| Total interest-bearing liabilities | 3,105,939 | 27,023 | 3.49 % | 3,022,524 | 26,264 | 3.52 % | 3,090,110 | 31,018 | 4.04 % |
| Noninterest-bearing liabilities | 758,626 | | | 732,761 | | | 731,843 | | |
| Shareholders' equity | 342,283 | | | 335,024 | | | 316,853 | | |
| Total liabilities and shareholders' | $4,206,848 | | | $4,090,309 | | | $4,138,806 | | |
| Net interest spread | | | 1.69 % | | | 1.60 % | | | 1.08 % |
| Net interest income (tax equivalent) / | | $25,308 | 2.50 % | | $23,396 | 2.41 % | | $19,541 | 1.98 % |
| Less: tax-equivalent adjustment(2) | | 13 | | | 13 | | | 13 | |
| Net interest income | | $25,295 | | | $23,383 | | | $19,528 | |
| [Footnotes to table located on page 6] | |||||||||
Net interest income was $25.3 million for the second quarter of 2025, a $1.9 million increase from the first quarter of 2025, driven by a $2.7 million increase in interest income, partially offset by a $759 thousand increase in interest expense. The increase in interest income was driven by an increase in the yield on interest-earning assets, as loan yield increased eight basis points and the yield on Federal funds sold and interest-bearing deposits increased by five basis points over the previous quarter, combined with a four basis point decrease in the rate on our interest-bearing deposits over the previous quarter. In comparison to the second quarter of 2024, net interest income increased $5.8 million, resulting primarily from a 60 basis point decrease in the cost of interest-bearing deposits. Net interest margin, on a tax-equivalent basis, was 2.50% for the second quarter of 2025, a nine basis point increase from 2.41% for the first quarter of 2025 and a 52 basis point increase from 1.98% for the second quarter of 2024.
| BALANCE SHEETS - Unaudited | |||||||||
| | |||||||||
| | | Ending Balance | | Jun 30 2025 – | |||||
| | | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | | Jun 30 2024 | |
| (in thousands, except per share data) | | 2025 | 2025 | 2024 | 2024 | 2024 | | % Change | |
| Assets | | | | | | | | | |
| Cash and cash equivalents: | | | | | | | | | |
| Cash and due from banks | $ | 25,184 | 24,904 | 22,553 | 25,289 | 21,567 | | 16.77 % | |
| Federal funds sold | | 180,834 | 263,612 | 128,452 | 226,110 | 164,432 | | 9.97 % | |
| Interest-bearing deposits with banks | | 65,014 | 16,541 | 11,858 | 9,176 | 8,828 | | 636.45 % | |
| Total cash and cash equivalents | | 271,032 | 305,057 | 162,863 | 260,575 | 194,827 | | 39.11 % | |
| Investment securities: | | | | | | | | | |
| Investment securities available for sale | | 128,867 | 131,290 | 132,127 | 134,597 | 121,353 | | 6.19 % | |
| Other investments | | 19,906 | 19,927 | 19,490 | 19,640 | 18,653 | | 6.72 % | |
| Total investment securities | | 148,773 | 151,217 | 151,617 | 154,237 | 140,006 | | 6.26 % | |
| Mortgage loans held for sale | | 10,739 | 11,524 | 4,565 | 8,602 | 14,759 | | (27.24 %) | |
| Loans (5) | | 3,746,841 | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | | 3.43 % | |
| Less allowance for credit losses | | (41,285) | (40,687) | (39,914) | (40,166) | (40,157) | | 2.81 % | |
| Loans, net | | 3,705,556 | 3,643,232 | 3,591,853 | 3,579,390 | 3,582,364 | | 3.44 % | |
| Bank owned life insurance | | 54,886 | 54,473 | 54,070 | 53,663 | 53,263 | | 3.05 % | |
| Property and equipment, net | | 85,921 | 87,369 | 88,794 | 90,158 | 91,533 | | (6.13 %) | |
| Deferred income taxes | | 12,971 | 13,080 | 13,467 | 11,595 | 12,339 | | 5.12 % | |
| Other assets | | 18,189 | 18,359 | 20,364 | 16,411 | 20,758 | | (12.38 %) | |
| Total assets | $ | 4,308,067 | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | | 4.82 % | |
| Liabilities | | | | | | | | | |
| Deposits | $ | 3,636,329 | 3,620,886 | 3,435,765 | 3,518,825 | 3,459,869 | | 5.10 % | |
| FHLB Advances | | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | | 0.00 % | |
| Subordinated debentures | | 24,903 | 24,903 | 24,903 | 24,903 | 36,376 | | (31.54 %) | |
| Other liabilities | | 61,373 | 60,924 | 56,481 | 64,365 | 54,856 | | 11.88 % | |
| Total liabilities | | 3,962,605 | 3,946,713 | 3,757,149 | 3,848,093 | 3,791,101 | | 4.52 % | |
| Shareholders' equity | | | | | | | | | |
| Preferred stock - $.01 par value; 10,000,000 shares | | - | - | - | - | - | | | |
| Common Stock - $.01 par value; 10,000,000 shares | | 82 | 82 | 82 | 82 | 82 | | | |
| Nonvested restricted stock | | (2,774) | (3,372) | (3,884) | (4,219) | (4,710) | | (41.10 %) | |
| Additional paid-in capital | | 124,839 | 124,561 | 124,641 | 124,288 | 124,174 | | 0.54 % | |
| Accumulated other comprehensive loss | | (9,609) | (10,016) | (11,472) | (9,063) | (11,866) | | (19.02 %) | |
| Retained earnings | | 232,924 | 226,343 | 221,077 | 215,450 | 211,068 | | 10.35 % | |
| Total shareholders' equity | | 345,462 | 337,598 | 330,444 | 326,538 | 318,748 | | 8.38 % | |
| Total liabilities and shareholders' equity | $ | 4,308,067 | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | | 4.82 % | |
| Common Stock | | | | | | | | | |
| Book value per common share | $ | 42.23 | 41.33 | 40.47 | 40.04 | 39.09 | | 8.03 % | |
| Stock price: | | | | | | | | | |
| High | | 38.51 | 38.50 | 44.86 | 36.45 | 30.36 | | 26.84 % | |
| Low | | 30.61 | 31.88 | 33.26 | 27.70 | 25.70 | | 19.11 % | |
| Period end | | 38.03 | 32.92 | 39.75 | 34.08 | 29.24 | | 30.06 % | |
| Common shares outstanding | | 8,181 | 8,169 | 8,165 | 8,156 | 8,155 | | 0.32 % | |
| [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) | | 2025 | 2025 | 2024 | 2024 | 2024 |
| Nonperforming Assets | | | | | | |
| Commercial | | | | | | |
| Non-owner occupied RE | $ | 6,941 | 6,950 | 7,641 | 7,904 | 7,949 |
| Commercial business | | 717 | 1,087 | 1,016 | 838 | 829 |
| Consumer | | | | | | |
| Real estate | | 3,028 | 2,414 | 1,908 | 2,448 | 1,875 |
| Home equity | | 708 | 310 | 312 | 393 | 565 |
| Other | | - | - | - | - | - |
| Total nonaccrual loans | | 11,394 | 10,761 | 10,877 | 11,583 | 11,218 |
| Other real estate owned | | 275 | 275 | - | - | - |
| Total nonperforming assets | $ | 11,669 | 11,036 | 10,877 | 11,583 | 11,218 |
| Nonperforming assets as a percentage of: | | | | | | |
| Total assets | | 0.27 % | 0.26 % | 0.27 % | 0.28 % | 0.27 % |
| Total loans | | 0.31 % | 0.30 % | 0.30 % | 0.32 % | 0.31 % |
| Classified assets/tier 1 capital plus allowance for credit losses | | 4.28 % | 4.24 % | 4.25 % | 4.35 % | 4.22 % |
| | | Quarter Ended | ||||
| | | June 30 | March 31 | December 31 | September 30 | June 30 |
| (dollars in thousands) | | 2025 | 2025 | 2024 | 2024 | 2024 |
| Allowance for Credit Losses | | | | | | |
| Balance, beginning of period | $ | 40,687 | 39,914 | 40,166 | 40,157 | 40,441 |
| Loans charged-off | | (68) | (78) | (143) | (118) | (1,049) |
| Recoveries of loans previously charged-off | | 16 | 101 | 141 | 127 | 15 |
| Net loans (charged-off) recovered | | (52) | 23 | (2) | 9 | (1,034) |
| Provision for (reversal of) credit losses | | 650 | 750 | (250) | - | 750 |
| Balance, end of period | $ | 41,285 | 40,687 | 39,914 | 40,166 | 40,157 |
| Allowance for credit losses to gross loans | | 1.10 % 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 | ||||