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Southern First Reports Third Quarter 2025 Results
GREENVILLE, S.C., Oct. 28, 2025 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the nine months ended September 30, 2025.
"Our third quarter financial performance clearly shows the steady momentum that continued this quarter, in line with our expectations. Our team remains highly focused on executing our plans for increased profitability and high-quality loan growth, funded by client retail deposits, which is core to our full relationship banking strategy. Superior asset quality metrics and margin expansion are the result of our intentional and disciplined approach. We have again achieved historically high revenue growth over the same quarter last year, at a rate which was two and a half times our expense growth. This expanded profitability further strengthened capital levels, providing ample support for our strong business pipelines. Although we maintain a cautious outlook and actively monitor for emerging risks, our markets have continued to exhibit vibrant and sustainable growth momentum," stated Art Seaver, Chief Executive Officer. "We continue to attract and retain experienced bankers who share our commitment to outstanding client service, delivered with a personal touch, and to supporting our local communities. Our Southeastern markets remain healthy and resilient, and we are well positioned to benefit from the opportunities created by ongoing banking industry consolidation. This quarter's results reinforce our optimism in the financial outlook for the remainder of the year."
2025 Third Quarter Highlights
- Diluted earnings per common share of $1.07, up $0.26, or 32%, from Q2 2025, and $0.53, or 98%, compared to Q3 2024
- Net interest margin of 2.62%, compared to 2.50% for Q2 2025 and 2.08% for Q3 2024
- Total loans of $3.8 billion, up 4% (annualized) from Q2 2025; core deposits of $2.9 billion, up 2% (annualized) from Q2 2025
- Nonperforming assets to total assets of 0.27% and past due loans to total loans of 0.18%
- Book value per common share of $43.51 increased 12% (annualized) from Q2 2025 and 9% compared to Q3 2024; Tangible Common Equity (TCE) ratio of 8.18%
| | | Quarter Ended | ||||
| | | September 30 | June 30 | March 31 | December 31 | September 30 |
| | | 2025 | 2025 | 2025 | 2024 | 2024 |
| Earnings ($ in thousands, except per share data): | | | | | | |
| Net income available to common shareholders | $ | 8,662 | 6,581 | 5,266 | 5,627 | 4,382 |
| Earnings per common share, diluted | | 1.07 | 0.81 | 0.65 | 0.70 | 0.54 |
| Total revenue(1) | | 31,129 | 28,629 | 26,497 | 25,237 | 23,766 |
| Net interest margin (tax-equivalent)(2) | | 2.62 % | 2.50 % | 2.41 % | 2.25 % | 2.08 % |
| Return on average assets(3) | | 0.80 % | 0.63 % | 0.52 % | 0.54 % | 0.43 % |
| Return on average equity(3) | | 9.78 % | 7.71 % | 6.38 % | 6.80 % | 5.40 % |
| Efficiency ratio(4) | | 60.86 % | 67.54 % | 71.08 % | 73.48 % | 75.90 % |
| Noninterest expense to average assets (3) | | 1.74 % | 1.86 % | 1.87 % | 1.78 % | 1.75 % |
| Balance Sheet ($ in thousands): | | | | | | |
| Total loans(5) | $ | 3,789,021 | 3,746,841 | 3,683,919 | 3,631,767 | 3,619,556 |
| Total deposits | | 3,676,417 | 3,636,329 | 3,620,886 | 3,435,765 | 3,518,825 |
| Core deposits(6) | | 2,884,604 | 2,867,193 | 2,820,194 | 2,661,736 | 2,705,429 |
| Total assets | | 4,358,589 | 4,308,067 | 4,284,311 | 4,087,593 | 4,174,631 |
| Book value per common share | | 43.51 | 42.23 | 41.33 | 40.47 | 40.04 |
| Loans to deposits | | 103.06 % | 103.04 % | 101.74 % | 105.70 % | 102.86 % |
| Holding Company Capital Ratios(7): | | | | | | |
| Total risk-based capital ratio | | 12.79 % | 12.63 % | 12.69 % | 12.70 % | 12.61 % |
| Tier 1 risk-based capital ratio | | 11.26 % | 11.11 % | 11.15 % | 11.16 % | 10.99 % |
| Leverage ratio | | 8.72 % | 8.73 % | 8.79 % | 8.55 % | 8.50 % |
| Common equity tier 1 ratio(8) | | 10.88 % | 10.71 % | 10.75 % | 10.75 % | 10.58 % |
| Tangible common equity(9) | | 8.18 % | 8.02 % | 7.88 % | 8.08 % | 7.82 % |
| Asset Quality Ratios: | | | | | | |
| Nonperforming assets/total assets | | 0.27 % | 0.27 % | 0.26 % | 0.27 % | 0.28 % |
| Classified assets/tier one capital plus allowance for credit losses | | 3.90 % | 4.28 % | 4.24 % | 4.25 % | 4.35 % |
| Accruing loans 30 days or more past due/loans(5) | | 0.18 % | 0.14 % | 0.27 % | 0.18 % | 0.09 % |
| Net charge-offs (recoveries)/average loans(5) (YTD annualized) | | 0.00 % | 0.00 % | 0.00 % | 0.04 % | 0.05 % |
| Allowance for credit losses/loans(5) | | 1.10 % | 1.10 % | 1.10 % | 1.10 % | 1.11 % |
| Allowance for credit losses/nonaccrual loans | | 364.50 % | 362.35 % | 378.09 % | 366.94 % | 346.78 % |
| [Footnotes to table located on page 6] | ||||||
| INCOME STATEMENTS – Unaudited | ||||||||
| | | | | | | | | |
| | | Quarter Ended | | Sept 30 2025 - | ||||
| | | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | | Sept 30 2024 |
| (in thousands, except per share data) | | 2025 | 2025 | 2025 | 2024 | 2024 | | % Change |
| Interest income | | | | | | | | |
| Loans | $ | 50,999 | 48,992 | 47,085 | 47,163 | 47,550 | | 7.25 % |
| Investment securities | | 1,342 | 1,357 | 1,403 | 1,504 | 1,412 | | (4.96 %) |
| Federal funds sold | | 2,645 | 1,969 | 1,159 | 2,465 | 2,209 | | 19.74 % |
| Total interest income | | 54,986 | 52,318 | 49,647 | 51,132 | 51,171 | | 7.46 % |
| Interest expense | | | | | | | | |
| Deposits | | 24,703 | 24,300 | 23,569 | 25,901 | 27,725 | | (10.90 %) |
| Borrowings | | 2,754 | 2,723 | 2,695 | 2,773 | 2,855 | | (3.54 %) |
| Total interest expense | | 27,457 | 27,023 | 26,264 | 28,674 | 30,580 | | (10.21 %) |
| Net interest income | | 27,529 | 25,295 | 23,383 | 22,458 | 20,591 | | 33.69 % |
| Provision (reversal of) for credit losses | | 850 | 700 | 750 | (200) | - | | 100 % |
| Net interest income after provision for credit losses | | 26,679 | 24,595 | 22,633 | 22,658 | 20,591 | | 29.57 % |
| Noninterest income | | | | | | | | |
| Mortgage banking income | | 1,600 | 1,569 | 1,424 | 1,024 | 1,449 | | 10.42 % |
| Service fees on deposit accounts | | 625 | 567 | 539 | 499 | 455 | | 37.36 % |
| ATM and debit card income | | 601 | 586 | 552 | 607 | 599 | | 0.33 % |
| Income from bank owned life insurance | | 439 | 413 | 403 | 407 | 401 | | 9.48 % |
| Other income | | 335 | 199 | 196 | 242 | 271 | | 23.62 % |
| Total noninterest income | | 3,600 | 3,334 | 3,114 | 2,779 | 3,175 | | 13.39 % |
| Noninterest expense | | | | | | | | |
| Compensation and benefits | | 11,299 | 11,674 | 11,304 | 10,610 | 10,789 | | 4.73 % |
| Occupancy | | 2,447 | 2,523 | 2,548 | 2,587 | 2,595 | | (5.70 %) |
| Outside service and data processing costs | | 2,158 | 2,189 | 2,037 | 2,003 | 1,930 | | 11.81 % |
| Insurance | | 961 | 910 | 1,010 | 1,077 | 1,025 | | (6.24 %) |
| Professional fees | | 605 | 609 | 509 | 656 | 548 | | 10.40 % |
| Marketing | | 412 | 397 | 374 | 335 | 319 | | 29.15 % |
| Other | | 1,064 | 1,034 | 1,054 | 1,276 | 833 | | 27.73 % |
| Total noninterest expenses | | 18,946 | 19,336 | 18,836 | 18,544 | 18,039 | | 5.03 % |
| Income before provision for income taxes | | 11,333 | 8,593 | 6,911 | 6,893 | 5,727 | | 97.89 % |
| Income tax expense | | 2,671 | 2,012 | 1,645 | 1,266 | 1,345 | | 98.59 % |
| Net income available to common shareholders | $ | 8,662 | 6,581 | 5,266 | 5,627 | 4,382 | | 97.67 % |
| | | | | | | | | |
| Earnings per common share – Basic | $ | 1.08 | 0.81 | 0.65 | 0.70 | 0.54 | | |
| Earnings per common share – Diluted | | 1.07 | 0.81 | 0.65 | 0.70 | 0.54 | | |
| Basic weighted average common shares | | 8,031 | 8,036 | 8,078 | 8,023 | 8,064 | | |
| Diluted weighted average common shares | | 8,080 | 8,051 | 8,111 | 8,097 | 8,089 | | |
| [Footnotes to table located on page 6] | ||||||||
Net income for the third quarter of 2025 was $8.7 million, or $1.07 per diluted share, a $2.1 million increase from the second quarter of 2025 and a $4.3 million increase from the third quarter of 2024. Net interest income increased $2.2 million during the third quarter of 2025, compared to the second quarter of 2025, and increased $6.9 million, compared to the third 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 $850 thousand for the third quarter of 2025 compared to a provision for credit losses of $700 thousand for the second quarter of 2025 and no provision for credit losses for the third quarter of 2024. The provision during the third quarter of 2025 includes a $500 thousand provision for credit losses and a $350 thousand provision for the reserve for unfunded commitments. The provision for credit losses in the third quarter of 2025 was primarily driven by a change in qualitative factors related to an increase in past due loans and risk migration among our commercial business and non-owner occupied loans.
Noninterest income was $3.6 million for the third quarter of 2025, compared to $3.3 million for the second quarter of 2025, and $3.2 million for the third quarter of 2024. Mortgage banking income continues to be the largest component of noninterest income at $1.6 million in fee revenue for the third and second quarters of 2025, and $1.4 million for the third quarter of 2024. In addition, service fees on deposit accounts increased 10% over the prior quarter and 37% over the prior year.
Noninterest expense for the third quarter of 2025 was $18.9 million, a $390 thousand decrease from the second quarter of 2025, and a $907 thousand increase from the third quarter of 2024. The decrease in noninterest expense from the previous quarter was driven by a decrease in compensation and benefits and occupancy expenses, offset in part by an increase 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, offset in part by a decrease in occupancy.
The effective tax rate was 23.6% for the third quarter of 2025, 23.4% for the second quarter of 2025, and 23.5% for the third 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 | |||||||
| | September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||
| (dollars in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ |
| Interest-earning assets | | | | | | | | | |
| Federal funds sold and interest-bearing deposits | $ 238,552 | $ 2,645 | 4.40 % | $ 179,095 | $ 1,969 | 4.41 % | $ 158,222 | $ 2,209 | 5.55 % |
| Investment securities, taxable | 141,143 | 1,307 | 3.67 % | 141,898 | 1,315 | 3.72 % | 137,087 | 1,370 | 3.98 % |
| Investment securities, nontaxable(2) | 7,811 | 45 | 2.31 % | 7,740 | 55 | 2.83 % | 8,047 | 55 | 2.70 % |
| Loans(10) | 3,783,885 | 50,999 | 5.35 % | 3,724,064 | 48,992 | 5.28 % | 3,629,050 | 47,550 | 5.21 % |
| Total interest-earning assets | 4,171,391 | 54,996 | 5.23 % | 4,052,797 | 52,331 | 5.18 % | 3,932,406 | 51,184 | 5.18 % |
| Noninterest-earning assets | 150,552 | | | 154,051 | | | 158,550 | | |
| Total assets | $4,321,943 | | | $4,206,848 | | | $4,090,956 | | |
| Interest-bearing liabilities | | | | | | | | | |
| NOW accounts | $ 329,301 | 746 | 0.90 % | $ 331,811 | 752 | 0.91 % | $ 314,669 | 835 | 1.06 % |
| Savings & money market | 1,599,710 | 13,509 | 3.35 % | 1,566,345 | 13,398 | 3.43 % | 1,523,834 | 15,287 | 3.99 % |
| Time deposits | 984,078 | 10,448 | 4.21 % | 942,880 | 10,150 | 4.32 % | 909,192 | 11,603 | 5.08 % |
| Total interest-bearing deposits | 2,913,089 | 24,703 | 3.36 % | 2,841,036 | 24,300 | 3.43 % | 2,747,695 | 27,725 | 4.01 % |
| FHLB advances and other borrowings | 240,087 | 2,296 | 3.79 % | 240,000 | 2,270 | 3.79 % | 240,065 | 2,297 | 3.81 % |
| Subordinated debentures | 24,903 | 458 | 7.30 % | 24,903 | 453 | 7.30 % | 36,261 | 558 | 6.12 % |
| Total interest-bearing liabilities | 3,178,079 | 27,457 | 3.43 % | 3,105,939 | 27,023 | 3.49 % | 3,024,021 | 30,580 | 4.02 % |
| Noninterest-bearing liabilities | 792,575 | | | 758,626 | | | 744,025 | | |
| Shareholders' equity | 351,289 | | | 342,283 | | | 322,910 | | |
| Total liabilities and shareholders' equity | $4,321,943 | | | $4,206,848 | | | $4,090,956 | | |
| Net interest spread | | | 1.80 % | | | 1.69 % | | | 1.16 % |
| Net interest income (tax equivalent) / margin | | $27,539 | 2.62 % | | $25,308 | 2.50 % | | $20,604 | 2.08 % |
| Less: tax-equivalent adjustment(2) | | 10 | | | 13 | | | 13 | |
| Net interest income | | $27,529 | | | $25,295 | | | $20,591 | |
| [Footnotes to table located on page 6] | |||||||||
Net interest income was $27.5 million for the third quarter of 2025, a $2.2 million increase from the second quarter of 2025, driven by a $2.7 million increase in interest income, partially offset by a $434 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 seven basis points over the previous quarter. In addition, the cost of our interest-bearing deposits decreased seven basis points over the previous quarter. In comparison to the third quarter of 2024, net interest income increased $6.9 million, resulting primarily from a 65 basis point decrease in the cost of interest-bearing deposits. Net interest margin, on a tax-equivalent basis, was 2.62% for the third quarter of 2025, a 12 basis point increase from 2.50% for the second quarter of 2025 and a 54 basis point increase from 2.08% for the third quarter of 2024.
| BALANCE SHEETS - Unaudited | |||||||||
| | | | | | | | |||
| | | Ending Balance | | Sept 30 2025 - | |||||
| | | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | | Sept 30 2024 | |
| (in thousands, except per share data) | | 2025 | 2025 | 2025 | 2024 | 2024 | | % Change | |
| Assets | | | | | | | | | |
| Cash and cash equivalents: | | | | | | | | | |
| Cash and due from banks | $ | 24,600 | 25,184 | 24,904 | 22,553 | 25,289 | | (2.72 %) | |
| Federal funds sold | | 178,534 | 180,834 | 263,612 | 128,452 | 226,110 | | (21.04 %) | |
| Interest-bearing deposits with banks | | 79,769 | 65,014 | 16,541 | 11,858 | 9,176 | | 769.32 % | |
| Total cash and cash equivalents | | 282,903 | 271,032 | 305,057 | 162,863 | 260,575 | | 8.57 % | |
| Investment securities: | | | | | | | | | |
| Investment securities available for sale | | 131,040 | 128,867 | 131,290 | 132,127 | 134,597 | | (2.64 %) | |
| Other investments | | 20,066 | 19,906 | 19,927 | 19,490 | 19,640 | | 2.17 % | |
| Total investment securities | | 151,106 | 148,773 | 151,217 | 151,617 | 154,237 | | (2.03 %) | |
| Mortgage loans held for sale | | 6,906 | 10,739 | 11,524 | 4,565 | 8,602 | | (19.72 %) | |
| Loans (5) | | 3,789,021 | 3,746,841 | 3,683,919 | 3,631,767 | 3,619,556 | | 4.68 % | |
| Less allowance for credit losses | | (41,799) | (41,285) | (40,687) | (39,914) | (40,166) | | 4.07 % | |
| Loans, net | | 3,747,222 | 3,705,556 | 3,643,232 | 3,591,853 | 3,579,390 | | 4.69 % | |
| Bank owned life insurance | | 55,324 | 54,886 | 54,473 | 54,070 | 53,663 | | 3.10 % | |
| Property and equipment, net | | 84,586 | 85,921 | 87,369 | 88,794 | 90,158 | | (6.18 %) | |
| Deferred income taxes | | 12,657 | 12,971 | 13,080 | 13,467 | 11,595 | | 9.16 % | |
| Other assets | | 17,885 | 18,189 | 18,359 | 20,364 | 16,411 | | 8.98 % | |
| Total assets | $ | 4,358,589 | 4,308,067 | 4,284,311 | 4,087,593 | 4,174,631 | | 4.41 % | |
| Liabilities | | | | | | | | | |
| Deposits | $ | 3,676,417 | 3,636,329 | 3,620,886 | 3,435,765 | 3,518,825 | | 4.48 % | |
| FHLB Advances | | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | | 0.00 % | |
| Subordinated debentures | | 24,903 | 24,903 | 24,903 | 24,903 | 24,903 | | 0.00 % | |
| Other liabilities | | 60,921 | 61,373 | 60,924 | 56,481 | 64,365 | | (5.35 %) | |
| Total liabilities | | 4,002,241 | 3,962,605 | 3,946,713 | 3,757,149 | 3,848,093 | | 4.01 % | |
| 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 | | (1,929) | (2,774) | (3,372) | (3,884) | (4,219) | | (54.28 %) | |
| Additional paid-in capital | | 125,035 | 124,839 | 124,561 | 124,641 | 124,288 | | 0.60 % | |
| Accumulated other comprehensive loss | | (8,426) | (9,609) | (10,016) | (11,472) | (9,063) | | (7.03 %) | |
| Retained earnings | | 241,586 | 232,924 | 226,343 | 221,077 | 215,450 | | 12.13 % | |
| Total shareholders' equity | | 356,348 | 345,462 | 337,598 | 330,444 | 326,538 | | 9.13 % | |
| Total liabilities and shareholders' equity | $ | 4,358,589 | 4,308,067 | 4,284,311 | 4,087,593 | 4,174,631 | | 4.41 % | |
| Common Stock | | | | | | | | | |
| Book value per common share | $ | 43.51 | 42.23 | 41.33 | 40.47 | 40.04 | | 8.67 % | |
| Stock price: | | | | | | | | | |
| High | | 45.54 | 38.51 | 38.50 | 44.86 | 36.45 | | 24.94 % | |
| Low | | 38.74 | 30.61 | 31.88 | 33.26 | 27.70 | | 39.86 % | |
| Period end | | 44.12 | 38.03 | 32.92 | 39.75 | 34.08 | | 29.46 % | |
| Common shares outstanding | | 8,189 | 8,181 | 8,169 | 8,165 | 8,156 | | 0.40 % | |
| [Footnotes to table located on page 6] | |||||||||
| ASSET QUALITY MEASURES - Unaudited | ||||||
| | | Quarter Ended | ||||
| | | September 30 | June 30 | March 31 | December 31 | September 30 |
| (dollars in thousands) | | 2025 | 2025 | 2025 | 2024 | 2024 |
| Nonperforming Assets | | | | | | |
| Commercial | | | | | | |
| Owner occupied RE | $ | 262 | - | - | - | - |
| Non-owner occupied RE | | 6,911 | 6,941 | 6,950 | 7,641 | 7,904 |
| Commercial business | | 195 | 717 | 1,087 | 1,016 | 838 |
| Consumer | | | | | | |
| Real estate | | 3,394 | 3,028 | 2,414 | 1,908 | 2,448 |
| Home equity | | 705 | 708 | 310 | 312 | 393 |
| Other | | - | - | - | - | - |
| Total nonaccrual loans | | 11,467 | 11,394 | 10,761 | 10,877 | 11,583 |
| Other real estate owned | | 275 | 275 | 275 | - | - |
| Total nonperforming assets | $ | 11,742 | 11,669 | 11,036 | 10,877 | 11,583 |
| Nonperforming assets as a percentage of: | | | | | | |
| Total assets | | 0.27 % | 0.27 % | 0.26 % | 0.27 % | 0.28 % |
| Total loans | | 0.31 % | 0.31 % | 0.30 % | 0.30 % | 0.32 % |
| Classified assets/tier 1 capital plus allowance for credit losses | | 3.90 % | 4.28 % | 4.24 % | 4.25 % | 4.35 % |
| | | Quarter Ended | ||||
| | | September 30 | June 30 | March 31 | December 31 | September 30 |
| (dollars in thousands) | | 2025 | 2025 | 2025 | 2024 | 2024 |
| Allowance for Credit Losses | | | | | | |
| Balance, beginning of period | $ | 41,285 | 40,687 | 39,914 | 40,166 | 40,157 |
| Loans charged-off | | (55) | (68) | (78) | (143) | (118) |
| Recoveries of loans previously charged-off | | 69 | 16 | 101 | 141 | 127 |
| Net loans (charged-off) recovered | | 14 | (52) | 23 | (2) | 9 |
| Provision for (reversal of) credit losses | | 500 | 650 | 750 | (250) | - |
| Balance, end of period | $ | 41,799 | 41,285 | 40,687 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 | ||