Southern First Reports Third Quarter 2026 Results

EmitenTrust.com GREENVILLE, S.C., Oct. 20, 2026 /PRNewswire/ -- 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

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INCOME STATEMENTS – Unaudited

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NET INTEREST INCOME AND MARGIN - Unaudited

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BALANCE SHEETS - Unaudited

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ASSET QUALITY MEASURES - Unaudited

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LOAN COMPOSITION - Unaudited

DEPOSIT COMPOSITION - Unaudited

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.

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

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SOURCE Southern First Bancshares, Inc.