GREENVILLE, S.C., Jan. 22, 2026 /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, 2025.
"We are very pleased to report our fourth quarter financial performance, which was our strongest of 2025 and clearly demonstrates the continued momentum we achieved throughout the year. We maintained solid loan growth, funded by even stronger growth in client deposits. Our full banking relationship strategy continues to drive improving financial returns, including an expanding net interest margin that increased 10 basis points from last quarter and 36 basis points over last year. We continue to strengthen our balance sheet with higher capital levels and have again achieved outstanding asset quality. Our team remains highly motivated and intentional about improving financial performance while delivering client service at levels that are second to none, and that commitment was clearly reflected in our results this quarter and throughout the year. We are fortunate to operate in some of the strongest markets in the Southeast and will continue expanding our teams to grow our business in the disciplined manner that has defined our success. While we remain mindful of broader economic conditions and factors impacting our business, our markets have proven to be resilient and offer tremendous growth opportunities that we intend to fully capitalize on," stated Art Seaver, Chief Executive Officer. "Looking ahead to the new year, we are optimistic and have high expectations for continued financial performance improvement. Our business pipeline is strong and our team is ready. We expect to build on our track record of attracting experienced bankers who share our commitment to exceptional client service and to supporting our local communities, which remains at the core of everything we do."
2025 Fourth Quarter Highlights
-- Diluted earnings per common share of $1.21, up $0.14, or 13%, from Q3
2025, and up $0.51, or 73%, compared to Q4 2024
-- Net interest margin of 2.72%, compared to 2.62% for Q3 2025 and 2.25% for
Q4 2024
-- Total loans of $3.8 billion, up 6% from Q4 2024; Total deposits of $3.7
billion, up 8% from Q4 2024; Core deposits of $2.9 billion, up 8% from Q4
2024
-- Nonperforming assets to total assets of 0.32% and past due loans to total
loans of 0.13%
-- Book value per common share of $44.89 increased 3% from Q3 2025 and
increased 11% compared to Q4 2024; Tangible Common Equity (TCE) ratio of
8.37%
Quarter Ended
-----------------------------------------------------
December September December
31 30 June 30 March 31 31
2025 2025 2025 2025 2024
--------------------- --------- --------- --------- --------- ---------
Earnings ($ in
thousands, except per
share data):
Net income available
to common
shareholders $ 9,857 8,662 6,581 5,266 5,627
Earnings per common
share, diluted 1.21 1.07 0.81 0.65 0.70
Total revenue(1) 31,834 31,129 28,629 26,497 25,237
Net interest margin
(tax-equivalent)(2) 2.72 % 2.62 % 2.50 % 2.41 % 2.25 %
Return on average
assets(3) 0.90 % 0.80 % 0.63 % 0.52 % 0.54 %
Return on average
equity(3) 10.77 % 9.78 % 7.71 % 6.38 % 6.80 %
Efficiency ratio(4) 57.85 % 60.86 % 67.54 % 71.08 % 73.48 %
Noninterest expense
to average assets
(3) 1.68 % 1.74 % 1.86 % 1.87 % 1.78 %
Balance Sheet ($ in
thousands):
Total loans(5) $3,845,124 3,789,021 3,746,841 3,683,919 3,631,767
Total deposits 3,716,803 3,676,417 3,636,329 3,620,886 3,435,765
Core deposits(6) 2,884,163 2,884,604 2,867,193 2,820,194 2,661,736
Total assets 4,403,494 4,358,589 4,308,067 4,284,311 4,087,593
Book value per common
share 44.89 43.51 42.23 41.33 40.47
Loans to deposits 103.45 % 103.06 % 103.04 % 101.74 % 105.70 %
Holding Company
Capital Ratios(7) :
Total risk-based
capital ratio 12.89 % 12.79 % 12.63 % 12.69 % 12.70 %
Tier 1 risk-based
capital ratio 11.44 % 11.26 % 11.11 % 11.15 % 11.16 %
Leverage ratio 8.93 % 8.72 % 8.73 % 8.79 % 8.55 %
Common equity tier 1
ratio(8) 11.06 % 10.88 % 10.71 % 10.75 % 10.75 %
Tangible common
equity(9) 8.37 % 8.18 % 8.02 % 7.88 % 8.08 %
Asset Quality Ratios:
Nonperforming
assets/total assets 0.32 % 0.27 % 0.27 % 0.26 % 0.27 %
Classified
assets/tier one
capital plus
allowance for credit
losses 4.22 % 3.90 % 4.28 % 4.24 % 4.25 %
Accruing loans 30
days or more past
due/loans(5) 0.13 % 0.18 % 0.14 % 0.27 % 0.18 %
Net charge-offs
(recoveries)/average
loans(5) (YTD
annualized) 0.00 % 0.00 % 0.00 % 0.00 % 0.04 %
Allowance for credit
losses/loans(5) 1.10 % 1.10 % 1.10 % 1.10 % 1.10 %
Allowance for credit
losses/nonaccrual
loans 305.65 % 364.50 % 362.35 % 378.09 % 366.94 %
--------------------- --------- --------- --------- --------- ---------
[Footnotes to table located on page 6]
INCOME STATEMENTS -- Unaudited
Twelve Months
Quarter Ended Ended
-------------------------------------- ------------------
Sept
Dec 31 30 Jun 30 Mar 31 Dec 31 December 31
(in thousands,
except per
share data) 2025 2025 2025 2025 2024 2025 2024
--------------- ------ ------ ------ ------ ------ ------- ---------
Interest income
Loans $51,069 50,999 48,992 47,085 47,163 198,145 186,863
Investment
securities 1,268 1,342 1,357 1,403 1,504 5,370 5,812
Federal funds
sold 2,193 2,645 1,969 1,159 2,465 7,966 8,537
--------------- ------ ------ ------ ------ ------ ------- ---------
Total interest
income 54,530 54,986 52,318 49,647 51,132 211,481 201,212
--------------- ------ ------ ------ ------ ------ ------- ---------
Interest
expense
Deposits 23,052 24,703 24,300 23,569 25,901 95,624 108,774
Borrowings 2,734 2,754 2,723 2,695 2,773 10,906 11,216
--------------- ------ ------ ------ ------ ------ ------- ---------
Total interest
expense 25,786 27,457 27,023 26,264 28,674 106,530 119,990
--------------- ------ ------ ------ ------ ------ ------- ---------
Net interest
income 28,744 27,529 25,295 23,383 22,458 104,951 81,222
Provision
(reversal) for
credit losses 650 850 700 750 (200) 2,950 125
--------------- ------ ------ ------ ------ ------ ------- ---------
Net interest
income after
provision for
credit losses 28,094 26,679 24,595 22,633 22,658 102,001 81,097
--------------- ------ ------ ------ ------ ------ ------- ---------
Noninterest
income
Mortgage
banking
income 1,689 1,600 1,569 1,424 1,024 6,282 5,560
Service fees on
deposit
accounts 634 625 567 539 499 2,365 1,764
ATM and debit
card income 638 601 586 552 607 2,377 2,337
Income from
bank owned
life
insurance 450 439 413 403 407 1,705 1,569
Loss on sale of
securities (515) - - - - (515) -
Other income 194 335 199 196 242 924 911
--------------- ------ ------ ------ ------ ------ ------- ---------
Total
noninterest
income 3,090 3,600 3,334 3,114 2,779 13,138 12,141
--------------- ------ ------ ------ ------ ------ ------- ---------
Noninterest
expense
Compensation
and benefits 10,529 11,299 11,674 11,304 10,610 44,806 43,546
Occupancy 2,465 2,447 2,523 2,548 2,587 9,983 10,291
Outside service
and data
processing
costs 2,144 2,158 2,189 2,037 2,003 8,528 7,741
Insurance 994 961 910 1,010 1,077 3,875 4,022
Professional
fees 732 605 609 509 656 2,455 2,404
Marketing 346 412 397 374 335 1,529 1,412
Other 1,206 1,064 1,034 1,054 1,276 4,358 3,910
--------------- ------ ------ ------ ------ ------ ------- ---------
Total
noninterest
expenses 18,416 18,946 19,336 18,836 18,544 75,534 73,326
--------------- ------ ------ ------ ------ ------ ------- ---------
Income before
provision for
income taxes 12,768 11,333 8,593 6,911 6,893 39,605 19,912
Income tax
expense 2,911 2,671 2,012 1,645 1,266 9,239 4,382
--------------- ------ ------ ------ ------ ------ ------- ---------
Net income
available to
common
shareholders $ 9,857 8,662 6,581 5,266 5,627 30,366 15,530
--------------- ------ ------ ------ ------ ------ ------- ---------
Earnings per
common share
-- Basic $ 1.23 1.08 0.81 0.65 0.70 3.77 1.92
Earnings per
common share
-- Diluted 1.21 1.07 0.81 0.65 0.70 3.75 1.91
Basic weighted
average common
shares 8,045 8,031 8,036 8,078 8,023 8,048 8,081
Diluted
weighted
average common
shares 8,123 8,080 8,051 8,111 8,097 8,091 8,117
--------------- ------ ------ ------ ------ ------ ------- ---------
[Footnotes to table located on page 6]
Net income for the fourth quarter of 2025 was $9.9 million, or $1.21 per diluted share, a $1.2 million increase from the third quarter of 2025 and a $4.2 million increase from the fourth quarter of 2024. Net interest income increased $1.2 million during the fourth quarter of 2025, as compared to the third quarter of 2025, and increased $6.3 million, as compared to the fourth 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 $650 thousand for the fourth quarter of 2025 compared to a provision for credit losses of $850 thousand for the third quarter of 2025 and a $200 thousand reversal of the provision for credit losses for the fourth quarter of 2024. The provision during the fourth quarter of 2025 includes a $550 thousand provision for credit losses and a $100 thousand provision for the reserve for unfunded commitments. The provision for credit losses in the fourth quarter of 2025 was primarily driven by an increase in the impairment on individually evaluated loans.
Noninterest income was $3.1 million for the fourth quarter of 2025, compared to $3.6 million for the third quarter of 2025, and $2.8 million for the fourth quarter of 2024. Mortgage banking income continues to be the largest component of noninterest income at $1.7 million in fee revenue for the fourth quarter of 2025 and $1.0 million for the fourth quarter of 2024. The decrease in noninterest income from the previous quarter was driven by a $515 thousand loss on the sale of securities, as we executed transactions in our portfolio as part of our overall balance sheet and interest rate risk management strategies.
Noninterest expense for the fourth quarter of 2025 was $18.4 million, a $530 thousand decrease from the third quarter of 2025, and a $128 thousand decrease from the fourth quarter of 2024. The decrease in noninterest expense from the previous quarter was driven by a decrease in compensation and benefits primarily related to a reduction in group medical insurance expense, offset in part by an increase in professional fees and other noninterest expenses. The decrease in noninterest expense from the previous year related primarily to decreases in compensation and benefits, occupancy, and insurance expense, offset in part by an increase in outside service and data processing costs.
The effective tax rate was 22.8% for the fourth quarter of 2025, 23.6% for the third quarter of 2025, and 18.4% for the fourth 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
---------------------------------- ----------------------------------------------------------------------
December 31, 2025 September 30, 2025 December 31, 2024
---------------------------------- ---------------------------------- ----------------------------------
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(dollars in thousands) Balance Expense Rate(3) Balance Expense Rate(3) Balance Expense Rate(3)
----------------------- ------------ ---------- -------- ------------ ---------- -------- ------------ ---------- --------
Interest-earning assets
Federal funds sold and
interest-bearing
deposits $ 218,291 $ 2,193 3.99 % $ 238,552 $ 2,645 4.40 % $ 203,065 $ 2,465 4.83 %
Investment securities,
taxable 138,616 1,229 3.52 % 141,143 1,307 3.67 % 145,932 1,462 3.99 %
Investment securities,
nontaxable(2) 7,641 51 2.63 % 7,811 45 2.31 % 7,988 55 2.72 %
Loans(10) 3,830,741 51,069 5.29 % 3,783,885 50,999 5.35 % 3,620,765 47,163 5.18 %
----------------------- ------------ ---------- ------------ ---------- ------------ ----------
Total
interest-earning
assets 4,195,289 54,542 5.16 % 4,171,391 54,996 5.23 % 3,977,750 51,145 5.12 %
Noninterest-earning
assets 151,515 150,552 158,779
----------------------- ------------ ------------ ------------
Total assets $4,346,804 $4,321,943 $4,136,529
----------------------- ------------ ------------ ------------
Interest-bearing
liabilities
NOW accounts $ 360,509 834 0.92 % $ 329,301 746 0.90 % $ 300,902 693 0.92 %
Savings & money market 1,614,469 12,530 3.08 % 1,599,710 13,509 3.35 % 1,492,534 13,525 3.61 %
Time deposits 937,557 9,688 4.10 % 984,078 10,448 4.21 % 992,335 11,683 4.68 %
----------------------- ------------ ---------- ------------ ---------- ------------ ----------
Total interest-bearing
deposits 2,912,535 23,052 3.14 % 2,913,089 24,703 3.36 % 2,785,771 25,901 3.70 %
FHLB advances and other
borrowings 240,000 2,295 3.79 % 240,087 2,296 3.79 % 240,000 2,295 3.80 %
Subordinated debentures 24,903 439 6.99 % 24,903 458 7.30 % 24,903 478 7.64 %
----------------------- ------------ ---------- ------------ ---------- ------------ ----------
Total interest-bearing
liabilities 3,177,438 25,786 3.22 % 3,178,079 27,457 3.43 % 3,050,674 28,674 3.74 %
---------- ---------- ----------
Noninterest-bearing
liabilities 806,235 792,575 756,636
Shareholders' equity 363,131 351,289 329,219
----------------------- ------------ ------------ ------------
Total liabilities and
shareholders' equity $4,346,804 $4,321,943 $4,136,529
----------------------- ------------ ------------ ------------
Net interest spread 1.94 % 1.80 % 1.38 %
Net interest income
(tax equivalent) /
margin $28,756 2.72 % $27,539 2.62 % $22,471 2.25 %
Less: tax-equivalent
adjustment(2) 12 10 13
---------- ---------- ----------
Net interest income $28,744 $27,529 $22,458
----------------------- ------------ ---------- -------- ------------ ---------- -------- ------------ ---------- --------
[Footnotes to table located on page 6]
Net interest income was $28.7 million for the fourth quarter of 2025, a $1.2 million increase from the third quarter of 2025, driven by a $1.7 million decrease in interest expense. The decrease in interest expense was driven by a 22 basis point decrease in the cost of our interest-bearing deposits over the previous quarter. In comparison to the fourth quarter of 2024, net interest income increased $6.3 million, resulting primarily from $218 million growth in the average balances of our interest-earning assets combined with a 56 basis point decrease in the cost of interest-bearing deposits. Net interest margin, on a tax-equivalent basis, was 2.72% for the fourth quarter of 2025, a 10 basis point increase from 2.62% for the third quarter of 2025 and a 47 basis point increase from 2.25% for the fourth quarter of 2024.
BALANCE SHEETS - Unaudited
Dec 31 2025
Ending Balance -
-----------------------------------------------------
Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Dec 31 2024
(in thousands,
except per share
data) 2025 2025 2025 2025 2024 % Change
------------------ --------- --------- --------- --------- --------- -----------
Assets
Cash and cash
equivalents:
Cash and due from
banks $ 27,821 24,600 25,184 24,904 22,553 23.36 %
Federal funds
sold 183,473 178,534 180,834 263,612 128,452 42.83 %
Interest-bearing
deposits with
banks 58,289 79,769 65,014 16,541 11,858 391.56 %
------------------ --------- --------- --------- --------- --------- -----------
Total cash and
cash
equivalents 269,583 282,903 271,032 305,057 162,863 65.53 %
------------------ --------- --------- --------- --------- --------- -----------
Investment
securities:
Investment
securities
available for
sale 127,730 131,040 128,867 131,290 132,127 (3.33 %)
Other investments 20,063 20,066 19,906 19,927 19,490 2.94 %
------------------ --------- --------- --------- --------- --------- -----------
Total
investment
securities 147,793 151,106 148,773 151,217 151,617 (2.52 %)
------------------ --------- --------- --------- --------- --------- -----------
Mortgage loans
held for sale 11,569 6,906 10,739 11,524 4,565 153.43 %
Loans (5) 3,845,124 3,789,021 3,746,841 3,683,919 3,631,767 5.87 %
Less allowance for
credit losses (42,280) (41,799) (41,285) (40,687) (39,914) 5.93 %
------------------ --------- --------- --------- --------- --------- -----------
Loans, net 3,802,844 3,747,222 3,705,556 3,643,232 3,591,853 5.87 %
------------------ --------- --------- --------- --------- --------- -----------
Bank owned life
insurance 55,775 55,324 54,886 54,473 54,070 3.15 %
Property and
equipment, net 83,465 84,586 85,921 87,369 88,794 (6.00 %)
Deferred income
taxes 13,702 12,657 12,971 13,080 13,467 1.75 %
Other assets 18,763 17,885 18,189 18,359 20,364 (7.86 %)
------------------ --------- --------- --------- --------- --------- -----------
Total assets $4,403,494 4,358,589 4,308,067 4,284,311 4,087,593 7.73 %
------------------ --------- --------- --------- --------- --------- -----------
Liabilities
Deposits $3,716,803 3,676,417 3,636,329 3,620,886 3,435,765 8.18 %
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 53,131 60,921 61,373 60,924 56,481 (5.93 %)
------------------ --------- --------- --------- --------- --------- -----------
Total
liabilities 4,034,837 4,002,241 3,962,605 3,946,713 3,757,149 7.39 %
------------------ --------- --------- --------- --------- --------- -----------
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 (1,338) (1,929) (2,774) (3,372) (3,884) (65.55 %)
Additional paid-in
capital 125,924 125,035 124,839 124,561 124,641 1.03 %
Accumulated other
comprehensive
loss (7,454) (8,426) (9,609) (10,016) (11,472) (35.02 %)
Retained earnings 251,443 241,586 232,924 226,343 221,077 13.74 %
------------------ --------- --------- --------- --------- --------- -----------
Total
shareholders'
equity 368,657 356,348 345,462 337,598 330,444 11.56 %
------------------ --------- --------- --------- --------- --------- -----------
Total
liabilities
and
shareholders'
equity $4,403,494 4,358,589 4,308,067 4,284,311 4,087,593 7.73 %
------------------ --------- --------- --------- --------- --------- -----------
Common Stock
Book value per
common share $ 44.89 43.51 42.23 41.33 40.47 10.92 %
Stock price:
High 55.50 45.54 38.51 38.50 44.86 23.72 %
Low 41.15 38.74 30.61 31.88 33.26 23.72 %
Period end 51.52 44.12 38.03 32.92 39.75 29.61 %
Common shares
outstanding 8,213 8,189 8,181 8,169 8,165 0.59 %
------------------ --------- --------- --------- --------- --------- -----------
[Footnotes to table located on page 6]
ASSET QUALITY MEASURES - Unaudited
Quarter Ended
----------------------------------------------------
December September
31 30 June 30 March 31 December 31
(dollars in thousands) 2025 2025 2025 2025 2024
----------------------- -------- --------- -------- -------- -----------
Nonperforming Assets
Commercial
Owner occupied RE $ 259 262 - - -
Non-owner occupied RE 6,917 6,911 6,941 6,950 7,641
Commercial business 189 195 717 1,087 1,016
Consumer
Real estate 5,763 3,394 3,028 2,414 1,908
Home equity 705 705 708 310 312
Total nonaccrual loans 13,833 11,467 11,394 10,761 10,877
Other real estate owned 275 275 275 275 -
----------------------- -------- --------- -------- -------- -----------
Total nonperforming
assets $ 14,108 11,742 11,669 11,036 10,877
----------------------- -------- --------- -------- -------- -----------
Nonperforming assets as
a percentage of:
Total assets 0.32 % 0.27 % 0.27 % 0.26 % 0.27 %
Total loans 0.37 % 0.31 % 0.31 % 0.30 % 0.30 %
Classified assets/tier
1 capital plus
allowance for credit
losses 4.22 % 3.90 % 4.28 % 4.24 % 4.25 %
----------------------- -------- --------- -------- -------- -----------
Quarter Ended
----------------------------------------------------
December September
31 30 June 30 March 31 December 31
(dollars in thousands) 2025 2025 2025 2025 2024
----------------------- -------- --------- -------- -------- -----------
Allowance for Credit
Losses
Balance, beginning of
period $ 41,799 41,285 40,687 39,914 40,166
Loans charged-off (150) (55) (68) (78) (143)
Recoveries of loans
previously
charged-off 81 69 16 101 141
----------------------- -------- --------- -------- -------- -----------
Net loans
(charged-off)
recovered (69) 14 (52) 23 (2)
Provision for (reversal
of) credit losses 550 500 650 750 (250)
----------------------- -------- --------- -------- -------- -----------
Balance, end of period $ 42,280 41,799 41,285 40,687 39,914
----------------------- -------- --------- -------- -------- -----------
Allowance for credit
losses to gross loans 1.10 % 1.10 % 1.10 % 1.10 % 1.10 %
Allowance for credit
losses to nonaccrual
loans 305.65 % 364.50 % 362.35 % 378.09 % 366.94 %
Net charge-offs
(recoveries) to
average loans QTD
(annualized) 0.01 % 0.00 % 0.01 % 0.00 % 0.00 %
----------------------- -------- --------- -------- -------- -----------
Total nonperforming assets were $14.1 million at December 31, 2025, representing 0.32% of total assets compared to 0.27% for the third quarter of 2025 and 0.27% for the fourth quarter of 2024. In addition, the classified asset ratio increased to 4.22% for the fourth quarter of 2025 from 3.90% in the third quarter of 2025 and decreased from 4.25% in the fourth quarter of 2024.
At December 31, 2025, the allowance for credit losses was $42.3 million, or 1.10% of total loans, compared to $41.8 million, or 1.10% of total loans at September 30, 2025, and $39.9 million, or 1.10% of total loans, at December 31, 2024. We had net charge-offs of $69 thousand for the fourth quarter of 2025, compared to net recoveries of $14 thousand for the third quarter of 2025 and net charge-offs of $2 thousand for the fourth quarter of 2024. There was a provision for credit losses of $550 thousand for the fourth quarter of 2025, compared to a provision for credit losses of $500 thousand for the third quarter of 2025 and a reversal of the provision for credit losses of $250 thousand for the fourth quarter of 2024. The provision during the fourth quarter of 2025 was primarily driven by additional impairment on our individually evaluated loans.
LOAN COMPOSITION - Unaudited
Quarter Ended
-------------------------------------------------------
December September
31 30 June 30 March 31 December 31
(dollars in thousands) 2025 2025 2025 2025 2024
----------------------- --------- --------- --------- --------- -----------
Commercial
Owner occupied RE $ 736,979 705,383 686,424 673,865 651,597
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