Southern First Bancshares(SFST) 2023Q2 Earnings Summary
Bullish Points:
1. Total assets increased to $4,002,107,000 as of June 30, 2023, from $3,691,981,000 as of December 31, 2022.
2. Loans increased to $3,537,616,000 as of June 30, 2023, from $3,273,363,000 as of December 31, 2022.
3. Deposits increased to $3,433,018,000 as of June 30, 2023, from $3,133,864,000 as of December 31, 2022.
4. Total shareholders' equity increased to $301,514,000 as of June 30, 2023, from $294,512,000 as of December 31, 2022.
5. Loan portfolio increased by $264.2 million (8.1%) during H1 2023, with a 7.0% increase in commercial loans and a 10.2% increase in consumer loans.
6. Total deposits increased from $3.13 billion at December 31, 2022, to $3.43 billion at June 30, 2023.
Bearish Points:
1. Net income for the six months ended June 30, 2023, was $5,161,000, compared to $15,210,000 for the same period in 2022.
2. Net income to common shareholders was $2.5 million for Q2 2023, compared to $7.2 million for Q2 2022, with a decrease in diluted EPS from $0.90 to $0.31.
3. The decrease in net income was primarily driven by a decrease in net interest income due to higher costs on deposit accounts and an increase in non-interest expenses.
4. Net interest margin (TE) decreased by 130 basis points to 2.05% during Q2 2023, compared to Q2 2022, primarily due to higher costs on interest-bearing liabilities.
5. Nonperforming assets increased from $2.6 million (0.07% of total assets and 0.08% of gross loans) at December 31, 2022, to $3.0 million (0.08% of total assets and 0.09% of gross loans) at June 30, 2023.
In summary, Southern First Bancshares (SFST) experienced growth in total assets, loans, deposits, and shareholders' equity during the first half of 2023. However, the company also faced a decrease in net income, primarily due to higher costs on deposit accounts and an increase in non-interest expenses. The overall financial performance of the company presents a mixed outlook, with both positive and negative aspects to consider.
For more information, you can read the original text of Southern First Bancshares' financial report: https://www.sec.gov/Archives/edgar/data/1090009/000120677423000895/sfst4220081-10q.htm
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