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
