Southern First Reports First Quarter 2026 Results

Southern First Reports First Quarter 2026 Results GREENVILLE, S.C., April 21, 2026 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced its financial results for the three months ended March 31, 2026. Strong loan growth and continued margin expansion drove year-over-year net interest income growth of 29%. Net income was $9.9 million and diluted earnings per share was $1.19, representing a $0.54, or 83%, increase over the first quarter of 2025, and relatively unchanged from the fourth quarter of 2025. Return on average assets was 0.91%, up 39 basis points over the first quarter of last year, and tangible common equity to assets was 8.29%, up 41 basis points from the first quarter of 2025. Net charge-offs were approximately $50 thousand, or 0.01% of average loans, annualized, consistent with linked quarter and year-over-year results. Nonperforming assets were 0.26% of total assets, down from 0.32% for the fourth quarter. Provision for credit losses increased by $650 thousand, and the allowance for credit losses represented 1.10% of loans, consistent with the past several quarters.

"We are excited to report our first quarter 2026 results which include record retail deposit growth of nearly $210 million, representing a 27% annualized growth rate. Our first quarter 2026 net income was $9.9 million and is 88% higher than the same quarter last year. We have tremendous momentum in growing client relationships and raised additional capital in the form of common equity this quarter to support our growth expectations," stated Art Seaver, Chief Executive Officer.

On April 15, 2026, Southern First announced an underwritten public offering of 1,050,000 shares of common stock and granted the underwriters an option to purchase up to 157,500 additional shares. The offering closed on April 17, 2026, with a total of 1,207,500 shares issued at $54.00 per share for aggregate gross proceeds of approximately $65.2 million before discounts and expenses. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include supporting organic growth initiatives, providing capital to the Company's bank subsidiary, redeeming or repurchasing outstanding indebtedness, including subordinated debt, and for working capital purposes.

Financial Highlights – First Quarter 2026:

Earnings

Balance Sheet

Asset Quality

SELECTED FINANCIAL DATA

Quarter Ended

Mar 31 2026-

March 31

December 31

September 30

June 30

March 31

Mar 31 2025

2026

2025

Change

Income Statement Summary ($ in thousands):

Net interest income

30,259

28,744

27,529

25,295

23,383

29.4 %

Noninterest income

3,540

3,090

3,600

3,334

3,114

13.7 %

Total Revenue

33,799

31,834

31,129

28,629

26,497

27.6 %

Provision for credit losses

1,300

650

850

700

750

73.3 %

Noninterest expense

20,015

18,416

18,946

19,336

18,836

6.3 %

Income before income tax expense

12,484

12,768

11,333

8,593

6,911

80.6 %

Income tax expense

2,597

2,911

2,671

2,012

1,645

57.9 %

Net income available to common shareholders

9,887

9,857

8,662

6,581

5,266

87.8 %

Earnings ($ in thousands, except per share data):

Earnings per common share, diluted

1.19

1.20

1.06

0.81

0.65

83.1 %

Net interest margin (tax-equivalent) (1)

2.88 %

2.72 %

2.62 %

2.50 %

2.41 %

0.47

Return on average assets (2)

0.91 %

0.90 %

0.80 %

0.63 %

0.52 %

0.39

Return on average equity (2)

10.67 %

10.77 %

9.78 %

7.71 %

6.38 %

4.29

Efficiency ratio (3)

59.22 %

57.85 %

60.86 %

67.54 %

71.08 %

(11.86)

Noninterest expense to average assets (2)

1.84 %

1.68 %

1.74 %

1.86 %

1.87 %

(0.03)

Balance Sheet ($ in thousands):

Total loans (4)

3,942,219

3,845,124

3,789,021

3,746,841

3,683,919

7.0 %

Total deposits

3,873,455

3,716,803

3,676,417

3,636,329

3,620,886

7.0 %

Retail deposits (5)

3,371,721

3,163,914

3,108,411

3,075,631

3,020,392

11.6 %

Total assets

4,578,402

4,403,494

4,358,589

4,308,067

4,284,311

6.9 %

Book value per common share

46.00

44.89

43.51

42.23

41.33

11.3 %

Loans to deposits

101.78 %

103.45 %

103.06 %

103.04 %

101.74 %

0.04

Holding Company Capital Ratios (6):

Total risk-based capital ratio

12.83 %

12.89 %

12.79 %

12.63 %

12.69 %

0.14

Tier 1 risk-based capital ratio

11.40 %

11.44 %

11.26 %

11.11 %

11.15 %

0.25

Leverage ratio

9.05 %

8.93 %

8.72 %

8.73 %

8.79 %

0.26

Common equity Tier 1 ratio (7)

11.03 %

11.06 %

10.88 %

10.71 %

10.75 %

0.28

Tangible common equity (8)

8.29 %

8.37 %

8.18 %

8.02 %

7.88 %

0.41

Asset Quality Ratios:

Nonperforming assets/total assets

0.26 %

0.32 %

0.27 %

0.26 %

—

Classified assets/Tier 1 capital plus allowance for

credit losses

3.25 %

4.28 %

3.97 %

4.35 %

4.31 %

(1.06)

Accruing loans 30 days or more past due/loans (4)

0.20 %

0.14 %

0.18 %

0.14 %

0.27 %

(0.07)

Net charge-offs (recoveries)/average loans (4) (YTD

annualized)

0.01 %

0.00 %

0.01

Allowance for credit losses/loans (4)

1.10 %

—

Allowance for credit losses/nonaccrual loans

378.22 %

305.65 %

364.50 %

362.35 %

378.09 %

0.13

INCOME STATEMENTS – Unaudited

Quarter Ended

Mar 31 2026 -

Mar 31

Dec 31

Sept 30

Jun 30

Mar 31

Mar 31 2025

(in thousands, except per share data)

2026

2025

Change

Interest income

Loans

51,257

51,069

50,999

48,992

47,085

8.9 %

Investment securities

1,399

1,268

1,342

1,357

1,403

(0.3 %)

Federal funds sold

1,955

2,193

2,645

1,969

1,159

68.7 %

Total interest income

54,611

54,530

54,986

52,318

49,647

10.0 %

Interest expense

Deposits

21,697

23,052

24,703

24,300

23,569

(7.9 %)

Borrowings

2,655

2,734

2,754

2,723

2,695

(1.5 %)

Total interest expense

24,352

25,786

27,457

27,023

26,264

(7.3 %)

Net interest income

30,259

28,744

27,529

25,295

23,383

29.4 %

Provision for credit losses

1,300

650

850

700

750

73.3 %

Net interest income after provision for credit losses

28,959

28,094

26,679

24,595

22,633

27.9 %

Noninterest income

Mortgage banking income

1,493

1,689

1,600

1,569

1,424

4.8 %

Service fees on deposit accounts

756

634

625

567

539

40.3 %

ATM and debit card income

588

638

601

586

552

6.5 %

Income from bank owned life insurance

446

450

439

413

403

10.7 %

Loss on sale of securities

(515)

0.0 %

Other income

257

194

335

199

196

31.1 %

Total noninterest income

3,540

3,090

3,600

3,334

3,114

13.7 %

Noninterest expense

Compensation and benefits

11,980

10,529

11,299

11,674

11,304

6.0 %

Occupancy

2,490

2,465

2,447

2,523

2,548

(2.3 %)

Outside service and data processing costs

2,267

2,144

2,158

2,189

2,037

11.3 %

Insurance

892

994

961

910

1,010

(11.7 %)

Professional fees

675

732

605

609

509

32.6 %

Marketing

399

346

412

397

374

6.7 %

Other

1,312

1,206

1,064

1,034

1,054

24.5 %

Total noninterest expenses

20,015

18,416

18,946

19,336

18,836

6.3 %

Income before provision for income taxes

12,484

12,768

11,333

8,593

6,911

80.6 %

Income tax expense

2,597

2,911

2,671

2,012

1,645

57.9 %

Net income available to common shareholders

9,887

9,857

8,662

6,581

5,266

87.7 %

Earnings per common share – Basic

1.21

1.22

1.07

0.81

0.65

86.2 %

Earnings per common share – Diluted

1.19

1.20

1.06

0.81

0.65

83.1 %

Basic weighted average common shares

8,163

8,106

8,091

8,090

8,078

1.1 %

Diluted weighted average common shares

8,293

8,229

8,176

8,124

8,111

2.2 %

[Footnotes to table located on page 6]

NET INTEREST INCOME AND MARGIN - Unaudited

For the Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

(dollars in thousands)

Average

Balance

Income/

Expense

Yield/

Rate (2)

Average

Balance

Income/

Expense

Yield/

Rate (2)

Average

Balance

Income/

Expense

Yield/

Rate (2)

Interest-earning assets

Federal funds sold and interest-

bearing deposits

$ 211,039

$ 1,956

3.76 %

$ 218,291

$ 2,193

3.99 %

$ 107,821

$ 1,159

4.36 %

Investment securities, taxable

141,309

1,368

3.93 %

138,616

1,229

3.52 %

143,609

1,361

3.84 %

Investment securities, nontaxable (1)

6,332

2.58 %

7,641

2.63 %

7,914

2.80 %

Loans (9)

3,899,002

51,257

5.33 %

3,830,741

51,069

5.29 %

3,673,912

47,085

5.20 %

Total interest-earning assets

4,257,682

54,621

5.20 %

4,195,289

54,542

5.16 %

3,933,256

49,660

5.12 %

Noninterest-earning assets

156,466

151,515

157,053

Total assets

$4,414,148

$4,346,804

$4,090,309

Interest-bearing liabilities

NOW accounts

$ 421,527

1,102

1.06 %

$ 360,509

834

0.92 %

$ 306,707

597

0.79 %

Savings & money market

1,649,248

11,819

2.91 %

1,614,469

12,530

3.08 %

1,520,632

12,750

3.40 %

Time deposits

895,101

8,776

3.98 %

937,557

9,688

4.10 %

930,282

10,222

4.46 %

Total interest-bearing deposits

2,965,876

21,697

2.97 %

2,912,535

23,052

3.14 %

2,757,621

23,569

3.47 %

FHLB advances and other borrowings

240,000

2,245

3.79 %

240,000

2,295

3.79 %

240,000

2,244

3.79 %

Subordinated debentures

24,903

411

6.69 %

24,903

439

6.99 %

24,903

451

7.34 %

Total interest-bearing liabilities

3,230,779

24,353

3.06 %

3,177,438

25,786

3.22 %

3,022,524

26,264

3.52 %

Noninterest-bearing liabilities

807,686

806,235

732,761

Shareholders' equity

375,683

363,131

335,024

Total liabilities and shareholders'

equity

$4,414,148

$4,346,804

$4,090,309

Net interest spread

2.15 %

1.94 %

1.60 %

Net interest income (tax equivalent) /

margin

$30,268

2.88 %

$28,756

2.72 %

$23,396

2.41 %

Less: tax-equivalent adjustment (1)

Net interest income

$30,259

$28,744

$23,383

[Footnotes to table located on page 6]

BALANCE SHEETS - Unaudited

Ending Balance

Mar 31 2026 -

Mar 31

Dec 31

Sept 30

Jun 30

Mar 31

Mar 31 2025

(in thousands, except per share data)

2026

2025

Change

Assets

Cash and cash equivalents:

Cash and due from banks

32,723

27,821

24,600

25,184

24,904

31.4 %

Federal funds sold

228,235

183,473

178,534

180,834

263,612

(13.4 %)

Interest-bearing deposits with banks

81,818

58,289

79,769

65,014

16,541

394.6 %

Total cash and cash equivalents

342,776

269,583

282,903

271,032

305,057

12.4 %

Investment securities:

Investment securities available for sale

124,224

127,730

131,040

128,867

131,290

(5.4 %)

Other investments

20,377

20,063

20,066

19,906

19,927

2.3 %

Total investment securities

144,601

147,793

151,106

148,773

151,217

(4.4 %)

Mortgage loans held for sale

13,723

11,569

6,906

10,739

11,524

19.1 %

Loans (5)

3,942,219

3,845,124

3,789,021

3,746,841

3,683,919

7.0 %

Less allowance for credit losses

(43,378)

(42,280)

(41,799)

(41,285)

(40,687)

6.6 %

Loans, net

3,898,841

3,802,844

3,747,222

3,705,556

3,643,232

7.0 %

Bank owned life insurance

56,221

55,775

55,324

54,886

54,473

3.2 %

Property and equipment, net

88,580

83,465

84,586

85,921

87,369

1.4 %

Deferred income taxes

13,812

13,702

12,657

12,971

13,080

5.6 %

Other assets

19,848

18,763

17,885

18,189

18,359

8.1 %

Total assets

4,578,402

4,403,494

4,358,589

4,308,067

4,284,311

6.9 %

Liabilities

Deposits

3,873,455

3,716,803

3,676,417

3,636,329

3,620,886

7.0 %

FHLB Advances

240,000

0.0 %

Subordinated debentures

24,903

0.0 %

Other liabilities

60,631

53,131

60,921

61,373

60,924

(0.5 %)

Total liabilities

4,198,989

4,034,837

4,002,241

3,962,605

3,946,713

6.4 %

Shareholders' equity

Preferred stock - $.01 par value; 10,000,000 shares

authorized

0.0 %

Common Stock - $.01 par value; 10,000,000 shares

authorized

0.0 %

Nonvested restricted stock

(1,302)

(1,338)

(1,929)

(2,774)

(3,372)

(61.4 %)

Additional paid-in capital

127,168

125,924

125,035

124,839

124,561

2.1 %

Accumulated other comprehensive loss

(7,865)

(7,454)

(8,426)

(9,609)

(10,016)

(21.5 %)

Retained earnings

261,330

251,443

241,586

232,924

226,343

15.5 %

Total shareholders' equity

379,413

368,657

356,348

345,462

337,598

12.4 %

Total liabilities and shareholders' equity

4,578,402

4,403,494

4,358,589

4,308,067

4,284,311

6.9 %

Common Stock

Book value per common share

46.00

44.89

43.51

42.23

41.33

11.3 %

Stock price:

High

61.08

55.50

45.54

38.51

38.50

58.6 %

Low

51.26

41.15

38.74

30.61

31.88

60.8 %

Period end

54.50

51.52

44.12

38.03

32.92

65.6 %

Common shares outstanding

8,248

8,213

8,189

8,181

8,169

1.0 %

[Footnotes to table located on page 6]

ASSET QUALITY MEASURES - Unaudited

Quarter Ended

March 31

December 31

September 30

June 30

March 31

(dollars in thousands)

2026

2025

Nonperforming Assets

Commercial

Owner occupied RE

2,317

259

262

Non-owner occupied RE

1,712

6,917

6,911

6,941

6,950

Commercial business

909

189

195

717

1,087

Consumer

Real estate

5,786

5,763

3,394

3,028

2,414

Home equity

745

705

708

310

Total nonaccrual loans

11,469

13,833

11,467

11,394

10,761

Other real estate owned

475

275

Total nonperforming assets

11,944

14,108

11,742

11,669

11,036

Nonperforming assets as a percentage of:

Total assets

0.26 %

0.32 %

0.27 %

0.26 %

Total loans

0.30 %

0.37 %

0.31 %

0.30 %

Classified assets/Tier 1 capital plus allowance for credit

losses

3.14 %

4.22 %

3.90 %

4.28 %

4.24 %

Accruing loans 30 days or more past due/loans (4)

0.20 %

0.14 %

0.18 %

0.14 %

0.27 %

Quarter Ended

March 31

December 31

September 30

June 30

March 31

(dollars in thousands)

2026

2025

Allowance for Credit Losses

Balance, beginning of period

42,280

41,799

41,285

40,687

39,914

Loans charged-off

(78)

(150)

(55)

(68)

(78)

Recoveries of loans previously charged-off

101

Net loans (charged-off) recovered

(52)

(69)

(52)

Provision for credit losses

1,150

550

500

650

750

Balance, end of period

43,378

42,280

41,799

41,285

40,687

Allowance for credit losses to gross loans

1.10 %

Allowance for credit losses to nonaccrual loans

378.22 %

305.65 %

364.50 %

362.35 %

378.09 %

Net charge-offs (recoveries) to average loans QTD

(annualized)

0.01 %

0.00 %

0.01 %

0.00 %

[Footnotes to table located on page 6]

LOAN COMPOSITION - Unaudited

Quarter Ended

Qtr

March 31

December 31

September 30

June 30

March 31

Over Qtr

Over Yr

(dollars in thousands)

2026

2025

$ Change

Commercial

Owner occupied RE

759,602

736,979

705,383

686,424

673,865

22,623

85,737

Non-owner occupied RE

950,696

956,812

943,304

939,163

926,246

(6,116)

24,450

Construction

69,463

63,666

71,928

68,421

90,021

5,797

(20,558)

Business

677,742

619,667

604,411

589,661

561,337

58,075

116,405

Total commercial loans

2,457,503

2,377,124

2,325,026

2,283,669

2,251,469

80,379

206,034

Consumer

Real estate

1,148,129

1,153,285

1,159,693

1,164,187

1,147,357

(5,156)

772

Home equity

262,530

248,685

239,996

234,608

223,061

13,845

39,469

Construction

33,879

24,997

25,842

25,210

23,540

8,882

10,339

Other

40,178

41,033

38,464

39,167

38,492

(855)

1,686

Total consumer loans

1,484,716

1,468,000

1,463,995

1,463,172

1,432,450

16,716

52,266

Total gross loans, net of deferred fees

3,942,219

3,845,124

3,789,021

3,746,841

3,683,919

97,095

258,300

Less—allowance for credit losses

(43,378)

(42,280)

(41,799)

(41,285)

(40,687)

(1,098)

(2,691)

Total loans, net

3,898,841

3,802,844

3,747,222

3,705,556

3,643,232

95,997

255,609

Yield on average loans

5.33 %

5.29 %

5.35 %

5.28 %

5.20 %

n/a

DEPOSIT COMPOSITION - Unaudited

Quarter Ended

Qtr

March 31

December 31

September 30

June 30

March 31

Over Qtr

Over Yr

(dollars in thousands)

2026

2025

$ Change

Non-interest bearing

799,692

732,287

736,518

761,492

671,609

67,405

128,083

Interest bearing:

NOW accounts

495,657

423,270

343,615

341,903

371,052

72,387

124,605

Money market accounts

1,652,125

1,573,039

1,572,738

1,537,400

1,563,181

79,086

88,944

Savings

30,332

29,470

29,381

32,334

32,945

862

(2,613)

Time deposits, less than $250,000

170,496

180,783

202,353

194,064

181,407

(10,287)

(10,911)

Time deposits, $250,000 and over (10)

725,153

777,954

791,812

769,136

800,692

(52,801)

(75,539)

Total deposits

3,873,455

3,716,803

3,676,417

3,636,329

3,620,886

156,652

252,569

Total retail deposits

3,371,721

3,163,914

3,108,411

3,075,631

3,020,392

207,807

351,329

Total wholesale deposits

501,734

552,889

568,006

560,697

600,494

(51,155)

(98,760)

Cost of average deposits

2.37 %

2.50 %

2.69 %

2.75 %

2.78 %

n/a

Cost of average retail deposits

2.06 %

2.18 %

2.36 %

2.42 %

2.43 %

n/a

Loans to deposits

101.78 %

103.45 %

103.06 %

103.04 %

101.74 %

n/a

Footnotes to tables:

(1) The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis.

(2) Annualized for the respective three-month period.

(3) Noninterest expense divided by the sum of net interest income and noninterest income.

(4) Excludes mortgage loans held for sale.

(5) Excludes out of market (wholesale) deposits totaling $501.7 million.

(6) March 31, 2026 ratios are preliminary.

(7) The common equity Tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets.

(8) The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets.

(9) Includes mortgage loans held for sale.

(10) Includes out of market deposits

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 $4.6 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

SOURCE Southern First Bancshares, Inc.