Southern First Reports Second Quarter 2026 Results

Southern First Reports Second Quarter 2026 Results GREENVILLE, S.C., July 21, 2026 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced its financial results for the three months ended June 30, 2026. Strong loan growth and continued margin expansion drove year-over-year net interest income growth of 28%. Net income was $11.2 million and diluted earnings per share was $1.20, representing a $0.39, or 48% increase over the second quarter of 2025, and a slight increase from the first quarter of 2026. Return on average assets was 0.96%, up 33 basis points over the second quarter of last year, and tangible common equity to assets was 9.62%, up 160 basis points from the second quarter of 2025. Key asset quality metrics were consistent both on a linked quarter and year-over-year basis. Net charge-offs were approximately $96 thousand, or 0.01% of average loans, annualized, and nonperforming assets were 0.27% of total assets. Provision for credit losses decreased by $275 thousand from the prior quarter, and the allowance for credit losses represented 1.10% of loans.

"Our second quarter 2026 results continue to show impressive momentum. We increased retail client deposits by $184 million in the second quarter, representing a 22% annualized growth rate, and our loan portfolio grew at an annualized rate of 9% during the quarter. Our efficient business model, vibrant markets, and focus on organic growth are creating value for our clients and our shareholders. Our second quarter net income was $11.2 million, a 70% increase from the same quarter last year and a 13% increase over the first quarter of 2026. We also strengthened our capital position by raising gross proceeds of $65.2 million and issuing 1.2 million additional common shares earlier in the quarter to support our strong growth expectations. As planned, we redeemed a portion of our subordinated notes, which were subject to phase-out from regulatory capital treatment and carried a higher interest rate. We are proud of our team and our accomplishments this quarter, which we believe positions us for continued success in the second half of 2026," stated Art Seaver, Chief Executive Officer.

Financial Highlights – Second Quarter 2026:

Earnings

Balance Sheet

Asset Quality

SELECTED FINANCIAL DATA

Quarter Ended

June 30

March 31

December 31

September 30

June 30

2Q26 vs 2Q25

2026

2025

$ Change

% Change

Income Statement Summary ($ in thousands):

Net interest income

32,370

30,259

28,744

27,529

25,295

7,075

28.0 %

Noninterest income

3,508

3,540

3,090

3,600

3,334

174

5.2 %

Total Revenue

35,878

33,799

31,834

31,129

28,629

7,249

25.3 %

Provision for credit losses

1,025

1,300

650

850

700

325

46.4 %

Noninterest expense

20,393

20,015

18,416

18,946

19,336

1,057

5.5 %

Income before income tax expense

14,460

12,484

12,768

11,333

8,593

5,867

68.3 %

Income tax expense

3,265

2,597

2,911

2,671

2,012

1,253

62.3 %

Net income available to common shareholders

11,195

9,887

9,857

8,662

6,581

4,614

70.1 %

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

Earnings per common share, diluted

1.20

1.19

1.20

1.06

0.81

0.39

48.2 %

Net interest margin (tax-equivalent) (1)

2.87 %

2.88 %

2.72 %

2.62 %

2.50 %

—

Return on average assets (2)

0.96 %

0.91 %

0.90 %

0.80 %

0.63 %

—

Return on average equity (2)

10.28 %

10.67 %

10.77 %

9.78 %

7.71 %

—

Efficiency ratio (3)

56.84 %

59.22 %

57.85 %

60.86 %

67.54 %

—

Noninterest expense to average assets (2)

1.75 %

1.84 %

1.68 %

1.74 %

1.86 %

—

Balance Sheet ($ in thousands):

Total loans (4)

4,030,255

3,942,219

3,845,124

3,789,021

3,746,841

283,414

7.6 %

Total deposits

3,935,452

3,873,455

3,716,803

3,676,417

3,636,329

299,123

8.2 %

Retail deposits (5)

3,556,045

3,371,721

3,163,914

3,108,411

3,075,631

480,414

15.6 %

Total assets

4,700,171

4,578,402

4,403,494

4,358,589

4,308,067

392,104

9.1 %

Book value per common share

47.77

46.00

44.89

43.51

42.23

5.54

13.1 %

Loans to deposits

102.41 %

101.78 %

103.45 %

103.06 %

103.04 %

—

Holding Company Capital Ratios (6):

Total risk-based capital ratio

14.42 %

12.83 %

12.89 %

12.79 %

12.63 %

—

Tier 1 risk-based capital ratio

13.19 %

11.40 %

11.44 %

11.26 %

11.11 %

—

Leverage ratio

10.11 %

9.05 %

8.93 %

8.72 %

8.73 %

—

Common Equity Tier 1 ratio (7)

12.82 %

11.03 %

11.06 %

10.88 %

10.71 %

—

Tangible common equity (8)

9.62 %

8.29 %

8.37 %

8.18 %

8.02 %

—

Asset Quality Ratios:

Nonperforming assets/total assets

0.27 %

0.26 %

0.32 %

0.27 %

—

Classified assets/Tier 1 capital plus allowance for

credit losses

3.15 %

3.25 %

4.28 %

3.97 %

4.35 %

—

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

0.10 %

0.20 %

0.14 %

0.18 %

0.14 %

—

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

annualized)

0.01 %

0.00 %

—

Allowance for credit losses/loans (4)

1.10 %

—

Allowance for credit losses/nonaccrual loans

395.41 %

378.22 %

305.65 %

364.50 %

362.35 %

—

INCOME STATEMENTS – Unaudited

Quarter Ended

Jun 30

Mar 31

Dec 31

Sept 30

Jun 30

2Q26 vs 2Q25

(in thousands, except per share data)

2026

2025

$ Change

% Change

Interest income

Loans

53,077

51,257

51,069

50,999

48,992

4,085

8.3 %

Investment securities

1,504

1,399

1,268

1,342

1,357

147

10.8 %

Federal funds sold

3,550

1,955

2,193

2,645

1,969

1,581

80.3 %

Total interest income

58,131

54,611

54,530

54,986

52,318

5,813

11.1 %

Interest expense

Deposits

23,094

21,697

23,052

24,703

24,300

(1,206)

(5.0 %)

Borrowings

2,667

2,655

2,734

2,754

2,723

(56)

(2.1 %)

Total interest expense

25,761

24,352

25,786

27,457

27,023

(1,262)

(4.7 %)

Net interest income

32,370

30,259

28,744

27,529

25,295

7,075

28.0 %

Provision for credit losses

1,025

1,300

650

850

700

325

46.4 %

Net interest income after provision for credit

losses

31,345

28,959

28,094

26,679

24,595

6,750

27.4 %

Noninterest income

Mortgage banking income

1,323

1,493

1,689

1,600

1,569

(246)

(15.7 %)

Service fees on deposit accounts

866

756

634

625

567

299

52.7 %

ATM and debit card income

651

588

638

601

586

11.1 %

Income from bank owned life insurance

457

446

450

439

413

10.7 %

Loss on sale of securities

(515)

0.0 %

Other income

211

257

194

335

199

6.0 %

Total noninterest income

3,508

3,540

3,090

3,600

3,334

174

5.2 %

Noninterest expense

Compensation and benefits

12,252

11,980

10,529

11,299

11,674

578

5.0 %

Occupancy

2,551

2,490

2,465

2,447

2,523

1.1 %

Outside service and data processing costs

2,416

2,267

2,144

2,158

2,189

227

10.4 %

Insurance

858

892

994

961

910

(52)

(5.7 %)

Professional fees

782

675

732

605

609

173

28.4 %

Marketing

423

399

346

412

397

6.5 %

Other

1,111

1,312

1,206

1,064

1,034

7.4 %

Total noninterest expenses

20,393

20,015

18,416

18,946

19,336

1,057

5.5 %

Income before provision for income taxes

14,460

12,484

12,768

11,333

8,593

5,867

68.3 %

Income tax expense

3,265

2,597

2,911

2,671

2,012

1,253

62.3 %

Net income available to common shareholders

11,195

9,887

9,857

8,662

6,581

4,614

70.1 %

Earnings per common share – Basic

1.22

1.21

1.22

1.07

0.81

0.41

50.6 %

Earnings per common share – Diluted

1.20

1.19

1.20

1.06

0.81

0.39

48.2 %

Basic weighted average common shares

9,185

8,163

8,106

8,091

8,090

1,095

13.5 %

Diluted weighted average common shares

9,319

8,293

8,229

8,176

8,124

1,195

14.7 %

[Footnotes to table located on page 6]

NET INTEREST INCOME AND MARGIN - Unaudited

For the Three Months Ended

June 30, 2026

March 31, 2026

June 30, 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

$ 384,694

$ 3,550

3.70 %

$ 211,039

$ 1,956

3.76 %

$ 179,095

$ 1,969

4.41 %

Investment securities, taxable

147,886

1,473

4.00 %

141,309

1,368

3.93 %

141,898

1,315

3.72 %

Investment securities, nontaxable (1)

6,283

2.57 %

6,332

2.58 %

7,740

2.83 %

Loans (9)

3,978,639

53,077

5.35 %

3,899,002

51,257

5.33 %

3,724,064

48,992

5.28 %

Total interest-earning assets

4,517,502

58,140

5.16 %

4,257,682

54,621

5.20 %

4,052,797

52,331

5.18 %

Noninterest-earning assets

157,905

156,466

154,051

Total assets

$4,675,407

$4,414,148

$4,206,848

Interest-bearing liabilities

NOW accounts

$ 500,978

1,738

1.39 %

$ 421,527

1,102

1.06 %

$ 331,811

752

0.91 %

Savings & money market

1,752,548

12,908

2.95 %

1,649,248

11,819

2.91 %

1,566,345

13,398

3.43 %

Time deposits

871,563

8,448

3.89 %

895,101

8,776

3.98 %

942,880

10,150

4.32 %

Total interest-bearing deposits

3,125,089

23,094

2.96 %

2,965,876

21,697

2.97 %

2,841,036

24,300

3.43 %

FHLB advances and other borrowings

240,000

2,252

3.76 %

240,000

2,245

3.79 %

240,000

2,270

3.79 %

Subordinated debentures

24,777

415

6.72 %

24,903

411

6.69 %

24,903

453

7.30 %

Total interest-bearing liabilities

3,389,866

25,761

3.05 %

3,230,779

24,353

3.06 %

3,105,939

27,023

3.49 %

Noninterest-bearing liabilities

848,704

807,686

758,626

Shareholders' equity

436,837

375,683

342,283

Total liabilities and shareholders'

equity

$4,675,407

$4,414,148

$4,206,848

Net interest spread

2.11 %

2.15 %

1.69 %

Net interest income (tax equivalent) /

margin

$32,379

2.87 %

$30,268

2.88 %

$25,308

2.50 %

Less: tax-equivalent adjustment (1)

Net interest income

$32,370

$30,259

$25,295

[Footnotes to table located on page 6]

BALANCE SHEETS - Unaudited

Ending Balance

Jun 30

Mar 31

Dec 31

Sept 30

Jun 30

2Q26 vs 2Q25

(in thousands, except per share data)

2026

2025

$ Change

% Change

Assets

Cash and cash equivalents:

Cash and due from banks

30,102

32,723

27,821

24,600

25,184

4,918

19.5 %

Federal funds sold

259,049

228,235

183,473

178,534

180,834

78,215

43.3 %

Interest-bearing deposits with banks

72,483

81,818

58,289

79,769

65,014

7,469

11.5 %

Total cash and cash equivalents

361,634

342,776

269,583

282,903

271,032

90,602

33.4 %

Investment securities:

Investment securities available for sale

144,388

124,224

127,730

131,040

128,867

15,521

12.0 %

Other investments

20,484

20,377

20,063

20,066

19,906

578

2.9 %

Total investment securities

164,872

144,601

147,793

151,106

148,773

16,099

10.8 %

Mortgage loans held for sale

8,594

13,723

11,569

6,906

10,739

(2,145)

(20.0 %)

Loans (4)

4,030,255

3,942,219

3,845,124

3,789,021

3,746,841

283,414

7.6 %

Less allowance for credit losses

(44,232)

(43,378)

(42,280)

(41,799)

(41,285)

(2,947)

7.1 %

Loans, net

3,986,023

3,898,841

3,802,844

3,747,222

3,705,556

280,467

7.6 %

Bank owned life insurance

56,677

56,221

55,775

55,324

54,886

1,792

3.3 %

Property and equipment, net

88,006

88,580

83,465

84,586

85,921

2,085

2.4 %

Deferred income taxes

13,946

13,812

13,702

12,657

12,971

975

7.5 %

Other assets

20,419

19,848

18,763

17,885

18,189

2,229

12.3 %

Total assets

4,700,171

4,578,402

4,403,494

4,358,589

4,308,067

392,104

9.1 %

Liabilities

Deposits

3,935,452

3,873,455

3,716,803

3,676,417

3,636,329

299,123

8.2 %

FHLB Advances

240,000

0.0 %

Subordinated debentures

13,403

24,903

(11,500)

(46.2 %)

Other liabilities

59,048

60,631

53,131

60,921

61,373

(2,325)

(3.8 %)

Total liabilities

4,247,903

4,198,989

4,034,837

4,002,241

3,962,605

285,298

7.2 %

Shareholders' equity

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

authorized

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

authorized

15.9 %

Nonvested restricted stock

(912)

(1,302)

(1,338)

(1,929)

(2,774)

1,862

(67.1 %)

Additional paid-in capital

188,932

127,168

125,924

125,035

124,839

64,093

51.3 %

Accumulated other comprehensive loss

(8,372)

(7,865)

(7,454)

(8,426)

(9,609)

1,237

(12.9 %)

Retained earnings

272,525

261,330

251,443

241,586

232,924

39,601

17.0 %

Total shareholders' equity

452,268

379,413

368,657

356,348

345,462

106,806

30.9 %

Total liabilities and shareholders' equity

4,700,171

4,578,402

4,403,494

4,358,589

4,308,067

392,104

9.1 %

Common Stock

Book value per common share

47.77

46.00

44.89

43.51

42.23

5.54

13.1 %

Stock price:

High

61.51

61.08

55.50

45.54

38.51

23.00

59.7 %

Low

54.95

51.26

41.15

38.74

30.61

24.34

79.5 %

Period end

61.10

54.50

51.52

44.12

38.03

23.07

60.7 %

Common shares outstanding

9,468

8,248

8,213

8,189

8,181

1,287

15.7 %

[Footnotes to table located on page 6]

ASSET QUALITY MEASURES - Unaudited

Quarter Ended

June 30

March 31

December 31

September 30

June 30

(dollars in thousands)

2026

2025

Nonperforming Assets

Commercial

Owner occupied RE

2,667

2,317

259

262

Non-owner occupied RE

2,030

1,712

6,917

6,911

6,941

Commercial business

1,330

909

189

195

717

Consumer

Real estate

4,805

5,786

5,763

3,394

3,028

Home equity

354

745

705

708

Total nonaccrual loans

11,186

11,469

13,833

11,467

11,394

Other real estate owned

1,375

475

275

Total nonperforming assets

12,561

11,944

14,108

11,742

11,669

Nonperforming assets as a percentage of:

Total assets

0.27 %

0.26 %

0.32 %

0.27 %

Total loans

0.31 %

0.30 %

0.37 %

0.31 %

Classified assets/Tier 1 capital plus allowance for credit

losses

3.15 %

3.25 %

4.28 %

3.97 %

4.35 %

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

0.10 %

0.20 %

0.14 %

0.18 %

0.14 %

Quarter Ended

June 30

March 31

December 31

September 30

June 30

(dollars in thousands)

2026

2025

Allowance for Credit Losses

Balance, beginning of period

43,378

42,280

41,799

41,285

40,687

Loans charged-off

(155)

(78)

(150)

(55)

(68)

Recoveries of loans previously charged-off

Net loans (charged-off) recovered

(96)

(52)

(69)

(52)

Provision for credit losses

950

1,150

550

500

650

Balance, end of period

44,232

43,378

42,280

41,799

41,285

Allowance for credit losses to gross loans

1.10 %

Allowance for credit losses to nonaccrual loans

395.41 %

378.22 %

305.65 %

364.50 %

362.35 %

Net charge-offs (recoveries) to average loans QTD

(annualized)

0.01 %

0.00 %

0.01 %

[Footnotes to table located on page 6]

LOAN COMPOSITION - Unaudited

Quarter Ended

Jun 30

Mar 31

Dec 31

Sept 30

Jun 30

2Q26 vs 2Q25

(dollars in thousands)

2026

2025

$ Change

% Change

Commercial

Owner occupied RE

755,419

759,602

736,979

705,383

686,424

68,995

10.1 %

Non-owner occupied RE

967,698

950,696

956,812

943,304

939,163

28,535

3.0 %

Construction

66,105

69,463

63,666

71,928

68,421

(2,316)

(3.4 %)

Business

713,017

677,742

619,667

604,411

589,661

123,356

20.9 %

Total commercial loans

2,502,239

2,457,503

2,377,124

2,325,026

2,283,669

218,570

9.6 %

Consumer

Real estate

1,167,282

1,148,129

1,153,285

1,159,693

1,164,187

3,095

0.3 %

Home equity

273,017

262,530

248,685

239,996

234,608

38,409

16.4 %

Construction

36,371

33,879

24,997

25,842

25,210

11,161

44.3 %

Other

51,346

40,178

41,033

38,464

39,167

12,179

31.1 %

Total consumer loans

1,528,016

1,484,716

1,468,000

1,463,995

1,463,172

64,844

4.4 %

Total gross loans, net of deferred fees

4,030,255

3,942,219

3,845,124

3,789,021

3,746,841

283,414

7.6 %

Less—allowance for credit losses

(44,232)

(43,378)

(42,280)

(41,799)

(41,285)

(2,947)

7.1 %

Total loans, net

3,986,023

3,898,841

3,802,844

3,747,222

3,705,556

280,467

7.6 %

Yield on average loans

5.35 %

5.33 %

5.29 %

5.35 %

5.28 %

—

DEPOSIT COMPOSITION - Unaudited

Quarter Ended

Jun 30

Mar 31

Dec 31

Sept 30

Jun 30

2Q26 vs 2Q25

(dollars in thousands)

2026

2025

$ Change

% Change

Non-interest bearing

799,246

799,692

732,287

736,518

761,492

37,754

5.0 %

Interest bearing:

NOW accounts

538,443

495,657

423,270

343,615

341,903

196,540

57.5 %

Money market accounts

1,765,697

1,652,125

1,573,039

1,572,738

1,537,400

228,297

14.8 %

Savings

29,460

30,332

29,470

29,381

32,334

(2,874)

(8.9 %)

Time deposits, less than $250,000

175,971

170,496

180,783

202,353

194,064

(18,093)

(9.3 %)

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

626,635

725,153

777,954

791,812

769,136

(142,501)

(18.5 %)

Total deposits

3,935,452

3,873,455

3,716,803

3,676,417

3,636,329

299,123

8.2 %

Total retail deposits

3,556,045

3,371,721

3,163,914

3,108,411

3,075,631

480,414

15.6 %

Total wholesale deposits

379,407

501,734

552,889

568,006

560,697

(181,290)

(32.3 %)

Cost of average deposits

2.37 %

2.50 %

2.69 %

2.75 %

—

Cost of average retail deposits

2.11 %

2.06 %

2.18 %

2.36 %

2.42 %

—

Loans to deposits

102.41 %

101.78 %

103.45 %

103.06 %

103.04 %

—

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 $379.4 million.

(6) June 30, 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 $4.7 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.