UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 000-27719 South Carolina 58-2459561 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 6 Verda ...

Southern First (SFST) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individ ...

Core Insights - Three stocks with strong buy rankings and momentum characteristics are highlighted for investors: Charles Schwab, Texas Capital Bancshares, and Southern First Bancshares [1][2][3][4] Company Summaries - **Charles Schwab (SCHW)**: - Zacks Rank: 1 (Strong Buy) - Current year earnings estimate increased by 6.5% over the last 60 days - Share price increased by 19.4% over the last three months, outperforming the S&P 500's 15.2% gain - Momentum Score: A [1][2] - **Texas Capital Bancshares (TCBI)**: - Zacks Rank: 1 (Strong Buy) - Current year earnings estimate increased by 8.2% over the last 60 days - Share price increased by 30% over the last three months, significantly outperforming the S&P 500's 15.2% gain - Momentum Score: A [2][3] - **Southern First Bancshares (SFST)**: - Zacks Rank: 1 (Strong Buy) - Current year earnings estimate increased by 14.2% over the last 60 days - Share price increased by 33.3% over the last three months, also outperforming the S&P 500's 15.2% gain - Momentum Score: A [3][4]

Core Viewpoint - Southern First (SFST) reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and showing significant growth from $0.37 per share a year ago, indicating strong financial performance [1][2] Financial Performance - The company achieved revenues of $28.63 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.81%, compared to $23.05 million in the same quarter last year [2] - Southern First has consistently outperformed consensus EPS estimates over the last four quarters, achieving earnings surprises of +24.62% in the latest quarter and +6.56% in the previous quarter [1][2] Stock Performance and Outlook - Southern First shares have increased by approximately 0.9% since the beginning of the year, underperforming compared to the S&P 500's gain of 7.2% [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $27.89 million, and for the current fiscal year, it is $2.79 on revenues of $108.88 million [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which may influence future stock performance [6] Industry Context - The Banks - Southeast industry, to which Southern First belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable environment for performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

"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 for ...

Financial Performance - Earnings per share increased to $0.81, a 25% increase QoQ and a 119% increase YoY[11] - Net interest margin increased to 2.50%, up from 2.41% in Q1 2025 and 1.98% in Q2 2024[11] - Book value per share increased to $42.23, a 9% annualized increase QoQ and an 8% increase YoY[11] - Total revenue reached a historically high level, driven by solid growth and pricing discipline[13, 14] Balance Sheet & Asset Quality - Total assets reached $4.3 billion[4] - Total loans amounted to $3.7 billion, with 7% annualized growth from Q1 2025[4, 22] - Total deposits reached $3.6 billion, including core deposits of $2.9 billion with 7% annualized growth from Q1 2025[4, 22] - Nonperforming assets (NPAs) stood at 0.27% of total assets[4, 27] Strategic Focus - The company operates 12 banking offices in 8 high-growth Southeast metro markets[9] - The company's Tier 1 RBC is 11.11%[9] - The company's office portfolio has a total credit exposure of $237 million, representing 5.4% of total loans[33]

Southern First (SFST) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the sto ...

Core Viewpoint - Southern First Bancshares, Inc. has appointed three new board members to enhance its leadership and community engagement as it continues to grow its banking operations [1][5]. Company Overview - Southern First Bancshares, Inc. is a registered bank holding company based in Greenville, South Carolina, and operates Southern First Bank, the second largest bank headquartered in South Carolina [5]. - The company has consolidated assets of approximately $4.1 billion and trades on NASDAQ under the symbol "SFST" [5]. New Board Members - **Jennie Cluverius**: An experienced trial lawyer and shareholder at Maynard Nexsen, PC, specializing in labor and employment law. She holds a bachelor's degree from Clemson University and a J.D. from the University of South Carolina School of Law [2]. - **Darrin Goss**: Currently the President and CEO of the Coastal Community Foundation, with a background in community service and education. He has a bachelor's degree from Wofford College and a master's degree from North Greenville University [3]. - **Billy McClatchey**: CEO of Chaucer Creek Capital, with a focus on the Southeastern multifamily market. He has experience in mergers and acquisitions and holds an undergraduate degree from Duke University and an MBA from the University of North Carolina [4]. Leadership Statement - Art Seaver, CEO of Southern First Bancshares, expressed excitement about the new board members, highlighting their leadership qualities and community ties, which will aid in the bank's growth and impact [5].

Financial Performance - Net income for the first quarter of 2025 was $5.3 million, a 112% increase from $2.5 million in the same period of 2024[121] - Diluted earnings per share (EPS) rose to $0.65 for Q1 2025, up from $0.31 in Q1 2024[121] - Net interest income increased by 25.4% to $23.4 million in Q1 2025, compared to $18.6 million in Q1 2024[123] - Noninterest income rose to $3.1 million in Q1 2025, a $450,000, or 16.9%, increase from $2.7 million in Q1 2024, with mortgage banking income increasing by $260,000, or 22.3%[139] - Total noninterest expense for Q1 2025 was $18.8 million, a $736,000, or 4.1%, increase from $18.1 million in Q1 2024, primarily due to higher compensation and benefits expenses[141] - The efficiency ratio improved to 71.1% in Q1 2025 from 84.9% in Q1 2024, reflecting the increase in net interest income[143] - Return on average assets improved to 0.52% for the three months ended March 31, 2025, compared to 0.38% for the year ended December 31, 2024[186] - Return on average equity increased to 6.38% as of March 31, 2025, up from 4.84% at December 31, 2024[186] Asset and Liability Management - Total assets increased by 4.8% to $4.28 billion as of March 31, 2025, compared to $4.09 billion at December 31, 2024[119] - Average interest-earning assets grew by $70.5 million year-over-year, with a yield increase of 10 basis points to 5.12%[129] - Average interest-bearing liabilities increased by $26.8 million, with the rate decreasing by 46 basis points to 3.52%[129] - Loans totaled $3.68 billion as of March 31, 2025, compared to $3.63 billion at December 31, 2024[119] - Deposits rose to $3.62 billion at March 31, 2025, up from $3.44 billion at December 31, 2024[119] - Retail deposits increased to $3.02 billion, representing 83.4% of total deposits at March 31, 2025, up from $2.89 billion or 84.0% at December 31, 2024[165] - The loan-to-deposit ratio was 102% at March 31, 2025, down from 106% at December 31, 2024[165] Credit Quality and Loss Provisions - The provision for credit losses was $750,000 in Q1 2025, compared to a reversal of $175,000 in Q1 2024, driven by growth in the loan portfolio[137] - The allowance for credit losses was $40.7 million, or 1.10% of outstanding loans, providing coverage of 378.09% of nonperforming loans as of March 31, 2025, compared to $39.9 million or 1.10% of outstanding loans and 366.94% coverage at December 31, 2024[159] - As of March 31, 2025, nonperforming assets totaled $11.0 million, representing 0.26% of total assets and 0.30% of gross loans, compared to $10.9 million or 0.27% of total assets and 0.30% of gross loans at December 31, 2024[154] - Individually evaluated loans totaled $12.1 million as of March 31, 2025, with a reserve of approximately $1.8 million allocated in the allowance for credit losses[158] Capital and Equity - Total shareholders' equity increased to $337.6 million at March 31, 2025, up from $330.4 million at December 31, 2024, primarily due to net income of $5.3 million during the first three months of 2025[185] - Total capital to risk-weighted assets ratio was 12.63% as of March 31, 2025, exceeding the minimum requirement of 8.00%[191] - Tier 1 capital to risk-weighted assets ratio stood at 11.38% as of March 31, 2025, above the minimum requirement of 6.00%[191] Interest Rate Risk Management - Interest rate risk is the principal market risk faced by the company, arising from lending, investing, deposit gathering, and borrowing activities[204] - The company actively manages interest rate risk through asset/liability management, with an internal committee meeting no less than quarterly[205] - A forecasted impact on net interest income shows a decrease of 6.72% with a 300 basis point increase in interest rates, while a decrease of 24.47% is projected with a 300 basis point decrease[207] - The company has a board risk committee that meets quarterly to oversee interest rate sensitivity within board-approved limits[205] Accounting and Regulatory Matters - The company does not expect recently issued accounting standards to have a material impact on consolidated financial statements upon adoption[203] - The company has adopted various accounting policies that involve significant estimates and assumptions, which could materially impact reported results[200] - The company has not paid cash dividends to shareholders since inception, as cash dividends from the Bank are subject to legal limitations and regulatory capital requirements[193]

This quarterly report represents an earnings surprise of 6.56%. A quarter ago, it was expected that this holding company for Southern First Bank would post earnings of $0.41 per share when it actually produced earnings of $0.70, delivering a surprise of 70.73%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Southern First, which belongs to the Zacks Banks - Southeast industry, posted revenues of $26.5 million for the quarter ended March 2025, surpassing the Zacks ...