Financial Performance - Net income available to common shareholders for 2025 was $30.4 million, a 95.53% increase from $15.5 million in 2024, with diluted EPS rising to $3.72 from $1.91[285][288] - Noninterest income for 2025 was $13.1 million, an increase of $997,000 or 8.2% from $12.1 million in 2024, primarily due to higher mortgage banking income and service fees on deposit accounts[329] - Total noninterest expenses for 2025 were $75.5 million, a $2.2 million increase from $73.3 million in 2024, mainly due to a $1.3 million rise in compensation and benefits[332] - Income tax expense for 2025 was $9.2 million, with an effective tax rate of 23.3%, compared to $4.4 million and 22.0% in 2024[336] - Total shareholders' equity increased to $368.7 million in 2025, up from $330.4 million in 2024, primarily due to net income of $30.4 million[380] Asset and Liability Management - Total assets increased to $4.40 billion as of December 31, 2025, up from $4.09 billion in 2024, representing a growth of 7.73%[283] - Total deposits rose to $3.72 billion in 2025, an increase of 8.18% from $3.44 billion in 2024[288] - The loan-to-deposit ratio was 103% as of December 31, 2025, down from 106% in 2024[367] - Cash and cash equivalents amounted to $269.6 million, or 6.1% of total assets, as of December 31, 2025[374] - The bank has unused borrowing capacity from the FHLB of $836.5 million as of December 31, 2025[376] Loan and Credit Quality - Total loans outstanding increased to $3.85 billion as of December 31, 2025, from $3.63 billion in 2024, reflecting a growth of $213.4 million[345] - The allowance for credit losses was $42.3 million as of December 31, 2025, with a ratio of allowance for credit losses to total loans at 1.10%[288] - Nonperforming assets to total loans increased to 0.37% in 2025 from 0.30% in 2024, indicating a slight deterioration in asset quality[288] - The provision for credit losses for 2025 was $3.0 million, compared to $125,000 in 2024 and $1.3 million in 2023, reflecting a $213.4 million increase in loan growth[320] - Nonaccrual loans were 0.36% of gross loans as of December 31, 2025, compared to 0.30% in 2024, with total nonaccrual loans increasing by $3.0 million during the year[354] Interest Income and Expense - Net interest income for 2025 reached $105.0 million, a 29.2% increase from $81.2 million in 2024, driven by a decrease in interest expense and an increase in interest income[301] - Interest income for 2025 was $211.5 million, an increase from $201.2 million in 2024 and $177.6 million in 2023, with 93.7% of this income derived from loans[302] - Interest expense decreased to $106.5 million in 2025 from $120.0 million in 2024, primarily due to repricing of the deposit portfolio in response to declining market interest rates[303] - The net interest margin improved to 2.57% in 2025, compared to 2.06% in 2024, reflecting better management of earning assets[288] - The net interest spread improved to 1.76% in 2025, compared to 1.16% in 2024, reflecting a 60 basis point increase driven by a decrease in the cost of interest-bearing liabilities[314] Capital and Risk Management - The total risk-based capital ratio was 12.89% as of December 31, 2025, indicating a strong capital position relative to risk-weighted assets[288] - Tier 1 capital ratio was 11.61% as of December 31, 2025, exceeding the minimum requirement of 8%[386] - The bank maintained a total capital ratio of 12.85% as of December 31, 2025, above the required 10%[386] - The company actively manages interest rate risk through asset/liability management to minimize adverse impacts on earnings from market interest rate changes[395] - Market risk primarily arises from interest rate risk, with minimal exposure to foreign currency exchange rate risk and commodity price risk[394] Deposits and Funding - Retail deposits reached $3.16 billion, accounting for 85.1% of total deposits, while brokered deposits were $552.9 million, or 14.9% of total deposits[367] - Total deposits increased to $3.57 billion in 2025, up 2.68% from $3.44 billion in 2024[369] - Core deposits were $2.88 billion, $2.66 billion, and $2.81 billion at December 31 for 2025, 2024, and 2023, respectively[369] - Average transaction account balances rose by $81.2 million, or 3.2%, while average time deposit balances increased by $48.2 million, or 5.4%[369] - Commitments under letters of credit were $20.4 million as of December 31, 2025, up from $16.2 million in 2024[392]

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Core Viewpoint - The article updates a previous analysis of Southern First Bancshares (SFST), reiterating a "Buy" recommendation based on the company's market opportunities and performance [1]. Group 1: Company Analysis - Southern First Bancshares is highlighted as a stock that may not be widely followed by average investors, presenting potential profit opportunities [1]. - The analysis emphasizes that financial markets are generally efficient, with most stocks reflecting their real current value, but SFST may not accurately reflect the opportunities in its market [1]. Group 2: Market Perspective - The article reflects a belief in the free-market system, suggesting that the best investment opportunities arise from stocks that are less recognized or undervalued [1].

Core Viewpoint - Southern First (SFST) reported quarterly earnings of $1.21 per share, exceeding the Zacks Consensus Estimate of $1.11 per share, and showing a significant increase from $0.70 per share a year ago, indicating strong performance in the recent quarter [1][2]. Financial Performance - The company achieved revenues of $31.83 million for the quarter ended December 2025, which was slightly below the Zacks Consensus Estimate by 0.21%, but an increase from $25.24 million in the same quarter last year [2]. - Over the last four quarters, Southern First has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2]. Stock Performance - Southern First shares have increased approximately 10.4% since the beginning of the year, significantly outperforming the S&P 500, which gained only 0.4% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.00 on revenues of $32.9 million, and for the current fiscal year, it is $4.44 on revenues of $141.4 million [7]. - The trend of earnings estimate revisions for Southern First was mixed ahead of the earnings release, which may change following the recent report [6]. Industry Context - The Banks - Southeast industry, to which Southern First belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - The performance of Southern First may also be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5][8].

Financial Performance - Net income for Q4 2025 was $9.9 million, or $1.21 per diluted share, representing a 14% increase from Q3 2025 and a 73% increase from Q4 2024[4]. - Total revenue for Q4 2025 reached $31.8 million, up 2% from Q3 2025 and up 26% from Q4 2024[4]. - Net interest income for Q4 2025 was $28.7 million, a $1.2 million increase from Q3 2025, driven by a $1.7 million decrease in interest expense[12]. - Noninterest income for Q4 2025 was $3.1 million, down from $3.6 million in Q3 2025, primarily due to a $515 thousand loss on the sale of securities[8]. - Noninterest expense decreased to $18.4 million, a reduction of $530 thousand from Q3 2025, driven by lower compensation and benefits[10]. - The provision for credit losses was $650 thousand for Q4 2025, down from $850 thousand in Q3 2025[7]. Asset and Loan Growth - Total loans amounted to $3.8 billion, reflecting a 6% increase from Q4 2024, while total deposits reached $3.7 billion, up 8% from Q4 2024[5]. - Total assets reached $4.403 billion as of December 31, 2025, reflecting a 7.73% increase from the previous year[13]. - Loans increased to $3.845 billion, a 5.87% rise compared to December 31, 2024[13]. - Total deposits amounted to $3.717 billion, representing an 8.18% increase year-over-year[13]. - Owner-occupied real estate loans increased to $736.979 million at December 31, 2025, from $705.383 million in the previous quarter[17]. Asset Quality - Nonperforming assets to total assets ratio was 0.32%, with past due loans at 0.13% of total loans[5]. - Total nonperforming assets were $14.1 million at December 31, 2025, representing 0.32% of total assets, an increase from 0.27% in the third quarter of 2025[14]. - The allowance for credit losses was $42.3 million, or 1.10% of total loans, consistent with the previous quarter and the same period last year[15]. - Net charge-offs for the fourth quarter of 2025 were $69 thousand, compared to net recoveries of $14 thousand in the third quarter of 2025[15]. - The classified asset ratio increased to 4.22% for the fourth quarter of 2025 from 3.90% in the third quarter of 2025[14]. - The provision for credit losses was $550 thousand for the fourth quarter of 2025, up from $500 thousand in the previous quarter[15]. Shareholder Metrics - Book value per common share increased to $44.89, a 3% rise from Q3 2025 and an 11% increase from Q4 2024[5]. - Book value per common share increased to $44.89, a 10.92% rise compared to the previous year[13]. - Shareholders' equity grew to $368.7 million, an 11.56% increase from the previous year[13]. - The stock price at period end was $51.52, reflecting a 29.61% increase from December 31, 2024[13]. Tax and Interest Metrics - The effective tax rate for Q4 2025 was 22.8%, compared to 23.6% in Q3 2025 and 18.4% in Q4 2024[11]. - Net interest margin improved to 2.72%, an increase of 10 basis points from Q3 2025 and 47 basis points from Q4 2024[5]. - Net interest margin on a tax-equivalent basis increased to 2.72% in Q4 2025, up 10 basis points from Q3 2025 and 47 basis points from Q4 2024[12]. - Average balances of interest-earning assets grew by $218 million compared to Q4 2024, contributing to a $6.3 million increase in net interest income year-over-year[12]. Operational Overview - The company operates in 12 locations across South Carolina and parts of North Carolina and Georgia, with consolidated assets of approximately $4.4 billion[21]. - Cash and cash equivalents totaled $269.6 million, a 65.53% increase from the previous year[13]. - Non-interest bearing deposits decreased to $732.287 million at December 31, 2025, from $736.518 million in the previous quarter[18]. - Total deposits reached $3.717 billion at December 31, 2025, compared to $3.676 billion at September 30, 2025[18]. - Total gross loans, net of deferred fees, increased to $3.845 billion at December 31, 2025, up from $3.789 billion in the previous quarter[17].

FOURTH QUARTER 2025 INVESTOR PRESENTATION January 22, 2026 FORWARD-LOOKING STATEMENTS During the course of this presentation, management may make projections and forward- looking statements regarding events or the future financial performance of Southern First Bancshares, Inc. We wish to caution you that these forward-looking statements involve certain risks and uncertainties, including a variety of factors (including a downturn in the economy, greater than expected interest and non-interest expenses, incre ...

Core Viewpoint - Southern First (SFST) has shown strong stock performance, with a 12.3% increase over the past month and a 17.3% gain since the start of the year, outperforming the Zacks Finance sector and the Zacks Banks - Southeast industry [1][2]. Financial Performance - Southern First reported an EPS of $1.07 in its last earnings report, exceeding the consensus estimate of $0.89 [2]. - For the current fiscal year, the company is expected to post earnings of $3.42 per share on revenues of $115.77 million, reflecting a 79.06% change in EPS and a 23.99% change in revenues [3]. - For the next fiscal year, earnings are projected to be $4.07 per share on revenues of $130.42 million, indicating a year-over-year change of 19.01% in EPS and 12.65% in revenues [3]. Valuation Metrics - Southern First has a Value Score of B, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of A [6]. - The stock currently trades at 13.6 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 10.7 times [7]. - On a trailing cash flow basis, the stock trades at 18.2 times, again above the peer group's average of 10.7 times [7]. Zacks Rank - Southern First holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8]. - The company meets the criteria for selection based on Zacks Rank and Style Scores, indicating potential for future growth [9]. Industry Comparison - The Banks - Southeast industry is performing well, ranking in the top 14% of all industries, providing a favorable environment for both Southern First and its peer, Home Bancorp, Inc. (HBCP) [12]. - HBCP also has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, indicating a competitive landscape within the industry [10][11].

Financial Performance - Net income to common shareholders for Q3 2025 was $8.7 million, a 97.7% increase from $4.4 million in Q3 2024, with diluted EPS rising to $1.07 from $0.54[117]. - For the nine months ended September 30, 2025, net income to common shareholders was $20.5 million, up 106.1% from $9.9 million in the same period of 2024, with diluted EPS increasing to $2.54 from $1.22[118]. - Noninterest income for the third quarter of 2025 was $3.6 million, a 13.4% increase from $3.2 million in the third quarter of 2024, with mortgage banking income rising by 10.4%[143]. - Total noninterest income for the first nine months of 2025 reached $10.0 million, up 7.3% from $9.4 million in the same period of 2024, driven by a 36.8% increase in service fees on deposit accounts[144]. - Noninterest expense for the third quarter of 2025 was $18.9 million, a 5.0% increase from $18.0 million in the third quarter of 2024, primarily due to higher compensation and benefits[146]. - The efficiency ratio improved to 66.2% in the third quarter of 2025 from 75.9% in the same quarter of 2024, reflecting increased net interest income[148]. Assets and Liabilities - Total assets increased by 6.6% to $4.36 billion as of September 30, 2025, compared to $4.09 billion at December 31, 2024[114]. - Total liabilities and shareholders' equity as of September 30, 2025, were $4.00 billion and $356.3 million, respectively, compared to $3.76 billion and $330.4 million at December 31, 2024[114]. - Loans increased to $3.79 billion as of September 30, 2025, from $3.63 billion at December 31, 2024[114]. - Deposits rose to $3.68 billion as of September 30, 2025, compared to $3.44 billion at December 31, 2024[114]. - As of September 30, 2025, cash and cash equivalents totaled $282.9 million, representing 6.5% of total assets, compared to $162.9 million or 4.0% of total assets at December 31, 2024[182]. - Investment securities amounted to $151.1 million at September 30, 2025, or 3.5% of total assets, slightly down from $151.6 million or 3.7% of total assets at December 31, 2024[182]. Interest Income and Margin - Net interest income for Q3 2025 was $27.5 million, a 33.7% increase from $20.6 million in Q3 2024, driven by a $3.8 million increase in interest income[119]. - The net interest margin (TE) increased by 54 basis points to 2.62% in Q3 2025 compared to 2.08% in Q3 2024, primarily due to a decrease in the cost of interest-bearing liabilities[124]. - Average interest-earning assets grew by $239.0 million in Q3 2025, while the average yield on these assets increased by five basis points to 5.23%[124]. - Net interest spread improved to 1.80% in Q3 2025, up from 1.16% in Q3 2024, reflecting a 64 basis point increase due to lower rates on interest-bearing liabilities[127]. - For the first nine months of 2025, net interest income was $76.2 million, a 29.7% increase compared to $58.8 million in 2024, driven by a decrease in interest expense[138]. Credit Quality - The provision for credit losses was recorded at $850,000 in Q3 2025, compared to no provision in Q3 2024, due to an increase in past due loans[140]. - The allowance for credit losses was $41.8 million, or 1.10% of outstanding loans, providing coverage of 364.50% of nonperforming loans as of September 30, 2025, compared to $39.9 million or 1.10% of outstanding loans and 366.94% coverage at December 31, 2024[166]. - Nonperforming assets remained stable, with no loans 90 days past due and still accruing as of September 30, 2025[160]. - As of September 30, 2025, nonperforming assets totaled $11.7 million, representing 0.27% of total assets and 0.31% of gross loans, compared to $10.9 million or 0.27% of total assets and 0.30% of gross loans at December 31, 2024[161]. Capital and Ratios - Total shareholders' equity increased to $356.3 million at September 30, 2025, up from $330.4 million at December 31, 2024, primarily due to net income of $20.5 million during the first nine months of 2025[190]. - Return on average assets improved to 0.65% for the nine months ended September 30, 2025, compared to 0.38% for the year ended December 31, 2024[192]. - Total capital to risk-weighted assets ratio was 12.72% as of September 30, 2025, exceeding the minimum requirement of 8.00%[196]. - Tier 1 capital to risk-weighted assets ratio stood at 11.47% as of September 30, 2025, above the minimum requirement of 6.00%[196]. - Common equity Tier 1 capital to risk-weighted assets ratio was 11.47% as of September 30, 2025, surpassing the minimum requirement of 4.50%[196]. Risk Management - The company plans to manage interest rate risk through various asset liability management strategies[128]. - The company actively manages interest rate risk through asset/liability management, aiming to maintain an appropriate balance between interest-sensitive assets and liabilities[209]. - The forecasted impact on net interest income shows a decrease of 6.96% under a scenario of a 300 basis points increase in interest rates[212]. - A 200 basis points increase in interest rates is projected to decrease net interest income by 3.84%[212]. - A 100 basis points increase in interest rates is expected to decrease net interest income by 1.51%[212]. - A decrease of 300 basis points in interest rates is projected to increase net interest income by 3.02%[212]. Client and Market Position - The company maintains a client-focused business model, emphasizing exceptional client service as a competitive advantage[114]. - The company received a "satisfactory" rating in its most recent Community Reinvestment Act performance evaluation[207]. - The company is not involved in off-balance sheet contractual relationships that could significantly impact earnings[202].

Core Insights - Southern First (SFST) reported a revenue of $31.13 million for the quarter ended September 2025, marking a 31% increase year-over-year [1] - Earnings per share (EPS) reached $1.07, up from $0.54 in the same quarter last year, with an EPS surprise of +20.22% compared to the consensus estimate of $0.89 [1] - The revenue exceeded the Zacks Consensus Estimate by +4.25% [1] Financial Performance Metrics - Efficiency ratio improved to 60.9%, better than the estimated 65.3% by analysts [4] - Net Interest Margin remained stable at 2.6%, matching analyst expectations [4] - Total Noninterest Income was reported at $3.6 million, surpassing the average estimate of $3.47 million [4] - Net Interest Income was $27.53 million, exceeding the average estimate of $26.38 million [4] Stock Performance - Southern First's shares have returned -4.7% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - Southern First (SFST) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and showing a significant increase from $0.54 per share a year ago, indicating strong financial performance [1][2] Financial Performance - The company achieved revenues of $31.13 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.25% and up from $23.77 million year-over-year [2] - Over the last four quarters, Southern First has consistently exceeded consensus EPS estimates, achieving this four times [2] Stock Performance - Southern First shares have increased approximately 6.2% since the beginning of the year, while the S&P 500 has gained 16.9%, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.95 on revenues of $30.79 million, and for the current fiscal year, it is $3.30 on revenues of $115.77 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 26% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]