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 ...

GREENVILLE, S.C., June 2, 2025 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, is pleased to announce the appointment of three new board members. Jennie Cluverius, Darrin Goss, and Billy McClatchey joined the company and the bank as Directors, effective June 1, 2025.Jennie Cluverius is an experienced trial lawyer who also provides daily advice and counsel to employers on employment, labor, and other business-related matters. She is a Shareholder with ...

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]

Financial Performance - Net income for Q1 2025 was $5.3 million, or $0.65 per diluted share, representing a 109% increase compared to Q1 2024[5] - Total revenue for Q1 2025 reached $26.5 million, up from $21.3 million in Q1 2024, marking a 24% year-over-year increase[4] - Noninterest income for Q1 2025 was $3.1 million, up 16.89% from $2.7 million in Q1 2024[9] - Noninterest expense increased to $18.8 million, a 4.07% rise compared to Q1 2024[10] - The effective tax rate for Q1 2025 was 23.8%, compared to 25.5% in Q1 2024[11] Asset Quality - Nonperforming assets to total assets ratio was 0.26%, indicating strong asset quality[5] - Total nonperforming assets were $11.0 million at March 31, 2025, representing 0.26% of total assets compared to 0.27% for the fourth quarter of 2024 and 0.09% for the first quarter of 2024[16] - The allowance for credit losses was $40.7 million, or 1.10% of total loans, at March 31, 2025, unchanged from 1.10% at December 31, 2024[17] - The classified asset ratio remained stable at 4.24% for the first quarter of 2025, compared to 4.25% in the fourth quarter of 2024[16] Loan and Deposit Growth - Total loans increased to $3.7 billion, reflecting a 6% annualized growth over Q4 2024[5] - Total deposits reached $3.621 billion, reflecting a 4.63% increase from $3.436 billion in Q1 2024[15] - Total gross loans, net of deferred fees, increased to $3.68 billion at March 31, 2025, from $3.63 billion at December 31, 2024[19] - Total deposits rose to $3.62 billion at March 31, 2025, compared to $3.44 billion at December 31, 2024[20] - Core deposits rose to $2.8 billion, a significant 23% annualized increase from Q4 2024[5] Interest Income and Margin - Net interest income for Q1 2025 was $23.4 million, an increase of $925 thousand from Q4 2024, driven by a $2.4 million decrease in interest expense[13] - Net interest margin improved to 2.41% in Q1 2025, compared to 1.94% in Q1 2024[5] - The net interest margin on a tax-equivalent basis improved to 2.41% in Q1 2025, up 16 basis points from 2.25% in Q4 2024 and 47 basis points from 1.94% in Q1 2024[13] - The cost of interest-bearing deposits decreased by 23 basis points from the previous quarter, contributing to the reduction in interest expense[13] Equity and Stock Performance - Shareholders' equity increased to $337.6 million, a 7.09% rise from $330.4 million in Q4 2024[15] - The book value per common share increased to $41.33, a 6.99% increase from $40.47 in Q4 2024[15] - The stock price at the end of the period was $32.92, a 3.65% increase from $39.75 in Q4 2024[15] Credit Losses - The provision for credit losses was $750 thousand, compared to a reversal of $175 thousand in Q1 2024[8] - Net recoveries for the first quarter of 2025 were $23 thousand, or 0.00% annualized, compared to net charge-offs of $2 thousand for the fourth quarter of 2024[17] - The provision for credit losses was $750 thousand for the first quarter of 2025, driven by growth in the loan portfolio[17] Company Overview - The company operates in 12 locations across South Carolina and parts of North Carolina and Georgia, with consolidated assets of approximately $4.3 billion[23]

Core Insights - Southern First Bancshares, Inc. has promoted Wes Wilbanks to Chief Credit Officer and Executive Vice President, reflecting the company's commitment to leadership in credit management [1][2][3] Company Overview - Southern First Bancshares, Inc. is a registered bank holding company based in Greenville, South Carolina, with consolidated assets of approximately $4.1 billion [4] - The company operates Southern First Bank, the second largest bank headquartered in South Carolina, providing financial services since 1999 across 13 locations in South Carolina and parts of North Carolina and Georgia [4] Leadership and Experience - Wes Wilbanks joined Southern First in 2021 as Senior Credit Risk Officer, bringing 25 years of banking experience, including 11 years in senior credit roles at a regional bank [2] - As Chief Credit Officer, Wilbanks aims to support the growth and risk management goals of Southern First and enhance client service [2][3]

Financial Performance - Net income available to common shareholders rose to $15.5 million in 2024, up from $13.4 million in 2023, reflecting a 15.67% increase [281]. - Net interest income for 2024 was $81.2 million, a 4.6% increase from $77.7 million in 2023, driven by a $23.6 million rise in interest income [295]. - Noninterest income grew to $12.1 million in 2024, compared to $9.9 million in 2023, indicating a strong performance in fee-based services [284]. - The efficiency ratio improved slightly to 78.54% in 2024 from 78.65% in 2023, indicating better cost management [284]. - The return on average assets increased to 0.38% in 2024 from 0.34% in 2023, showing enhanced profitability [284]. - Total shareholders' equity increased to $330.4 million at December 31, 2024, from $312.5 million at December 31, 2023, primarily due to net income of $15.5 million [366]. - Net income for 2024 was $15,530,000, representing an increase of 15.6% from $13,426,000 in 2023 [420]. - Comprehensive income for 2024 was $15,400,000, slightly down from $15,494,000 in 2023 [420]. Asset and Liability Management - Total assets increased to $4.09 billion as of December 31, 2024, from $4.06 billion in 2023, with loans comprising $3.63 billion [279]. - Total liabilities increased to $3.757 billion in 2024 from $3.743 billion in 2023, a growth of approximately 0.37% [414]. - Cash and cash equivalents amounted to $162.9 million (4.0% of total assets) at December 31, 2024, compared to $156.2 million (3.9%) at December 31, 2023 [360]. - The investment securities portfolio was $151.6 million as of December 31, 2024, representing approximately 3.7% of total assets, with an unrealized loss of $14.5 million [325]. - Total contractual obligations due by December 31, 2024, amount to $1,021.3 million, including $967.6 million in certificates of deposit [389]. Credit Quality and Loss Provisions - The provision for credit losses decreased to $125,000 in 2024 from $1.26 million in 2023, reflecting improved asset quality [284]. - The allowance for credit losses totaled $39.9 million, or 1.10% of gross loans, compared to $40.7 million, or 1.13% in 2023 [314]. - Net charge-offs for 2024 were $1.3 million, representing 0.04% of the average outstanding loan portfolio, while nonperforming assets increased to 0.27% of total assets [315]. - The provision for credit losses for the year ended December 31, 2024, was $125,000, a significant decrease from $1.3 million in 2023 [312]. - The allowance for credit losses decreased to $39.9 million (1.10% of outstanding loans) at December 31, 2024, from $40.7 million (1.13%) at December 31, 2023, due to historically low loan charge-offs [348]. Loan and Deposit Growth - Deposits increased to $3.44 billion in 2024, up from $3.38 billion in 2023, marking a 1.66% growth [284]. - Total loans outstanding at December 31, 2024, were $3.63 billion, a slight increase from $3.60 billion at December 31, 2023 [330]. - Average loans for the years ended December 31, 2024 and 2023 were $3.63 billion and $3.50 billion, respectively, showing an increase of approximately 3.7% [330]. - Home equity lines of credit totaled $204.9 million as of December 31, 2024, an increase from $183.0 million as of December 31, 2023, representing an increase of approximately 12.5% [332]. - Total deposits amounted to $3.44 billion at December 31, 2024, with retail deposits representing 84.0% and brokered deposits at 16.0% [353]. Interest Income and Expense - Interest income for 2024 reached $201.2 million, compared to $177.6 million in 2023, with 92.9% of this income derived from loans [296]. - Interest expense for 2024 was $120.0 million, an increase from $99.9 million in 2023 and $20.0 million in 2022, with deposits accounting for 90.7% of total interest expense in 2024 [297]. - The net interest margin (tax-equivalent) was 2.06% for 2024, stable compared to 2.07% in 2023, but down from 3.19% in 2022 [302]. - The net interest spread decreased to 1.16% in 2024 from 1.21% in 2023, reflecting a 39 basis point increase in yield on interest-earning assets [306]. - The average cost of interest-bearing liabilities increased by 44 basis points in 2024, driven by a $268.7 million increase in average time deposits [305]. Regulatory Capital Ratios - As of December 31, 2024, the total capital ratio is 12.66%, exceeding the regulatory minimum of 10% [372]. - The Tier 1 capital ratio stands at 11.41%, above the required minimum of 8% [372]. - Common equity Tier 1 capital ratio is 11.41%, surpassing the minimum requirement of 6.5% [372]. - The company maintains a capital conservation buffer of 2.5% on top of minimum risk-based capital requirements [371]. Operational Efficiency - Total noninterest expenses for 2024 were $73.3 million, a 6.5% increase from $68.8 million in 2023, with compensation and benefits expenses rising by $3.3 million, or 8.1% [321]. - The efficiency ratio was 78.5% for 2024, slightly improved from 78.7% in 2023, indicating a smaller increase in revenue relative to expenses [323]. - Income tax expense for 2024 was $4.4 million, with an effective tax rate of 22.0%, down from 23.0% in 2023 [324]. Internal Controls and Compliance - Management's internal control over financial reporting was deemed effective as of December 31, 2024, following an evaluation based on COSO criteria [394]. - The Company maintained effective internal control over financial reporting as of December 31, 2024, according to the audit opinion [405].

Core Insights - Southern First Bancshares, Inc. has appointed Blair Miller as Chief Retail Experience Officer and Executive Vice President, aiming to enhance client service and company culture [1][2]. Company Overview - Southern First Bancshares, Inc. is a registered bank holding company based in Greenville, South Carolina, with consolidated assets of approximately $4.1 billion [5]. - The company's subsidiary, Southern First Bank, is the second largest bank headquartered in South Carolina, operating in 13 locations across South Carolina and parts of North Carolina and Georgia [5]. Leadership and Vision - Blair Miller brings over 20 years of experience, previously serving as Area Manager and Senior Vice President at Pinnacle Financial Partners for 12 years [2]. - Miller emphasizes the importance of client service and company culture, believing that excelling in these areas can lead to significant achievements [4]. - The Chief Innovation Officer, Dave Favela, expressed excitement about Miller's appointment, highlighting his creativity and passion as assets to the company's mission [3].

Financial Performance - Net income for Q4 2024 was $5.6 million, or $0.70 per diluted share, representing a 30% increase from Q3 2024 and a 37% increase from Q4 2023[4] - Net interest income increased by $1.9 million from Q3 2024 and $3.4 million from Q4 2023, primarily driven by higher interest income on loans[6] - Noninterest income for Q4 2024 was $2.8 million, a decrease from $3.2 million in Q3 2024, with mortgage banking income at $1.0 million[8] - Noninterest expense was $18.5 million, an increase of $505 thousand from Q3 2024 and $1.5 million from Q4 2023, driven by higher professional fees and other expenses[10] - The effective tax rate for Q4 2024 was 18.4%, down from 23.5% in Q3 2024 and 21.9% in Q4 2023[11] Asset and Liability Management - Total loans reached $3.6 billion and total deposits were $3.4 billion, with a net interest margin of 2.25%, up from 2.08% in Q3 2024 and 1.92% in Q4 2023[4] - Total assets as of December 31, 2024, were $4,087.6 million, a decrease from $4,174.6 million at the end of Q3 2024[15] - Total liabilities decreased to $3,757.1 million as of December 31, 2024, from $3,848.1 million at the end of Q3 2024[15] - Shareholders' equity increased to $330.4 million as of December 31, 2024, compared to $326.5 million at the end of Q3 2024[15] - Total deposits were $3.44 billion as of December 31, 2024, a decrease from $3.52 billion at September 30, 2024[20] Credit Quality - Nonperforming assets to total assets ratio was 0.27%, and past due loans to total loans ratio was 0.25%[4] - The company reported a reversal of the provision for credit losses of $200 thousand in Q4 2024, compared to no provision in Q3 2024[7] - Total nonperforming assets decreased by $706 thousand during Q4 2024, representing 0.27% of total assets compared to 0.28% in Q3 2024 and 0.10% in Q4 2023[16] - The allowance for credit losses was $39.9 million, or 1.10% of total loans, down from $40.2 million, or 1.11% at September 30, 2024[17] - Net charge-offs for Q4 2024 were $2 thousand, or 0.00% annualized, compared to net recoveries of $9 thousand in Q3 2024[17] Capital Ratios - Capital ratios remained strong, with a total risk-based capital ratio of 12.70% and a Tier 1 risk-based capital ratio of 11.16%[3] - Book value per common share increased to $40.47, with a tangible common equity ratio of 8.08%[4] - The book value per common share rose to $40.47 as of December 31, 2024, from $40.04 at the end of Q3 2024[15] Interest Income and Margin - Net interest income for Q4 2024 was $22.5 million, a $1.9 million increase from Q3 2024, attributed to a $1.9 million decrease in interest expense[13] - The average yield on interest-earning assets increased by 18 basis points compared to Q4 2023, contributing to the rise in net interest income[13] - The net interest margin on a tax-equivalent basis was 2.25% for Q4 2024, up 17 basis points from 2.08% in Q3 2024 and 33 basis points from 1.92% in Q4 2023[13] - The net interest spread for Q4 2024 was 1.38%, an increase from 1.16% in Q3 2024[12] Loan Portfolio - The average balance of loans was $3,620.8 million for Q4 2024, slightly down from $3,629.1 million in Q3 2024[12] - Total gross loans, net of deferred fees, amounted to $3.63 billion as of December 31, 2024, an increase from $3.60 billion a year earlier[19] - Owner-occupied real estate loans increased to $651.6 million in Q4 2024 from $642.6 million in Q3 2024[19] - Total consumer loans reached $1.40 billion as of December 31, 2024, slightly up from $1.39 billion in the previous quarter[19] Asset Classification - The classified asset ratio decreased to 4.25% in Q4 2024 from 4.35% in Q3 2024, remaining unchanged from Q4 2023[16] - The company added four new relationships to nonaccrual status during Q4 2024, while seven relationships returned to accrual status or paid off[16] - The provision for credit losses reversal was $250 thousand in Q4 2024, compared to no provision in Q3 2024 and a reversal of $640 thousand in Q4 2023[17]

Financial Performance - Net income available to common shareholders for Q3 2024 was $4.4 million, up from $4.1 million in Q3 2023, representing a 6.9% increase[126]. - Diluted earnings per share (EPS) for Q3 2024 was $0.54, compared to $0.51 for Q3 2023, reflecting a 5.9% increase[126]. - Net income available to common shareholders for the nine months ended September 30, 2024, was $9.9 million, compared to $9.3 million for the same period in 2023, a 6.5% increase[127]. - Diluted EPS for the nine months ended September 30, 2024, was $1.22, up from $1.15 in the same period of 2023, reflecting a 6.1% increase[127]. Assets and Liabilities - Total assets as of September 30, 2024, were $4.17 billion, a 2.9% increase from $4.06 billion at December 31, 2023[124]. - Total liabilities as of September 30, 2024, were $3.85 billion, up from $3.74 billion at December 31, 2023[124]. - The principal component of liabilities is deposits, which accounted for $3.52 billion of total liabilities as of September 30, 2024[124]. - Total deposits increased to $3.52 billion as of September 30, 2024, from $3.38 billion at December 31, 2023[124]. Interest Income and Margin - Net interest income for Q3 2024 was $20.6 million, a 6.4% increase from $19.3 million in Q3 2023, driven by a $3.7 million increase in interest income[128]. - Net interest margin on a tax-equivalent basis was 2.08% for Q3 2024, compared to 1.97% for the same period in 2023[128]. - The net interest margin (TE) increased by 11 basis points to 2.08% in Q3 2024 compared to Q3 2023, driven by an increase in interest-earning assets and yield[133]. - For the first nine months of 2024, the net interest margin (TE) decreased by 12 basis points to 2.00% compared to 2.12% in the same period of 2023[140]. Loans and Credit Quality - Average loans, excluding mortgage loans held for sale, increased to $3.62 billion for the nine months ended September 30, 2024, from $3.46 billion in the same period of 2023, representing a growth of 4.6%[162]. - Nonperforming assets increased to $11.6 million, or 0.28% of total assets, as of September 30, 2024, compared to $4.0 million, or 0.10% of total assets, at December 31, 2023[171]. - The allowance for credit losses was $40.2 million, representing 1.11% of outstanding loans and providing coverage of 346.78% of nonperforming loans at September 30, 2024[175]. Deposits and Funding - Retail deposits represented $2.93 billion, or 83.3% of total deposits, while wholesale deposits were $588.5 million, or 16.7%, at September 30, 2024[177]. - The loan-to-deposit ratio was 103% at September 30, 2024, down from 107% at December 31, 2023[177]. - Time deposits exceeding the FDIC insurance limit of $250,000 rose to $813.4 million from $568.1 million year-over-year[182]. Noninterest Income and Expenses - Noninterest income for Q3 2024 was $3.2 million, a 15.5% increase from $2.8 million in Q3 2023, with mortgage banking income rising by 20.0%[152]. - Noninterest expense for Q3 2024 was $18.0 million, a 4.3% increase from $17.3 million in Q3 2023, primarily due to higher compensation and benefits expenses[154]. - The efficiency ratio improved to 75.9% in Q3 2024 from 78.3% in Q3 2023, indicating better cost management relative to revenue[159]. Capital and Regulatory Compliance - Total shareholders' equity increased to $326.5 million, up $14.1 million from $312.5 million at the end of 2023, primarily due to net income of $9.9 million[195]. - The company maintains a capital conservation buffer, ensuring compliance with Basel III capital requirements, remaining "well capitalized" as of September 30, 2024[199]. - Total Capital to risk weighted assets as of September 30, 2024, is $399,736, representing a ratio of 12.61%[202]. Interest Rate Risk Management - The asset/liability management committee actively monitors interest rate risk exposure to maintain an appropriate balance between interest sensitive assets and liabilities[215]. - The forecasted impact on net interest income shows a decrease of 9.34% under a scenario of a 300 basis points increase in interest rates[217]. - A decrease of 300 basis points in interest rates is projected to increase net interest income by 26.29%[217].

Core Viewpoint - Southern First (SFST) reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and showing an increase from $0.51 per share a year ago, indicating a strong performance in the recent quarter [1] Financial Performance - The company achieved revenues of $23.77 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.83% and up from $22.09 million year-over-year [1] - Southern First has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [1] Stock Performance and Outlook - Southern First shares have declined approximately 3% since the beginning of the year, contrasting with the S&P 500's gain of 22.7% [2] - The company's earnings outlook is mixed, with a current consensus EPS estimate of $0.41 on revenues of $24.25 million for the upcoming quarter and $1.39 on revenues of $91.27 million for the current fiscal year [4] Industry Context - The Banks - Southeast industry, to which Southern First belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, which may impact the stock's performance [5] - Another company in the same industry, First Citizens BancShares (FCNCA), is expected to report a quarterly earnings decline of 14.3% year-over-year, with revenues anticipated to decrease by 9.5% from the previous year [5]