Southern First(SFST) - 2024 Q2 - Quarterly Results

Financial Performance - Net income available to common shareholders for Q2 2024 was $2,999 thousand, an increase of 18.9% from $2,522 thousand in Q1 2024[3] - Total revenue for Q2 2024 reached $23,051 thousand, up 8.2% from $21,309 thousand in Q1 2024[3] - Net income for Q2 2024 was $3.0 million, or $0.37 per diluted share, an increase of $477 thousand from Q1 2024 and $541 thousand from Q2 2023[17] - Noninterest income rose to $3.5 million in Q2 2024, compared to $2.7 million in Q1 2024, with mortgage banking income at $1.9 million[18] - The effective tax rate was 23.3% in Q2 2024, down from 25.5% in Q1 2024[20] Interest Income and Margin - Net interest income for Q2 2024 was $19,528 thousand, an increase of 4.7% from $18,645 thousand in Q1 2024[4] - The net interest margin for Q2 2024 improved to 1.98%, a four-basis point increase from 1.94% in Q1 2024[7] - Net interest margin improved to 1.98% in Q2 2024, compared to 1.94% in Q1 2024[16] - The net interest spread for the second quarter of 2024 was 1.08%, compared to 1.05% in the previous quarter[21] Loans and Deposits - Total loans as of June 30, 2024, were $3,622,521 thousand, a slight decrease from $3,643,766 thousand in Q1 2024[3] - Total loans decreased by $21.2 million, or 2.35% annualized, to $3.6 billion in Q2 2024 compared to Q1 2024[16] - Total deposits stood at $3,459,869 thousand, a marginal decrease from $3,460,681 thousand in Q1 2024[3] - Total deposits were $3.5 billion in Q2 2024, a decrease of $812 thousand, or 0.09% annualized, from Q1 2024[16] Asset Quality - The provision for credit losses was $500 thousand in Q2 2024, compared to a reversal of $175 thousand in Q1 2024[4] - Nonperforming assets to total assets ratio increased to 0.27% in Q2 2024, up from 0.09% in Q1 2024[3] - Nonperforming assets increased to $11.2 million, representing 0.27% of total assets, up from 0.09% in Q1 2024[10] - The classified asset ratio increased to 4.22% in Q2 2024 from 3.99% in Q1 2024[10] Expenses and Efficiency - Noninterest expense for Q2 2024 was $18,643 thousand, reflecting an increase of $543 thousand from Q1 2024[5] - The efficiency ratio improved to 80.87% in Q2 2024, down from 84.94% in Q1 2024[3] Balance Sheet and Assets - Total assets were $4.1 billion as of June 30, 2024, slightly up from $4.1 billion at the end of Q1 2024[8] - Total assets increased to $4,138.8 million as of June 30, 2024, compared to $4,018.1 million at the end of the previous quarter[21] - The company reported total liabilities of $3,090.1 million and shareholders' equity of $316.9 million for the quarter ended June 30, 2024[21] - The allowance for credit losses was $40.2 million, or 1.11% of total loans, consistent with the previous quarter's allowance of $40.4 million[24] Market Presence and Operations - Southern First Bancshares has consolidated assets of approximately $4.1 billion, indicating a stable financial position[32] - The company operates in 12 locations across South Carolina and North Carolina, as well as Atlanta, Georgia, indicating a strong market presence[32] - Southern First Bank is the second largest bank headquartered in South Carolina, highlighting its significant market share[32] - The common stock of Southern First Bancshares is traded on The NASDAQ Global Market under the symbol "SFST," providing liquidity for investors[32] - The bank has been providing financial services since 1999, showcasing its long-standing experience in the industry[32] Deposit Composition - Total interest-bearing deposits, including NOW accounts and savings, reflect a diverse deposit base, essential for funding operations[31] - Money market accounts decreased to $1,562,786 thousand from $1,603,796 thousand, reflecting a decline of 2.0%[31] - Time deposits of less than $250,000 increased to $219,532 thousand, up 6.7% from $206,657 thousand in the previous quarter[31] - Time and out-of-market deposits of $250,000 and over rose to $671,646 thousand, an increase of 2.0% from $653,208 thousand[31] Future Outlook - The company anticipates continued competitive pressures and potential impacts from changes in interest rates and economic conditions[28]