Southern First(US:SFST)2024-10-22 11:00Financial Performance - Net income for Q3 2024 was $4.4 million, or $0.54 per diluted share, representing a $1.4 million increase from Q2 2024 and a $284 thousand increase from Q3 2023 [4]. - Noninterest income for Q3 2024 was $3.2 million, down from $3.5 million in Q2 2024, with mortgage banking income at $1.4 million [5]. - Net interest income for Q3 2024 was $20.6 million, an increase of $1.1 million from Q2 2024, driven by a $625 thousand increase in interest income and a $438 thousand decrease in interest expense [7]. - The effective tax rate for Q3 2024 was 23.5%, slightly up from 23.3% in Q2 2024 [7]. - The book value per common share increased to $40.04 in Q3 2024, up from $39.09 in Q2 2024 [9]. Asset and Liability Management - Total assets as of September 30, 2024, were $4,174.6 million, up from $4,109.8 million in June 2024 [9]. - Total liabilities increased to $3,848.1 million as of September 30, 2024, compared to $3,791.1 million in June 2024 [9]. - Total deposits rose to $3,518.8 million in Q3 2024, up from $3,459.9 million in Q2 2024 [9]. - Total gross loans, net of deferred fees, amounted to $3.62 billion as of September 30, 2024, a slight decrease from $3.62 billion in Q2 2024 [12]. - Total deposits reached $3.52 billion as of September 30, 2024, an increase from $3.46 billion in Q2 2024 [13]. Loan and Credit Quality - Total loans amounted to $3.6 billion and total deposits were $3.5 billion [3]. - Nonperforming assets to total assets ratio was 0.28%, with net recoveries of $9 thousand [3]. - The allowance for credit losses was $40.2 million, or 1.11% of total loans, with net recoveries of $9 thousand for Q3 2024, compared to net charge-offs of $1.0 million in Q2 2024 [12]. - The classified asset ratio was 4.35% for Q3 2024, up from 4.22% in Q2 2024 [11]. - The allowance for credit losses to nonaccrual loans was 346.78% as of September 30, 2024, compared to 357.95% in Q2 2024 [12]. Efficiency and Ratios - The efficiency ratio improved to 75.90% in Q3 2024, compared to 80.87% in Q2 2024 [3]. - The loans to deposits ratio was 102.86% in Q3 2024, down from 104.70% in Q2 2024 [3]. - Net interest margin increased to 2.08% in Q3 2024, up from 1.98% in Q2 2024 [3]. - The yield on the loan portfolio increased by seven basis points in Q3 2024, while the cost of interest-bearing deposits decreased by two basis points compared to Q2 2024 [7]. - The company maintained a total risk-based capital ratio of 12.61% [3]. Other Key Metrics - Core checking accounts grew by 21% on an annualized basis [2]. - Noninterest expense decreased to $18.0 million in Q3 2024, a reduction of $604 thousand from Q2 2024, primarily due to lower compensation and benefits expenses [5]. - Total nonperforming assets increased by $365 thousand during Q3 2024, representing 0.28% of total assets, compared to 0.27% in Q2 2024 [11]. - Non-owner occupied real estate loans totaled $917.6 million as of September 30, 2024, compared to $917.0 million in Q2 2024 [12]. - The company did not record a provision for credit losses in Q3 2024, contrasting with a $750 thousand provision in Q2 2024 [12].