Southern First(US:SFST)2025-01-28 12:00Financial 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]