Southern First(US:SFST)2025-04-22 11:22Financial 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]