Southern First(SFST) - 2025 Q2 - Quarterly Results

Executive Summary & Company Overview Southern First Bancshares' Q2 2025 performance shows strong revenue growth, margin expansion, and strategic advancements CEO Statement & Strategic Highlights CEO highlights strong Q2 2025 revenue growth, margin expansion, and strategic initiatives - Total revenue grew 24% over the same quarter a year ago, marking one of the highest revenue generating quarters in the company's 25-year history[2] - The company achieved solid margin expansion due to focused pricing and discipline on both sides of the balance sheet[2] - Three new Board members were added, bringing valuable contributions through their community involvement and professional expertise[2] - The company continues to attract highly talented and experienced bankers, providing opportunities for depth in existing areas and expansion[2] Key Financial Highlights (Q2 2025) Q2 2025 shows significant improvements in diluted EPS, net interest margin, loan/deposit growth, and asset quality | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change (Q2 2025 vs Q2 2024) | QoQ Change (Q2 2025 vs Q1 2025) | | :-------------------------------- | :------ | :------ | :------ | :-------------------------------- | :-------------------------------- | | Net income available to common shareholders ($ thousands) | 6,581 | 5,266 | 2,999 | +119.4% | +24.9% | | Earnings per common share, diluted | 0.81 | 0.65 | 0.37 | +118.9% | +24.6% | | Total revenue ($ thousands) | 28,629 | 26,497 | 23,051 | +24.2% | +8.0% | | Net interest margin (tax-equivalent) | 2.50% | 2.41% | 1.98% | +52 bps | +9 bps | | Return on average assets | 0.63% | 0.52% | 0.29% | +34 bps | +11 bps | | Return on average equity | 7.71% | 6.38% | 3.81% | +390 bps | +133 bps | | Efficiency ratio | 67.54% | 71.08% | 80.87% | -1333 bps | -354 bps | | Total loans ($ thousands) | 3,746,841 | 3,683,919 | 3,622,521 | +3.4% | +1.7% (7% annualized) | | Total deposits ($ thousands) | 3,636,329 | 3,620,886 | 3,459,869 | +5.1% | +0.4% | | Core deposits ($ thousands) | 2,867,193 | 2,820,194 | 2,788,223 | +2.8% | +1.7% (7% annualized) | | Total assets ($ thousands) | 4,308,067 | 4,284,311 | 4,109,849 | +4.8% | +0.6% | | Book value per common share | 42.23 | 41.33 | 39.09 | +8.0% | +2.2% (9% annualized) | | Tangible common equity | 8.02% | 7.88% | 7.76% | +26 bps | +14 bps | | Nonperforming assets/total assets | 0.27% | 0.26% | 0.27% | 0 bps | +1 bps | | Allowance for credit losses/loans | 1.10% | 1.10% | 1.11% | -1 bps | 0 bps | Financial Performance Analysis Analysis of income statement, balance sheet, and asset quality, detailing key financial drivers Income Statement Overview Q2 2025 net income increased significantly, driven by higher net interest income and noninterest income growth Net Interest Income and Margin Net interest income and margin analysis details interest income, expense, and their impact on profitability | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | YoY Change (Q2 2025 vs Q2 2024) | QoQ Change (Q2 2025 vs Q1 2025) | | :---------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------------------- | :-------------------------------- | | Total interest income | 52,318 | 49,647 | 50,546 | +3.51% | +5.38% | | Total interest expense | 27,023 | 26,264 | 31,018 | -12.88% | +2.89% | | Net interest income | 25,295 | 23,383 | 19,528 | +29.53% | +8.18% | | Net interest margin (tax-equivalent) | 2.50% | 2.41% | 1.98% | +52 bps | +9 bps | - The increase in net interest income was driven by a $2.7 million increase in interest income, partially offset by a $759 thousand increase in interest expense, quarter-over-quarter[12] - Loan yield increased eight basis points and the yield on Federal funds sold and interest-bearing deposits increased by five basis points over the previous quarter, contributing to higher interest income[12] - A four basis point decrease in the rate on interest-bearing deposits over the previous quarter helped reduce interest expense[12] Noninterest Income Overview of noninterest income components, highlighting mortgage banking and service fees on deposit accounts | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | YoY Change (Q2 2025 vs Q2 2024) | QoQ Change (Q2 2025 vs Q1 2025) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------------------- | :-------------------------------- | | Total noninterest income | 3,334 | 3,114 | 3,523 | -5.36% | +7.06% | | Mortgage banking income | 1,569 | 1,424 | 1,923 | -18.41% | +10.18% | | Service fees on deposit accounts | 567 | 539 | 423 | +34.04% | +5.20% | - Mortgage banking income remained the largest component of noninterest income, increasing from $1.4 million in Q1 2025 to $1.6 million in Q2 2025 due to a slight increase in mortgage origination volume[8] Noninterest Expense Analysis of noninterest expenses, focusing on compensation, benefits, and data processing costs | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | YoY Change (Q2 2025 vs Q2 2024) | QoQ Change (Q2 2025 vs Q1 2025) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------------------- | :-------------------------------- | | Total noninterest expenses | 19,336 | 18,836 | 18,643 | +3.72% | +2.65% | | Compensation and benefits | 11,674 | 11,304 | 11,290 | +3.40% | +3.27% | | Outside service and data processing costs | 2,189 | 2,037 | 1,962 | +11.57% | +7.46% | - The quarter-over-quarter increase in noninterest expense was driven by higher compensation and benefits, outside service and data processing costs, and professional fees, partially offset by a decrease in insurance expense[9] Provision for Credit Losses Details on provision for credit losses, including components and primary drivers behind reported amounts | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | YoY Change (Q2 2025 vs Q2 2024) | QoQ Change (Q2 2025 vs Q1 2025) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------------------- | :-------------------------------- | | Provision for credit losses | 700 | 750 | 500 | +40.00% | -6.67% | - The provision for credit losses in Q2 2025 included $650 thousand for credit losses and $50 thousand for the reserve for unfunded commitments[7] - The provision was primarily driven by a $62.9 million increase in total loans during the quarter[7] Net Income and EPS Summary of net income and diluted EPS, along with income tax expense and effective tax rate | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | YoY Change (Q2 2025 vs Q2 2024) | QoQ Change (Q2 2025 vs Q1 2025) | | :-------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------------------- | :-------------------------------- | | Net income available to common shareholders | 6,581 | 5,266 | 2,999 | +119.44% | +24.98% |\ | Earnings per common share – Diluted | 0.81 | 0.65 | 0.37 | +118.92% | +24.62% |\ | Income tax expense | 2,012 | 1,645 | 909 | +121.34% | +22.31% |\ | Effective tax rate | 23.4% | 23.8% | 23.3% | +0.1% | -0.4% | - Net income for Q2 2025 increased by $1.3 million from Q1 2025 and $3.6 million from Q2 2024[6] - The effective tax rate remained relatively stable, with minor fluctuations driven by equity compensation transactions[10] Balance Sheet Overview Balance sheet as of June 30, 2025, shows growth in assets, loans, deposits, and shareholders' equity | Metric | Jun 30, 2025 ($ thousands) | Mar 31, 2025 ($ thousands) | Jun 30, 2024 ($ thousands) | YoY Change (Jun 30, 2025 vs Jun 30, 2024) | QoQ Change (Jun 30, 2025 vs Mar 31, 2025) | | :-------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------------------------ | :------------------------------------------ |\ | Total assets | 4,308,067 | 4,284,311 | 4,109,849 | +4.82% | +0.55% |\ | Total cash and cash equivalents | 271,032 | 305,057 | 194,827 | +39.11% | -11.20% |\ | Total investment securities | 148,773 | 151,217 | 140,006 | +6.26% | -1.61% |\ | Loans, net | 3,705,556 | 3,643,232 | 3,582,364 | +3.44% | +1.71% |\ | Total liabilities | 3,962,605 | 3,946,713 | 3,791,101 | +4.52% | +0.40% |\ | Deposits | 3,636,329 | 3,620,886 | 3,459,869 | +5.10% | +0.43% |\ | Core deposits ($ thousands) | 2,867,193 | 2,820,194 | 2,788,223 | +2.8% | +1.7% (7% annualized) |\ | Total shareholders' equity | 345,462 | 337,598 | 318,748 | +8.38% | +2.33% | - Interest-bearing deposits with banks saw a substantial year-over-year increase of 636.45%, reaching $65.0 million[13] - Subordinated debentures decreased by 31.54% year-over-year, from $36.38 million to $24.90 million[13] Asset Quality Asset quality remained stable in Q2 2025, with low nonperforming assets and increased allowance for credit losses Nonperforming Assets Detailed analysis of nonperforming assets, including composition and ratios relative to total assets and loans | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | | :------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | | Total nonperforming assets | 11,669 | 11,036 | 11,218 | | Nonperforming assets as a percentage of: | | | | | Total assets | 0.27% | 0.26% | 0.27% | | Total loans | 0.31% | 0.30% | 0.31% | | Classified assets/tier 1 capital plus allowance for credit losses | 4.28% | 4.24% | 4.22% | - Nonperforming assets to total assets remained stable at 0.27% in Q2 2025, consistent with Q2 2024[14] - The classified asset ratio increased slightly to 4.28% in Q2 2025 from 4.24% in Q1 2025[14] Allowance for Credit Losses & Net Charge-offs Review of allowance for credit losses and net charge-offs, detailing changes and relationship to loan growth | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | | :------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | | Allowance for credit losses (end of period) | 41,285 | 40,687 | 40,157 | | Allowance for credit losses to gross loans | 1.10% | 1.10% | 1.11% | | Net charge-offs (recoveries) | (52) | 23 | (1,034) | | Net charge-offs (recoveries) to average loans QTD (annualized) | 0.01% | 0.00% | 0.11% | | Provision for credit losses | 650 | 750 | 750 | - The allowance for credit losses increased to $41.3 million, or 1.10% of total loans, at June 30, 2025, from $40.7 million at March 31, 2025[15] - Net charge-offs were $52 thousand (0.01% annualized) for Q2 2025, compared to net recoveries of $23 thousand in Q1 2025 and net charge-offs of $1.0 million in Q2 2024[15] Detailed Financial Data Comprehensive unaudited financial statements, including income statements, balance sheets, asset quality, and loan/deposit compositions Income Statements (Unaudited) Detailed unaudited income statements provide a breakdown of interest income, expenses, and net income | (in thousands, except per share data) | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | Sept 30 2024 | Jun 30 2024 | | :------------------------------------ | :---------- | :---------- | :---------- | :----------- | :---------- | | Interest income | | | | | | | Loans | $ 48,992 | $ 47,085 | $ 47,163 | $ 47,550 | $ 46,545 | | Investment securities | 1,357 | 1,403 | 1,504 | 1,412 | 1,418 | | Federal funds sold | 1,969 | 1,159 | 2,465 | 2,209 | 2,583 | | Total interest income | 52,318 | 49,647 | 51,132 | 51,171 | 50,546 | | Interest expense | | | | | | | Deposits | 24,300 | 23,569 | 25,901 | 27,725 | 28,216 | | Borrowings | 2,723 | 2,695 | 2,773 | 2,855 | 2,802 | | Total interest expense | 27,023 | 26,264 | 28,674 | 30,580 | 31,018 | | Net interest income | 25,295 | 23,383 | 22,458 | 20,591 | 19,528 | | Provision (reversal) for credit losses | 700 | 750 | (200) | - | 500 | | Net interest income after provision for credit losses | 24,595 | 22,633 | 22,658 | 20,591 | 19,028 | | Noninterest income | | | | | | | Mortgage banking income | 1,569 | 1,424 | 1,024 | 1,449 | 1,923 | | Service fees on deposit accounts | 567 | 539 | 499 | 455 | 423 | | ATM and debit card income | 586 | 552 | 607 | 599 | 587 | | Income from bank owned life insurance | 413 | 403 | 407 | 401 | 384 | | Other income | 199 | 196 | 242 | 271 | 206 | | Total noninterest income | 3,334 | 3,114 | 2,779 | 3,175 | 3,523 | | Noninterest expense | | | | | | | Compensation and benefits | 11,674 | 11,304 | 10,610 | 10,789 | 11,290 | | Occupancy | 2,523 | 2,548 | 2,587 | 2,595 | 2,552 | | Outside service and data processing costs | 2,189 | 2,037 | 2,003 | 1,930 | 1,962 | | Insurance | 910 | 1,010 | 1,077 | 1,025 | 965 | | Professional fees | 609 | 509 | 656 | 548 | 582 | | Marketing | 397 | 374 | 335 | 319 | 389 | | Other | 1,034 | 1,054 | 1,276 | 833 | 903 | | Total noninterest expenses | 19,336 | 18,836 | 18,544 | 18,039 | 18,643 | | Income before provision for income taxes | 8,593 | 6,911 | 6,893 | 5,727 | 3,908 | | Income tax expense | 2,012 | 1,645 | 1,266 | 1,345 | 909 | | Net income available to common shareholders | $ 6,581 | $ 5,266 | $ 5,627 | $ 4,382 | $ 2,999 |\ | Earnings per common share – Basic | $ 0.81 | $ 0.65 | $ 0.70 | $ 0.54 | $ 0.37 |\ | Earnings per common share – Diluted | 0.81 | 0.65 | 0.70 | 0.54 | 0.37 | Net Interest Income and Margin (Unaudited) Table details average balances, income/expense, and yields/rates for interest-earning assets and liabilities | (dollars in thousands) | June 30, 2025 Average Balance | June 30, 2025 Income/Expense | June 30, 2025 Yield/Rate | March 31, 2025 Average Balance | March 31, 2025 Income/Expense | March 31, 2025 Yield/Rate | June 30, 2024 Average Balance | June 30, 2024 Income/Expense | June 30, 2024 Yield/Rate | | :------------------------------------ | :---------------------------- | :--------------------------- | :----------------------- | :----------------------------- | :---------------------------- | :------------------------ | :---------------------------- | :--------------------------- | :----------------------- | | Interest-earning assets | | | | | | | | | | | Federal funds sold and interest-bearing deposits | $ 179,095 | $ 1,969 | 4.41% | $ 107,821 | $ 1,159 | 4.36% | $ 186,584 | $ 2,583 | 5.57% | | Investment securities, taxable | 141,898 | 1,315 | 3.72% | 143,609 | 1,361 | 3.84% | 133,507 | 1,376 | 4.15% | | Investment securities, nontaxable | 7,740 | 55 | 2.83% | 7,914 | 55 | 2.80% | 8,027 | 55 | 2.73% | | Loans | 3,724,064 | 48,992 | 5.28% | 3,673,912 | 47,085 | 5.20% | 3,645,595 | 46,545 | 5.14% | | Total interest-earning assets | 4,052,797 | 52,331 | 5.18% | 3,933,256 | 49,660 | 5.12% | 3,973,713 | 50,559 | 5.12% | | Interest-bearing liabilities | | | | | | | | | | | NOW accounts | $ 331,811 | 752 | 0.91% | $ 306,707 | 597 | 0.79% | $ 302,881 | 621 | 0.82% | | Savings & money market | 1,566,345 | 13,398 | 3.43% | 1,520,632 | 12,750 | 3.40% | 1,611,991 | 16,324 | 4.07% | | Time deposits | 942,880 | 10,150 | 4.32% | 930,282 | 10,222 | 4.46% | 898,878 | 11,271 | 5.04% | | Total interest-bearing deposits | 2,841,036 | 24,300 | 3.43% | 2,757,621 | 23,569 | 3.47% | 2,813,750 | 28,216 | 4.03% | | FHLB advances and other borrowings | 240,000 | 2,270 | 3.79% | 240,000 | 2,244 | 3.79% | 240,000 | 2,247 | 3.77% | | Subordinated debentures | 24,903 | 453 | 7.30% | 24,903 | 451 | 7.34% | 36,360 | 555 | 6.14% | | Total interest-bearing liabilities | 3,105,939 | 27,023 | 3.49% | 3,022,524 | 26,264 | 3.52% | 3,090,110 | 31,018 | 4.04% | | Net interest spread | | | 1.69% | | | 1.60% | | | 1.08% | | Net interest income (tax equivalent) / margin | | $25,308 | 2.50% | | $23,396 | 2.41% | | $19,541 | 1.98% | Balance Sheets (Unaudited) Unaudited balance sheets detail assets, liabilities, and shareholders' equity at various quarter-ends | (in thousands, except per share data) | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | Sep 30 2024 | Jun 30 2024 | | :------------------------------------ | :---------- | :---------- | :---------- | :---------- | :---------- | | Assets | | | | | | | Cash and due from banks | $ 25,184 | $ 24,904 | $ 22,553 | $ 25,289 | $ 21,567 | | Federal funds sold | 180,834 | 263,612 | 128,452 | 226,110 | 164,432 | | Interest-bearing deposits with banks | 65,014 | 16,541 | 11,858 | 9,176 | 8,828 | | Total cash and cash equivalents | 271,032 | 305,057 | 162,863 | 260,575 | 194,827 | | Investment securities available for sale | 128,867 | 131,290 | 132,127 | 134,597 | 121,353 | | Other investments | 19,906 | 19,927 | 19,490 | 19,640 | 18,653 | | Total investment securities | 148,773 | 151,217 | 151,617 | 154,237 | 140,006 | | Mortgage loans held for sale | 10,739 | 11,524 | 4,565 | 8,602 | 14,759 | | Loans | 3,746,841 | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | | Less allowance for credit losses | (41,285) | (40,687) | (39,914) | (40,166) | (40,157) | | Loans, net | 3,705,556 | 3,643,232 | 3,591,853 | 3,579,390 | 3,582,364 | | Bank owned life insurance | 54,886 | 54,473 | 54,070 | 53,663 | 53,263 | | Property and equipment, net | 85,921 | 87,369 | 88,794 | 90,158 | 91,533 | | Deferred income taxes | 12,971 | 13,080 | 13,467 | 11,595 | 12,339 | | Other assets | 18,189 | 18,359 | 20,364 | 16,411 | 20,758 | | Total assets | $ 4,308,067 | $ 4,284,311 | $ 4,087,593 | $ 4,174,631 | $ 4,109,849 | | Liabilities | | | | | | | Deposits | $ 3,636,329 | $ 3,620,886 | $ 3,435,765 | $ 3,518,825 | $ 3,459,869 | | FHLB Advances | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | | Subordinated debentures | 24,903 | 24,903 | 24,903 | 24,903 | 36,376 | | Other liabilities | 61,373 | 60,924 | 56,481 | 64,365 | 54,856 | | Total liabilities | 3,962,605 | 3,946,713 | 3,757,149 | 3,848,093 | 3,791,101 | | Shareholders' equity | | | | | | | Common Stock | 82 | 82 | 82 | 82 | 82 | | Nonvested restricted stock | (2,774) | (3,372) | (3,884) | (4,219) | (4,710) | | Additional paid-in capital | 124,839 | 124,561 | 124,641 | 124,288 | 124,174 | | Accumulated other comprehensive loss | (9,609) | (10,016) | (11,472) | (9,063) | (11,866) | | Retained earnings | 232,924 | 226,343 | 221,077 | 215,450 | 211,068 | | Total shareholders' equity | 345,462 | 337,598 | 330,444 | 326,538 | 318,748 | | Total liabilities and shareholders' equity | $ 4,308,067 | $ 4,284,311 | $ 4,087,593 | $ 4,174,631 | $ 4,109,849 |\ | Book value per common share | $ 42.23 | $ 41.33 | $ 40.47 | $ 40.04 | $ 39.09 |\ | Common shares outstanding | 8,181 | 8,169 | 8,165 | 8,156 | 8,155 | Asset Quality Measures (Unaudited) Detailed unaudited asset quality measures include nonperforming assets, key ratios, and allowance for credit losses | (dollars in thousands) | June 30 2025 | March 31 2025 | December 31 2024 | September 30 2024 | June 30 2024 | | :------------------------------------------ | :----------- | :------------ | :--------------- | :---------------- | :----------- | | Nonperforming Assets | | | | | | | Commercial | | | | | | | Non-owner occupied RE | $ 6,941 | $ 6,950 | $ 7,641 | $ 7,904 | $ 7,949 | | Commercial business | 717 | 1,087 | 1,016 | 838 | 829 | | Consumer | | | | | | | Real estate | 3,028 | 2,414 | 1,908 | 2,448 | 1,875 | | Home equity | 708 | 310 | 312 | 393 | 565 | | Other | - | - | - | - | - | | Total nonaccrual loans | 11,394 | 10,761 | 10,877 | 11,583 | 11,218 | | Other real estate owned | 275 | 275 | - | - | - | | Total nonperforming assets | $ 11,669 | $ 11,036 | $ 10,877 | $ 11,583 | $ 11,218 | | Nonperforming assets as a percentage of: | | | | | | | Total assets | 0.27% | 0.26% | 0.27% | 0.28% | 0.27% | | Total loans | 0.31% | 0.30% | 0.30% | 0.32% | 0.31% | | Classified assets/tier 1 capital plus allowance for credit losses | 4.28% | 4.24% | 4.25% | 4.35% | 4.22% | | Allowance for Credit Losses | | | | | | | Balance, beginning of period | $ 40,687 | $ 39,914 | $ 40,166 | $ 40,157 | $ 40,441 | | Loans charged-off | (68) | (78) | (143) | (118) | (1,049) | | Recoveries of loans previously charged-off | 16 | 101 | 141 | 127 | 15 | | Net loans (charged-off) recovered | (52) | 23 | (2) | 9 | (1,034) | | Provision for (reversal of) credit losses | 650 | 750 | (250) | - | 750 | | Balance, end of period | $ 41,285 | $ 40,687 | $ 39,914 | $ 40,166 | $ 40,157 | | Allowance for credit losses to gross loans | 1.10% | 1.10% | 1.10% | 1.11% | 1.11% | | Allowance for credit losses to nonaccrual loans | 362.35% | 378.09% | 366.94% | 346.78% | 357.95% | | Net charge-offs (recoveries) to average loans QTD (annualized) | 0.01% | 0.00% | 0.00% | 0.00% | 0.11% | Loan Composition (Unaudited) Detailed loan portfolio breakdown by commercial and consumer categories across multiple quarters | (dollars in thousands) | June 30 2025 | March 31 2025 | December 31 2024 | September 30 2024 | June 30 2024 | | :------------------------------------ | :----------- | :------------ | :--------------- | :---------------- | :----------- | | Commercial | | | | | | | Owner occupied RE | $ 686,424 | $ 673,865 | $ 651,597 | $ 642,608 | $ 642,008 | | Non-owner occupied RE | 939,163 | 926,246 | 924,367 | 917,642 | 917,034 | | Construction | 68,421 | 90,021 | 103,204 | 144,665 | 144,968 | | Business | 589,661 | 561,337 | 556,117 | 521,535 | 527,017 | | Total commercial loans | 2,283,669 | 2,251,469 | 2,235,285 | 2,226,450 | 2,231,027 | | Consumer | | | | | | | Real estate | 1,164,187 | 1,147,357 | 1,128,629 | 1,132,371 | 1,126,155 | | Home equity | 234,608 | 223,061 | 204,897 | 195,383 | 189,294 | | Construction | 25,210 | 23,540 | 20,874 | 21,582 | 32,936 | | Other | 39,167 | 38,492 | 42,082 | 43,770 | 43,109 | | Total consumer loans | 1,463,172 | 1,432,450 | 1,396,482 | 1,393,106 | 1,391,494 | | Total gross loans, net of deferred fees | 3,746,841 | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | | Less—allowance for credit losses | (41,285) | (40,687) | (39,914) | (40,166) | (40,157) | | Total loans, net | $ 3,705,556 | $ 3,643,232 | $ 3,591,853 | $ 3,579,390 | $ 3,582,364 | Deposit Composition (Unaudited) Deposit composition table outlines non-interest bearing and various interest-bearing accounts | (dollars in thousands) | June 30 2025 | March 31 2025 | December 31 2024 | September 30 2024 | June 30 2024 | | :------------------------------------ | :----------- | :------------ | :--------------- | :---------------- | :----------- | | Non-interest bearing | $ 761,492 | $ 671,609 | $ 683,081 | $ 689,749 | $ 683,291 | | Interest bearing: | | | | | | | NOW accounts | 341,903 | 371,052 | 314,588 | 339,412 | 293,875 | | Money market accounts | 1,537,400 | 1,563,181 | 1,438,530 | 1,423,403 | 1,562,786 | | Savings | 32,334 | 32,945 | 31,976 | 29,283 | 28,739 | | Time, less than $250,000 | 194,064 | 181,407 | 193,562 | 223,582 | 219,532 | | Time and out-of-market deposits, $250,000 and over | 769,136 | 800,692 | 774,028 | 813,396 | 671,646 | | Total deposits | $ 3,636,329 | $ 3,620,886 | $ 3,435,765 | $ 3,518,825 | $ 3,459,869 | Additional Information Background on Southern First Bancshares, forward-looking statements, and contact details About Southern First Bancshares Southern First Bancshares, a South Carolina-based bank holding company, operates in 12 locations with $4.3 billion in assets - Southern First Bank is the second largest bank headquartered in South Carolina[21] - The bank operates in 12 locations across Greenville, Columbia, and Charleston markets of South Carolina, Charlotte, Triangle and Triad regions of North Carolina, and Atlanta, Georgia[21] - Consolidated assets are approximately $4.3 billion[21] Forward-Looking Statements Cautionary statement on forward-looking information, highlighting risks and uncertainties - Forward-looking statements are identified by words such as 'believe,' 'expect,' 'anticipate,' 'estimate,' and 'plan,' and are subject to risks and uncertainties[22] - Key risk factors include increased competitive pressures, general economic strength, changes in loan delinquencies and charge-offs, regulatory and legislative changes, adverse capital market conditions, interest rate fluctuations, and potential recessions[23] - The company does not undertake any obligation to update forward-looking statements, except as required by law[23] Financial & Media Contact Contact information for financial and media inquiries is provided - Contact: Art Seaver at 864-679-9010[24] - Website: **www.southernfirst.com**[24](index=24&type=chunk)