Southern First(US:SFST)2025-10-28 11:00Financial Performance - Net income for Q3 2025 was $8.7 million, or $1.07 per diluted share, representing a 32% increase from Q2 2025 and a 98% increase from Q3 2024[5] - Total revenue for Q3 2025 reached $31.1 million, up 8.7% from $28.6 million in Q2 2025 and 30.8% from $23.8 million in Q3 2024[4] - Noninterest income for Q3 2025 was $3.6 million, a 13.39% increase from $3.3 million in Q2 2025, driven by a 10% increase in service fees on deposit accounts[8] - Noninterest expense decreased to $18.9 million, down from $19.3 million in Q2 2025, but up from $18.0 million in Q3 2024[10] - The effective tax rate for Q3 2025 was 23.6%, slightly up from 23.4% in Q2 2025[11] Loan and Deposit Growth - Total loans increased to $3.79 billion, a 4% annualized growth from Q2 2025, while core deposits rose to $2.88 billion, up 2% annualized from Q2 2025[5] - Loans increased to $3.79 billion as of September 30, 2025, representing a 4.68% increase from the previous year[14] - Total deposits amounted to $3.68 billion at September 30, 2025, up from $3.64 billion in the second quarter of 2025[19] - Owner-occupied real estate loans increased to $705.4 million at September 30, 2025, from $686.4 million in the previous quarter[18] - Non-owner occupied real estate loans were $943.3 million, slightly up from $939.2 million in the second quarter of 2025[18] Asset Quality - Nonperforming assets to total assets remained stable at 0.27%, with past due loans at 0.18% of total loans[5] - Total nonperforming assets were $11.7 million at September 30, 2025, representing 0.27% of total assets, unchanged from the second quarter of 2025 and down from 0.28% in the third quarter of 2024[15] - The classified asset ratio decreased to 3.90% for the third quarter of 2025 from 4.28% in the second quarter of 2025[15] Credit Losses - The provision for credit losses was $850 thousand in Q3 2025, compared to $700 thousand in Q2 2025, reflecting an increase in past due loans[7] - The allowance for credit losses increased to $41.8 million, or 1.10% of total loans, compared to $41.3 million, also 1.10% of total loans at June 30, 2025[16] - Net recoveries for the third quarter of 2025 were $14 thousand, compared to net charge-offs of $52 thousand in the second quarter of 2025[16] - The provision for credit losses was $500 thousand for the third quarter of 2025, down from $650 thousand in the second quarter of 2025[16] Interest Income and Margin - Net interest income for Q3 2025 was $27.5 million, an increase of $2.2 million from Q2 2025, driven by a $2.7 million increase in interest income[13] - Net interest margin improved to 2.62% in Q3 2025, compared to 2.50% in Q2 2025 and 2.08% in Q3 2024[5] - The yield on interest-earning assets increased by seven basis points from the previous quarter, while the cost of interest-bearing deposits decreased by seven basis points[13] - Net interest margin on a tax-equivalent basis was 2.62% for Q3 2025, up 12 basis points from Q2 2025 and 54 basis points from Q3 2024[13] Balance Sheet Highlights - Total assets as of September 30, 2025, were $4.36 billion, a 4.41% increase from $4.17 billion a year earlier[14] - Total liabilities were $4.00 billion, reflecting a 4.01% increase from $3.85 billion a year earlier[14] - Shareholders' equity increased to $356.3 million, a 9.13% increase from $326.5 million a year earlier[14] - The book value per common share rose to $43.51, an 8.67% increase from $40.04 a year earlier[14] - The stock price at the end of the period was $44.12, a 29.46% increase from $34.08 a year earlier[14] - Total cash and cash equivalents increased by 8.57% to $282.9 million compared to the previous year[14] Company Overview - The company operates in 12 locations across South Carolina and parts of North Carolina and Georgia, with consolidated assets of approximately $4.4 billion[22]