Southern First(US:SFST)2026-01-22 12:00Financial Performance - Net income for Q4 2025 was $9.9 million, or $1.21 per diluted share, representing a 14% increase from Q3 2025 and a 73% increase from Q4 2024[4]. - Total revenue for Q4 2025 reached $31.8 million, up 2% from Q3 2025 and up 26% from Q4 2024[4]. - Net interest income for Q4 2025 was $28.7 million, a $1.2 million increase from Q3 2025, driven by a $1.7 million decrease in interest expense[12]. - Noninterest income for Q4 2025 was $3.1 million, down from $3.6 million in Q3 2025, primarily due to a $515 thousand loss on the sale of securities[8]. - Noninterest expense decreased to $18.4 million, a reduction of $530 thousand from Q3 2025, driven by lower compensation and benefits[10]. - The provision for credit losses was $650 thousand for Q4 2025, down from $850 thousand in Q3 2025[7]. Asset and Loan Growth - Total loans amounted to $3.8 billion, reflecting a 6% increase from Q4 2024, while total deposits reached $3.7 billion, up 8% from Q4 2024[5]. - Total assets reached $4.403 billion as of December 31, 2025, reflecting a 7.73% increase from the previous year[13]. - Loans increased to $3.845 billion, a 5.87% rise compared to December 31, 2024[13]. - Total deposits amounted to $3.717 billion, representing an 8.18% increase year-over-year[13]. - Owner-occupied real estate loans increased to $736.979 million at December 31, 2025, from $705.383 million in the previous quarter[17]. Asset Quality - Nonperforming assets to total assets ratio was 0.32%, with past due loans at 0.13% of total loans[5]. - Total nonperforming assets were $14.1 million at December 31, 2025, representing 0.32% of total assets, an increase from 0.27% in the third quarter of 2025[14]. - The allowance for credit losses was $42.3 million, or 1.10% of total loans, consistent with the previous quarter and the same period last year[15]. - Net charge-offs for the fourth quarter of 2025 were $69 thousand, compared to net recoveries of $14 thousand in the third quarter of 2025[15]. - The classified asset ratio increased to 4.22% for the fourth quarter of 2025 from 3.90% in the third quarter of 2025[14]. - The provision for credit losses was $550 thousand for the fourth quarter of 2025, up from $500 thousand in the previous quarter[15]. Shareholder Metrics - Book value per common share increased to $44.89, a 3% rise from Q3 2025 and an 11% increase from Q4 2024[5]. - Book value per common share increased to $44.89, a 10.92% rise compared to the previous year[13]. - Shareholders' equity grew to $368.7 million, an 11.56% increase from the previous year[13]. - The stock price at period end was $51.52, reflecting a 29.61% increase from December 31, 2024[13]. Tax and Interest Metrics - The effective tax rate for Q4 2025 was 22.8%, compared to 23.6% in Q3 2025 and 18.4% in Q4 2024[11]. - Net interest margin improved to 2.72%, an increase of 10 basis points from Q3 2025 and 47 basis points from Q4 2024[5]. - Net interest margin on a tax-equivalent basis increased to 2.72% in Q4 2025, up 10 basis points from Q3 2025 and 47 basis points from Q4 2024[12]. - Average balances of interest-earning assets grew by $218 million compared to Q4 2024, contributing to a $6.3 million increase in net interest income year-over-year[12]. Operational 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[21]. - Cash and cash equivalents totaled $269.6 million, a 65.53% increase from the previous year[13]. - Non-interest bearing deposits decreased to $732.287 million at December 31, 2025, from $736.518 million in the previous quarter[18]. - Total deposits reached $3.717 billion at December 31, 2025, compared to $3.676 billion at September 30, 2025[18]. - Total gross loans, net of deferred fees, increased to $3.845 billion at December 31, 2025, up from $3.789 billion in the previous quarter[17].