Southern First Bancshares第二季純利大增70% 每股盈利1.20美元

EX-99.1
2
sfst4665911-ex991.htm
EARNINGS PRESS RELEASE FOR THE PERIOD ENDED JUNE 30, 2026

 

Exhibit 99.1

 

Southern
First Reports Second Quarter 2026 Results

 

Greenville, South Carolina, July 21, 2026
– Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced
its financial results for the three months ended June 30, 2026. Strong loan growth and continued margin expansion drove year-over-year
net interest income growth of 28%. Net income was $11.2 million and diluted earnings per share was $1.20, representing a $0.39, or 48%
increase over the second quarter of 2025, and a slight increase from the first quarter of 2026. Return on average assets was 0.96%, up
33 basis points over the second quarter of last year, and tangible common equity to assets was 9.62%, up 160 basis points from the second
quarter of 2025. Key asset quality metrics were consistent both on a linked quarter and year-over-year basis. Net charge-offs were approximately
$96 thousand, or 0.01% of average loans, annualized, and nonperforming assets were 0.27% of total assets. Provision for credit losses
decreased by $275 thousand from the prior quarter, and the allowance for credit losses represented 1.10% of loans.

 

“Our second quarter 2026 results continue
to show impressive momentum. We increased retail client deposits by $184 million in the second quarter, representing a 22% annualized
growth rate, and our loan portfolio grew at an annualized rate of 9% during the quarter. Our efficient business model, vibrant markets,
and focus on organic growth are creating value for our clients and our shareholders. Our second quarter net income was $11.2 million,
a 70% increase from the same quarter last year and a 13% increase over the first quarter of 2026. We also strengthened our capital position
by raising gross proceeds of $65.2 million and issuing 1.2 million additional common shares earlier in the quarter to support our strong
growth expectations. As planned, we redeemed a portion of our subordinated notes, which were subject to phase-out from regulatory capital
treatment and carried a higher interest rate. We are proud of our team and our accomplishments this quarter, which we believe positions
us for continued success in the second half of 2026,” stated Art Seaver, Chief Executive Officer.

 

Financial Highlights – Second Quarter
2026:

 

Earnings

 

·Diluted earnings per common share was $1.20, up $0.39 or 48%
compared to the second quarter of 2025 and up by $0.01 from the first quarter of 2026

·Net
income improved to $11.2 million, a $4.6 million increase or 70% compared to the second quarter of 2025 and a $1.3 million increase or
13%, compared to the first quarter of 2026

·Total
revenue was $35.9 million, an increase of $7.2 million or 25% year-over-year and $2.1 million on a linked quarter basis

·Net interest income improved by $7.1 million or 28% year-over-year
driven primarily by new loan volume

·Net interest margin was 2.87%, a 37-basis point increase from
2.50% for the second quarter of 2025 and a one basis point decrease from the first quarter of 2026, which included a one-time increase
in interest income from the repayment of a $5.1 million nonperforming loan

·Noninterest income was $3.5 million compared to $3.3 million
for the second quarter of 2025

·Service
fees on deposit accounts increased 53% compared to the second quarter of 2025 and 15% from last quarter due in part to an increased focus
on treasury management services

·Noninterest
expense to average assets was 1.75%, compared to 1.86% for the second quarter of 2025

·Return
on average equity was 10.28%, compared to 7.71% for the second quarter of 2025

·Return
on average assets was 0.96%, compared to 0.63% for the second quarter of 2025

 

Balance Sheet 

 

·Total loans were $4.0 billion, up $88 million or 9% (annualized)
from the first quarter of 2026

·Retail deposits were $3.6 billion, up $184 million or 22%
(annualized) from the first quarter of 2026

·Wholesale deposits were reduced by $181.3 million, or 32%
from the second quarter of 2025 and $122.3 million or 98% (annualized) from the first quarter of 2026

·Book value per common share was $47.77, an increase of 15%
(annualized) from the first quarter of 2026

·Tangible common equity (TCE) ratio was 9.62%, up 133 basis
points on a linked quarter basis and up from 8.02% for the second quarter of 2025

 

  

  

 

·Common Equity Tier 1 ratio (CET1) was 12.81%, up 178 basis
points from the first quarter of 2026 and up from 10.71% for the second quarter 2025

·Book
value per share, tangible common equity ratio and Common Equity Tier 1 ratio were each positively affected by our recent capital raise
of $65.2 million

 

Asset Quality

 

·Nonperforming assets to total assets were 0.27%, compared
to 0.26% for the linked quarter, while accruing loans 30 days or more past due to total loans decreased to 0.10%, compared to 0.20% for
the first quarter

·Classified assets/Tier 1 capital plus allowance for credit
losses was 3.15% compared to 3.25% for the linked quarter end

·Provision
for credit losses was $1.0 million and includes a $950 thousand provision for loan losses and a $75 thousand provision for unfunded commitments
driven by new loan growth; allowance for credit losses to total loans remained at 1.10% for the quarter

·Net
charge-offs were 0.01% as a percentage of average loans on an annualized basis

 

SELECTED FINANCIAL DATA

 
  
  
  
  
  
  
  
  

 
  
  
 Quarter
 Ended
  
  

 
  
  
 June
 30
 March
 31
 December
 31
 September
 30
 June
 30
  
 2Q26
 vs 2Q25

 
  
  
 2026
 2026
 2025
 2025
 2025
  
 $
 Change
 %
 Change

 
 Income
 Statement Summary ($ in thousands):
  
  
  
  
  
  
  
  
  

 
 Net
 interest income
 $
 32,370
  30,259
  28,744
  27,529
  25,295
  
 7,075
 28.0%

 
 Noninterest
 income
  
 3,508
 3,540
 3,090
 3,600
 3,334
  
 174
 5.2%

 
 Total
 Revenue
  
 35,878
 33,799
 31,834
 31,129
 28,629
  
 7,249
 25.3%

 
 Provision
 for credit losses
  
    1,025
    1,300
    650
    850
    700
  
   325
   46.4%

 
 Noninterest
 expense
  
 20,393
 
 20,015
 
 18,416
 
 18,946
 
 19,336
 
  
 1,057
 
 5.5%
 

 
 Income
 before income tax expense
  
 14,460
 
 12,484
 
 12,768
 
 11,333
 
 8,593
 
  
 5,867
 
 68.3%
 

 
 Income
 tax expense
  
 3,265
 
 2,597
 
 2,911
 
 2,671
 
 2,012
 
  
 1,253
 
 62.3%
 

 
 Net
 income available to common shareholders
  
 11,195
 
 9,887
 
 9,857
 
 8,662
 
 6,581
 
  
 4,614
 
 70.1%
 

 
 Earnings
 ($ in thousands, except per share data):
  
  
  
  
  
  
  
  
  

 
 Earnings
 per common share, diluted
  
 1.20
 
 1.19
 
 1.20
 
 1.06
 
 0.81
 
  
 0.39
 
 48.2%
 

 
 Net
 interest margin (tax-equivalent)(1) 
  
 2.87%
 2.88%
 2.72%
 2.62%
 2.50%
  
 -—
 -—

 
 Return
 on average assets(2)
  
 0.96%
 0.91%
 0.90%
 0.80%
 0.63%
  
 -—
 -—

 
 Return
 on average equity(2)
  
 10.28%
 10.67%
 10.77%
 9.78%
 7.71%
  
 -—
 -—

 
 Efficiency
 ratio(3)
  
 56.84%
 59.22%
 57.85%
 60.86%
 67.54%
  
 -—
 -—

 
 Noninterest
 expense to average assets (2)
  
 1.75%
 1.84%
 1.68%
 1.74%
 1.86%
  
 -—
 -—

 
 Balance
 Sheet ($ in thousands):
  
  
  
  
  
  
  
  
  

 
 Total
 loans(4)
 $
 4,030,255
 3,942,219
 3,845,124
 3,789,021
 3,746,841
  
 283,414
 7.6%

 
 Total
 deposits
  
 3,935,452
 3,873,455
 3,716,803
 3,676,417
 3,636,329
  
 299,123
 8.2%

 
 Retail
 deposits(5)
  
 3,556,045
 3,371,721
 3,163,914
 3,108,411
 3,075,631
  
 480,414
 15.6%

 
 Total
 assets
  
 4,700,171
 4,578,402
 4,403,494
 4,358,589
 4,308,067
  
 392,104
 9.1%

 
 Book
 value per common share
  
 47.77
 46.00
 44.89
 43.51
 42.23
  
 5.54
 13.1%

 
 Loans
 to deposits
  
 102.41%
 101.78%
 103.45%
 103.06%
 103.04%
  
 -—
 -—

 
 Holding
 Company Capital Ratios(6):
  
  
  
  
  
  
  
  
  

 
 Total
 risk-based capital ratio 
  
 14.42%
 12.83%
 12.89%
 12.79%
 12.63%
  
 -—
 -—

 
 Tier
 1 risk-based capital ratio 
  
 13.19%
 11.40%
 11.44%
 11.26%
 11.11%
  
 -—
 -—

 
 Leverage
 ratio 
  
 10.11%
 9.05%
 8.93%
 8.72%
 8.73%
  
 -—
 -—

 
 Common
 Equity Tier 1 ratio(7)
  
 12.82%
 11.03%
 11.06%
 10.88%
 10.71%
  
 -—
 -—

 
 Tangible
 common equity(8)
  
 9.62%
 8.29%
 8.37%
 8.18%
 8.02%
  
 -—
 -—

 
 Asset
 Quality Ratios:
  
  
  
  
  
  
  
  
  

 
 Nonperforming
 assets/total assets
  
 0.27%
 0.26%
 0.32%
 0.27%
 0.27%
  
 -—
 -—

 
 Classified
 assets/Tier 1 capital plus allowance for credit losses 
  
 3.15%
 3.25%
 4.28%
 3.97%
 4.35%
  
 -—
 -—

 
 Accruing
 loans 30 days or more past due/loans(4)
  
 0.10%
 0.20%
 0.14%
 0.18%
 0.14%
  
 -—
 -—

 
 Net
 charge-offs (recoveries)/average loans(4) (YTD annualized)
  
 0.01%
 0.01%
 0.00%
 0.00%
 0.00%
  
 -—
 -—

 
 Allowance
 for credit losses/loans(4)
  
 1.10%
 1.10%
 1.10%
 1.10%
 1.10%
  
 -—
 -—

 
 Allowance
 for credit losses/nonaccrual loans
  
 395.41%
 378.22%
 305.65%
 364.50%
 362.35%
  
 -—
 -—

 
  
  
  
  
  
  
  
  
  
  
  

 

 2

  

 

income statements –
Unaudited

 
  
  
  
  
  
  
  
  
  

 
  
  
 Quarter Ended
  
  

 
  
  
 Jun 30
 Mar 31
 Dec 31
 Sept 30
 Jun 30
  
 2Q26 vs 2Q25

 
 (in thousands, except per share data)
  
 2026
 2026
 2025
 2025
 2025
  
 $ Change
 % Change

 
 Interest
 income
  
  
  
  
  
  
  
  
  

 
 Loans
 $
 53,077
 51,257
 51,069
 
 50,999
 
 48,992
 
  
 4,085
 8.3%

 
 Investment
 securities
  
 1,504
 1,399
 1,268
 1,342
 1,357
  
 147
 10.8%

 
 Federal
 funds sold
  
 3,550
 1,955
 2,193
 2,645
 1,969
  
 1,581
 80.3%

 
   Total
 interest income
  
 58,131
 
 54,611
 
 54,530
 
 54,986
 
 52,318
 
  
 5,813
 11.1%

 
 Interest
 expense
  
  
  
  
  
  
  
  
  

 
 Deposits
  
 23,094
 21,697
 23,052
 24,703
 24,300
  
 (1,206)
 (5.0%)

 
 Borrowings
  
 2,667
 2,655
 2,734
 2,754
 2,723
  
 (56)
 (2.1%)

 
   Total
 interest expense 
  
    25,761
 
    24,352
 
    25,786
 
   27,457
 
    27,023
 
  
 (1,262)
 (4.7%)

 
 Net
 interest income 
  
  32,370
  30,259
  28,744
  27,529
  25,295
  
 7,075
 28.0%

 
 Provision
 for credit losses 
  
    1,025
    1,300
    650
    850
    700
  
 325
 46.4%

 
 Net
 interest income after provision for credit losses
  
 31,345
 28,959
 28,094
 26,679
 24,595
  
 6,750

 27.4%

 

 
 Noninterest
 income 
  
  
  
  
  
  
  
  
  

 
 Mortgage
 banking income
  
 1,323
 1,493
 1,689
 1,600
 1,569
  
 (246)
 (15.7%)

 
 Service
 fees on deposit accounts
  
 866
 756
 634
 625
 567
  
 299
 52.7%

 
 ATM
 and debit card income
  
 651
 588
 638
 601
 586
  
 65
 11.1%

 
 Income
 from bank owned life insurance
  
 457
 446
 450
 439
 413
  
 44
 10.7%

 
 Loss
 on sale of securities
  
 -
 -
 (515)
 -
 -
  
 -
 0.0%

 
 Other
 income
  
 211
 257
 194
 335
 199
  
 12
 6.0%

 
   Total
 noninterest income
  
 3,508
 3,540
 3,090
 3,600
 3,334
  
 174
 5.2%

 
 Noninterest
 expense 
  
  
  
  
  
  
  
  
  

 
 Compensation
 and benefits
  
 12,252
 11,980
 10,529
 11,299
 11,674
  
 578
 5.0%

 
 Occupancy
  
 2,551
 2,490
 2,465
 2,447
 2,523
  
 28
 1.1%

 
 Outside
 service and data processing costs
  
 2,416
 2,267
 2,144
 2,158
 2,189
  
 227
 10.4%

 
 Insurance
  
 858
 892
 994
 961
 910
  
 (52)
 (5.7%)

 
 Professional
 fees
  
 782
 675
 732
 605
 609
  
 173
 28.4%

 
 Marketing
  
 423
 399
 346
 412
 397
  
 26
 6.5%

 
 Other
  
 1,111
 1,312
 1,206
 1,064
 1,034
  
 77
 7.4%

 
   Total
 noninterest expenses
  
 20,393
 
 20,015
 
 18,416
 
 18,946
 
 19,336
 
  
 1,057
 5.5%

 
 Income
 before provision for income taxes
  
 14,460
 
 12,484
 
 12,768
 
 11,333
 
 8,593
 
  
 5,867
 68.3%

 
 Income
 tax expense
  
 3,265
 
 2,597
 
 2,911
 
 2,671
 
 2,012
 
  
 1,253
 62.3%

 
 Net
 income available to common shareholders
 $
 11,195
 
 9,887
 
 9,857
 
 8,662
 
 6,581
 
  
 4,614
 70.1%

 
  
  
  
  
  
  
  
  
  
  

 
 Earnings
 per common share – Basic
 $
 1.22

 1.21
 
 1.22
 
 1.07
 
 0.81
 
  
 0.41
 50.6%

 
 Earnings
 per common share – Diluted
  
 1.20
 1.19
 1.20
 1.06
 0.81
  
 0.39
 48.2%

 
 Basic
 weighted average common shares
  
 9,185
 
 8,163
 
 8,106
 
 8,091
 
 8,090
 
  
 1,095
 13.5%

 
 Diluted
 weighted average common shares
  
  9,319
 
  8,293
 
  8,229
 
  8,176
 
  8,124
 
  
 1,195
 14.7%

 
[Footnotes to table located on page 6]

 

 3

  

 

Net interest income and margin
- Unaudited

 
  
  
  
  

 
  
  
 For the Three Months Ended 

 
  
 June 30, 2026
 March 31, 2026
 June 30, 2025

 
 (dollars in thousands)
 Average
Balance
 Income/
Expense
 Yield/
Rate(2)
 Average
Balance
 Income/
Expense
 Yield/
Rate(2)
 Average
Balance
 Income/
Expense
 Yield/
Rate(2)

 
 Interest-earning assets
  
  
  
  
  
  
  
  
  

 
 Federal funds sold and interest-bearing deposits
 $     384,694
 $     3,550
 3.70%
 $     211,039
 $     1,956
 3.76%
 $     179,095
 $     1,969
 4.41%

 
   Investment securities, taxable
 147,886
 1,473
 4.00%
 141,309
 1,368
 3.93%
 141,898
 1,315
 3.72%

 
   Investment securities, nontaxable(1)
 6,283
 40
 2.57%
 6,332
 40
 2.58%
 7,740
 55
 2.83%

 
   Loans(9)
 3,978,639
 53,077
 5.35%
 3,899,002
 51,257
 5.33%
 3,724,064
 48,992
 5.28%

 
     Total interest-earning assets
 4,517,502
 58,140
 5.16%
 4,257,682
 54,621
 5.20%
 4,052,797
 52,331
 5.18%

 
   Noninterest-earning assets
 157,905
  
  
 156,466
  
  
 154,051
  
  

 
     Total assets
 $4,675,407
  
  
 $ 4,414,148
  
  
 $4,206,848
  
  

 
 Interest-bearing liabilities
  
  
  
  
  
  
  
  
  

 
   NOW accounts
 $     500,978
 1,738
 1.39%
 $   421,527
 1,102
 1.06%
 $   331,811
 752
 0.91%

 
   Savings & money market
 1,752,548
 12,908
 2.95%
 1,649,248
 11,819
 2.91%
 1,566,345
 13,398
 3.43%

 
   Time deposits
 871,563
 8,448
 3.89%
 895,101
 8,776
 3.98%
 942,880
 10,150
 4.32%

 
     Total interest-bearing deposits
 3,125,089
 23,094
 2.96%
 2,965,876
 21,697
 2.97%
 2,841,036
 24,300
 3.43%

 
 FHLB
advances and other borrowings
 240,000
 2,252
 3.76%
 240,000
 2,245
 3.79%
 240,000
 2,270
 3.79%

 
 Subordinated debentures
 24,777
 415
 6.72%
 24,903
 411
 6.69%
 24,903
 453
 7.30%

 
 Total interest-bearing liabilities
 3,389,866
 25,761
 3.05%
 3,230,779
 24,353
 3.06%
 3,105,939
 27,023
 3.49%

 
 Noninterest-bearing liabilities
 848,704
  
  
 807,686
  
  
 758,626
  
  

 
 Shareholders’ equity
 436,837
  
  
 375,683
  
  
 342,283
  
  

 
 Total liabilities and shareholders’ equity
 $  4,675,407
  
  
 $ 4,414,148
  
  
 $4,206,848
  
  

 
 Net interest spread
  
  
 2.11%
  
  
 2.15%
  
  
 1.69%

 
 Net interest income (tax equivalent) / margin
  
 $   32,379
 2.87%
  
 $  30,268
 2.88%
  
 $  25,308
 2.50%

 
 Less: tax-equivalent adjustment(1)
  
 9
  
  
 9
  
  
 13
  

 
 Net interest income
  
 $   32,370
  
  
 $  30,259
  
  
 $  25,295
  

 
[Footnotes to table located on page 6]

 

 4

  

 

Balance sheets - Unaudited

 
  
  
  
  
  
  
  
  

 
  
  
 Ending
 Balance
  
  

 
  
  
 Jun
 30
 Mar
 31
 Dec
 31
 Sept
 30
 Jun
 30
  
 2Q26
 vs 2Q25

 
 (in
 thousands, except per share data)
  
 2026
 2026
 2025
 2025
 2025
  
 $
 Change
 %
 Change

 
 Assets
  
  
  
  
  
  
  
  
  

 
 Cash and cash equivalents:
  
  
  
  
  
  
  
  
  

 
   Cash and due from banks
 $
 30,102
 32,723
 27,821
 24,600
 25,184
  
 4,918
 19.5%

 
   Federal funds sold
  
 259,049 
 228,235 
 183,473 
 178,534 
 180,834 
  
 78,215
 43.3%

 
   Interest-bearing deposits with banks
  
 72,483
 81,818
 58,289
 79,769
 65,014
  
 7,469
 11.5%

 
     Total cash and cash equivalents
  
 361,634
 342,776
 269,583
 282,903
 271,032
  
 90,602
 33.4%

 
 Investment securities:
  
  
  
  
  
  
  
  
  

 
   Investment securities available for sale
  
 144,388
 124,224
 127,730
 131,040
 128,867
  
 15,521
 12.0%

 
   Other investments
  
 20,484
 20,377
 20,063
 20,066
 19,906
  
 578
 2.9%

 
     Total investment securities
  
 164,872 
 144,601 
 147,793 
 151,106 
 148,773 
  
 16,099
 10.8%

 
 Mortgage loans held for sale
  
 8,594
 13,723
 11,569
 6,906
 10,739
  
 (2,145)
 (20.0%)

 
 Loans (4)
  
 4,030,255
 3,942,219
 3,845,124
 3,789,021
 3,746,841
  
 283,414
 7.6%

 
 Less allowance for credit losses 
  
 (44,232)
 (43,378)
 (42,280)
 (41,799)
 (41,285)
  
 (2,947)
 7.1%

 
     Loans, net
  
 3,986,023
 3,898,841
 3,802,844
 3,747,222
 3,705,556
  
 280,467
 7.6%

 
 Bank owned life insurance
  
 56,677
 56,221
 55,775
 55,324
 54,886
  
 1,792
 3.3%

 
 Property and equipment, net
  
 88,006
 88,580
 83,465
 84,586
 85,921
  
 2,085
 2.4%

 
 Deferred income taxes
  
 13,946
 13,812
 13,702
 12,657
 12,971
  
 975
 7.5%

 
 Other assets
  
 20,419
 19,848
 18,763
 17,885
 18,189
  
 2,229
 12.3%

 
     Total assets
 $
 4,700,171
 4,578,402
 4,403,494
 4,358,589
 4,308,067
  
 392,104
 9.1%

 
 Liabilities
  
  
  
  
  
  
  
  
  

 
 Deposits 
 $
 3,935,452 
 3,873,455 
 3,716,803 
 3,676,417 
 3,636,329 
  
 299,123
 8.2%

 
 FHLB Advances
  
 240,000
 240,000
 240,000
 240,000
 240,000
  
 -
    0.0%

 
 Subordinated debentures 
  
 13,403 
 24,903 
 24,903 
 24,903 
 24,903 
  
 (11,500)
 (46.2%)

 
 Other liabilities
  
 59,048
 60,631
 53,131
 60,921
 61,373
  
 (2,325)
 (3.8%)

 
     Total liabilities
  
 4,247,903
 4,198,989
 4,034,837
 4,002,241
 3,962,605
  
 285,298
 7.2%

 
 Shareholders’ equity
  
  
  
  
  
  
  
  
  

 
 Preferred stock - $.01 par value; 10,000,000 shares authorized
  
 -
 -
 -
 -
 -
  
 -
 -

 
 Common Stock - $.01 par value; 10,000,000 shares authorized
  
 95
 82
 82
 82
 82
  
 13
 15.9%

 
 Nonvested restricted stock
  
 (912)
 (1,302)
 (1,338)
 (1,929)
 (2,774)
  
 1,862
 (67.1%)

 
 Additional paid-in capital
  
 188,932
 127,168
 125,924
 125,035
 124,839
  
 64,093
 51.3%

 
 Accumulated other comprehensive loss
  
 (8,372)
 (7,865)
 (7,454)
 (8,426)
 (9,609)
  
 1,237
 (12.9%)

 
 Retained earnings
  
 272,525
 261,330
 251,443
 241,586
 232,924
  
 39,601
 17.0%

 
     Total shareholders’ equity
  
 452,268
 379,413
 368,657
 356,348
 345,462
  
 106,806
 30.9%

 
     Total liabilities and shareholders’ equity 
 $
 4,700,171
 4,578,402
 4,403,494
 4,358,589
 4,308,067
  
 392,104
 9.1%

 
  
  
  
  
  
  
  
  
  
  

 
 Common Stock
  
  
  
  
  
  
  
  
  

 
 Book value per common share
 $
 47.77
 46.00
 44.89
 43.51
 42.23
  
 5.54
 13.1%

 
 Stock price:
  
  
  
  
  
  
  
  
  

 
   High
  
 61.51 
 61.08 
 55.50 
 45.54 
 38.51 
  
 23.00
 59.7%

 
   Low
  
 54.95 
 51.26 
 41.15 
 38.74 
 30.61 
  
 24.34
 79.5%

 
   Period end
  
 61.10 
 54.50 
 51.52 
 44.12 
 38.03 
  
 23.07
 60.7%

 
 Common shares outstanding
  
 9,468
 8,248
 8,213
 8,189
 8,181
  
 1,287
 15.7%

 
  
  
  
  
  
  
  
  
  
  
  

 
[Footnotes to table located on page 6]

 

 5

  

 

Asset quality measures -
Unaudited

 
  
  
 Quarter Ended

 
  
  
 June 30
 March 31
 December 31
 September 30
 June 30

 
 (dollars in thousands)
  
 2026
 2026
 2025
 2025
 2025

 
 Nonperforming
 Assets
  
  
  
  
  
  

 
 Commercial
  
  
  
  
  
  

 
   Owner
 occupied RE
 $
 2,667
 
 2,317
 
 259
 
 262
 -
 

 
   Non-owner
 occupied RE
  
 2,030
 
 1,712
 
 6,917
 
 6,911
 
 6,941
 

 
   Commercial
 business
  
 1,330
 
 909
 
 189
 
 195
 
 717
 

 
 Consumer
  
  
  
  
  
  

 
   Real
 estate
  
 4,805
 5,786
 5,763
 3,394
 3,028

 
   Home
 equity
  
 354
 745
 705
 705
 708

 
 Total
 nonaccrual loans
  
 11,186
 11,469
 13,833
 11,467
 11,394

 
 Other
 real estate owned
  
 1,375
 
 475
 
 275
 
 275
 
 275
 

 
 Total
 nonperforming assets
 $
 12,561
 
 11,944
 
 14,108
 
 11,742
 
 11,669
 

 
 Nonperforming
 assets as a percentage of:
  
  
  
  
  
  

 
   Total
 assets
  
 0.27%
 0.26%
 0.32%
 0.27%
 0.27%

 
   Total
 loans
  
 0.31%
 0.30%
 0.37%
 0.31%
 0.31%

 
 Classified
 assets/Tier 1 capital plus allowance for credit losses
  
 3.15%
 3.25%
 4.28%
 3.97%
 4.35%

 
 Accruing
 loans 30 days or more past due/loans(4)
  
 0.10%
 0.20%
 0.14%
 0.18%
 0.14%

  
  
 Quarter Ended

 
  
  
 June 30
 March 31
 December 31
 September 30
 June 30

 
 (dollars in thousands)
  
 2026
 2026
 2025
 2025
 2025

 
 Allowance
 for Credit Losses
  
  
  
  
  
  

 
 Balance,
 beginning of period
 $
 43,378
 42,280
 
 41,799
 
 41,285
 
 40,687
 

 
 Loans
 charged-off
  
 (155)
 (78)
 (150)
 (55)
 (68)

 
 Recoveries
 of loans previously charged-off
  
 59
 26
 
 81
 
 69
 
 16 

 
   Net
 loans (charged-off) recovered
  
  (96)
  (52)
  (69)
  14
  (52)

 
 Provision
 for credit losses
  
 950
 1,150
 550
  500
 650

 
 Balance,
 end of period
 $
 44,232
 43,378
 42,280
 41,799
 41,285

 
 Allowance
 for credit losses to gross loans
  
 1.10%
 1.10%
 1.10%
 1.10%
 1.10%

 
 Allowance
 for credit losses to nonaccrual loans
  
 395.41%
 378.22%
 305.65%
 364.50%
 362.35%

 
 Net
 charge-offs (recoveries) to average loans QTD (annualized)
  
 0.01%
 0.01%
 0.01%
 0.00%
 0.01%

 
[Footnotes to table located on page 6]

 

 6

  

 

LOAN COMPOSITION
- Unaudited

 
   
  
  
  
  
  
  

 
  
  
 Quarter
 Ended
  
  

 
  
  
 Jun
 30
 Mar
 31
 Dec
 31
 Sept
 30
 Jun
 30
  
 2Q26
 vs 2Q25

 
 (dollars
 in thousands)
  
 2026
 2026
 2025
 2025
 2025
  
 $
 Change
 %
 Change

 
 Commercial
  
  
  
  
  
  
  
  
  

 
 Owner
 occupied RE
 $
 755,419 
 759,602 
 736,979 
 705,383 
 686,424 
  
 68,995
 10.1%

 
 Non-owner
 occupied RE
  
 967,698 
 950,696 
 956,812 
 943,304 
 939,163 
  
 28,535
 3.0%

 
 Construction
  
 66,105 
 69,463 
 63,666 
 71,928 
 68,421 
  
 (2,316)
 (3.4%)

 
 Business
  
 713,017 
 677,742 
 619,667 
 604,411 
 589,661 
  
 123,356
 20.9%

 
 Total
 commercial loans
  
 2,502,239 
 2,457,503 
 2,377,124 
 2,325,026 
 2,283,669 
  
 218,570
 9.6%

 
 Consumer
  
  
  
  
  
  
  
  
  

 
 Real
 estate
  
 1,167,282 
 1,148,129 
 1,153,285 
 1,159,693 
 1,164,187 
  
 3,095
 0.3%

 
 Home
 equity 
  
 273,017 
 262,530 
 248,685 
 239,996 
 234,608 
  
 38,409
 16.4%

 
 Construction
  
 36,371 
 33,879 
 24,997 
 25,842 
 25,210 
  
 11,161
 44.3%

 
 Other
  
 51,346 
 40,178 
 41,033 
 38,464 
 39,167 
  
 12,179
 31.1%

 
 Total
 consumer loans
  
 1,528,016 
 1,484,716 
 1,468,000 
 1,463,995 
 1,463,172 
  
 64,844
 4.4%

 
 Total
 gross loans, net of deferred fees     
  
 4,030,255 
 3,942,219 
 3,845,124 
 3,789,021 
 3,746,841 
  
 283,414
 7.6%

 
 Less—allowance
 for credit losses
  
 (44,232) 
 (43,378) 
 (42,280)
 (41,799) 
 (41,285) 
  
 (2,947)
 7.1%

 
 Total
 loans, net
 $
 3,986,023 
 3,898,841 
 3,802,844 
 3,747,222 
 3,705,556 
  
 280,467
 7.6%

 
  
  
  
  
  
  
  
  
  
  

 
 Yield
 on average loans
  
 5.35% 
 5.33% 
 5.29% 
 5.35% 
 5.28% 
  
 -— 
 -—

 
 

DEPOSIT COMPOSITION - Unaudited

 
   
  
  
  
  
  
  

 
  
  
 Quarter
 Ended
  
  

 
  
  
 Jun
 30
 Mar
 31
 Dec
 31
 Sept
 30
 Jun
 30
  
 2Q26
 vs 2Q25

 
 (dollars in thousands)
  
 2026
 2026
 2025
 2025
 2025
  
 $
 Change
 %
 Change

 
 Non-interest
 bearing
 $
 799,246 
 799,692 
 732,287 
 736,518 
 761,492 
  
 37,754
 5.0%

 
 Interest bearing:
  
  
  
  
  
  
  
  
  

 
    NOW accounts
  
 538,443 
 495,657 
 423,270 
 343,615 
 341,903 
  
 196,540
 57.5%

 
    Money market accounts
  
 1,765,697 
 1,652,125 
 1,573,039 
 1,572,738 
 1,537,400 
  
 228,297
 14.8%

 
    Savings
  
 29,460 
 30,332 
 29,470 
 29,381 
 32,334 
  
 (2,874)
 (8.9%)

 
    Time deposits, less than $250,000
  
 175,971 
 170,496 
 180,783 
 202,353 
 194,064 
  
 (18,093)
 (9.3%)

 
    Time deposits, $250,000 and over(10)
  
 626,635 
 725,153 
 777,954 
 791,812 
 769,136 
  
 (142,501)
 (18.5%)

 
 Total deposits
 $
 3,935,452
 3,873,455
 3,716,803
 3,676,417
 3,636,329
  
 299,123
 8.2%

 
  
  
  
  
  
  
  
  
  
  

 
 Total retail deposits
  
 3,556,045
 3,371,721
 3,163,914
 3,108,411
 3,075,631
  
 480,414
 15.6%

 
 Total wholesale deposits
  
 379,407
 501,734
 552,889
 568,006
 560,697
  
 (181,290)
 (32.3%)

 
 Cost of average deposits
  
 2.37%
 2.37%
 2.50%
 2.69%
 2.75%
  
 -—
 -—

 
 Cost of average retail deposits
  
 2.11%
 2.06%
 2.18%
 2.36%
 2.42%
  
 -—
 -—

 
 Loans to deposits
  
 102.41%
 101.78%
 103.45%
 103.06%
 103.04%
  
 -—
 -—

 
  
  
  
  
  
  
  
  
  
  
  

 

 
 Footnotes to tables:
  

 
  (1) The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis.

 
  (2) Annualized for the respective three-month period.

 
  (3) Noninterest expense divided by the sum of net interest income and noninterest income.

 
  (4) Excludes mortgage loans held for sale.

 
  (5) Excludes out of market (wholesale) deposits totaling $379.4 million.

 
  (6) June 30, 2026 ratios are preliminary.

 
  (7) The Common Equity Tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets.

 
 
  (8) The tangible common equity ratio is calculated as total equity
less preferred stock divided by total assets.

 
  (9) Includes mortgage loans held for sale.

 
 (10) Includes out of market deposits

 
 

About Southern First Bancshares

Southern First Bancshares, Inc., Greenville, South
Carolina is a registered bank holding company incorporated under the laws of South Carolina. The company’s wholly owned subsidiary,
Southern First Bank, is the second largest bank headquartered in South Carolina. Southern First Bank has been providing financial services
since 1999 and now operates in 12 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Charlotte,
Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately
$4.7 billion, and its common stock is traded on The NASDAQ Global Market under the symbol “SFST.”  More information
can be found at www.southernfirst.com.

 

 7

  

 

FORWARD-LOOKING STATEMENTS

Certain statements in this news release contain
“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements
relating to future plans and expectations, and are thus prospective. Such forward-looking statements are identified by words such
as “believe,” “expect,” “anticipate,” “estimate,” “preliminary”, “intend,”
“plan,” “target,” “continue,” “lasting,” and “project,” as well as similar
expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially
from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying
the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance
that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information
should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by
our company will be achieved.

 

The following factors, among others, could cause
actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1)
competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending,
third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies
in which the company conducts operations may be different than expected; (3) the rate of delinquencies and amounts of charge-offs, the
level of allowance for credit loss, the rates of loan and deposit growth as well as pricing of each product, or adverse changes in asset
quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation,
policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, changes
affecting oversight of the financial services industry or consumer protection; (5) the impact of changes to Congress and the office of
the President on the regulatory landscape and capital markets; (6) adverse conditions in the stock market, the public debt market and
other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (7) changes
in interest rates, which may continue to affect the company’s net income, interest expense, prepayment penalty income, mortgage
banking income, and other future cash flows, or the market value of the company’s assets, including its investment securities; (8)
trade wars, government shutdowns, or a potential recession which may cause adverse risk to the overall economy, and could indirectly pose
challenges to our clients and to our business; (9) any increase in FDIC assessments which have increased and may continue to increase
our cost of doing business; and (10) changes in accounting principles, policies, practices, or guidelines. Additional factors that
could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such
as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the
SEC’s Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the company
or any person acting on its behalf are expressly qualified in its entirety by the cautionary statements above. We do not undertake any
obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements
are made, except as required by law.

 

 

 

MEDIA CONTACT:
ART SEAVER 864-679-9010

 

FINANCIAL CONTACT:

CHRIS ZYCH 864-679-9070

 

WEB SITE: www.southernfirst.com

 

SOURCE: Southern First Bancshares, Inc.

 

 8