13:52:14 EDT Tue 21 Jul 2026
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Southern First Reports Second Quarter 2026 Results

2026-07-21 08:31 ET - News Release

Southern First Reports Second Quarter 2026 Results

PR Newswire

GREENVILLE, S.C., July 21, 2026 /PRNewswire/ -- 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                            3.15 %    3.25 %                   4.28 %     3.97 %                  4.35 %          ­­-            ­­-
credit losses



        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                             0.01 %    0.01 %                   0.00 %     0.00 %                  0.00 %          ­­-            ­­-
annualized)



        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 %          ­­-            ­­-




      
            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                31,345                            28,959          28,094    26,679    24,595          6,750                     27.4 %
losses



      
            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]


          
            NET INTEREST INCOME AND MARGIN - 
 Unaudited




                                                                                                                                                                        
  
 For the Three Months Ended


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



          (dollars in thousands)                                         Average      Income/                       Yield/                 Average             Income/        Yield/                        Average                  Income/          Yield/
                                                                       Rate          Rate



                                                                                                                                                                                                                                                         (2)
                                                                     Balance      Expense                            (2)               Balance             Expense             (2)                      Balance                  Expense           Rate



          
            Interest-earning assets



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



            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'                         $4,675,407                                                         $4,414,148                                                        $4,206,848
equity



          Net interest spread                                                                                     2.11 %                                                    2.15 %                                                                  1.69 %



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



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



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


                                                                                         
      [Footnotes to table located on page 6]


          
            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                   95                                82               82            82             82                 13                       15.9 %
authorized



          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]


          
            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                                    3.15 %         3.25 %             4.28 %            3.97 %         4.35 %
losses



          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                                             0.01 %         0.01 %             0.01 %            0.00 %         0.01 %
(annualized)


                                                                        
 [Footnotes to table located on page 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.

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

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SOURCE Southern First Bancshares, Inc.

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