08:42:20 EST Thu 22 Jan 2026
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Southern First Reports Fourth Quarter 2025 Results

2026-01-22 07:15 ET - News Release

Southern First Reports Fourth Quarter 2025 Results

PR Newswire

GREENVILLE, S.C., Jan. 22, 2026 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three and twelve months ended December 31, 2025.

"We are very pleased to report our fourth quarter financial performance, which was our strongest of 2025 and clearly demonstrates the continued momentum we achieved throughout the year. We maintained solid loan growth, funded by even stronger growth in client deposits. Our full banking relationship strategy continues to drive improving financial returns, including an expanding net interest margin that increased 10 basis points from last quarter and 36 basis points over last year. We continue to strengthen our balance sheet with higher capital levels and have again achieved outstanding asset quality. Our team remains highly motivated and intentional about improving financial performance while delivering client service at levels that are second to none, and that commitment was clearly reflected in our results this quarter and throughout the year. We are fortunate to operate in some of the strongest markets in the Southeast and will continue expanding our teams to grow our business in the disciplined manner that has defined our success. While we remain mindful of broader economic conditions and factors impacting our business, our markets have proven to be resilient and offer tremendous growth opportunities that we intend to fully capitalize on," stated Art Seaver, Chief Executive Officer. "Looking ahead to the new year, we are optimistic and have high expectations for continued financial performance improvement. Our business pipeline is strong and our team is ready. We expect to build on our track record of attracting experienced bankers who share our commitment to exceptional client service and to supporting our local communities, which remains at the core of everything we do."

2025 Fourth Quarter Highlights

  • Diluted earnings per common share of $1.21, up $0.14, or 13%, from Q3 2025, and up $0.51, or 73%, compared to Q4 2024
  • Net interest margin of 2.72%, compared to 2.62% for Q3 2025 and 2.25% for Q4 2024
  • Total loans of $3.8 billion, up 6% from Q4 2024; Total deposits of $3.7 billion, up 8% from Q4 2024; Core deposits of $2.9 billion, up 8% from Q4 2024
  • Nonperforming assets to total assets of 0.32% and past due loans to total loans of 0.13%
  • Book value per common share of $44.89 increased 3% from Q3 2025 and increased 11% compared to Q4 2024; Tangible Common Equity (TCE) ratio of 8.37%
                                                                                                                            
      
 Quarter Ended


                                                                                                         December 31 September 30            June 30      March 31    December 31


                                                                                                                2025          2025                2025           2025            2024



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



 Net income available to common shareholders                                                       $
        9,857         8,662               6,581          5,266           5,627



 Earnings per common share, diluted                                                                         1.21          1.07                0.81           0.65            0.70



 Total revenue(1)                                                                                         31,834        31,129              28,629         26,497          25,237



 Net interest margin (tax-equivalent)(2)                                                                  2.72 %       2.62 %             2.50 %        2.41 %         2.25 %



 Return on average assets(3)                                                                              0.90 %       0.80 %             0.63 %        0.52 %         0.54 %



 Return on average equity(3)                                                                             10.77 %       9.78 %             7.71 %        6.38 %         6.80 %



 Efficiency ratio(4)                                                                                     57.85 %      60.86 %            67.54 %       71.08 %        73.48 %



 Noninterest expense to average assets (3)                                                                1.68 %       1.74 %             1.86 %        1.87 %         1.78 %



 
          Balance Sheet ($ in thousands):



 Total loans(5)                                                                                $
        3,845,124     3,789,021           3,746,841      3,683,919       3,631,767



 Total deposits                                                                                        3,716,803     3,676,417           3,636,329      3,620,886       3,435,765



 Core deposits(6)                                                                                      2,884,163     2,884,604           2,867,193      2,820,194       2,661,736



 Total assets                                                                                          4,403,494     4,358,589           4,308,067      4,284,311       4,087,593



 Book value per common share                                                                               44.89         43.51               42.23          41.33           40.47



 Loans to deposits                                                                                      103.45 %     103.06 %           103.04 %      101.74 %       105.70 %



 
          Holding Company Capital Ratios(7):



 Total risk-based capital ratio                                                                          12.89 %      12.79 %            12.63 %       12.69 %        12.70 %



 Tier 1 risk-based capital ratio                                                                         11.44 %      11.26 %            11.11 %       11.15 %        11.16 %



 Leverage ratio                                                                                           8.93 %       8.72 %             8.73 %        8.79 %         8.55 %



 Common equity tier 1 ratio(8)                                                                           11.06 %      10.88 %            10.71 %       10.75 %        10.75 %



 Tangible common equity(9)                                                                                8.37 %       8.18 %             8.02 %        7.88 %         8.08 %



 
          Asset Quality Ratios:



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



 Classified assets/tier one capital plus allowance for credit losses                                      4.22 %       3.90 %             4.28 %        4.24 %         4.25 %



 Accruing loans 30 days or more past due/loans(5)                                                         0.13 %       0.18 %             0.14 %        0.27 %         0.18 %



 Net charge-offs (recoveries)/average loans(5) (YTD annualized)                                           0.00 %       0.00 %             0.00 %        0.00 %         0.04 %



 Allowance for credit losses/loans(5)                                                                     1.10 %       1.10 %             1.10 %        1.10 %         1.10 %



 Allowance for credit losses/nonaccrual loans                                                           305.65 %     364.50 %           362.35 %      378.09 %       366.94 %


                                                                      
 [Footnotes to table located on page 6]


 
            INCOME STATEMENTS - 
            Unaudited




                                                                                                              Quarter Ended                                   Twelve Months Ended


                                                                          Dec 31                      Sept 30         Jun 30  Mar 31   Dec 31                         December 31



 (in thousands, except per share data)                                  2025                          2025            2025     2025      2024         2025       2024



 
            Interest income



 Loans                                                      $
          51,069                        50,999          48,992   47,085    47,163      198,145    186,863



 Investment securities                                                 1,268                         1,342           1,357    1,403     1,504        5,370      5,812



 Federal funds sold                                                    2,193                         2,645           1,969    1,159     2,465        7,966      8,537



   Total interest income                                              54,530                        54,986          52,318   49,647    51,132      211,481    201,212



 
            Interest expense



 Deposits                                                             23,052                        24,703          24,300   23,569    25,901       95,624    108,774



 Borrowings                                                            2,734                         2,754           2,723    2,695     2,773       10,906     11,216



   Total interest expense                                             25,786                        27,457          27,023   26,264    28,674      106,530    119,990



 Net interest income                                                  28,744                        27,529          25,295   23,383    22,458      104,951     81,222



 Provision (reversal) for credit losses                                  650                           850             700      750     (200)       2,950        125



 Net interest income after provision for credit losses                28,094                        26,679          24,595   22,633    22,658      102,001     81,097



 
            Noninterest income



 Mortgage banking income                                               1,689                         1,600           1,569    1,424     1,024        6,282      5,560



 Service fees on deposit accounts                                        634                           625             567      539       499        2,365      1,764



 ATM and debit card income                                               638                           601             586      552       607        2,377      2,337



 Income from bank owned life insurance                                   450                           439             413      403       407        1,705      1,569



 Loss on sale of securities                                            (515)                                                                    (515)



 Other income                                                            194                           335             199      196       242          924        911



   Total noninterest income                                            3,090                         3,600           3,334    3,114     2,779       13,138     12,141



 
            Noninterest expense



 Compensation and benefits                                            10,529                        11,299          11,674   11,304    10,610       44,806     43,546



 Occupancy                                                             2,465                         2,447           2,523    2,548     2,587        9,983     10,291



 Outside service and data processing costs                             2,144                         2,158           2,189    2,037     2,003        8,528      7,741



 Insurance                                                               994                           961             910    1,010     1,077        3,875      4,022



 Professional fees                                                       732                           605             609      509       656        2,455      2,404



 Marketing                                                               346                           412             397      374       335        1,529      1,412



 Other                                                                 1,206                         1,064           1,034    1,054     1,276        4,358      3,910



   Total noninterest expenses                                         18,416                        18,946          19,336   18,836    18,544       75,534     73,326



 Income before provision for income taxes                             12,768                        11,333           8,593    6,911     6,893       39,605     19,912



 
            Income tax expense                                       2,911                         2,671           2,012    1,645     1,266        9,239      4,382



 
            Net income available to common shareholders    $
          9,857                         8,662           6,581    5,266     5,627       30,366     15,530





 Earnings per common share - Basic                            $
          1.23                          1.08            0.81     0.65      0.70         3.77       1.92



 Earnings per common share - Diluted                                    1.21                          1.07            0.81     0.65      0.70         3.75       1.91



 Basic weighted average common shares                                  8,045                         8,031           8,036    8,078     8,023        8,048      8,081



 Diluted weighted average common shares                                8,123                         8,080           8,051    8,111     8,097        8,091      8,117


                                                           
  [Footnotes to table located on page 6]

Net income for the fourth quarter of 2025 was $9.9 million, or $1.21 per diluted share, a $1.2 million increase from the third quarter of 2025 and a $4.2 million increase from the fourth quarter of 2024. Net interest income increased $1.2 million during the fourth quarter of 2025, as compared to the third quarter of 2025, and increased $6.3 million, as compared to the fourth quarter of 2024. The increase in net interest income from the prior quarter and prior year was primarily driven by an increase in interest income on loans, combined with a decrease in interest expense on deposits.

The provision for credit losses was $650 thousand for the fourth quarter of 2025 compared to a provision for credit losses of $850 thousand for the third quarter of 2025 and a $200 thousand reversal of the provision for credit losses for the fourth quarter of 2024. The provision during the fourth quarter of 2025 includes a $550 thousand provision for credit losses and a $100 thousand provision for the reserve for unfunded commitments. The provision for credit losses in the fourth quarter of 2025 was primarily driven by an increase in the impairment on individually evaluated loans.

Noninterest income was $3.1 million for the fourth quarter of 2025, compared to $3.6 million for the third quarter of 2025, and $2.8 million for the fourth quarter of 2024. Mortgage banking income continues to be the largest component of noninterest income at $1.7 million in fee revenue for the fourth quarter of 2025 and $1.0 million for the fourth quarter of 2024. The decrease in noninterest income from the previous quarter was driven by a $515 thousand loss on the sale of securities, as we executed transactions in our portfolio as part of our overall balance sheet and interest rate risk management strategies.

Noninterest expense for the fourth quarter of 2025 was $18.4 million, a $530 thousand decrease from the third quarter of 2025, and a $128 thousand decrease from the fourth quarter of 2024. The decrease in noninterest expense from the previous quarter was driven by a decrease in compensation and benefits primarily related to a reduction in group medical insurance expense, offset in part by an increase in professional fees and other noninterest expenses. The decrease in noninterest expense from the previous year related primarily to decreases in compensation and benefits, occupancy, and insurance expense, offset in part by an increase in outside service and data processing costs.

The effective tax rate was 22.8% for the fourth quarter of 2025, 23.6% for the third quarter of 2025, and 18.4% for the fourth quarter of 2024. The changes in the effective tax rate are driven by the effect of equity compensation transactions during the quarter.


 
            NET INTEREST INCOME AND MARGIN - 
       Unaudited




                                                                                                                                                                                                                                                            For the Three Months Ended


                                                                                             December 31, 2025                                                                     September 30, 2025                                                                  December 31, 2024


  (dollars in
   thousands)                                                 Average           Income/                     Yield/                                   Average            Income/                        Yield/              Average             Income/                                     Yield/
                                                Balance               Expense            Rate(3)                                  Balance                      Expense              Rate(3)                       Balance              Expense                            Rate(3)


               Interest-earning assets


  Federal funds sold
   and interest-
   bearing deposits                                          $218,291             $2,193                      3.99 %                                  $238,552              $2,645                         4.40 %             $203,065               $2,465                                      4.83 %


    Investment
     securities,
     taxable                                                  138,616              1,229                      3.52 %                                   141,143               1,307                         3.67 %              145,932                1,462                                      3.99 %


    Investment
     securities,
     nontaxable(2)                                              7,641                 51                      2.63 %                                     7,811                  45                         2.31 %                7,988                   55                                      2.72 %


    Loans(10)                                               3,830,741             51,069                      5.29 %                                 3,783,885              50,999                         5.35 %            3,620,765               47,163                                      5.18 %


      Total interest-
       earning assets                                       4,195,289             54,542                      5.16 %                                 4,171,391              54,996                         5.23 %            3,977,750               51,145                                      5.12 %


    Noninterest-
     earning assets                                           151,515                                                                                 150,552                                                                158,779


      Total assets                                         $4,346,804                                                                              $4,321,943                                                             $4,136,529


               Interest-bearing liabilities


  NOW accounts                                               $360,509                834                      0.92 %                                  $329,301                 746                         0.90 %             $300,902                  693                                      0.92 %


  Savings & money
   market                                                   1,614,469             12,530                      3.08 %                                 1,599,710              13,509                         3.35 %            1,492,534               13,525                                      3.61 %


  Time deposits                                               937,557              9,688                      4.10 %                                   984,078              10,448                         4.21 %              992,335               11,683                                      4.68 %


  Total interest-
   bearing deposits                                         2,912,535             23,052                      3.14 %                                 2,913,089              24,703                         3.36 %            2,785,771               25,901                                      3.70 %


  FHLB advances and
   other borrowings                                           240,000              2,295                      3.79 %                                   240,087               2,296                         3.79 %              240,000                2,295                                      3.80 %


  Subordinated
   debentures                                                  24,903                439                      6.99 %                                    24,903                 458                         7.30 %               24,903                  478                                      7.64 %


  Total interest-
   bearing
   liabilities                                              3,177,438             25,786                      3.22 %                                 3,178,079              27,457                         3.43 %            3,050,674               28,674                                      3.74 %


  Noninterest-
   bearing
   liabilities                                                806,235                                                                                 792,575                                                                756,636


  Shareholders'
   equity                                                     363,131                                                                                 351,289                                                                329,219


  Total liabilities
   and shareholders'
   equity                                                  $4,346,804                                                                              $4,321,943                                                             $4,136,529



 Net interest spread                                                                                     1.94 %                                                                                     1.80 %                                                                              1.38 %


  Net interest income (tax
   equivalent) /margin                                                        $28,756                      2.72 %                                                      $27,539                         2.62 %                                  $22,471                                      2.25 %


  Less: tax-equivalent
   adjustment(2)                                                                   12                                                                                       10                                                                      13



 Net interest income                                                         $28,744                                                                                  $27,529                                                                 $22,458


                                                                                                                 
   [Footnotes to table located on page 6]

Net interest income was $28.7 million for the fourth quarter of 2025, a $1.2 million increase from the third quarter of 2025, driven by a $1.7 million decrease in interest expense. The decrease in interest expense was driven by a 22 basis point decrease in the cost of our interest-bearing deposits over the previous quarter. In comparison to the fourth quarter of 2024, net interest income increased $6.3 million, resulting primarily from $218 million growth in the average balances of our interest-earning assets combined with a 56 basis point decrease in the cost of interest-bearing deposits. Net interest margin, on a tax-equivalent basis, was 2.72% for the fourth quarter of 2025, a 10 basis point increase from 2.62% for the third quarter of 2025 and a 47 basis point increase from 2.25% for the fourth quarter of 2024.


 
            BALANCE SHEETS - 
            Unaudited




                                                                                                                
     
 Ending Balance                               Dec 31 2025
                                                                                                                                                                                  -


                                                                             Dec 31                           Sept 30           Jun 30       Mar 31        Dec 31            Dec 31 2024



 (in thousands, except per share data)                                     2025                               2025              2025          2025           2024               % Change



 
            Assets



 Cash and cash equivalents:



   Cash and due from banks                                        $
       27,821                             24,600            25,184        24,904         22,553                 23.36 %



   Federal funds sold                                                   183,473                            178,534           180,834       263,612        128,452                 42.83 %



   Interest-bearing deposits with banks                                  58,289                             79,769            65,014        16,541         11,858                391.56 %



     Total cash and cash equivalents                                    269,583                            282,903           271,032       305,057        162,863                 65.53 %



 Investment securities:



   Investment securities available for sale                             127,730                            131,040           128,867       131,290        132,127                (3.33 %)



   Other investments                                                     20,063                             20,066            19,906        19,927         19,490                  2.94 %



     Total investment securities                                        147,793                            151,106           148,773       151,217        151,617                (2.52 %)



 Mortgage loans held for sale                                            11,569                              6,906            10,739        11,524          4,565                153.43 %



 Loans (5)                                                            3,845,124                          3,789,021         3,746,841     3,683,919      3,631,767                  5.87 %



 Less allowance for credit losses                                      (42,280)                          (41,799)         (41,285)     (40,687)      (39,914)                 5.93 %



     Loans, net                                                       3,802,844                          3,747,222         3,705,556     3,643,232      3,591,853                  5.87 %



 Bank owned life insurance                                               55,775                             55,324            54,886        54,473         54,070                  3.15 %



 Property and equipment, net                                             83,465                             84,586            85,921        87,369         88,794                (6.00 %)



 Deferred income taxes                                                   13,702                             12,657            12,971        13,080         13,467                  1.75 %



 Other assets                                                            18,763                             17,885            18,189        18,359         20,364                (7.86 %)



     Total assets                                              $
       4,403,494                          4,358,589         4,308,067     4,284,311      4,087,593                  7.73 %



 
            Liabilities



 Deposits                                                      $
       3,716,803                          3,676,417         3,636,329     3,620,886      3,435,765                  8.18 %



 FHLB Advances                                                          240,000                            240,000           240,000       240,000        240,000                  0.00 %



 Subordinated debentures                                                 24,903                             24,903            24,903        24,903         24,903                  0.00 %



 Other liabilities                                                       53,131                             60,921            61,373        60,924         56,481                (5.93 %)



     Total liabilities                                                4,034,837                          4,002,241         3,962,605     3,946,713      3,757,149                  7.39 %



 
            Shareholders' equity


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


  Common Stock -$.01 par value; 10,000,000 shares authorized                  82                                 82                82            82             82



 Nonvested restricted stock                                             (1,338)                           (1,929)          (2,774)      (3,372)       (3,884)              (65.55 %)



 Additional paid-in capital                                             125,924                            125,035           124,839       124,561        124,641                  1.03 %



 Accumulated other comprehensive loss                                   (7,454)                           (8,426)          (9,609)     (10,016)      (11,472)              (35.02 %)



 Retained earnings                                                      251,443                            241,586           232,924       226,343        221,077                 13.74 %



     Total shareholders' equity                                         368,657                            356,348           345,462       337,598        330,444                 11.56 %



     Total liabilities and shareholders' equity                $
       4,403,494                          4,358,589         4,308,067     4,284,311      4,087,593                  7.73 %



 
            Common Stock



 Book value per common share                                       $
       44.89                              43.51             42.23         41.33          40.47                 10.92 %



 Stock price:



   High                                                                   55.50                              45.54             38.51         38.50          44.86                 23.72 %



   Low                                                                    41.15                              38.74             30.61         31.88          33.26                 23.72 %



   Period end                                                             51.52                              44.12             38.03         32.92          39.75                 29.61 %



 Common shares outstanding                                                8,213                              8,189             8,181         8,169          8,165                  0.59 %


                                                                
       [Footnotes to table located on page 6]


 
            ASSET QUALITY MEASURES - 
            Unaudited


                                                                                             
      
 Quarter Ended


                                                                          December 31 September 30            June 30   March 31    December 31



 (dollars in thousands)                                                         2025          2025                2025        2025            2024



 
            Nonperforming Assets



 
            Commercial



   Owner occupied RE                                                  $
         259           262



   Non-owner occupied RE                                                       6,917         6,911               6,941       6,950           7,641



   Commercial business                                                           189           195                 717       1,087           1,016



 
            Consumer



   Real estate                                                                 5,763         3,394               3,028       2,414           1,908



   Home equity                                                                   705           705                 708         310             312



 Total nonaccrual loans                                                       13,833        11,467              11,394      10,761          10,877



 Other real estate owned                                                         275           275                 275         275



 Total nonperforming assets                                        $
         14,108        11,742              11,669      11,036          10,877



 Nonperforming assets as a percentage of:



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



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



 Classified assets/tier 1 capital plus allowance for credit losses            4.22 %       3.90 %             4.28 %     4.24 %         4.25 %


                                                                                             
      
 Quarter Ended


                                                                          December 31 September 30            June 30   March 31    December 31



 (dollars in thousands)                                                         2025          2025                2025        2025            2024



 
            Allowance for Credit Losses



 Balance, beginning of period                                      $
         41,799        41,285              40,687      39,914          40,166



 Loans charged-off                                                             (150)         (55)               (68)       (78)          (143)



 Recoveries of loans previously charged-off                                       81            69                  16         101             141



   Net loans (charged-off) recovered                                            (69)           14                (52)         23             (2)



 Provision for (reversal of) credit losses                                       550           500                 650         750           (250)



 Balance, end of period                                            $
         42,280        41,799              41,285      40,687          39,914



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



 Allowance for credit losses to nonaccrual loans                            305.65 %     364.50 %           362.35 %   378.09 %       366.94 %



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

Total nonperforming assets were $14.1 million at December 31, 2025, representing 0.32% of total assets compared to 0.27% for the third quarter of 2025 and 0.27% for the fourth quarter of 2024. In addition, the classified asset ratio increased to 4.22% for the fourth quarter of 2025 from 3.90% in the third quarter of 2025 and decreased from 4.25% in the fourth quarter of 2024.

At December 31, 2025, the allowance for credit losses was $42.3 million, or 1.10% of total loans, compared to $41.8 million, or 1.10% of total loans at September 30, 2025, and $39.9 million, or 1.10% of total loans, at December 31, 2024. We had net charge-offs of $69 thousand for the fourth quarter of 2025, compared to net recoveries of $14 thousand for the third quarter of 2025 and net charge-offs of $2 thousand for the fourth quarter of 2024. There was a provision for credit losses of $550 thousand for the fourth quarter of 2025, compared to a provision for credit losses of $500 thousand for the third quarter of 2025 and a reversal of the provision for credit losses of $250 thousand for the fourth quarter of 2024. The provision during the fourth quarter of 2025 was primarily driven by additional impairment on our individually evaluated loans.


 
            LOAN COMPOSITION - 
       Unaudited




                                                                      
          
  
    Quarter Ended


                                                          December 31  September 30       June 30         March 31   December 31



 (dollars in thousands)                                      2025           2025           2025              2025           2024



 
            Commercial



 Owner occupied RE                                   $
     736,979        705,383        686,424           673,865        651,597



 Non-owner occupied RE                                    956,812        943,304        939,163           926,246        924,367



 Construction                                              63,666         71,928         68,421            90,021        103,204



 Business                                                 619,667        604,411        589,661           561,337        556,117



 Total commercial loans                                 2,377,124      2,325,026      2,283,669         2,251,469      2,235,285



 
            Consumer



 Real estate                                            1,153,285      1,159,693      1,164,187         1,147,357      1,128,629



 Home equity                                              248,685        239,996        234,608           223,061        204,897



 Construction                                              24,997         25,842         25,210            23,540         20,874



 Other                                                     41,033         38,464         39,167            38,492         42,082



 Total consumer loans                                   1,468,000      1,463,995      1,463,172         1,432,450      1,396,482



 Total gross loans, net of deferred fees                3,845,124      3,789,021      3,746,841         3,683,919      3,631,767



 Less-allowance for credit losses                        (42,280)      (41,799)      (41,285)         (40,687)      (39,914)



 Total loans, net                                  $
     3,802,844      3,747,222      3,705,556         3,643,232      3,591,853


 
            DEPOSIT COMPOSITION - 
            Unaudited




                                                                              
          
  
   Quarter Ended


                                                                  December 31  September 30      June 30       March 31   December 31



 (dollars in thousands)                                              2025           2025          2025            2025           2024



 Non-interest bearing                                        $
     732,287        736,518       761,492         671,609        683,081



 Interest bearing:



    NOW accounts                                                  423,270        343,615       341,903         371,052        314,588



    Money market accounts                                       1,573,039      1,572,738     1,537,400       1,563,181      1,438,530



    Savings                                                        29,470         29,381        32,334          32,945         31,976



    Time, less than $250,000                                      180,783        202,353       194,064         181,407        193,562



    Time and out-of-market deposits, $250,000 and over            777,954        791,812       769,136         800,692        774,028



 Total deposits                                            $
     3,716,803      3,676,417     3,636,329       3,620,886      3,435,765


 
            Footnotes to tables:



  (1) Total revenue is the sum of net interest income and noninterest income.



  (2) 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.



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



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



  (5) Excludes mortgage loans held for sale.



  (6) Excludes out of market deposits and time deposits greater than $250,000 totaling $777,954,000.



  (7) December 31, 2025 ratios are preliminary.



  (8) The common equity tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets.



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



 (10) Includes mortgage loans held for sale.

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 $4.4 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.

FINANCIAL & MEDIA CONTACT:
ART SEAVER 864-679-9010

WEB SITE: www.southernfirst.com

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SOURCE Southern First Bancshares, Inc.

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