#United States #Greenville #Q1 2025 #Southern First #SFST

Southern First Bancshares Reports First Quarter 2025 Results

Southern First Bancshares, Inc. (NASDAQ: SFST), the parent company of Southern First Bank, has released its financial performance for the first quarter of 2025, signaling a compelling start to the year. The financial results reflect impressive growth across various metrics, indicating the company’s solid operational momentum.

Financial Highlights

During the first quarter of 2025, Southern First reported a net income of $5.3 million, translating to $0.65 per diluted share, marking an astounding 109% increase compared to the same quarter in the previous year. In comparison to the previous quarter, this represents a slight reduction in earnings, yet the year-over-year growth is a significant indicator of positive trajectory.

One of the most notable improvements noted by the bank was in its net interest margin, which climbed to 2.41%, up from 2.25% in the fourth quarter of 2024 and 1.94% from the first quarter of 2024. This increase underscores the effectiveness of the bank's financial strategies, primarily bolstered by a decrease in interest expenses on deposits alongside a rise in loan interest income.

Southern First reported total loans of $3.7 billion, reflecting a 6% annualized increase from the previous quarter, and core deposits surged to $2.8 billion, marking a 23% annualized growth rate.

Asset Quality and Capital Ratios

The company maintained strong asset quality, with nonperforming assets accounting for 0.26% of total assets. The past-due loans ratio likewise remained low at 0.27%. These figures are indicative of the bank's conservative lending practices and rigorous credit assessments.

With robust capital ratios in place, Southern First’s balance sheet appears well-prepared to support ongoing growth and navigate potential economic uncertainties. The tangible common equity ratio stood at 7.88%, supporting the bank's stable financial foundation.

Management Commentary

Art Seaver, CEO of Southern First Bancshares, expressed pride in the company's accomplishments, particularly highlighting the strong results during their 25th anniversary. He acknowledged that the institution's success is driven by its dedicated team who are committed to creating a lasting impact in their communities. With their well-established market presence, Southern First has been strengthening its capabilities in the financial sector through experienced hires, which is expected to drive further growth and shareholder value.

Seaver's confidence reflects broader economic indicators, suggesting readiness for potential shifts in the regulatory and financial environment. The bank’s adaptable approach continues to resonate well with their client base, fostering deeper relationships and supporting local economies.

Conclusion

As Southern First Bancshares moves forward through 2025, the reported financial results present a strong opening quarter, underscoring excellent performance metrics that position them favorably for future endeavors. The growth in both loans and deposits, coupled with effective cost management and robust asset quality, highlights the resilience and effectiveness of their banking operations. Investors will likely continue to monitor Southern First as it adapts to shifting market conditions and seeks new opportunities for expansion.

Overall, the company’s proactive strategies and commitment to quality service reaffirm its stature in the banking industry, paving the way for sustained success in the upcoming quarters.