#United States #Greenville #Southern First #SFST

Southern First Bancshares Shows Strong Financial Performance in Q4 2024

Southern First Bancshares, Inc., the parent company of Southern First Bank and traded on NASDAQ under the symbol SFST, recently announced its robust financial results for the fourth quarter of 2024, revealing a promising outlook for the future. The bank, which serves markets in South Carolina and the nearby regions, has demonstrated its resilience and growth amid economic shifts.

Financial Highlights

In the fourth quarter of 2024, Southern First reported a net income of $5.6 million, translating to a diluted earnings per share of $0.70. This marks a 30% increase from the previous quarter and a 37% rise compared to the same period last year. Such growth exemplifies the bank's consistent performance and strategic management.

Total loans and deposits also reflect significant figures, with total loans reaching $3.6 billion and total deposits at $3.4 billion. The bank's nonperforming assets remained remarkably low at 0.27% of total assets, showing effective asset quality management alongside a net interest margin that improved to 2.25%.

Art Seaver, the CEO, expressed confidence in their financial trajectory, highlighting that their operational metrics are performing excellently, and their balance sheet remains robust despite the Federal Reserve's interest rate adjustments. Seaver emphasized the commitment of Southern First to enhance the lives of the communities they serve and articulated a vision to sustain this momentum into the coming year.

Year 2024 at a Glance

The data from 2024 overall illustrates a positive growth narrative. The year ended with a book value per common share soaring to $40.47 and capital ratios that remain strong, further demonstrating the firm's ability to navigate economic headwinds. The continuation of their positive trends in performance and value generation for shareholders is a primary objective going forward.

Balancing Income and Expenses

Net interest income saw notable expansions, increasing by $1.9 million quarter-over-quarter, predominantly due to enhanced loan interest income paired with a reduction in interest expenses associated with deposits. The bank successfully handled an effective tax rate of 18.4%, down from previous quarters, showcasing optimized tax strategies that favor profitability.

In contrast, the bank faced a noninterest expense rise to $18.5 million, attributed to increased professional fees and other operational costs reflecting growth strategies and market challenges. It signals a healthy investment into infrastructure and resources necessary for maintaining their competitive edge.

Looking Ahead

As Southern First Bancshares moves deeper into 2025, the indications of strong asset quality and favorable growth trends are prominent. The new year is expected to focus on leveraging their strengths to ensure sustained financial performance while striving to enhance shareholder value and community impact.

As Seaver stated, the company's dedication to building a reputable financial institution that truly affects the communities they serve remains steadfast. Observers will be keen to see how these foundations set through 2024 will bolster Southern First's future endeavors.

Conclusion

The financial results for Q4 2024 certainly position Southern First Bancshares as a player to watch in the banking sector. With a solid strategy in place and positive economic indicators, the upcoming quarters appear promising, reaffirming the bank's commitment to excellence and robust financial health.