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Southern First Bancshares SFST Form 8-K filing Earnings

Filed
Jul 21, 2026, 8:30 AM EDT
Accession
0001206774-26-000359

Exhibit 99.1

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

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

Financial Highlights – Second Quarter 2026:

Earnings

  • Diluted earnings per common share was $1.20, up $0.39 or 48% compared to the second quarter of 2025 and up by $0.01 from the first quarter of 2026
  • Net income improved to $11.2 million, a $4.6 million increase or 70% compared to the second quarter of 2025 and a $1.3 million increase or 13%, compared to the first quarter of 2026
  • Total revenue was $35.9 million, an increase of $7.2 million or 25% year-over-year and $2.1 million on a linked quarter basis
  • Net interest income improved by $7.1 million or 28% year-over-year driven primarily by new loan volume
  • Net interest margin was 2.87%, a 37-basis point increase from 2.50% for the second quarter of 2025 and a one basis point decrease from the first quarter of 2026, which included a one-time increase in interest income from the repayment of a $5.1 million nonperforming loan
  • Noninterest income was $3.5 million compared to $3.3 million for the second quarter of 2025
  • Service fees on deposit accounts increased 53% compared to the second quarter of 2025 and 15% from last quarter due in part to an increased focus on treasury management services
  • Noninterest expense to average assets was 1.75%, compared to 1.86% for the second quarter of 2025
  • Return on average equity was 10.28%, compared to 7.71% for the second quarter of 2025
  • Return on average assets was 0.96%, compared to 0.63% for the second quarter of 2025

Balance Sheet

  • Total loans were $4.0 billion, up $88 million or 9% (annualized) from the first quarter of 2026
  • Retail deposits were $3.6 billion, up $184 million or 22% (annualized) from the first quarter of 2026
  • Wholesale deposits were reduced by $181.3 million, or 32% from the second quarter of 2025 and $122.3 million or 98% (annualized) from the first quarter of 2026
  • Book value per common share was $47.77, an increase of 15% (annualized) from the first quarter of 2026
  • Tangible common equity (TCE) ratio was 9.62%, up 133 basis points on a linked quarter basis and up from 8.02% for the second quarter of 2025
  • Common Equity Tier 1 ratio (CET1) was 12.81%, up 178 basis points from the first quarter of 2026 and up from 10.71% for the second quarter 2025
  • Book value per share, tangible common equity ratio and Common Equity Tier 1 ratio were each positively affected by our recent capital raise of $65.2 million

Asset Quality

  • Nonperforming assets to total assets were 0.27%, compared to 0.26% for the linked quarter, while accruing loans 30 days or more past due to total loans decreased to 0.10%, compared to 0.20% for the first quarter
  • Classified assets/Tier 1 capital plus allowance for credit losses was 3.15% compared to 3.25% for the linked quarter end
  • Provision for credit losses was $1.0 million and includes a $950 thousand provision for loan losses and a $75 thousand provision for unfunded commitments driven by new loan growth; allowance for credit losses to total loans remained at 1.10% for the quarter
  • Net charge-offs were 0.01% as a percentage of average loans on an annualized basis

SELECTED FINANCIAL DATA

View SEC source
Line itemQuarter Ended
June 30March 31December 31September 30June 302Q26 vs 2Q25
20262026202520252025$ Change% Change
Income Statement Summary ($ in thousands):
Net interest income$32,37030,25928,74427,52925,2957,07528.0%
Noninterest income3,5083,5403,0903,6003,3341745.2%
Total Revenue35,87833,79931,83431,12928,6297,24925.3%
Provision for credit losses1,0251,30065085070032546.4%
Noninterest expense20,39320,01518,41618,94619,3361,0575.5%
Income before income tax expense14,46012,48412,76811,3338,5935,86768.3%
Income tax expense3,2652,5972,9112,6712,0121,25362.3%
Net income available to common shareholders11,1959,8879,8578,6626,5814,61470.1%
Earnings ($ in thousands, except per share data):
Earnings per common share, diluted1.201.191.201.060.810.3948.2%
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)$4,030,2553,942,2193,845,1243,789,0213,746,841283,4147.6%
Total deposits3,935,4523,873,4553,716,8033,676,4173,636,329299,1238.2%
Retail deposits(5)3,556,0453,371,7213,163,9143,108,4113,075,631480,41415.6%
Total assets4,700,1714,578,4024,403,4944,358,5894,308,067392,1049.1%
Book value per common share47.7746.0044.8943.5142.235.5413.1%
Loans to deposits102.41%101.78%103.45%103.06%103.04%-—-—
Holding Company Capital Ratios(6):
Total risk-based capital ratio14.42%12.83%12.89%12.79%12.63%-—-—
Tier 1 risk-based capital ratio13.19%11.40%11.44%11.26%11.11%-—-—
Leverage ratio10.11%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 assets0.27%0.26%0.32%0.27%0.27%-—-—
Classified assets/Tier 1 capital plus allowance for credit losses3.15%3.25%4.28%3.97%4.35%-—-—
Accruing loans 30 days or more past due/loans(4)0.10%0.20%0.14%0.18%0.14%-—-—
Net charge-offs (recoveries)/average loans(4) (YTD annualized)0.01%0.01%0.00%0.00%0.00%-—-—
Allowance for credit losses/loans(4)1.10%1.10%1.10%1.10%1.10%-—-—
Allowance for credit losses/nonaccrual loans395.41%378.22%305.65%364.50%362.35%-—-—

income statements – Unaudited

Southern First Reports Second Quarter 2026 Results

[Footnotes to table located on page 6]

Net interest income and margin - Unaudited

View SEC source
(dollars in thousands)June 30, 2026Average BalanceFor the Three Months Ended · March 31, 2026Income/ ExpenseJune 30, 2025Yield/ Rate(2)Average BalanceIncome/ ExpenseYield/ Rate(2)Average BalanceIncome/ ExpenseYield/ Rate(2)
Interest-earning assets
Federal funds sold and interest-bearing deposits$ 384,694$ 3,5503.70%$ 211,039$ 1,9563.76%$ 179,095$ 1,9694.41%
Investment securities, taxable147,8861,4734.00%141,3091,3683.93%141,8981,3153.72%
Investment securities, nontaxable(1)6,283402.57%6,332402.58%7,740552.83%
Loans(9)3,978,63953,0775.35%3,899,00251,2575.33%3,724,06448,9925.28%
Total interest-earning assets4,517,50258,1405.16%4,257,68254,6215.20%4,052,79752,3315.18%
Noninterest-earning assets157,905156,466154,051
Total assets$4,675,407$ 4,414,148$4,206,848
Interest-bearing liabilities
NOW accounts$ 500,9781,7381.39%$ 421,5271,1021.06%$ 331,8117520.91%
Savings & money market1,752,54812,9082.95%1,649,24811,8192.91%1,566,34513,3983.43%
Time deposits871,5638,4483.89%895,1018,7763.98%942,88010,1504.32%
Total interest-bearing deposits3,125,08923,0942.96%2,965,87621,6972.97%2,841,03624,3003.43%
FHLB advances and other borrowings240,0002,2523.76%240,0002,2453.79%240,0002,2703.79%
Subordinated debentures24,7774156.72%24,9034116.69%24,9034537.30%
Total interest-bearing liabilities3,389,86625,7613.05%3,230,77924,3533.06%3,105,93927,0233.49%
Noninterest-bearing liabilities848,704807,686758,626
Shareholders’ equity436,837375,683342,283
Total liabilities and shareholders’ equity$ 4,675,407$ 4,414,148$4,206,848
Net interest spread2.11%2.15%1.69%
Net interest income (tax equivalent) / margin$ 32,3792.87%$ 30,2682.88%$ 25,3082.50%
Less: tax-equivalent adjustment(1)9913
Net interest income$ 32,370$ 30,259$ 25,295

[Footnotes to table located on page 6]

Balance sheets - Unaudited

View SEC source
Line itemEnding Balance
Jun 30Mar 31Dec 31Sept 30Jun 302Q26 vs 2Q25
(in thousands, except per share data)20262026202520252025$ Change% Change
Assets
Cash and cash equivalents:
Cash and due from banks$30,10232,72327,82124,60025,1844,91819.5%
Federal funds sold259,049228,235183,473178,534180,83478,21543.3%
Interest-bearing deposits with banks72,48381,81858,28979,76965,0147,46911.5%
Total cash and cash equivalents361,634342,776269,583282,903271,03290,60233.4%
Investment securities:
Investment securities available for sale144,388124,224127,730131,040128,86715,52112.0%
Other investments20,48420,37720,06320,06619,9065782.9%
Total investment securities164,872144,601147,793151,106148,77316,09910.8%
Mortgage loans held for sale8,59413,72311,5696,90610,739(2,145)(20.0%)
Loans (4)4,030,2553,942,2193,845,1243,789,0213,746,841283,4147.6%
Less allowance for credit losses(44,232)(43,378)(42,280)(41,799)(41,285)(2,947)7.1%
Loans, net3,986,0233,898,8413,802,8443,747,2223,705,556280,4677.6%
Bank owned life insurance56,67756,22155,77555,32454,8861,7923.3%
Property and equipment, net88,00688,58083,46584,58685,9212,0852.4%
Deferred income taxes13,94613,81213,70212,65712,9719757.5%
Other assets20,41919,84818,76317,88518,1892,22912.3%
Total assets$4,700,1714,578,4024,403,4944,358,5894,308,067392,1049.1%
Liabilities
Deposits$3,935,4523,873,4553,716,8033,676,4173,636,329299,1238.2%
FHLB Advances240,000240,000240,000240,000240,000-0.0%
Subordinated debentures13,40324,90324,90324,90324,903(11,500)(46.2%)
Other liabilities59,04860,63153,13160,92161,373(2,325)(3.8%)
Total liabilities4,247,9034,198,9894,034,8374,002,2413,962,605285,2987.2%
Shareholders’ equity
Preferred stock - $.01 par value; 10,000,000 shares authorized-------
Common Stock - $.01 par value; 10,000,000 shares authorized95828282821315.9%
Nonvested restricted stock(912)(1,302)(1,338)(1,929)(2,774)1,862(67.1%)
Additional paid-in capital188,932127,168125,924125,035124,83964,09351.3%
Accumulated other comprehensive loss(8,372)(7,865)(7,454)(8,426)(9,609)1,237(12.9%)
Retained earnings272,525261,330251,443241,586232,92439,60117.0%
Total shareholders’ equity452,268379,413368,657356,348345,462106,80630.9%
Total liabilities and shareholders’ equity$4,700,1714,578,4024,403,4944,358,5894,308,067392,1049.1%
Common Stock
Book value per common share$47.7746.0044.8943.5142.235.5413.1%
Stock price:
High61.5161.0855.5045.5438.5123.0059.7%
Low54.9551.2641.1538.7430.6124.3479.5%
Period end61.1054.5051.5244.1238.0323.0760.7%
Common shares outstanding9,4688,2488,2138,1898,1811,28715.7%

[Footnotes to table located on page 6]

Asset quality measures - Unaudited

(dollars in thousands)Quarter Ended · June 302026March 312026December 312025September 302025June 302025
Nonperforming Assets
Commercial
Owner occupied RE$2,6672,317259262-
Non-owner occupied RE2,0301,7126,9176,9116,941
Commercial business1,330909189195717
Consumer
Real estate4,8055,7865,7633,3943,028
Home equity354745705705708
Total nonaccrual loans11,18611,46913,83311,46711,394
Other real estate owned1,375475275275275
Total nonperforming assets$12,56111,94414,10811,74211,669
Nonperforming assets as a percentage of:
Total assets0.27%0.26%0.32%0.27%0.27%
Total loans0.31%0.30%0.37%0.31%0.31%
Classified assets/Tier 1 capital plus allowance for credit losses3.15%3.25%4.28%3.97%4.35%
Accruing loans 30 days or more past due/loans(4)0.10%0.20%0.14%0.18%0.14%
Quarter Ended
June 30March 31December 31September 30June 30
(dollars in thousands)20262026202520252025
Allowance for Credit Losses
Balance, beginning of period$43,37842,28041,79941,28540,687
Loans charged-off(155)(78)(150)(55)(68)
Recoveries of loans previously charged-off5926816916
Net loans (charged-off) recovered(96)(52)(69)14(52)
Provision for credit losses9501,150550500650
Balance, end of period$44,23243,37842,28041,79941,285
Allowance for credit losses to gross loans1.10%1.10%1.10%1.10%1.10%
Allowance for credit losses to nonaccrual loans395.41%378.22%305.65%364.50%362.35%
Net charge-offs (recoveries) to average loans QTD (annualized)0.01%0.01%0.01%0.00%0.01%

[Footnotes to table located on page 6]

LOAN COMPOSITION - Unaudited

Line itemQuarter Ended
Jun 30Mar 31Dec 31Sept 30Jun 302Q26 vs 2Q25
(dollars in thousands)20262026202520252025$ Change% Change
Commercial
Owner occupied RE$755,419759,602736,979705,383686,42468,99510.1%
Non-owner occupied RE967,698950,696956,812943,304939,16328,5353.0%
Construction66,10569,46363,66671,92868,421(2,316)(3.4%)
Business713,017677,742619,667604,411589,661123,35620.9%
Total commercial loans2,502,2392,457,5032,377,1242,325,0262,283,669218,5709.6%
Consumer
Real estate1,167,2821,148,1291,153,2851,159,6931,164,1873,0950.3%
Home equity273,017262,530248,685239,996234,60838,40916.4%
Construction36,37133,87924,99725,84225,21011,16144.3%
Other51,34640,17841,03338,46439,16712,17931.1%
Total consumer loans1,528,0161,484,7161,468,0001,463,9951,463,17264,8444.4%
Total gross loans, net of deferred fees4,030,2553,942,2193,845,1243,789,0213,746,841283,4147.6%
Less—allowance for credit losses(44,232)(43,378)(42,280)(41,799)(41,285)(2,947)7.1%
Total loans, net$3,986,0233,898,8413,802,8443,747,2223,705,556280,4677.6%
Yield on average loans5.35%5.33%5.29%5.35%5.28%-—-—

DEPOSIT COMPOSITION - Unaudited

Line itemQuarter Ended
Jun 30Mar 31Dec 31Sept 30Jun 302Q26 vs 2Q25
(dollars in thousands)20262026202520252025$ Change% Change
Non-interest bearing$799,246799,692732,287736,518761,49237,7545.0%
Interest bearing:
NOW accounts538,443495,657423,270343,615341,903196,54057.5%
Money market accounts1,765,6971,652,1251,573,0391,572,7381,537,400228,29714.8%
Savings29,46030,33229,47029,38132,334(2,874)(8.9%)
Time deposits, less than $250,000175,971170,496180,783202,353194,064(18,093)(9.3%)
Time deposits, $250,000 and over(10)626,635725,153777,954791,812769,136(142,501)(18.5%)
Total deposits$3,935,4523,873,4553,716,8033,676,4173,636,329299,1238.2%
Total retail deposits3,556,0453,371,7213,163,9143,108,4113,075,631480,41415.6%
Total wholesale deposits379,407501,734552,889568,006560,697(181,290)(32.3%)
Cost of average deposits2.37%2.37%2.50%2.69%2.75%-—-—
Cost of average retail deposits2.11%2.06%2.18%2.36%2.42%-—-—
Loans to deposits102.41%101.78%103.45%103.06%103.04%-—-—

Footnotes to tables:

View SEC source
(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.

MEDIA CONTACT: ART SEAVER 864-679-9010

FINANCIAL CONTACT:

CHRIS ZYCH 864-679-9070

WEB SITE: www.southernfirst.com SOURCE: Southern First Bancshares, Inc.

Quarter Ended
Jun 30Mar 31Dec 31Sept 30Jun 302Q26 vs 2Q25
(in thousands, except per share data)20262026202520252025$ Change% Change
Interest income
Loans$53,07751,25751,06950,99948,9924,0858.3%
Investment securities1,5041,3991,2681,3421,35714710.8%
Federal funds sold3,5501,9552,1932,6451,9691,58180.3%
Total interest income58,13154,61154,53054,98652,3185,81311.1%
Interest expense
Deposits23,09421,69723,05224,70324,300(1,206)(5.0%)
Borrowings2,6672,6552,7342,7542,723(56)(2.1%)
Total interest expense25,76124,35225,78627,45727,023(1,262)(4.7%)
Net interest income32,37030,25928,74427,52925,2957,07528.0%
Provision for credit losses1,0251,30065085070032546.4%
Net interest income after provision for credit losses31,34528,95928,09426,67924,5956,75027.4%
Noninterest income
Mortgage banking income1,3231,4931,6891,6001,569(246)(15.7%)
Service fees on deposit accounts86675663462556729952.7%
ATM and debit card income6515886386015866511.1%
Income from bank owned life insurance4574464504394134410.7%
Loss on sale of securities--(515)---0.0%
Other income211257194335199126.0%
Total noninterest income3,5083,5403,0903,6003,3341745.2%
Noninterest expense
Compensation and benefits12,25211,98010,52911,29911,6745785.0%
Occupancy2,5512,4902,4652,4472,523281.1%
Outside service and data processing costs2,4162,2672,1442,1582,18922710.4%
Insurance858892994961910(52)(5.7%)
Professional fees78267573260560917328.4%
Marketing423399346412397266.5%
Other1,1111,3121,2061,0641,034777.4%
Total noninterest expenses20,39320,01518,41618,94619,3361,0575.5%
Income before provision for income taxes14,46012,48412,76811,3338,5935,86768.3%
Income tax expense3,2652,5972,9112,6712,0121,25362.3%
Net income available to common shareholders$11,1959,8879,8578,6626,5814,61470.1%
Earnings per common share – Basic$1.221.211.221.070.810.4150.6%
Earnings per common share – Diluted1.201.191.201.060.810.3948.2%
Basic weighted average common shares9,1858,1638,1068,0918,0901,09513.5%
Diluted weighted average common shares9,3198,2938,2298,1768,1241,19514.7%