Southern First Bancshares Reports 6.7% Asset Growth and $11.2 Million Net Income in Q2 2026

Southern First Bancshares, Inc. reported significant financial growth in its latest quarterly filing, with total assets reaching $4.70 billion as of June 30, 2026, a 6.7% increase from $4.40 billion at the end of 2025. The company's loan portfolio also expanded, totaling $4.03 billion, up from $3.85 billion, driven primarily by a $125.1 million increase in commercial loans. The increase in total deposits was notable, rising to $3.94 billion from $3.72 billion, reflecting a strategic focus on growing core deposits.

For the second quarter of 2026, Southern First Bancshares reported net income of $11.2 million, a substantial increase from $6.6 million in the same period of 2025. This growth translated to diluted earnings per share of $1.20, compared to $0.81 a year earlier. The increase in net income was largely attributed to a 28% rise in net interest income, which reached $32.4 million, driven by higher interest income from loans and a decrease in interest expenses on deposits.

The company also experienced a rise in noninterest income, which totaled $3.5 million for the second quarter, up from $3.3 million in the prior year. This increase was primarily due to higher service fees on deposit accounts and ATM income, although it was partially offset by a decline in mortgage banking income. Noninterest expenses increased to $20.4 million, reflecting higher compensation and benefits costs, as well as increased expenses related to outside services and professional fees.

In terms of operational metrics, the company reported a provision for credit losses of $1.0 million for the second quarter, up from $700,000 in the same period last year, reflecting the growth in the loan portfolio. The allowance for credit losses stood at $44.2 million, representing 1.10% of total loans, and providing coverage of 395.41% of nonperforming loans. Nonperforming assets decreased to $12.6 million, or 0.27% of total assets, down from $14.1 million at the end of 2025.

Looking ahead, Southern First Bancshares remains optimistic about its growth trajectory, supported by a strong capital position and a focus on expanding its loan portfolio while managing credit risk. The company’s capital ratios exceed regulatory requirements, positioning it well for future opportunities. The management emphasized its commitment to maintaining a client-focused approach, which it believes will continue to provide a competitive advantage in the banking sector.