Southern First Bancshares Reports Significant Increase in Q1 2026 Financial Performance

Southern First Bancshares, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net income rising to $9.9 million, compared to $5.3 million in the same period of 2025. This translates to diluted earnings per share of $1.19, up from $0.65 year-over-year. The increase in net income was primarily driven by a 29.4% rise in net interest income, which reached $30.3 million, attributed to higher interest income from loans and a decrease in interest expenses on deposits.

Total assets for the company increased by 4.0% to $4.58 billion as of March 31, 2026, compared to $4.40 billion at the end of 2025. The growth in assets was largely due to an increase in the loan portfolio, which rose to $3.94 billion from $3.85 billion. Deposits also saw a notable increase, reaching $3.87 billion, up from $3.72 billion. The company’s allowance for credit losses stood at $43.4 million, representing 1.10% of total loans, and providing coverage of 378.22% of nonperforming loans.

In terms of operational developments, Southern First Bancshares has focused on expanding its customer base and enhancing service offerings. The company reported an increase in noninterest income to $3.5 million, a 13.7% rise from the previous year, driven by higher mortgage banking income and service fees on deposit accounts. The efficiency ratio improved to 59.2%, down from 71.1% in the prior year, indicating better cost management relative to revenue generation.

The company also announced a public offering of 1,207,500 shares of common stock, which closed on April 17, 2026, generating approximately $65.2 million in gross proceeds. These funds are intended for general corporate purposes, including supporting growth initiatives and enhancing capital at the bank. The capital ratios for Southern First Bancshares remain strong, exceeding regulatory requirements, with a total risk-based capital ratio of 12.80% as of March 31, 2026.

Looking ahead, Southern First Bancshares aims to continue its growth trajectory by focusing on increasing core deposits and managing interest rate risk effectively. The company remains vigilant regarding economic conditions that could impact loan demand and asset quality, particularly in the context of rising interest rates and potential credit losses. The management's outlook reflects confidence in the bank's ability to navigate these challenges while maintaining a strong capital position.