Southern First Bancshares Reports Significant Increase in Q1 2025 Financial Performance

Southern First Bancshares, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net income rising to $5.3 million, compared to $2.5 million in the same period of 2024. This translates to diluted earnings per share of $0.65, up from $0.31 year-over-year. The company's total interest income increased to $49.6 million, a rise from $48.4 million, driven primarily by a $1.3 million increase in interest income from loans, which reached $47.1 million. The decrease in interest expense, which fell to $26.3 million from $29.7 million, also contributed to the improved net interest income of $23.4 million, a 25.4% increase from the previous year.

In terms of operational metrics, Southern First Bancshares saw its total assets grow to $4.28 billion, up 4.8% from $4.09 billion at the end of 2024. The loan portfolio increased to $3.68 billion, with real estate loans comprising 83.7% of total loans. The company also reported a provision for credit losses of $750,000 for the quarter, a shift from a reversal of $175,000 in the prior year, reflecting growth in the loan portfolio and a transition to a discounted cash flow model for estimating credit losses.

The bank's noninterest income also saw a notable increase, reaching $3.1 million, up 16.9% from $2.7 million in the previous year. This growth was largely attributed to a 22.3% rise in mortgage banking income and a 39.3% increase in service fees on deposit accounts. Noninterest expenses increased to $18.8 million, primarily due to higher compensation and benefits costs, which rose by 4.1% to $11.3 million.

Looking ahead, Southern First Bancshares remains focused on maintaining its competitive edge through client-focused banking services. The company anticipates continued pressure on its net interest margin due to competitive deposit rates. However, it is well-capitalized, with capital ratios exceeding regulatory requirements, and plans to leverage its liquidity sources, including a $15 million unused line of credit, to support future growth and operational needs. The bank's management is optimistic about its ability to navigate the current economic landscape while continuing to enhance shareholder value.