"We are excited to report our first quarter 2026 results which include record retail deposit growth of nearly $210 million, representing a 27% annualized growth rate. Our first quarter 2026 net income was $9.9 million and is 88% higher than the same quarter last year. We have tremendous momentum in growing client relationships and raised additional capital in the form of common equity this quarter to support our growth expectations," stated Art Seaver, Chief Executive Officer.
On April 15, 2026, Southern First announced an underwritten public offering of 1,050,000 shares of common stock and granted the underwriters an option to purchase up to 157,500 additional shares. The offering closed on April 17, 2026, with a total of 1,207,500 shares issued at $54.00 per share for aggregate gross proceeds of approximately $65.2 million before discounts and expenses. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include supporting organic growth initiatives, providing capital to the Company's bank subsidiary, redeeming or repurchasing outstanding indebtedness, including subordinated debt, and for working capital purposes.
Financial Highlights, First Quarter 2026:
Earnings
Diluted earnings per common share was $1.19, up $0.54, or 83%, compared to the first quarter of 2025; and down slightly by $0.01 from the fourth quarter of 2025
Net income improved to $9.9 million, a $4.6 million increase, or 88%, compared to the first quarter of 2025
Total revenue was $33.8 million, an increase of $7.3 million, or 28%, year-over-year and $2.0 million on a linked quarter basis
Net interest income improved by $6.9 million, or 29% year-over-year, driven primarily by new loan volume
Net interest margin was 2.88%, a 16 basis point increase from 2.72% for the fourth quarter of 2025, and included a $543 thousand repayment of interest on one large nonaccrual loan
Noninterest income was $3.5 million compared to $3.1 million for the first quarter last year; the increase was impacted by a one-time $515 thousand loss on the sale of securities in the fourth quarter of 2025
Noninterest expense to average assets was 1.84%, compared to 1.87% for first quarter of 2025
Return on average equity was 10.67%, compared to 6.38% for the first quarter of 2025
Return on average assets was 0.91%, compared to 0.52% for the first quarter of 2025
Balance Sheet
Total loans were $3.9 billion, up $97.1 million, or 10% (annualized), from the fourth quarter of 2025
Retail deposits were $3.4 billion, up $207.8 million, or 27% (annualized) from the fourth quarter of 2025
Book value per common share was $46.00, an increase of 10% (annualized) from the fourth quarter of 2025
Tangible common equity (TCE) ratio was 8.29%, down 8 basis points on a linked quarter basis driven by loan growth, and up from 7.88% for the first quarter of 2025
Common equity Tier1 ratio (CET1) was 11.03%, down slightly from the fourth quarter of 2025, and up from 10.75% for the first quarter 2025
Asset Quality
Nonperforming assets to total assets were 0.26%, compared to 0.32% for the linked quarter, primarily due to the repayment of a large nonaccrual loan, while accruing loans 30 days or more past due to total loans were 0.20%, compared to 0.14% for the fourth quarter
Classified assets were 3.25% as a percentage of total loans compared to 4.28% for the linked quarter end
Provision for credit losses was $1.3 million and includes a $1.2 million provision for loan losses and a $150 thousand provision for unfunded commitments driven by new loan growth; Allowance for credit losses to total loans remained at 1.10% for the quarter
Net charge-offs were 0.01% as a percentage of average loans on an annualized basis
SELECTED FINANCIAL DATA
Quarter Ended
Mar 31 2026-
March 31
December 31
September 30
June 30
March 31
Mar 31 2025
2026
2025
2025
2025
2025
Change
Income Statement Summary ($ in thousands):
Net interest income
$
30,259
28,744
27,529
25,295
23,383
29.4 %
Noninterest income
3,540
3,090
3,600
3,334
3,114
13.7 %
Total Revenue
33,799
31,834
31,129
28,629
26,497
27.6 %
Provision for credit losses
1,300
650
850
700
750
73.3 %
Noninterest expense
20,015
18,416
18,946
19,336
18,836
6.3 %
Income before income tax expense
12,484
12,768
11,333
8,593
6,911
80.6 %
Income tax expense
2,597
2,911
2,671
2,012
1,645
57.9 %
Net income available to common shareholders
9,887
9,857
8,662
6,581
5,266
87.8 %
Earnings ($ in thousands, except per share data):
Earnings per common share, diluted
1.19
1.20
1.06
0.81
0.65
83.1 %
Net interest margin (tax-equivalent)(1)
2.88 %
2.72 %
2.62 %
2.50 %
2.41 %
0.47
Return on average assets(2)
0.91 %
0.90 %
0.80 %
0.63 %
0.52 %
0.39
Return on average equity(2)
10.67 %
10.77 %
9.78 %
7.71 %
6.38 %
4.29
Efficiency ratio(3)
59.22 %
57.85 %
60.86 %
67.54 %
71.08 %
(11.86)
Noninterest expense to average assets (2)
1.84 %
1.68 %
1.74 %
1.86 %
1.87 %
(0.03)
Balance Sheet ($ in thousands):
Total loans(4)
$
3,942,219
3,845,124
3,789,021
3,746,841
3,683,919
7.0 %
Total deposits
3,873,455
3,716,803
3,676,417
3,636,329
3,620,886
7.0 %
Retail deposits(5)
3,371,721
3,163,914
3,108,411
3,075,631
3,020,392
11.6 %
Total assets
4,578,402
4,403,494
4,358,589
4,308,067
4,284,311
6.9 %
Book value per common share
46.00
44.89
43.51
42.23
41.33
11.3 %
Loans to deposits
101.78 %
103.45 %
103.06 %
103.04 %
101.74 %
0.04
Holding Company Capital Ratios(6):
Total risk-based capital ratio
12.83 %
12.89 %
12.79 %
12.63 %
12.69 %
0.14
Tier 1 risk-based capital ratio
11.40 %
11.44 %
11.26 %
11.11 %
11.15 %
0.25
Leverage ratio
9.05 %
8.93 %
8.72 %
8.73 %
8.79 %
0.26
Common equity Tier 1 ratio(7)
11.03 %
11.06 %
10.88 %
10.71 %
10.75 %
0.28
Tangible common equity(8)
8.29 %
8.37 %
8.18 %
8.02 %
7.88 %
0.41
Asset Quality Ratios:
Nonperforming assets/total assets
0.26 %
0.32 %
0.27 %
0.27 %
0.26 %
—
Classified assets/Tier 1 capital plus allowance forcredit losses
3.25 %
4.28 %
3.97 %
4.35 %
4.31 %
(1.06)
Accruing loans 30 days or more past due/loans(4)
0.20 %
0.14 %
0.18 %
0.14 %
0.27 %
(0.07)
Net charge-offs (recoveries)/average loans(4) (YTDannualized)
0.01 %
0.00 %
0.00 %
0.00 %
0.00 %
0.01
Allowance for credit losses/loans(4)
1.10 %
1.10 %
1.10 %
1.10 %
1.10 %
—
Allowance for credit losses/nonaccrual loans
378.22 %
305.65 %
364.50 %
362.35 %
378.09 %
0.13
INCOME STATEMENTS, Unaudited
Quarter Ended
Mar 31 2026 -
Mar 31
Dec 31
Sept 30
Jun 30
Mar 31
Mar 31 2025
(in thousands, except per share data)
2026
2025
2025
2025
2025
Change
Interest income
Loans
$
51,257
51,069
50,999
48,992
47,085
8.9 %
Investment securities
1,399
1,268
1,342
1,357
1,403
(0.3 %)
Federal funds sold
1,955
2,193
2,645
1,969
1,159
68.7 %
Total interest income
54,611
54,530
54,986
52,318
49,647
10.0 %
Interest expense
Deposits
21,697
23,052
24,703
24,300
23,569
(7.9 %)
Borrowings
2,655
2,734
2,754
2,723
2,695
(1.5 %)
Total interest expense
24,352
25,786
27,457
27,023
26,264
(7.3 %)
Net interest income
30,259
28,744
27,529
25,295
23,383
29.4 %
Provision for credit losses
1,300
650
850
700
750
73.3 %
Net interest income after provision for credit losses
28,959
28,094
26,679
24,595
22,633
27.9 %
Noninterest income
Mortgage banking income
1,493
1,689
1,600
1,569
1,424
4.8 %
Service fees on deposit accounts
756
634
625
567
539
40.3 %
ATM and debit card income
588
638
601
586
552
6.5 %
Income from bank owned life insurance
446
450
439
413
403
10.7 %
Loss on sale of securities
-
(515)
-
-
-
0.0 %
Other income
257
194
335
199
196
31.1 %
Total noninterest income
3,540
3,090
3,600
