10-Q · May 1, 2026
Southern First Bancshares, Inc. reported a diluted EPS of $1.19 for Q1 2026, missing the consensus estimate of $1.22, and generated total revenue of $30.3 million. Year-over-year results showed an increase in net…
Earnings analysis · 10-Q
SFST earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Southern First delivered strong second-quarter profitability, with revenue of $35.878 million up 25.3% year over year, diluted EPS of $1.20 up from $0.81, and tax-equivalent NIM expanding 37 basis points to 2.87%. The…
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Southern First delivered strong second-quarter profitability, with revenue of $35.878 million up 25.3% year over year, diluted EPS of $1.20 up from $0.81, and tax-equivalent NIM expanding 37 basis points to 2.87%. The core operating driver was 28.0% growth in net interest income, supported by loan growth and lower deposit costs, while credit quality improved as nonperforming assets declined to $12.6 million. The balance sheet strengthened through a $392.1 million increase in retail deposits, a $173.5 million reduction in brokered deposits, and $61.3 million of net equity-offering proceeds; however, CRE concentration and uninsured deposits remain material monitoring points. Cash-flow and free-cash-flow figures were not available in the provided filing extract.
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Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.2
What stood out
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Revenue grew 25.3% year over year
Second-quarter total revenue (net interest income plus noninterest income) was $35.878 million, up $7.247 million, or 25.3%, from $28.629 million a year earlier. Revenue was also up $2.080 million, or 6.2%, from the implied first-quarter 2026 level of $33.798 million.
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EPS increased 48.1% year over year
Diluted EPS rose to $1.20 from $0.81 in 2Q25, a $0.39, or 48.1%, increase; it was also $0.01 above the implied 1Q26 EPS of $1.19. Net income to common shareholders increased to $11.2 million from $6.6 million.
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NIM expansion drove earnings growth
Tax-equivalent net interest margin expanded 37 basis points year over year to 2.87%, while net interest income grew 28.0% to $32.4 million. The improvement reflected a 44-basis-point decline in interest-bearing liability costs to 3.05%, more than offsetting a 2-basis-point decline in earning-asset yield to 5.16%.
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Loan growth remained strong
Loan balances increased $185.1 million in the first six months, or 9.7% annualized, to $4.03 billion. Commercial loans grew $125.1 million, including a $93.4 million increase in commercial business loans, and consumer loans grew $60.0 million.
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Core-deposit growth reduced brokered funding
Funding mix improved: retail deposits increased $392.1 million to $3.56 billion while brokered deposits fell $173.5 million to $379.4 million. Retail deposits represented 90.4% of total deposits at June 30, 2026, versus 85.1% at year-end.
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Nonperforming assets declined
Asset quality improved despite loan growth: nonperforming assets declined to $12.6 million, or 0.27% of assets, from $14.1 million, or 0.32%, at December 31, 2025. The allowance for credit losses was $44.2 million, covering 395.41% of nonperforming loans.
What to watch
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High CRE concentration relative to capital
Commercial real estate exposure remains sizable: non-owner-occupied CRE loans equaled 237.3% of Bank total risk-based capital at June 30, 2026, versus 236.5% at December 31, 2025. Office exposure alone was $230.6 million, or 5.72% of the loan portfolio.
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Uninsured-deposit exposure increased
Estimated uninsured deposits rose to approximately $1.8 billion, or 46.8% of total deposits, from $1.5 billion, or 39.6%, at year-end. A loss of depositor confidence could pressure liquidity despite $361.6 million of cash and cash equivalents.
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Higher rates could compress net interest income
The interest-rate sensitivity model forecasts net interest income would decline 5.92% in an upward 300-basis-point scenario and 3.28% in an upward 200-basis-point scenario. Management also notes greater wholesale-funding reliance could negatively affect margin.
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Loan growth increases credit-loss exposure
Credit provisioning increased to $1.0 million in 2Q26 from $0.7 million in 2Q25, and the six-month provision increased to $2.3 million from $1.5 million, primarily due to portfolio growth. Unfunded credit commitments also increased to $926.5 million from $843.6 million at year-end.
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No formal risk-factor updates; AFS losses rose
No material changes to the risk factors disclosed in the 2025 Form 10-K were reported in this 10-Q. However, the filing quantifies $10.6 million of unrealized losses in available-for-sale securities, up from $9.4 million at December 31, 2025.
Management's outlook
The 10-Q contains no quantitative revenue or EPS outlook. Management states that results for the three and six months ended June 30, 2026 are not necessarily indicative of full-year 2026 or future results.
Earlier filings 4
10-K · February 24, 2026
Southern First Bancshares (SFST) continues to show improving profitability and deposit-franchise metrics while emphasizing its ClientFIRST relationship model and selective expansion in the Southeast. Quarterly trends…
10-Q · October 31, 2025
Southern First Bancshares reported robust financial performance for Q3 2025, with a significant increase in diluted EPS to $1.07, up from $0.54 in Q3 2024. Revenue rose to $59 million, marking a 9% increase…
10-Q · August 1, 2025
Southern First Bancshares reported a strong quarter ended June 30, 2025 with net income of $6,581,000 (up from $2,999,000 a year earlier) and diluted EPS of $0.81 (vs. $0.37). Revenue (interest income plus noninterest…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.