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Southern First Reports Results for Third Quarter 2024

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Southern First Bancshares reported net income of $4.4 million and diluted earnings per share of $0.54 for Q3 2024. Key highlights include:

- Total loans of $3.6 billion and total deposits of $3.5 billion
- Nonperforming assets to total assets of 0.28%
- Net interest margin improved to 2.08% from 1.98% in Q2 2024
- Book value per share increased to $40.04

Net interest income rose $1.1 million from Q2 2024 due to higher interest income on assets. There was no provision for credit losses in Q3. Noninterest income decreased to $3.2 million, while noninterest expenses fell $604,000 to $18.0 million. The company cited disciplined pricing and high credit quality standards for flat loan growth, while core checking accounts grew 21% annualized.

Southern First Bancshares ha riportato un utile netto di 4,4 milioni di dollari e un utile per azione diluito di 0,54 dollari per il terzo trimestre del 2024. I punti salienti includono:

- Prestiti totali di 3,6 miliardi di dollari e depositi totali di 3,5 miliardi di dollari
- Attività non performanti rispetto alle attività totali pari a 0,28%
- Margine di interessi netti migliorato a 2,08% rispetto all'1,98% nel secondo trimestre del 2024
- Valore contabile per azione aumentato a 40,04 dollari

Il reddito da interessi netti è aumentato di 1,1 milioni di dollari rispetto al secondo trimestre del 2024 grazie a un maggior reddito da interessi sulle attività. Non è stata effettuata alcuna accantonamento per perdite su crediti nel terzo trimestre. Il reddito non da interessi è diminuito a 3,2 milioni di dollari, mentre le spese non da interessi sono scese di 604.000 dollari a 18,0 milioni di dollari. L'azienda ha citato prezzi disciplinati e elevati standard di qualità creditizia per la crescita piatta dei prestiti, mentre i conti correnti principali sono aumentati del 21% su base annua.

Southern First Bancshares reportó un ingreso neto de $4.4 millones y ganancias diluidas por acción de $0.54 para el tercer trimestre de 2024. Los puntos destacados incluyen:

- Préstamos totales de $3.6 mil millones y depósitos totales de $3.5 mil millones
- Activos no productivos respecto al total de activos del 0.28%
- El margen de interés neto mejoró a 2.08% desde el 1.98% en el segundo trimestre de 2024
- Valor contable por acción aumentó a $40.04

Los ingresos por intereses netos aumentaron en $1.1 millones desde el segundo trimestre de 2024 debido a un mayor ingreso por intereses de los activos. No hubo provisiones para pérdidas crediticias en el tercer trimestre. Los ingresos no por intereses disminuyeron a $3.2 millones, mientras que los gastos no por intereses cayeron en $604,000 a $18.0 millones. La compañía citó una fijación de precios disciplinada y altos estándares de calidad crediticia para el crecimiento plano de los préstamos, mientras que las cuentas corrientes principales crecieron un 21% anualizado.

Southern First Bancshares는 2024년 3분기에 440만 달러의 순이익과 0.54달러의 희석 주당 이익을 보고했습니다. 주요 하이라이트는 다음과 같습니다:

- 총 대출 36억 달러 및 총 예금 35억 달러
- 총 자산 대비 부실 자산 비율 0.28%
- 순이자 마진이 2024년 2분기 1.98%에서 2.08%로 개선됨
- 주당 장부 가치가 40.04달러로 증가함

자산에 대한 이자 수익 증가로 인해 순이자 수익이 2024년 2분기 대비 110만 달러 상승했습니다. 3분기에는 신용 손실을 위한 충당금이 없었습니다. 비이자 수익은 320만 달러로 감소했으며, 비이자 비용은 604,000 달러 감소하여 1,800만 달러가 되었습니다. 회사는 대출 성장 정체의 이유로 규율 있는 가격 책정과 높은 신용 품질 기준을 인용했으며, 핵심 체크 계좌는 연율 21% 증가했습니다.

Southern First Bancshares a rapporté un bénéfice net de 4,4 millions de dollars et un bénéfice par action dilué de 0,54 dollar pour le troisième trimestre 2024. Les faits marquants incluent :

- Total des prêts de 3,6 milliards de dollars et total des dépôts de 3,5 milliards de dollars
- Actifs non performants par rapport aux actifs totaux de 0,28%
- La marge d'intérêt nette s'est améliorée à 2,08%, contre 1,98% au deuxième trimestre 2024
- Valeur comptable par action augmentée à 40,04 dollars

Les revenus d'intérêts nets ont augmenté de 1,1 million de dollars par rapport au deuxième trimestre 2024 en raison d'un revenu d'intérêts plus élevé sur les actifs. Il n'y a pas eu de provision pour pertes de crédit au troisième trimestre. Les revenus non liés aux intérêts ont diminué à 3,2 millions de dollars, tandis que les dépenses non liées aux intérêts ont chuté de 604 000 dollars à 18,0 millions de dollars. La société a cité une tarification disciplinée et de hauts standards de qualité de crédit pour la croissance stagnante des prêts, tandis que les comptes courants principaux ont augmenté de 21 % annualisés.

Southern First Bancshares berichtete für das 3. Quartal 2024 von einem Nettogewinn von 4,4 Millionen Dollar und einem verwässerten Gewinn pro Aktie von 0,54 Dollar. Zu den wichtigsten Punkten gehören:

- Gesamtdarlehen von 3,6 Milliarden Dollar und Gesamteinlagen von 3,5 Milliarden Dollar
- Ausfallende Vermögenswerte im Verhältnis zu den Gesamtvermögen von 0,28%
- Die Nettomarge der Zinsen verbesserte sich auf 2,08% von 1,98% im 2. Quartal 2024
- Buchwert pro Aktie stieg auf 40,04 Dollar

Die Zinserträge stiegen um 1,1 Millionen Dollar im Vergleich zum 2. Quartal 2024, was auf höhere Zinserträge aus Vermögenswerten zurückzuführen ist. Im 3. Quartal gab es keine Rückstellungen für Kreditverluste. Die Zinserträge ohne Zinsen fielen auf 3,2 Millionen Dollar, während die Ausgaben ohne Zinsen um 604.000 Dollar auf 18,0 Millionen Dollar sanken. Das Unternehmen nannte disziplinierte Preisgestaltung und hohe Kreditqualitätsstandards als Gründe für das stagnierende Darlehenswachstum, während die Haupt-Scheckkonten um 21% annualisiert wuchsen.

Positive
  • Net income increased to $4.4 million, up from $3.0 million in Q2 2024
  • Diluted EPS rose to $0.54 from $0.37 in Q2 2024
  • Net interest margin improved to 2.08% from 1.98% in Q2 2024
  • Book value per share increased to $40.04 from $39.09 in Q2 2024
  • Core checking accounts grew 21% annualized
  • No provision for credit losses required in Q3 2024
  • Noninterest expenses decreased by $604,000 compared to Q2 2024
Negative
  • Loan growth was flat quarter-over-quarter
  • Noninterest income decreased to $3.2 million from $3.5 million in Q2 2024
  • Nonperforming assets increased slightly to 0.28% of total assets from 0.27% in Q2 2024

Insights

Southern First Bancshares reported solid Q3 2024 results, with net income of $4.4 million ($0.54 per diluted share), up from $3.0 million in Q2 2024. The bank's net interest margin improved to 2.08%, up 10 basis points from Q2, driven by higher loan yields and lower deposit costs. Asset quality remains strong with nonperforming assets at just 0.28% of total assets. The allowance for credit losses stands at 1.11% of total loans, providing a solid buffer. Total loans remained flat at $3.6 billion, reflecting disciplined growth amid economic uncertainties. Core deposits grew 21% annualized, indicating strong customer relationships. Overall, Southern First demonstrates resilience in a challenging environment, with improving profitability and maintained credit quality.

Southern First's Q3 performance highlights its strategic focus on balance sheet quality and relationship banking in a complex economic landscape. The 10% quarter-over-quarter increase in net income, coupled with net interest margin expansion, demonstrates effective interest rate management. The bank's decision to maintain flat loan growth reflects a prudent approach amidst economic uncertainties. The 21% annualized growth in core checking accounts is particularly impressive, suggesting strong customer acquisition and retention. With a tangible common equity ratio of 7.82% and improving profitability metrics, Southern First appears well-positioned to navigate potential economic headwinds while capitalizing on growth opportunities as market conditions stabilize.

GREENVILLE, S.C., Oct. 22, 2024 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three-month period ended September 30, 2024.

"Our third quarter results continued our positive momentum and outlook this year. Our focus on building a high-quality balance sheet again rewarded us with outstanding asset quality performance, which is among the industry's best. We are well-positioned for increasing profitability in this operating environment despite persistent growth headwinds and uncertain interest rate moves by the Fed," stated Art Seaver, the Company's Chief Executive Officer. "This quarter we executed on opportunities to lower our funding costs, which is reflected in our solid margin expansion. Our team did an outstanding job of growing core checking accounts by 21%, annualized. Loan growth was flat due to our deliberate actions around disciplined pricing and high credit quality standards. We also believe that business growth may be waiting for additional clarity on interest rates, the political environment and global influences on the economy. Meanwhile, we are taking care of our clients and developing strong business pipelines one relationship at a time with relentless relationship banking and exceptional service."

Third Quarter 2024 Highlights

  •  Net income of $4.4 million and diluted earnings per common share of $0.54
  • Total loans of $3.6 billion and total deposits of $3.5 billion
  • Nonperforming assets to total assets of 0.28% and net recoveries of $9 thousand
  • Net interest margin of 2.08% for Q3 2024, compared to 1.98% for Q2 2024
  • Book value per common share of $40.04 and TCE ratio of 7.82%


Quarter Ended



September 30

June 30

March 31

December 31

September 30



2024

2024

2024

2023

2023

Earnings ($ in thousands, except per share data):







Net income available to common shareholders

$

4,382

2,999

2,522

4,167

4,098

Earnings per common share, diluted


0.54

0.37

0.31

0.51

0.51

Total revenue(1)


23,766

23,051

21,309

21,390

22,094

Net interest margin (tax-equivalent)(2)


2.08 %

1.98 %

1.94 %

1.92 %

1.97 %

Return on average assets(3)


0.43 %

0.29 %

0.25 %

0.40 %

0.40 %

Return on average equity(3)


5.40 %

3.81 %

3.22 %

5.39 %

5.35 %

Efficiency ratio(4)


75.90 %

80.87 %

84.94 %

79.61 %

78.31 %

Noninterest expense to average assets (3)


1.75 %

1.81 %

1.81 %

1.64 %

1.69 %

Balance Sheet ($ in thousands):







Total loans(5)

$

3,619,556

3,622,521

3,643,766

3,602,627

3,553,632

Total deposits


3,518,825

3,459,869

3,460,681

3,379,564

3,347,771

Core deposits(6)


2,705,429

2,788,223

2,807,473

2,811,499

2,866,574

Total assets


4,174,631

4,109,849

4,105,704

4,055,789

4,019,957

Book value per common share


40.04

39.09

38.65

38.63

37.57

Loans to deposits


102.86 %

104.70 %

105.29 %

106.60 %

106.15 %

Holding Company Capital Ratios(7):







Total risk-based capital ratio


12.61 %

12.77 %

12.59 %

12.57 %

12.56 %

Tier 1 risk-based capital ratio


10.99 %

10.80 %

10.63 %

10.60 %

10.58 %

Leverage ratio


8.50 %

8.27 %

8.44 %

8.14 %

8.17 %

Common equity tier 1 ratio(8)


10.58 %

10.39 %

10.22 %

10.19 %

10.17 %

Tangible common equity(9)


7.82 %

7.76 %

7.68 %

7.70 %

7.56 %

Asset Quality Ratios:







Nonperforming assets/total assets


0.28 %

0.27 %

0.09 %

0.10 %

0.11 %

Classified assets/tier one capital plus allowance for credit losses


4.35 %

4.22 %

3.99 %

4.25 %

4.72 %

Loans 30 days or more past due/loans(5)


0.16 %

0.30 %

0.36 %

0.37 %

0.13 %

Net charge-offs/average loans(5) (YTD annualized)


0.05 %

0.07 %

0.03 %

0.00 %

0.01 %

Allowance for credit losses/loans(5)


1.11 %

1.11 %

1.11 %

1.13 %

1.16 %

Allowance for credit losses/nonaccrual loans


346.78 %

357.95 %

1,109.13 %

1,026.58 %

953.25 %

 [Footnotes to table located on page 6]

 

INCOME STATEMENTS – Unaudited




Quarter Ended



Sept 30

Jun 30

Mar 31

Dec 31

Sept 30

(in thousands, except per share data)


2024

2024

2024

2023

2023

Interest income







Loans

$

47,550

46,545

45,605

44,758

43,542

Investment securities


1,412

1,418

1,478

1,674

1,470

Federal funds sold


2,209

2,583

1,280

2,703

2,435

  Total interest income


51,171

50,546

48,363

49,135

47,447

Interest expense







Deposits


27,725

28,216

26,932

27,127

25,130

Borrowings


2,855

2,802

2,786

2,948

2,972

  Total interest expense


30,580

31,018

29,718

30,075

28,102

Net interest income


20,591

19,528

18,645

19,060

19,345

Provision (reversal) for credit losses


-

500

(175)

(975)

(500)

Net interest income after provision for credit losses


20,591

19,028

18,820

20,035

19,845

Noninterest income







Mortgage banking income


1,449

1,923

1,164

868

1,208

Service fees on deposit accounts


455

423

387

371

356

ATM and debit card income


599

587

544

565

588

Income from bank owned life insurance


401

384

377

361

349

Other income


271

206

192

165

248

  Total noninterest income


3,175

3,523

2,664

2,330

2,749

Noninterest expense







Compensation and benefits


10,789

11,290

10,857

9,401

10,231

Occupancy


2,595

2,552

2,557

2,718

2,562

Outside service and data processing costs


1,930

1,962

1,846

2,000

1,744

Insurance


1,025

965

955

937

1,243

Professional fees


548

582

618

581

504

Marketing


319

389

369

364

293

Other


833

903

898

1,027

725

  Total noninterest expenses


18,039

18,643

18,100

17,028

17,302

Income before provision for income taxes


5,727

3,908

3,384

5,337

5,293

Income tax expense


1,345

909

862

1,170

1,195

Net income available to common shareholders

$

4,382

2,999

2,522

4,167

4,098








Earnings per common share – Basic

$

0.54

0.37

0.31

0.51

0.51

Earnings per common share – Diluted


0.54

0.37

0.31

0.51

0.51

Basic weighted average common shares


8,064

8,126

8,110

8,056

8,053

Diluted weighted average common shares


8,089

8,141

8,142

8,080

8,072

[Footnotes to table located on page 6]

 

Net income for the third quarter of 2024 was $4.4 million, or $0.54 per diluted share, a $1.4 million increase from the second quarter of 2024 and a $284 thousand increase from the third quarter of 2023. Net interest income increased $1.1 million during the third quarter of 2024, compared to the second quarter of 2024, and increased $1.2 million, compared to the third quarter of 2023. The increase in net interest income from the prior quarter and prior year was driven by additional interest income on our interest-earning assets.    

There was no provision for credit losses for the third quarter of 2024, compared to a provision for credit losses of $500 thousand during the second quarter of 2024. There was no provision during the third quarter due to loans remaining flat and low charge-offs during the quarter.

Noninterest income was $3.2 million for the third quarter of 2024, compared to $3.5 million for the second quarter of 2024. Mortgage banking income continues to be the largest component of our noninterest income at $1.4 million for the third quarter of 2024 compared to $1.9 million for the second quarter of 2024.

Noninterest expense for the third quarter of 2024 was $18.0 million, a $604 thousand decrease from the second quarter of 2024. The decrease in noninterest expense from the previous quarter was driven by a decrease in compensation and benefits expense. The decrease in compensation and benefits expenses was due primarily to a decrease in commissions expense and certain employee benefits expenses.

Our effective tax rate was 23.5% for the third quarter of 2024 as compared to 23.3% for the second quarter of 2024.

NET INTEREST INCOME AND MARGIN - Unaudited








For the Three Months Ended


September 30, 2024

June 30, 2024

September 30, 2023

(dollars in thousands)

Average
Balance

Income/
Expense

Yield/
Rate(3)

Average
Balance

Income/
Expense

Yield/
Rate(3)

Average
Balance

Income/
Expense

Yield/
Rate(3)

Interest-earning assets










Federal funds sold and interest-
bearing deposits

$     158,222

$     2,209

5.55 %

$     186,584

$     2,583

5.57 %

$     181,784

$     2,435

5.31 %

  Investment securities, taxable

137,087

1,370

3.98 %

133,507

1,376

4.15 %

148,239

1,429

3.82 %

  Investment securities, nontaxable(2)

8,047

55

2.70 %

8,027

55

2.73 %

7,799

55

2.77 %

  Loans(10)

3,629,050

47,550

5.21 %

3,645,595

46,545

5.14 %

3,554,478

43,542

4.86 %

    Total interest-earning assets

3,932,406

51,184

5.18 %

3,973,713

50,559

5.12 %

3,892,300

47,461

4.84 %

  Noninterest-earning assets

158,550



165,093



159,103



    Total assets

$4,090,956



$4,138,806



$4,051,403



Interest-bearing liabilities










NOW accounts

$   314,669

835

1.06 %

$   302,881

621

0.82 %

$   297,028

620

0.83 %

Savings & money market

1,523,834

15,287

3.99 %

1,611,991

16,324

4.07 %

1,748,638

16,908

3.84 %

Time deposits

909,192

11,603

5.08 %

898,878

11,271

5.04 %

648,949

7,602

4.65 %

Total interest-bearing deposits

2,747,695

27,725

4.01 %

2,813,750

28,216

4.03 %

2,694,615

25,130

3.70 %

FHLB advances and other borrowings

240,065

2,297

3.81 %

240,000

2,247

3.77 %

264,141

2,414

3.63 %

Subordinated debentures

36,261

558

6.12 %

36,360

555

6.14 %

36,278

558

6.10 %

Total interest-bearing liabilities

3,024,021

30,580

4.02 %

3,090,110

31,018

4.04 %

2,995,034

28,102

3.72 %

Noninterest-bearing liabilities

744,025



731,843



752,433



Shareholders' equity

322,910



316,853



303,936



Total liabilities and shareholders'
equity

$4,090,956



$4,138,806



$4,051,403



Net interest spread



1.16 %



1.08 %



1.12 %

Net interest income (tax equivalent) /
margin


$20,604

2.08 %


$19,541

1.98 %


$19,359

1.97 %

Less:  tax-equivalent adjustment(2)


13



13



14


Net interest income


$20,591



$19,528



$19,345


[Footnotes to table located on page 6]

 

Net interest income was $20.6 million for the third quarter of 2024, a $1.1 million increase from the second quarter of 2024, driven by a $625 thousand increase in interest income, on a tax-equivalent basis, and a $438 thousand decrease in interest expense. The increase in interest income was driven by a $1.0 million increase in interest income on loans resulting from loans being originated and renewed at higher rates than much of our loan portfolio. Our net interest margin, on a tax-equivalent basis, was 2.08% for the third quarter of 2024, a ten-basis point increase from 1.98% for the second quarter of 2024. During the third quarter of 2024, the yield on our loan portfolio increased by seven-basis points, while the cost of our interest-bearing deposits decreased by two-basis points, as compared to the second quarter of 2024, resulting in an increase in net interest margin for the period.

BALANCE SHEETS - Unaudited








Ending Balance



September 30

June 30

March 31

December 31

September 30

(in thousands, except per share data)


2024

2024

2024

2023

2023

Assets







Cash and cash equivalents:







  Cash and due from banks

$

25,289

21,567

13,925

28,020

17,395

  Federal funds sold


226,110

164,432

144,595

119,349

127,714

  Interest-bearing deposits with banks


9,176

8,828

8,789

8,801

7,283

    Total cash and cash equivalents


260,575

194,827

167,309

156,170

152,392

Investment securities:







  Investment securities available for sale


134,597

121,353

125,996

134,702

144,035

  Other investments


19,640

18,653

18,499

19,939

19,600

    Total investment securities


154,237

140,006

144,495

154,641

163,635

Mortgage loans held for sale


8,602

14,759

11,842

7,194

7,117

Loans (5)


3,619,556

3,622,521

3,643,766

3,602,627

3,553,632

Less allowance for credit losses


(40,166)

(40,157)

(40,441)

(40,682)

(41,131)

    Loans, net


3,579,390

3,582,364

3,603,325

3,561,945

3,512,501

Bank owned life insurance


53,663

53,263

52,878

52,501

52,140

Property and equipment, net


90,158

91,533

93,007

94,301

95,743

Deferred income taxes


11,595

12,339

12,321

12,200

13,078

Other assets


16,411

20,758

20,527

16,837

23,351

    Total assets

$

4,174,631

4,109,849

4,105,704

4,055,789

4,019,957

Liabilities







Deposits

$

3,518,825

3,459,869

3,460,681

3,379,564

3,347,771

FHLB Advances


240,000

240,000

240,000

275,000

275,000

Subordinated debentures


24,903

36,376

36,349

36,322

36,295

Other liabilities


64,365

54,856

53,418

52,436

56,993

    Total liabilities


3,848,093

3,791,101

3,790,448

3,743,322

3,716,059

Shareholders' equity







Preferred stock - $.01 par value; 10,000,000 shares authorized


-

-

-

-

-

Common Stock - $.01 par value; 20,000,000 shares authorized


82

82

82

81

81

Nonvested restricted stock


(4,219)

(4,710)

(5,257)

(3,596)

(4,065)

Additional paid-in capital


124,288

124,174

124,159

121,777

121,757

Accumulated other comprehensive loss


(9,063)

(11,866)

(11,797)

(11,342)

(15,255)

Retained earnings


215,450

211,068

208,069

205,547

201,380

    Total shareholders' equity


326,538

318,748

315,256

312,467

303,898

    Total liabilities and shareholders' equity

$

4,174,631

4,109,849

4,105,704

4,055,789

4,019,957

Common Stock







Book value per common share

$

40.04

39.09

38.65

38.63

37.57

Stock price:







  High


36.45

30.36

38.71

37.15

30.18

  Low


27.70

25.70

29.80

25.16

24.22

  Period end


34.08

29.24

31.76

37.10

26.94

Common shares outstanding


8,156

8,155

8,156

8,088

8,089

[Footnotes to table located on page 6]

 

ASSET QUALITY MEASURES - Unaudited



Quarter Ended



September 30

June 30

March 31

December 31

September 30

(dollars in thousands)


2024

2024

2024

2023

2023

Nonperforming Assets







Commercial







  Non-owner occupied RE

$

7,904

7,949

1,410

1,423

1,615

  Commercial business


838

829

488

319

404

Consumer







  Real estate


2,448

1,875

1,380

985

1,228

  Home equity


393

565

367

1,236

1,068

  Other


-

-

1

-

-

Total nonaccrual loans


11,583

11,218

3,646

3,963

4,315

Other real estate owned


-

-

-

-

-

Total nonperforming assets

$

11,583

11,218

3,646

3,963

4,315

Nonperforming assets as a percentage of:







  Total assets


0.28 %

0.27 %

0.09 %

0.10 %

0.11 %

  Total loans


0.32 %

0.31 %

0.10 %

0.11 %

0.12 %

Classified assets/tier 1 capital plus allowance for credit losses


4.35 %

4.22 %

3.99 %

4.25 %

4.72 %



Quarter Ended



September 30

June 30

March 31

December 31

September 30

(dollars in thousands)


2024

2024

2024

2023

2023

Allowance for Credit Losses







Balance, beginning of period

$

40,157

40,441

40,682

41,131

41,105

Loans charged-off


(118)

(1,049)

(424)

(119)

(42)

Recoveries of loans previously charged-off


127

15

183

310

168

  Net loans (charged-off) recovered


9

(1,034)

(241)

191

126

Provision for (reversal of) credit losses


-

750

-

(640)

(100)

Balance, end of period

$

40,166

40,157

40,441

40,682

41,131

Allowance for credit losses to gross loans


1.11 %

1.11 %

1.11 %

1.13 %

1.16 %

Allowance for credit losses to nonaccrual loans


346.78 %

357.95 %

1,109.13 %

1,026.58 %

953.25 %

Net charge-offs (recoveries) to average loans QTD (annualized)


0.00 %

0.11 %

0.03 %

(0.02 %)

(0.01 %)

 

Total nonperforming assets increased by $365 thousand during the third quarter of 2024, and represented 0.28% of total assets, compared to 0.27% for the second quarter of 2024. The increase in nonperforming assets was driven by three new relationships, totaling $698 thousand, placed on nonaccrual during the third quarter of 2024, offset by one relationship returning to accrual status and several large paydowns on existing nonaccrual loans. In addition, our classified asset ratio was 4.35% for the third quarter of 2024 compared to 4.22% for the second quarter of 2024.

At September 30, 2024 and June 30, 2024, the allowance for credit losses was $40.2 million, or 1.11% of total loans. We had net recoveries of $9 thousand, or 0.00% annualized, for the third quarter of 2024, compared to net charge-offs of $1.0 million, or 0.11% annualized, for the second quarter of 2024. We did not record a provision for credit losses related to the loan portfolio during the third quarter of 2024, compared to a $750 thousand provision for credit losses related to the loan portfolio for the second quarter of 2024.

LOAN COMPOSITION - Unaudited






Quarter Ended




September 30

June 30

March 31

December 31

September 30

(dollars in thousands)


2024

2024

2024

2023

2023

Commercial








Owner occupied RE

$

642,608

642,008

631,047

631,657

637,038


Non-owner occupied RE


917,642

917,034

944,530

942,529

937,749


Construction


144,665

144,968

157,464

150,680

119,629


Business


521,535

527,017

520,073

500,161

500,253


Total commercial loans


2,226,450

2,231,027

2,253,114

2,225,027

2,194,669


Consumer








Real estate


1,132,371

1,126,155

1,101,573

1,082,429

1,074,679


Home equity


195,383

189,294

184,691

183,004

180,856


Construction


21,582

32,936

53,216

63,348

54,210


Other


43,770

43,109

51,172

48,819

49,218


Total consumer loans


1,393,106

1,391,494

1,390,652

1,377,600

1,358,963


Total gross loans, net of deferred fees    


3,619,556

3,622,521

3,643,766

3,602,627

3,553,632


Less—allowance for credit losses


(40,166)

(40,157)

(40,441)

(40,682)

(41,131)


Total loans, net

$

3,579,390

3,582,364

3,603,325

3,561,945

3,512,501


 

DEPOSIT COMPOSITION - Unaudited




Quarter Ended



September 30

June 30

March 31

December 31

September 30

(dollars in thousands)


2024

2024

2024

2023

2023

Non-interest bearing

$

689,749

683,291

671,708

674,167

675,409

Interest bearing:







   NOW accounts


339,412

293,875

293,064

310,218

306,667

   Money market accounts


1,423,403

1,562,786

1,603,796

1,605,278

1,685,736

   Savings


29,283

28,739

32,248

31,669

34,737

   Time, less than $250,000


223,582

219,532

206,657

190,167

125,506

   Time and out-of-market deposits, $250,000 and over


813,396

671,646

653,208

568,065

519,716

Total deposits

$

3,518,825

3,459,869

3,460,681

3,379,564

3,347,771

 

Footnotes to tables:


 (1) Total revenue is the sum of net interest income and noninterest income.

 (2) The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis.

 (3) Annualized for the respective three-month period.

 (4) Noninterest expense divided by the sum of net interest income and noninterest income.

 (5) Excludes mortgage loans held for sale.

 (6) Excludes out of market deposits and time deposits greater than $250,000 totaling $813,396,000.

 (7) September 30, 2024 ratios are preliminary.

 (8) The common equity tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets.

 (9) The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets.

(10) Includes mortgage loans held for sale.

ABOUT SOUTHERN FIRST BANCSHARES
Southern First Bancshares, Inc., Greenville, South Carolina is a registered bank holding company incorporated under the laws of South Carolina.  The company's wholly owned subsidiary, Southern First Bank, is the second largest bank headquartered in South Carolina.  Southern First Bank has been providing financial services since 1999 and now operates in 12 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Charlotte, Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately $4.2 billion and its common stock is traded on The NASDAQ Global Market under the symbol "SFST."  More information can be found at www.southernfirst.com.

FORWARD-LOOKING STATEMENTS
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective.  Such forward-looking statements are identified by words such as "believe," "expect," "anticipate," "estimate," "preliminary", "intend," "plan," "future, "target," "continue," "lasting," "building," and "project," as well as similar expressions.  Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate.  Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized.  The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which the company conducts operations may be different than expected; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan and deposit growth as well as pricing of each product, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, changes affecting oversight of the financial services industry or consumer protection; (5) the impact of changes to Congress and the Presidential election on the regulatory landscape and capital markets; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (7) changes in interest rates, which may continue to affect the company's net income, interest expense, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of the company's assets, including its investment securities; (8) elevated inflation which may cause adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; (9) any increase in FDIC assessments which have increased and may continue to increase our cost of doing business; and (10) changes in accounting principles, policies, practices, or guidelines.  Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet site (http://www.sec.gov).  All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above.  We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

FINANCIAL & MEDIA CONTACT:
ART SEAVER  864-679-9010

WEB SITE: www.southernfirst.com

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SOURCE Southern First Bancshares, Inc.

FAQ

What was Southern First Bancshares' (SFST) net income for Q3 2024?

Southern First Bancshares reported net income of $4.4 million for the third quarter of 2024.

How much did Southern First Bancshares' (SFST) diluted earnings per share increase in Q3 2024?

Diluted earnings per share increased to $0.54 in Q3 2024, up from $0.37 in Q2 2024.

What was Southern First Bancshares' (SFST) net interest margin in Q3 2024?

Southern First Bancshares' net interest margin improved to 2.08% in Q3 2024, up from 1.98% in Q2 2024.

How much did Southern First Bancshares' (SFST) book value per share grow to in Q3 2024?

Book value per share increased to $40.04 in Q3 2024, up from $39.09 in Q2 2024.

What was Southern First Bancshares' (SFST) loan growth in Q3 2024?

Loan growth was flat in Q3 2024, with total loans at $3.6 billion, due to disciplined pricing and high credit quality standards.

Southern First Bancshares, Inc.

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