Southern First Bancshares (SFST) investor relations material

Executive summary

• Diluted EPS for Q1 2026 was $1.19, up 83% year-over-year, with net income rising to $9.9 million, an 88% increase, driven by strong profitability and balance sheet growth.

• Total assets reached $4.6 billion as of March 31, 2026, up 4.0% from year-end, fueled by loan and deposit growth.

• Achieved record retail deposit growth of $210 million, representing a 27% annualized growth rate.

• Closed a $65.2 million public offering of common stock in April 2026 to support growth, capital needs, and redeem subordinated notes.

• Focused on organic growth in high-growth Southeast metro markets, leveraging technology and a relationship-driven model.

Financial highlights

• Net interest income for Q1 2026 was $30.3 million, up 29.4% year-over-year, with net interest margin improving to 2.88%.

• Total loans reached $3.94 billion and total deposits $3.9 billion, each up 7% year-over-year.

• Noninterest income grew 13.7% year-over-year to $3.5 million, driven by deposit service fees and mortgage banking.

• Noninterest expense increased 6.3% year-over-year to $20.0 million, mainly due to higher compensation and data processing.

• Efficiency ratio improved to 59.22% in Q1 2026, down from 71.1% in Q1 2025.

Outlook and guidance

• Revenue momentum expected to continue through further NIM expansion and strong loan growth.

• Proceeds from the equity offering will support organic growth, capital needs, debt redemption, and working capital.

• Management expects continued focus on core deposit growth and prudent loan portfolio expansion.

• Lowering deposit rates opportunistically and benefiting from repricing of higher-cost CDs.

• No planned acquisitions; focus remains on organic growth.