Southern First Bancshares (SFST) investor relations material

Executive summary

• Achieved strong financial performance in Q2 2026, with net income of $11.2 million, up 70% YoY, and significant growth in key profitability and balance sheet metrics.

• Diluted EPS reached $1.20, up 48% YoY and slightly higher than Q1 2026.

• Focused on organic growth in high-growth Southeast metro markets, maintaining a relationship-driven commercial banking model.

• Continued investment in technology and talent to support expansion and operational efficiency.

• Capital position strengthened by a $65.2 million capital raise and partial redemption of subordinated notes.

Financial highlights

• Total revenue was $35.9 million, up 25% YoY; net interest income rose 28% YoY, driven by strong loan growth and margin expansion.

• Net interest margin was 2.87%, up 37 bps YoY and flat sequentially; average loan yield improved despite Fed rate cuts.

• Total loans reached $4.0B, up 8% YoY and 9% annualized for the quarter; total deposits were $3.9B, up 8% YoY.

• Noninterest income grew 5.2% YoY to $3.5M, with service fees on deposit accounts up 53%.

• Noninterest expense rose 5.5% YoY to $20.4M, mainly from compensation and data processing; expense to average assets improved to 1.75%.

Outlook and guidance

• Revenue momentum expected to continue through further NIM expansion and strong loan growth, with management anticipating continued strong performance in H2 2026.

• Anticipates additional NIM improvement, with further Fed rate cuts likely to accelerate expansion.

• Plans to benefit from repricing of loans and lower deposit costs as higher-cost CDs mature.