Southern First Bancshares (SFST) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $5.3 million, or $0.65 per diluted share, up 109% year-over-year, with EPS rising from $0.31 in Q1 2024.

• Total assets reached $4.28 billion as of March 31, 2025, up 4.8% from year-end 2024, driven by loan and deposit growth.

• Net interest margin improved to 2.41% from 1.94% in Q1 2024 and 2.25% in Q4 2024.

• Asset quality remained strong with nonperforming assets at 0.26% of total assets and past due loans at 0.27% of total loans.

• Book value per share increased to $41.33, up 6.99% year-over-year.

Financial highlights

• Loans outstanding grew to $3.7 billion, up 6% annualized over Q4 2024; deposits increased to $3.62 billion.

• Net interest income rose 25.4% year-over-year to $23.4 million, driven by lower deposit costs and higher loan yields.

• Noninterest income increased 16.9% to $3.1 million, led by mortgage banking and service fees.

• Noninterest expense was $18.8 million, up 4.1% year-over-year, with an efficiency ratio improvement to 71.1%.

• Allowance for credit losses stood at $40.7 million, or 1.10% of loans, covering 378% of nonperforming loans.

Outlook and guidance

• Management anticipates continued pressure on net interest margin due to competitive deposit rates.

• Focus remains on high-quality, profitable growth, capital accretion, and expense discipline.

• Strategic initiatives target core deposit growth and prudent loan underwriting.

• Capital ratios exceed regulatory requirements, supporting future growth and risk management.

• Management expects to increase profitability even without further Fed rate moves and is prepared for economic uncertainty.