Southern First Bancshares reported first-quarter 2026 net income of $9.9 million, up $4.6 million, or 88%, from $5.3 million a year earlier and essentially flat from $9.9 million in the fourth quarter of 2025. Diluted earnings per share rose to $1.19 from $0.65 in the first quarter of 2025, then slipped by $0.01 from the prior quarter.
Total revenue climbed to $33.8 million, up $7.3 million, or 28%, from $26.5 million a year ago and $2.0 million from the fourth quarter. Net interest income increased to $30.3 million from $23.4 million in the first quarter of 2025, a gain of $6.9 million, or 29%, and rose $1.5 million from the fourth quarter. Net interest margin widened to 2.88% from 2.72% in the prior quarter and 2.41% a year earlier.
Loan growth remained the main driver on the balance sheet. Total loans reached $3.94 billion at March 31, 2026, up $97.1 million, or 10% annualized, from the fourth quarter and up from $3.68 billion a year earlier. Total deposits were $3.87 billion, up $156.7 million from the previous quarter and up from $3.62 billion a year earlier. Retail deposits rose to $3.37 billion, a quarterly increase of $207.8 million, or 27% annualized, and were up $351.3 million from a year earlier.
Credit costs moved higher. The provision for credit losses increased to $1.3 million from $650 thousand in the fourth quarter and $750 thousand in the first quarter of 2025. Net charge-offs were about $50 thousand, or 0.01% of average loans annualized, unchanged from both the prior quarter and a year earlier. Nonperforming assets declined to 0.26% of total assets from 0.32% at year-end and were flat with the first quarter of 2025. Classified assets fell to 3.25% of total loans from 4.28% in the fourth quarter.
Profitability ratios improved versus a year ago. Return on average assets rose to 0.91% from 0.52%, and return on average equity increased to 10.67% from 6.38%. Book value per common share increased to $46.00 from $41.33 a year earlier and $44.89 at year-end. Tangible common equity to assets was 8.29%, up from 7.88% a year earlier, though down 8 basis points from the fourth quarter.
On the expense side, noninterest expense totaled $20.0 million, up $1.2 million, or 6%, from the first quarter of 2025 and up $1.6 million from the fourth quarter. Compensation and benefits rose to $12.0 million from $11.3 million a year earlier. Outside service and data processing costs increased to $2.3 million from $2.0 million, and other expense climbed to $1.3 million from $1.1 million.
The company also reported that it raised $65.2 million in gross proceeds from the sale of 1,207,500 shares at $54.00 per share, adding capital as it continued to expand loans and deposits. Following these announcements, the company's shares moved 1.03%, and are now trading at a price of $53.85. Check out the company's full 8-K submission here.
