SOUTHERN FIRST BANCSHARES INC has recently released its 10-Q report. Southern First Bancshares, Inc. is the bank holding company for Southern First Bank, which makes commercial, consumer, and mortgage loans in South Carolina, North Carolina, and Georgia. It also takes deposits through checking, commercial checking, savings, money market, and certificates of deposit, and offers services including internet banking, cash management, bill payment, direct deposit, safe deposit boxes, and mobile banking. The company was incorporated in 1999 and is based in Greenville, South Carolina.
For the three and six months ended June 30, 2026, the company said its results were compared with the same periods in 2025, and its financial condition was measured against December 31, 2025. At June 30, 2026, total assets were $4.70 billion, up 6.7% from $4.40 billion at year-end 2025. Loans were $4.03 billion, compared with $3.85 billion at December 31, 2025, while deposits rose to $3.94 billion from $3.72 billion. Liabilities increased to $4.2 billion from $4.03 billion, and shareholders’ equity climbed to $452.3 million from $368.7 million.
Net income to common shareholders was $11.2 million in the second quarter of 2026, up from $6.6 million a year earlier. Diluted earnings per share increased to $1.20 from $0.81. For the first six months of 2026, net income to common shareholders was $21.1 million, compared with $11.8 million in the same period of 2025, and diluted EPS rose to $2.39 from $1.46.
The company said the improvement was driven primarily by higher net interest income. Second-quarter net interest income reached $32.4 million, up 28.0% from $25.3 million in the prior-year quarter. That increase came from a $5.8 million rise in interest income on interest-earning assets and a $1.3 million decline in interest expense on interest-bearing liabilities. On a tax-equivalent basis, net interest margin widened to 2.87% from 2.50%.
Average loans for the quarter were $3.98 billion, up from $3.72 billion a year earlier, and they generated $53.1 million of interest income versus $49.0 million in the prior-year quarter. Average interest-earning assets were $4.52 billion, compared with $4.05 billion, while the yield on total interest-earning assets was 5.16%, down slightly from 5.18%.
On the funding side, average interest-bearing deposits increased to $3.13 billion from $2.84 billion. The average cost of those deposits fell to 2.96% from 3.43%. NOW accounts averaged $501.0 million and carried a 1.39% rate, compared with $331.8 million at 0.91% a year earlier. Savings and money market balances averaged $1.75 billion at 2.95%, while time deposits averaged $871.6 million at 3.89%, both lower-cost than a year ago.
Borrowings remained steady. FHLB advances and other borrowings averaged $240.0 million in both periods, with interest expense of $2.25 million in 2026 versus $2.27 million in 2025. Subordinated debentures averaged $24.8 million and cost 6.72%, down from 7.30% a year earlier.
The company’s net interest spread improved to 2.11% from 1.69%. Average shareholders’ equity increased to $436.8 million from $342.3 million, reflecting the larger balance sheet and stronger retained earnings. The market has reacted to these announcements by moving the company's shares 1.25% to a price of $63.18. For more information, read the company's full 10-Q submission here.
