- Southern First Bancshares (SFST, Financial) reported a 109% increase in net income year-over-year for Q1 2025, with net income of $5.3 million and earnings per share of $0.65.
- The bank's net interest margin improved to 2.41%, up from 1.94% in Q1 2024.
- Core deposits saw significant growth, increasing 23% to $2.8 billion in Q1 2025 compared to Q4 2024.
Southern First Bancshares, Inc. (SFST) has announced its financial results for the first quarter of 2025, with a net income of $5.3 million and diluted earnings per share of $0.65, representing a substantial 109% increase compared to the same period in 2024. The impressive improvement can be largely attributed to the bank achieving a net interest margin of 2.41%, a significant rise from 1.94% in Q1 2024.
The bank showed strong momentum in its balance sheet, with total loans reaching $3.7 billion, marking a 6% annualized increase over the fourth quarter of 2024. Meanwhile, core deposits increased to $2.8 billion, up 23% on an annualized basis. This growth was achieved alongside a reduction in interest-bearing deposit costs, which declined to 3.47% from 3.97% year-over-year.
Asset quality remained robust with nonperforming assets constituting just 0.26% of total assets and past-due loans accounting for 0.27% of total loans. Southern First maintained strong capital ratios, with a book value per share of $41.33 and a Tangible Common Equity ratio of 7.88%, ensuring the bank's sound position for future growth.
Despite a slight decrease in sequential quarterly earnings from $5.63 million in Q4 2024 to $5.27 million in Q1 2025, this was primarily due to a $750,000 provision for credit losses attributed to loan growth, rather than any downturn in core business performance. The efficiency ratio improved significantly to 71.08% from 84.94% year-over-year, indicating substantial operating leverage as revenue outpaced expense growth.
