Southern First Bancshares, Inc. Reports Strong Financial Growth in Q3 2024

Southern First Bancshares, Inc. reported significant financial growth for the third quarter and the first nine months of 2024, reflecting a robust performance in various key metrics compared to the previous fiscal period. As of September 30, 2024, total assets increased to $4.17 billion, up 2.9% from $4.06 billion at the end of 2023. Total cash and cash equivalents rose sharply to $260.6 million from $156.2 million, indicating improved liquidity.

The company’s loan portfolio also saw growth, with net loans reaching $3.58 billion, a slight increase from $3.56 billion at the end of 2023. Deposits grew to $3.52 billion, up from $3.38 billion, while total liabilities increased to $3.85 billion from $3.74 billion. Shareholders’ equity rose to $326.5 million, compared to $312.5 million at the end of 2023, primarily driven by net income and stock option exercises.

For the three months ended September 30, 2024, total interest income was $51.2 million, an increase from $47.4 million in the same period of 2023. Net interest income also rose to $20.6 million, reflecting a 6.4% increase year-over-year. The net interest margin improved to 2.08%, up from 1.97% in the prior year, attributed to higher yields on loans and increased average loan balances.

Net income for the third quarter was reported at $4.4 million, compared to $4.1 million in the same quarter of 2023. Basic earnings per share increased to $0.54 from $0.51. For the nine months ended September 30, 2024, net income totaled $9.9 million, up from $9.3 million in the same period of 2023.

Noninterest income also saw a notable increase, with total noninterest income for the third quarter reaching $3.2 million, a 15.5% rise from $2.8 million in the previous year. Mortgage banking income surged by 20% to $1.5 million.

On the expense side, total noninterest expenses for the third quarter increased to $18.0 million, up from $17.3 million, driven by higher compensation and benefits costs. The efficiency ratio improved to 75.9% from 78.3%, reflecting better operational efficiency.

The company continues to maintain a strong capital position, with capital ratios exceeding regulatory requirements, ensuring a "well capitalized" status. The allowance for credit losses was $40.2 million, representing 1.11% of outstanding loans, with coverage of 346.78% of nonperforming loans. Nonperforming assets increased to $11.6 million, or 0.28% of total assets, primarily due to two significant relationships that went on nonaccrual status.

Overall, Southern First Bancshares, Inc. demonstrated solid financial performance and strategic growth in the third quarter of 2024, positioning itself favorably in the competitive banking landscape.