Southern First Bancshares, Inc. (SFST) SEC Filings & Earnings Calls

Noninterest income declined 20.4% YoY due to retaining mortgage loans rather than selling

“Noninterest income was $2.9 million compared to $3.6 million for the third quarter of 2025, due to retaining a larger percentage of mortgage loans rather than selling to the secondary market” · word for word

Provision for credit losses increased 64.7% YoY driven by loan growth

“Provision for credit losses was $1.4 million and includes a $1.2 million provision for loan losses and a $220 thousand provision for unfunded commitments driven by new loan growth” · word for word

Commercial real estate concentration

“Our level of non-owner occupied commercial real estate loans represents 237.3% of the Bank’s total risk-based capital at June 30, 2026 compared to 236.5% at December 31, 2025.” · word for word

Loan-to-deposit ratio above 100%

“Our loan-to-deposit ratio was 102% at June 30, 2026 and 103% at December 31, 2025.” · word for word

Provision for credit losses increased 46.4% YoY driven by loan growth, but remains manageable.

“Provision for credit losses was $1.0 million and includes a $950 thousand provision for loan losses and a $75 thousand provision for unfunded commitments driven by new loan growth.” · word for word

Noninterest expense increased 5.5% YoY, but efficiency improved significantly.

“Noninterest expense $20,393 compared to $19,336 in 2Q25.”

Commercial real estate concentration

“Our level of non-owner occupied commercial real estate loans represents 237.6% of the Bank’s total risk-based capital at March 31, 2026 compared to 236.5% at December 31, 2025.” · word for word

Loan-to-deposit ratio above 100%

“Our loan-to-deposit ratio was 102% at March 31, 2026 and 103% at December 31, 2025.” · word for word

Uninsured deposit concentration

“we estimate that we have approximately $1.6 billion and $1.5 billion, or 42.4% and 39.6% of total deposits, respectively, in uninsured deposits” · word for word

Provision for credit losses increased due to loan growth, but asset quality remains strong.

“Provision for credit losses increased by $650K; allowance for credit losses 1.10% of loans.”

Equity offering dilutes existing shareholders but strengthens capital base.

“Issued 1,207,500 shares at $54.00 per share for $65.2M gross proceeds.”

Equity offering dilutes existing shareholders and may signal capital needs or growth funding.

“offer and sale of 1,050,000 shares of the Company’s common stock... at a public offering price of $54.00 per share”

Equity offering may dilute existing shareholders and signal capital needs.

“preliminary prospectus supplement... in connection with an underwritten public offering”

Key person risk / CEO succession

“The compensation committee also oversees the administration of the Company's Clawback Policy. Develops and reviews succession planning for key executives, including our Chief Executive Officer.”

Concentrated insider ownership / related party loans

“The aggregate dollar amount of loans outstanding to persons affiliated with the bank was approximately $52.1 million at December 31, 2025 and $25.1 million at December 31, 2024.” · word for word

Asset quality remains strong but nonperforming assets ticked up slightly to 0.32% of total assets.

“Nonperforming assets/total assets 0.32% vs 0.27% in Q3 2025”

Credit quality deterioration in commercial and CRE loans

“The $850,000 provision in 2025, which included a $500,000 provision for credit losses and a $350,000 reserve for unfunded commitments was driven primarily by changes in qualitative factors related to an increase in past due loans and risk migration among our commercial business and non-owner occupied loans.” · word for word

Concentration in commercial real estate

“Our level of non-owner occupied commercial real estate loans represents 237.4% of the Bank’s total risk-based capital at September 30, 2025.” · word for word

Interest rate risk from deposit repricing lag

“To the extent that our dependence on wholesale funding sources increases, our net interest margin would likely be negatively impacted as we may not be able to reduce the rates we pay on these deposits as quickly as we can on core deposits as rates have and may continue to decline.” · word for word

Low credit risk with strong asset quality.

“Nonperforming assets to total assets 0.27%, past due loans to total loans 0.18%.”