Southern First Reports Results for Third Quarter 2024
GREENVILLE, S.C., Oct. 22, 2024 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ:SFST), holding company for Southern First Bank, today announced its financial results for the three-month period ended September 30, 2024.
"Our third quarter results continued our positive momentum and outlook this year. Our focus on building a high-quality balance sheet again rewarded us with outstanding asset quality performance, which is among the industry's best. We are well-positioned for increasing profitability in this operating environment despite persistent growth headwinds and uncertain interest rate moves by the Fed," stated Art Seaver, the Company's Chief Executive Officer. "This quarter we executed on opportunities to lower our funding costs, which is reflected in our solid margin expansion. Our team did an outstanding job of growing core checking accounts by 21%, annualized. Loan growth was flat due to our deliberate actions around disciplined pricing and high credit quality standards. We also believe that business growth may be waiting for additional clarity on interest rates, the political environment and global influences on the economy. Meanwhile, we are taking care of our clients and developing strong business pipelines one relationship at a time with relentless relationship banking and exceptional service."
Third Quarter 2024 Highlights
Net income of $4.4 million and diluted earnings per common share of $0.54
Total loans of $3.6 billion and total deposits of $3.5 billion
Nonperforming assets to total assets of 0.28% and net recoveries of $9 thousand
Net interest margin of 2.08% for Q3 2024, compared to 1.98% for Q2 2024
Book value per common share of $40.04 and TCE ratio of 7.82%
Quarter Ended
September 30
June 30
March 31
December 31
September 30
2024
2024
2024
2023
2023
Earnings ($ in thousands, except per share data):
Net income available to common shareholders
$
4,382
2,999
2,522
4,167
4,098
Earnings per common share, diluted
0.54
0.37
0.31
0.51
0.51
Total revenue(1)
23,766
23,051
21,309
21,390
22,094
Net interest margin (tax-equivalent)(2)
2.08 %
1.98 %
1.94 %
1.92 %
1.97 %
Return on average assets(3)
0.43 %
0.29 %
0.25 %
0.40 %
0.40 %
Return on average equity(3)
5.40 %
3.81 %
3.22 %
5.39 %
5.35 %
Efficiency ratio(4)
75.90 %
80.87 %
84.94 %
79.61 %
78.31 %
Noninterest expense to average assets (3)
1.75 %
1.81 %
1.81 %
1.64 %
1.69 %
Balance Sheet ($ in thousands):
Total loans(5)
$
3,619,556
3,622,521
3,643,766
3,602,627
3,553,632
Total deposits
3,518,825
3,459,869
3,460,681
3,379,564
3,347,771
Core deposits(6)
2,705,429
2,788,223
2,807,473
2,811,499
2,866,574
Total assets
4,174,631
4,109,849
4,105,704
4,055,789
4,019,957
Book value per common share
40.04
39.09
38.65
38.63
37.57
Loans to deposits
102.86 %
104.70 %
105.29 %
106.60 %
106.15 %
Holding Company Capital Ratios(7):
Total risk-based capital ratio
12.61 %
12.77 %
12.59 %
12.57 %
12.56 %
Tier 1 risk-based capital ratio
10.99 %
10.80 %
10.63 %
10.60 %
10.58 %
Leverage ratio
8.50 %
8.27 %
8.44 %
8.14 %
8.17 %
Common equity tier 1 ratio(8)
10.58 %
10.39 %
10.22 %
10.19 %
10.17 %
Tangible common equity(9)
7.82 %
7.76 %
7.68 %
7.70 %
7.56 %
Asset Quality Ratios:
Nonperforming assets/total assets
0.28 %
0.27 %
0.09 %
0.10 %
0.11 %
Classified assets/tier one capital plus allowance for credit losses
4.35 %
4.22 %
3.99 %
4.25 %
4.72 %
Loans 30 days or more past due/loans(5)
0.16 %
0.30 %
0.36 %
0.37 %
0.13 %
Net charge-offs/average loans(5) (YTD annualized)
0.05 %
0.07 %
0.03 %
0.00 %
0.01 %
Allowance for credit losses/loans(5)
1.11 %
1.11 %
1.11 %
1.13 %
1.16 %
Allowance for credit losses/nonaccrual loans
346.78 %
357.95 %
1,109.13 %
1,026.58 %
953.25 %
[Footnotes to table located on page 6]
INCOME STATEMENTS, Unaudited
Quarter Ended
Sept 30
Jun 30
Mar 31
Dec 31
Sept 30
(in thousands, except per share data)
2024
2024
2024
2023
2023
Interest income
Loans
$
47,550
46,545
45,605
44,758
43,542
Investment securities
1,412
1,418
1,478
1,674
1,470
Federal funds sold
2,209
2,583
1,280
2,703
2,435
Total interest income
51,171
50,546
48,363
49,135
47,447
Interest expense
Deposits
27,725
28,216
26,932
27,127
25,130
Borrowings
2,855
2,802
2,786
2,948
2,972
Total interest expense
30,580
31,018
29,718
30,075
28,102
Net interest income
20,591
19,528
18,645
19,060
19,345
Provision (reversal) for credit losses
-
500
(175)
(975)
(500)
Net interest income after provision for credit losses
20,591
19,028
18,820
20,035
19,845
Noninterest income
Mortgage banking income
1,449
1,923
1,164
868
1,208
Service fees on deposit accounts
455
423
387
371
356
ATM and debit card income
599
587
544
565
588
Income from bank owned life insurance
401
384
377
361
349
Other income
271
206
192
165
248
Total noninterest income
3,175
3,523
2,664
2,330
2,749
Noninterest expense
Compensation and benefits
10,789
11,290
10,857
9,401
10,231
Occupancy
2,595
2,552
2,557
2,718
2,562
Outside service and data processing costs
1,930
1,962
1,846
2,000
1,744
Insurance
1,025
965
955
937
1,243
Professional fees
548
582
618
581
504
Marketing
319
389
369
364
293
Other
833
903
898
1,027
725
Total noninterest expenses
18,039
18,643
18,100
17,028
17,302
Income before provision for income taxes
5,727
3,908
3,384
5,337
5,293
Income tax expense
1,345
909
862
1,170
1,195
Net income available to common shareholders
$
4,382
2,999
2,522
4,167
