GREENVILLE, S.C., July 18, 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 June 30, 2024. "We reported solid performance in the second quarter with improved profitability across all measures. Loans and core deposits were modestly down, as expected, as we continue to focus on disciplined pricing on both sides of the balance sheet. Noninterest-bearing deposit growth was excellent, which reflects the strength of our team. We are expanding profitable client relationships by delivering a unique, authentic service experience. Economic conditions across all our markets remain positive, but we are constantly aware of the broader environment and remain diligent and conservative. Our focus on building a strong, high-quality balance sheet with measured, deliberate growth has been paying off in our financial results," stated Art Seaver, the Company's Chief Executive Officer. "We are balancing our objective of delivering high performance today with our patience in building an even stronger company for the future. Part of this effort is attracting high-quality talent to our Southern First team and we did just that this quarter with the addition of Chris Zych as Chief Financial Officer. Chris's depth of experience and success in banking over the years will be an asset to us." 2024 Second Quarter Highlights Net income was $3.0 million and diluted earnings per common share were $0.37 for Q2 2024 Total loans were $3.6 billion at Q2 2024, a decrease of $21.2 million, or 2.35% annualized, from Q1 2024 Total deposits were $3.5 billion at Q2 2024, a decrease of $812 thousand, or 0.09% annualized, from Q1 2024 Nonperforming assets to total assets were 0.27% and past due loans to total loans were 0.30% at Q2 2024 Net interest margin was 1.98% for Q2 2024, compared to 1.94% for Q1 2024 Book value per common share increased to $39.09 at Q2 2024   Quarter Ended June 30 March 31 December 31 September 30 June 30 2024 2024 2023 2023 2023 Earnings ($ in thousands, except per share data): Net income available to common shareholders $ 2,999 2,522 4,167 4,098 2,458 Earnings per common share, diluted 0.37 0.31 0.51 0.51 0.31 Total revenue(1) 23,051 21,309 21,390 22,094 21,561 Net interest margin (tax-equivalent)(2) 1.98 % 1.94 % 1.92 % 1.97 % 2.05 % Return on average assets(3) 0.29 % 0.25 % 0.40 % 0.40 % 0.26 % Return on average equity(3) 3.81 % 3.22 % 5.39 % 5.35 % 3.27 % Efficiency ratio(4) 80.87 % 84.94 % 79.61 % 78.31 % 80.67 % Noninterest expense to average assets (3) 1.81 % 1.81 % 1.64 % 1.69 % 1.82 % Balance Sheet ($ in thousands): Total loans(5) $ 3,622,521 3,643,766 3,602,627 3,553,632 3,537,616 Total deposits 3,459,869 3,460,681 3,379,564 3,347,771 3,433,018 Core deposits(6) 2,788,223 2,807,473 2,811,499 2,866,574 2,880,507 Total assets 4,109,849 4,105,704 4,055,789 4,019,957 4,002,107 Book value per common share 39.09 38.65 38.63 37.57 37.42 Loans to deposits 104.70 % 105.29 % 106.60 % 106.15 % 103.05 % Holding Company Capital Ratios(7): Total risk-based capital ratio 12.77 % 12.59 % 12.57 % 12.56 % 12.40 % Tier 1 risk-based capital ratio 10.80 % 10.63 % 10.60 % 10.58 % 10.42 % Leverage ratio 8.27 % 8.44 % 8.14 % 8.17 % 8.48 % Common equity tier 1 ratio(8) 10.39 % 10.22 % 10.19 % 10.17 % 10.00 % Tangible common equity(9) 7.76 % 7.68 % 7.70 % 7.56 % 7.53 % Asset Quality Ratios: Nonperforming assets/total assets 0.27 % 0.09 % 0.10 % 0.11 % 0.08 % Classified assets/tier one capital plus allowance for credit losses 4.22 % 3.99 % 4.25 % 4.72 % 4.68 % Loans 30 days or more past due/loans(5) 0.30 % 0.36 % 0.37 % 0.13 % 0.07 % Net charge-offs/average loans(5) (YTD annualized) 0.07 % 0.03 % 0.00 % 0.01 % 0.03 % Allowance for credit losses/loans(5) 1.11 % 1.11 % 1.13 % 1.16 % 1.16 % Allowance for credit losses/nonaccrual loans 357.95 % 1,109.13 % 1,026.58 % 953.25 % 1,363.11 % [Footnotes to table located on page 6]   INCOME STATEMENTS – Unaudited Quarter Ended Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 (in thousands, except per share data) 2024 2024 2023 2023 2023 Interest income Loans $ 46,545 45,605 44,758 43,542 41,089 Investment securities 1,418 1,478 1,674 1,470 706 Federal funds sold 2,583 1,280 2,703 2,435 891   Total interest income 50,546 48,363 49,135 47,447 42,686 Interest expense Deposits 28,216 26,932 27,127 25,130 25,937 Borrowings 2,802 2,786 2,948 2,972 1,924   Total interest expense 31,018 29,718 30,075 28,102 23,861 Net interest income 19,528 18,645 19,060 19,345 18,825 Provision (reversal) for credit losses 500 (175) (975) (500) 910 Net interest income after provision for credit losses 19,028 18,820 20,035 19,845 17,915 Noninterest income Mortgage banking income 1,923 1,164 868 1,208 1,337 Service fees on deposit accounts 423 387 371 356 331 ATM and debit card income 587 544 565 588 536 Income from bank owned life insurance 384 377 361 349 338 Other income 206 192 165 248 194   Total noninterest income 3,523 2,664 2,330 2,749 2,736 Noninterest expense Compensation and benefits 11,290 10,857 9,401 10,231 10,287 Occupancy 2,552 2,557 2,718 2,562 2,518 Outside service and data processing costs 1,962 1,846 2,000 1,744 1,705 Insurance 965 955 937 1,243 897 Professional fees 582 618 581 504 751 Marketing 389 369 364 293 335 Other 903 898 1,027 725 900   Total noninterest expenses 18,643 18,100 17,028 17,302 17,393 Income before provision for income taxes 3,908 3,384 5,337 5,293 3,258 Income tax expense 909 862 1,170 1,195 800 Net income available to common shareholders $ 2,999 2,522 4,167 4,098 2,458