SFST

Southern First Bancshares just dropped its Q3 2026 scorecard and the stock immediately told you how traders felt. Shares closed at US$60.93, up 3% on the day, as buyers leaned into what looked like another clean quarter rather than a one off surprise. The focal point today is earnings power. Basic earnings per share came in at about US$1.30 on roughly US$36.13 million of revenue. This reinforces a story of consistent profitability that has been building over the last few quarters. Short term enthusiasm is now running into longer term questions about how much of that strength is already priced in. Like the earnings power at Southern First Bancshares but unsure how much of that clean story is already reflected in the current share price? Benchmark it against banks and financials on our 34 high quality undervalued stocks - Total Revenue (Q3 2026 vs Q3 2025): US$36.13 million vs. US$30.279 million (up about 19%) - Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025): US$12.227 million vs. US$8.662 million (up about 41%) - Basic EPS (Q3 2026 vs Q3 2025): US$1.30 vs. US$1.08 (up about 20%) - Net Interest Margin, or NIM (Q3 2026 TTM vs Q3 2025 TTM): 32.1% net margin vs. 23.9% net margin (reflecting an improved profitability mix based on the figures provided) Ask Charlie what Southern First Bancshares' earnings surge might be hiding. For anyone leaning bullish on Southern First Bancshares, this quarter gives the thesis some real backing. Revenue and net income both moved higher year on year, while basic EPS advanced from US$1.08 to US$1.30. Profitability metrics improved, helped by wider margin and solid loan and retail deposit growth in the period. Asset quality held up, with low net charge offs and nonperforming assets at 0.30% of total assets. That mix points to a franchise that is still adding volume without obvious immediate strain on credit. More cautious investors will note that even with healthier earnings, longer term share performance has been mixed, with the stock down over the past month and only modest gains over 90 days. The move higher after results suggests that some earlier worries about profitability or asset quality were too harsh, at least for now. That said, the business remains tied to regional lending and deposits. Anyone concerned about concentration or future credit costs will likely see this quarter as a welcome data point, not a reason to ignore those risks. Are Southern First Bancshares' stronger earnings quality and steady asset performance enough for analysts to rethink where this stock should trade? Check the consensus price target analysis for Southern First Bancshares. Southern First Bancshares just showed how a clean quarter can reset the conversation around a regional bank. The real opportunity is finding stocks that could be undervalued before the market corrects them. - Company 1 - 29% below our estimate - converts a record funnel of regulated-sector manufacturing wins into long-cycle production programs for complex hardware customers. - Company 2 - 33% below our estimate - ramps new engine platforms and capacity aimed at data center power contracts that lock in multiyear equipment demand. - Company 3 - 37% below our estimate - scales cross-border payment volumes for large online platforms as merchants route more emerging-market transactions through its local rails. That is three of the list. See the full list of 34 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SFST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

GREENVILLE, S.C., Oct. 20, 2026 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced its financial results for the three months ended September 30, 2026. Strong loan growth and continued margin expansion drove year-over-year net interest income growth of 26%. Net income was $12.2 million and diluted earnings per share was $1.28, representing a $0.22, or 21% increase over the third quarter of 2025, and an $0.08 increase from the second quarter of 2026. Return on average assets was 1.03%, up 23 basis points over the third quarter of last year, and tangible common equity to assets was 9.47%, up 129 basis points from the third quarter of 2025. Key asset quality metrics were consistent both on a linked quarter and year-over-year basis. Net charge-offs were approximately $719 thousand, or 0.07% of average loans, annualized, and nonperforming assets were 0.30% of total assets. Provision for credit losses increased by $375 thousand from the prior quarter, and the allowance for credit losses represented 1.07% of loans. "The consistent high performance of our company continued in the third quarter. We increased retail client deposits by $163 million, representing an 18% annualized growth rate, while our loan portfolio grew by $145 million or 14% annualized growth during the quarter. Our team's focus on organic growth and delivering an excellent client experience is creating tremendous value for our company and its shareholders. We capitalized on profitable growth opportunities and robust business activity across our markets while maintaining disciplined expense management. As a result, we further expanded margin and improved overall profitability metrics. Our third quarter net income was $12.2 million, a 41% increase from the same quarter last year and a 9% increase over the second quarter of 2026. We are proud of our accomplishments in the third quarter, which we believe put us in a great position to finish strong in 2026," stated Art Seaver, Chief Executive Officer. Financial Highlights – Third Quarter 2026: Earnings - Diluted earnings per common share was $1.28, up $0.22 or 21% compared to the third quarter of 2025 and up by $0.08 from the second quarter of 2026 - Net income improved to $12.2 million, a $3.6 million increase or 41% compared to the third quarter of 2025 and a $1.0 million increase or 9%, compared to the second quarter of 2026 - Total revenue was $37.5 million, an increase of $6.4 million or 21% year-over-year and $1.7 million on a linked quarter basis - Net interest income improved by $7.1 million or 26% year-over-year driven primarily by new loan volume - Net interest margin was 3.02%, a 40-basis point increase from 2.62% for the third quarter of 2025 and a 15-basis point increase from the second quarter of 2026 - 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 - Service fees on deposit accounts increased 45% compared to the third quarter of 2025 and 5% from last quarter due in part to an increased focus on treasury management services - Noninterest expense to average assets was 1.71%, compared to 1.74% for the third quarter of 2025 - Return on average equity was 10.54%, compared to 9.78% for the third quarter of 2025 - Return on average assets was 1.03%, compared to 0.80% for the third quarter of 2025 Balance Sheet - Total loans were $4.2 billion, up $145 million or 14% (annualized) from the second quarter of 2026 - Retail deposits were $3.7 billion, up $163 million or 18% (annualized) from the second quarter of 2026 - Wholesale deposits were reduced by $181.5 million, or 32% from the third quarter of 2025 and increased by only $7 million from the second quarter of 2026 - Book value per common share was $48.68, an increase of 8% (annualized) from the second quarter of 2026 - Tangible common equity (TCE) ratio was 9.47%, down 15 basis points on a linked quarter basis and up from 8.18% for the third quarter of 2025 - Common Equity Tier 1 ratio (CET1) was 12.75%, down seven basis points from the second quarter of 2026 and up from 10.88% for the third quarter of 2025 Asset Quality - Nonperforming assets to total assets were 0.30%, compared to 0.27% for the linked quarter, while accruing loans 30 days or more past due to total loans decreased to 0.09%, compared to 0.10% for the second quarter of 2026 - Classified assets/Tier 1 capital plus allowance for credit losses was 3.25% compared to 3.15% for the linked quarter end - 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; allowance for credit losses to total loans was 1.07% for the quarter - Net charge-offs were 0.07% as a percentage of average loans on an annualized basis SELECTED FINANCIAL DATA - Unaudited | | | | | | | | | Quarter Ended | | | | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | | 3Q26 vs 3Q25 | | 2026 | 2026 | 2026 | 2025 | 2025 | | $ Change | % Change Income Statement Summary ($ in thousands): | | | | | | | | | Net interest income | $ | 34,666 | 32,370 | 30,259 | 28,744 | 27,529 | | 7,137 | 25.9 % Noninterest income | | 2,864 | 3,508 | 3,540 | 3,090 | 3,600 | | (736) | (20.4 %) Total Revenue | | 37,530 | 35,878 | 33,799 | 31,834 | 31,129 | | 6,401 | 20.6 % Provision for credit losses | | 1,400 | 1,025 | 1,300 | 650 | 850 | | 550 | 64.7 % Noninterest expense | | 20,304 | 20,393 | 20,015 | 18,416 | 18,946 | | 1,358 | 7.2 % Income before income tax expense | | 15,826 | 14,460 | 12,484 | 12,768 | 11,333 | | 4,493 | 39.6 % Income tax expense | | 3,599 | 3,265 | 2,597 | 2,911 | 2,671 | | 928 | 34.7 % Net income available to common shareholders | | 12,227 | 11,195 | 9,887 | 9,857 | 8,662 | | 3,565 | 41.2 % Earnings ($ in thousands, except per share data): | | | | | | | | | Earnings per common share, diluted | | 1.28 | 1.20 | 1.19 | 1.20 | 1.06 | | 0.22 | 20.8 % Net interest margin (tax-equivalent)(1) | | 3.02 % | 2.87 % | 2.88 % | 2.72 % | 2.62 % | | ­­— | ­­— Return on average assets(2) | | 1.03 % | 0.96 % | 0.91 % | 0.90 % | 0.80 % | | ­­— | ­­— Return on average equity(2) | | 10.54 % | 10.28 % | 10.67 % | 10.77 % | 9.78 % | | ­­— | ­­— Efficiency ratio(3) | | 54.10 % | 56.84 % | 59.22 % | 57.85 % | 60.86 % | | ­­— | ­­— Noninterest expense to average assets (2) | | 1.71 % | 1.75 % | 1.84 % | 1.68 % | 1.74 % | | ­­— | ­­— Balance Sheet ($ in thousands): | | | | | | | | | Total loans(4) | $ | 4,175,526 | 4,030,255 | 3,942,219 | 3,845,124 | 3,789,021 | | 386,505 | 10.2 % Total deposits | | 4,105,204 | 3,935,452 | 3,873,455 | 3,716,803 | 3,676,417 | | 428,787 | 11.7 % Retail deposits(5) | | 3,718,676 | 3,556,045 | 3,371,721 | 3,163,914 | 3,108,411 | | 610,265 | 19.6 % Total assets | | 4,880,902 | 4,700,171 | 4,578,402 | 4,403,494 | 4,358,589 | | 522,313 | 12.0 % Book value per common share | | 48.68 | 47.77 | 46.00 | 44.89 | 43.51 | | 5.17 | 11.9 % Loans to deposits | | 101.71 % | 102.41 % | 101.78 % | 103.45 % | 103.06 % | | ­­— | ­­— Holding Company Capital Ratios(6): | | | | | | | | | Total risk-based capital ratio | | 14.29 % | 14.42 % | 12.83 % | 12.89 % | 12.79 % | | ­­— | ­­— Tier 1 risk-based capital ratio | | 13.09 % | 13.19 % | 11.40 % | 11.44 % | 11.26 % | | ­­— | ­­— Leverage ratio | | 10.30 % | 10.11 % | 9.05 % | 8.93 % | 8.72 % | | ­­— | ­­— Common Equity Tier 1 ratio(7) | | 12.74 % | 12.82 % | 11.03 % | 11.06 % | 10.88 % | | ­­— | ­­— Tangible common equity(8) | | 9.47 % | 9.62 % | 8.29 % | 8.37 % | 8.18 % | | ­­— | ­­— Asset Quality Ratios: | | | | | | | | | Nonperforming assets/total assets | | 0.30 % | 0.27 % | 0.26 % | 0.32 % | 0.27 % | | ­­— | ­­— Classified assets/Tier 1 capital plus allowance for credit losses | | 3.25 % | 3.15 % | 3.25 % | 4.28 % | 3.97 % | | ­­— | ­­— Accruing loans 30 days or more past due/loans(4) | | 0.09 % | 0.10 % | 0.20 % | 0.14 % | 0.18 % | | ­­— | ­­— Net charge-offs (recoveries)/average loans(4) (YTD annualized) | | 0.03 % | 0.01 % | 0.01 % | 0.00 % | 0.00 % | | ­­— | ­­— Allowance for credit losses/loans(4) | | 1.07 % | 1.10 % | 1.10 % | 1.10 % | 1.10 % | | ­­— | ­­— Allowance for credit losses/nonaccrual loans | | 350.76 % | 395.41 % | 378.22 % | 305.65 % | 364.50 % | | ­­— | ­­— | | | | | | | | | | [Footnotes to table located on page 7] INCOME STATEMENTS – Unaudited | | | | | | | | | | Quarter Ended | | | | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | | 3Q26 vs 3Q25 (in thousands, except per share data) | | 2026 | 2026 | 2026 | 2025 | 2025 | | $ Change | % Change Interest income | | | | | | | | | Loans | $ | 56,081 | 53,077 | 51,257 | 51,069 | 50,999 | | 5,082 | 10.0 % Investment securities | | 1,666 | 1,504 | 1,399 | 1,268 | 1,342 | | 324 | 24.1 % Federal funds sold | | 2,754 | 3,550 | 1,955 | 2,193 | 2,645 | | 109 | 4.1 % Total interest income | | 60,501 | 58,131 | 54,611 | 54,530 | 54,986 | | 5,515 | 10.0 % Interest expense | | | | | | | | | Deposits | | 23,356 | 23,094 | 21,697 | 23,052 | 24,703 | | (1,347) | (5.5 %) Borrowings | | 2,479 | 2,667 | 2,655 | 2,734 | 2,754 | | (275) | (10.0 %) Total interest expense | | 25,835 | 25,761 | 24,352 | 25,786 | 27,457 | | (1,622) | (5.9 %) Net interest income | | 34,666 | 32,370 | 30,259 | 28,744 | 27,529 | | 7,137 | 25.9 % Provision for credit losses | | 1,400 | 1,025 | 1,300 | 650 | 850 | | 550 | 64.7 % Net interest income after provision for credit losses | | 33,266 | 31,345 | 28,959 | 28,094 | 26,679 | | 6,587 | 24.7 % Noninterest income | | | | | | | | | Mortgage banking income | | 638 | 1,323 | 1,493 | 1,689 | 1,600 | | (962) | (60.1 %) Service fees on deposit accounts | | 906 | 866 | 756 | 634 | 625 | | 281 | 45.0 % ATM and debit card income | | 622 | 651 | 588 | 638 | 601 | | 21 | 3.5 % Income from bank owned life insurance | | 481 | 457 | 446 | 450 | 439 | | 42 | 9.6 % Loss on sale of securities | | - | - | - | (515) | - | | - | 0.0 % Other income | | 217 | 211 | 257 | 194 | 335 | | (118) | (35.2 %) Total noninterest income | | 2,864 | 3,508 | 3,540 | 3,090 | 3,600 | | (736) | (20.4 %) Noninterest expense | | | | | | | | | Compensation and benefits | | 12,078 | 12,252 | 11,980 | 10,529 | 11,299 | | 779 | 6.9 % Occupancy | | 2,553 | 2,551 | 2,490 | 2,465 | 2,447 | | 106 | 4.3 % Outside service and data processing costs | | 2,403 | 2,416 | 2,267 | 2,144 | 2,158 | | 245 | 11.4 % Insurance | | 939 | 858 | 892 | 994 | 961 | | (22) | (2.3 %) Professional fees | | 758 | 782 | 675 | 732 | 605 | | 153 | 25.3 % Marketing | | 420 | 423 | 399 | 346 | 412 | | 8 | 1.9 % Other | | 1,153 | 1,111 | 1,312 | 1,206 | 1,064 | | 89 | 8.4 % Total noninterest expenses | | 20,304 | 20,393 | 20,015 | 18,416 | 18,946 | | 1,358 | 7.2 % Income before provision for income taxes | | 15,826 | 14,460 | 12,484 | 12,768 | 11,333 | | 4,493 | 39.6 % Income tax expense | | 3,599 | 3,265 | 2,597 | 2,911 | 2,671 | | 928 | 34.7 % Net income available to common shareholders | $ | 12,227 | 11,195 | 9,887 | 9,857 | 8,662 | | 3,565 | 41.2 % | | | | | | | | | Earnings per common share – Basic | $ | 1.30 | 1.22 | 1.21 | 1.22 | 1.07 | | 0.23 | 21.5 % Earnings per common share – Diluted | | 1.28 | 1.20 | 1.19 | 1.20 | 1.06 | | 0.22 | 20.8 % Basic weighted average common shares | | 9,426 | 9,185 | 8,163 | 8,106 | 8,091 | | 1,335 | 16.5 % Diluted weighted average common shares | | 9,567 | 9,319 | 8,293 | 8,229 | 8,176 | | 1,391 | 17.0 % [Footnotes to table located on page 7] NET INTEREST INCOME AND MARGIN - Unaudited | | | | | For the Three Months Ended | September 30, 2026 | June 30, 2026 | September 30, 2025 (dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate(2) | Average Balance | Income/ Expense | Yield/ Rate(2) | Average Balance | Income/ Expense | Yield/ Rate(2) Interest-earning assets | | | | | | | | | Federal funds sold and interest-bearing deposits | $ 291,431 | $ 2,754 | 3.75 % | $ 384,694 | $ 3,550 | 3.70 % | $ 238,552 | $ 2,645 | 4.40 % Investment securities, taxable | 162,554 | 1,635 | 3.99 % | 147,886 | 1,473 | 4.00 % | 141,143 | 1,307 | 3.67 % Investment securities, nontaxable(1) | 6,004 | 40 | 2.66 % | 6,283 | 40 | 2.57 % | 7,811 | 45 | 2.31 % Loans(9) | 4,102,292 | 56,081 | 5.42 % | 3,978,639 | 53,077 | 5.35 % | 3,783,885 | 50,999 | 5.35 % Total interest-earning assets | 4,562,281 | 60,510 | 5.26 % | 4,517,502 | 58,140 | 5.16 % | 4,171,391 | 54,996 | 5.23 % Noninterest-earning assets | 158,185 | | | 157,905 | | | 150,552 | | Total assets | $4,720,466 | | | $4,675,407 | | | $4,321,943 | | Interest-bearing liabilities | | | | | | | | | NOW accounts | $ 536,071 | 2,080 | 1.54 % | $ 500,978 | 1,738 | 1.39 % | $ 329,301 | 746 | 0.90 % Savings & money market | 1,816,413 | 13,856 | 3.03 % | 1,752,548 | 12,908 | 2.95 % | 1,599,710 | 13,509 | 3.35 % Time deposits | 768,768 | 7,420 | 3.83 % | 871,563 | 8,448 | 3.89 % | 984,078 | 10,448 | 4.21 % Total interest-bearing deposits | 3,121,252 | 23,356 | 2.97 % | 3,125,089 | 23,094 | 2.96 % | 2,913,089 | 24,703 | 3.36 % FHLB advances and other borrowings | 240,043 | 2,272 | 3.76 % | 240,000 | 2,252 | 3.76 % | 240,087 | 2,296 | 3.79 % Subordinated debentures | 13,403 | 207 | 6.13 % | 24,777 | 415 | 6.72 % | 24,903 | 458 | 7.30 % Total interest-bearing liabilities | 3,374,698 | 25,835 | 3.04 % | 3,389,866 | 25,761 | 3.05 % | 3,178,079 | 27,457 | 3.43 % Noninterest-bearing liabilities | 885,686 | | | 848,704 | | | 792,575 | | Shareholders' equity | 460,082 | | | 436,837 | | | 351,289 | | Total liabilities and shareholders' equity | $4,720,466 | | | $4,675,407 | | | $4,321,943 | | Net interest spread | | | 2.23 % | | | 2.11 % | | | 1.80 % Net interest income (tax equivalent) / margin | | $34,675 | 3.02 % | | $32,379 | 2.87 % | | $27,539 | 2.62 % Less: tax-equivalent adjustment(1) | | 9 | | | 9 | | | 10 | Net interest income | | $34,666 | | | $32,370 | | | $27,529 | [Footnotes to table located on page 7] BALANCE SHEETS - Unaudited | | | | | | | | | Ending Balance | | | | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | | 3Q26 vs 3Q25 (in thousands, except per share data) | | 2026 | 2026 | 2026 | 2025 | 2025 | | $ Change | % Change Assets | | | | | | | | | Cash and cash equivalents: | | | | | | | | | Cash and due from banks | $ | 21,615 | 30,102 | 32,723 | 27,821 | 24,600 | | (2,985) | (12.1 %) Federal funds sold | | 268,891 | 259,049 | 228,235 | 183,473 | 178,534 | | 90,357 | 50.6 % Interest-bearing deposits with banks | | 108,993 | 72,483 | 81,818 | 58,289 | 79,769 | | 29,224 | 36.6 % Total cash and cash equivalents | | 399,499 | 361,634 | 342,776 | 269,583 | 282,903 | | 116,596 | 41.2 % Investment securities: | | | | | | | | | Investment securities available for sale | | 146,321 | 144,388 | 124,224 | 127,730 | 131,040 | | 15,281 | 11.7 % Other investments | | 20,473 | 20,484 | 20,377 | 20,063 | 20,066 | | 407 | 2.0 % Total investment securities | | 166,794 | 164,872 | 144,601 | 147,793 | 151,106 | | 15,688 | 10.4 % Mortgage loans held for sale | | 2,678 | 8,594 | 13,723 | 11,569 | 6,906 | | (4,228) | (61.2 %) Loans (4) | | 4,175,526 | 4,030,255 | 3,942,219 | 3,845,124 | 3,789,021 | | 386,505 | 10.2 % Less allowance for credit losses | | (44,693) | (44,232) | (43,378) | (42,280) | (41,799) | | (2,894) | 6.9 % Loans, net | | 4,130,833 | 3,986,023 | 3,898,841 | 3,802,844 | 3,747,222 | | 383,611 | 10.2 % Bank owned life insurance | | 57,159 | 56,677 | 56,221 | 55,775 | 55,324 | | 1,835 | 3.3 % Property and equipment, net | | 87,524 | 88,006 | 88,580 | 83,465 | 84,586 | | 2,938 | 3.5 % Deferred income taxes | | 15,020 | 13,946 | 13,812 | 13,702 | 12,657 | | 2,363 | 18.7 % Other assets | | 21,395 | 20,419 | 19,848 | 18,763 | 17,885 | | 3,510 | 19.6 % Total assets | $ | 4,880,902 | 4,700,171 | 4,578,402 | 4,403,494 | 4,358,589 | | 522,313 | 12.0 % Liabilities | | | | | | | | | Deposits | $ | 4,105,204 | 3,935,452 | 3,873,455 | 3,716,803 | 3,676,417 | | 428,787 | 11.7 % FHLB Advances | | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | | - | 0.0 % Subordinated debentures | | 13,403 | 13,403 | 24,903 | 24,903 | 24,903 | | (11,500) | (46.2 %) Other liabilities | | 60,243 | 59,048 | 60,631 | 53,131 | 60,921 | | (678) | (1.1 %) Total liabilities | | 4,418,850 | 4,247,903 | 4,198,989 | 4,034,837 | 4,002,241 | | 416,609 | 10.4 % Shareholders' equity | | | | | | | | | Preferred stock - $.01 par value; 10,000,000 shares authorized | | - | - | - | - | - | | - | - Common Stock - $.01 par value; 10,000,000 shares authorized | | 95 | 95 | 82 | 82 | 82 | | 13 | 15.9 % Nonvested restricted stock | | (185) | (912) | (1,302) | (1,338) | (1,929) | | 1,744 | (90.4 %) Additional paid-in capital | | 189,801 | 188,932 | 127,168 | 125,924 | 125,035 | | 64,766 | 51.8 % Accumulated other comprehensive loss | | (12,411) | (8,372) | (7,865) | (7,454) | (8,426) | | (3,985) | 47.3 % Retained earnings | | 284,752 | 272,525 | 261,330 | 251,443 | 241,586 | | 43,166 | 17.9 % Total shareholders' equity | | 462,052 | 452,268 | 379,413 | 368,657 | 356,348 | | 105,704 | 29.7 % Total liabilities and shareholders' equity | $ | 4,880,902 | 4,700,171 | 4,578,402 | 4,403,494 | 4,358,589 | | 522,313 | 12.0 % | | | | | | | | | Common Stock | | | | | | | | | Book value per common share | $ | 48.68 | 47.77 | 46.00 | 44.89 | 43.51 | | 5.17 | 11.9 % Stock price: | | | | | | | | | High | | 64.60 | 61.51 | 61.08 | 55.50 | 45.54 | | 19.06 | 41.9 % Low | | 59.26 | 54.95 | 51.26 | 41.15 | 38.74 | | 20.52 | 53.0 % Period end | | 59.26 | 61.10 | 54.50 | 51.52 | 44.12 | | 15.14 | 34.3 % Common shares outstanding | | 9,491 | 9,468 | 8,248 | 8,213 | 8,189 | | 1,302 | 15.9 % | | | | | | | | | | [Footnotes to table located on page 7] ASSET QUALITY MEASURES - Unaudited | | Quarter Ended | | September 30 | June 30 | March 31 | December 31 | September 30 (dollars in thousands) | | 2026 | 2026 | 2026 | 2025 | 2025 Nonperforming Assets | | | | | | Commercial | | | | | | Owner occupied RE | $ | 4,100 | 2,667 | 2,317 | 259 | 262 Non-owner occupied RE | | 2,013 | 2,030 | 1,712 | 6,917 | 6,911 Commercial business | | 1,376 | 1,330 | 909 | 189 | 195 Consumer | | | | | | Real estate | | 4,901 | 4,805 | 5,786 | 5,763 | 3,394 Home equity | | 352 | 354 | 745 | 705 | 705 Total nonaccrual loans | | 12,742 | 11,186 | 11,469 | 13,833 | 11,467 Other real estate owned | | 1,693 | 1,375 | 475 | 275 | 275 Total nonperforming assets | $ | 14,435 | 12,561 | 11,944 | 14,108 | 11,742 Nonperforming assets as a percentage of: | | | | | | Total assets | | 0.30 % | 0.27 % | 0.26 % | 0.32 % | 0.27 % Total loans | | 0.35 % | 0.31 % | 0.30 % | 0.37 % | 0.31 % Classified assets/Tier 1 capital plus allowance for credit losses | | 3.25 % | 3.15 % | 3.25 % | 4.28 % | 3.97 % Accruing loans 30 days or more past due/loans(4) | | 0.09 % | 0.10 % | 0.20 % | 0.14 % | 0.18 % | | Quarter Ended | | September 30 | June 30 | March 31 | December 31 | September 30 (dollars in thousands) | | 2026 | 2026 | 2026 | 2025 | 2025 Allowance for Credit Losses | | | | | | Balance, beginning of period | $ | 44,232 | 43,378 | 42,280 | 41,799 | 41,285 Loans charged-off | | (727) | (155) | (78) | (150) | (55) Recoveries of loans previously charged-off | | 8 | 59 | 26 | 81 | 69 Net loans (charged-off) recovered | | (719) | (96) | (52) | (69) | 14 Provision for credit losses - loans | | 1,180 | 950 | 1,150 | 550 | 500 Balance, end of period | $ | 44,693 | 44,232 | 43,378 | 42,280 | 41,799 Allowance for credit losses to gross loans | | 1.07 % | 1.10 % | 1.10 % | 1.10 % | 1.10 % Allowance for credit losses to nonaccrual loans | | 350.76 % | 395.41 % | 378.22 % | 305.65 % | 364.50 % Net charge-offs (recoveries) to average loans QTD (annualized) | | 0.07 % | 0.01 % | 0.01 % | 0.01 % | 0.00 % [Footnotes to table located on page 7] LOAN COMPOSITION - Unaudited | | | | | | | | Quarter Ended | | | | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | | 3Q26 vs 3Q25 (dollars in thousands) | | 2026 | 2026 | 2026 | 2025 | 2025 | | $ Change | % Change Commercial | | | | | | | | | Owner occupied RE | $ | 776,310 | 755,419 | 759,602 | 736,979 | 705,383 | | 70,927 | 10.1 % Non-owner occupied RE | | 1,035,079 | 967,698 | 950,696 | 956,812 | 943,304 | | 91,775 | 9.7 % Construction | | 78,346 | 66,105 | 69,463 | 63,666 | 71,928 | | 6,418 | 8.9 % Business | | 720,487 | 713,017 | 677,742 | 619,667 | 604,411 | | 116,076 | 19.2 % Total commercial loans | | 2,610,222 | 2,502,239 | 2,457,503 | 2,377,124 | 2,325,026 | | 285,196 | 12.3 % Consumer | | | | | | | | | Real estate | | 1,184,127 | 1,167,282 | 1,148,129 | 1,153,285 | 1,159,693 | | 24,434 | 2.1 % Home equity | | 289,725 | 273,017 | 262,530 | 248,685 | 239,996 | | 49,729 | 20.7 % Construction | | 44,377 | 36,371 | 33,879 | 24,997 | 25,842 | | 18,535 | 71.7 % Other | | 47,075 | 51,346 | 40,178 | 41,033 | 38,464 | | 8,611 | 22.4 % Total consumer loans | | 1,565,304 | 1,528,016 | 1,484,716 | 1,468,000 | 1,463,995 | | 101,309 | 6.9 % Total gross loans, net of deferred fees | | 4,175,526 | 4,030,255 | 3,942,219 | 3,845,124 | 3,789,021 | | 386,505 | 10.2 % Less—allowance for credit losses | | (44,693) | (44,232) | (43,378) | (42,280) | (41,799) | | (2,894) | 6.9 % Total loans, net | $ | 4,130,833 | 3,986,023 | 3,898,841 | 3,802,844 | 3,747,222 | | 383,611 | 10.2 % | | | | | | | | | Yield on average loans | | 5.42 % | 5.35 % | 5.33 % | 5.29 % | 5.35 % | | ­­— | ­­— DEPOSIT COMPOSITION - Unaudited | | | | | | | | Quarter Ended | | | | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | | 3Q26 vs 3Q25 (dollars in thousands) | | 2026 | 2026 | 2026 | 2025 | 2025 | | $ Change | % Change Non-interest bearing | $ | 823,165 | 799,246 | 799,692 | 732,287 | 736,518 | | 86,647 | 11.8 % Interest bearing: | | | | | | | | | NOW accounts | | 567,855 | 538,443 | 495,657 | 423,270 | 343,615 | | 224,240 | 65.3 % Money market accounts | | 1,871,255 | 1,765,697 | 1,652,125 | 1,573,039 | 1,572,738 | | 298,517 | 19.0 % Savings | | 29,792 | 29,460 | 30,332 | 29,470 | 29,381 | | 411 | 1.4 % Time deposits, less than $250,000 | | 173,487 | 175,971 | 170,496 | 180,783 | 202,353 | | (28,866) | (14.3 %) Time deposits, $250,000 and over(10) | | 639,650 | 626,635 | 725,153 | 777,954 | 791,812 | | (152,162) | (19.2 %) Total deposits | $ | 4,105,204 | 3,935,452 | 3,873,455 | 3,716,803 | 3,676,417 | | 428,787 | 11.7 % | | | | | | | | | Total retail deposits | | 3,718,676 | 3,556,045 | 3,371,721 | 3,163,914 | 3,108,411 | | 610,265 | 19.6 % Total wholesale deposits | | 386,528 | 379,407 | 501,734 | 552,889 | 568,006 | | (181,478) | (32.0 %) Cost of average deposits | | 2.35 % | 2.37 % | 2.37 % | 2.50 % | 2.69 % | | ­­— | ­­— Cost of average retail deposits | | 2.16 % | 2.11 % | 2.06 % | 2.18 % | 2.36 % | | ­­— | ­­— Loans to deposits | | 101.71 % | 102.41 % | 101.78 % | 103.45 % | 103.06 % | | ­­— | ­­— | | | | | | | | | | Footnotes to tables: | (1) The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis. (2) Annualized for the respective three-month period. (3) Noninterest expense divided by the sum of net interest income and noninterest income. (4) Excludes mortgage loans held for sale. (5) Excludes out of market (wholesale) deposits totaling $386.5 million. (6) September 30, 2026 ratios are preliminary. (7) The Common Equity Tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets. (8) The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets. (9) Includes mortgage loans held for sale. (10) Includes out of market deposits ABOUT SOUTHERN FIRST BANCSHARES Southern First Bancshares, Inc., Greenville, South Carolina is a registered bank holding company incorporated under the laws of South Carolina. The company's wholly owned subsidiary, Southern First Bank, is the second largest bank headquartered in South Carolina. Southern First Bank has been providing financial services since 1999 and now operates in 12 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Charlotte, Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately $4.9 billion, and its common stock is traded on The NASDAQ Global Market under the symbol "SFST." More information can be found at www.southernfirst.com. FORWARD-LOOKING STATEMENTS Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are identified by words such as "believe," "expect," "anticipate," "estimate," "preliminary", "intend," "plan," "target," "continue," "lasting," and "project," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which the company conducts operations may be different than expected; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan and deposit growth as well as pricing of each product, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, changes affecting oversight of the financial services industry or consumer protection; (5) the impact of changes to Congress and the office of the President on the regulatory landscape and capital markets; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (7) changes in interest rates, which may continue to affect the company's net income, interest expense, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of the company's assets, including its investment securities; (8) trade wars, government shutdowns, or a potential recession which may cause adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; (9) any increase in FDIC assessments which have increased and may continue to increase our cost of doing business; and (10) changes in accounting principles, policies, practices, or guidelines. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf are expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. MEDIA CONTACT: ART SEAVER 864-679-9010 FINANCIAL CONTACT: CHRIS ZYCH 864-679-9070 WEB SITE: www.southernfirst.com View original content to download multimedia:https://www.prnewswire.com/news-releases/southern-first-reports-third-quarter-2026-results-302912765.html

Southern First (SFST) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.59%. A quarter ago, it was expected that this holding company for Southern First Bank would post earnings of $1.19 per share when it actually produced earnings of $1.2, delivering a surprise of +0.84%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Southern First, which belongs to the Zacks Banks - Southeast industry, posted revenues of $37.53 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.04%. This compares to year-ago revenues of $31.13 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Southern First shares have added about 14.8% since the beginning of the year versus the S&P 500's gain of 12.4%. While Southern First has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Southern First was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.36 on $38.81 million in revenues for the coming quarter and $5.40 on $146.04 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Live Oak Bancshares (LOB), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 21. This bank holding company is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +16.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Live Oak Bancshares' revenues are expected to be $167.5 million, up 14.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern First Bancshares, Inc. (SFST) : Free Stock Analysis Report Live Oak Bancshares, Inc. (LOB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Southern First (SFST) came out with quarterly earnings of $1.2 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.84%. A quarter ago, it was expected that this holding company for Southern First Bank would post earnings of $1.2 per share when it actually produced earnings of $1.19, delivering a surprise of -0.83%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Southern First, which belongs to the Zacks Banks - Southeast industry, posted revenues of $35.88 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.78%. This compares to year-ago revenues of $28.63 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Southern First shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 8.7%. While Southern First has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Southern First was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.28 on $38.13 million in revenues for the coming quarter and $5.05 on $147.54 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Colony Bankcorp (CBAN), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 22. This bank holding company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +4.4%. The consensus EPS estimate for the quarter has been revised 2% higher over the last 30 days to the current level. Colony Bankcorp's revenues are expected to be $40.77 million, up 25.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern First Bancshares, Inc. (SFST) : Free Stock Analysis Report Colony Bankcorp, Inc. (CBAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GREENVILLE, S.C., July 21, 2026 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced its financial results for the three months ended June 30, 2026. Strong loan growth and continued margin expansion drove year-over-year net interest income growth of 28%. Net income was $11.2 million and diluted earnings per share was $1.20, representing a $0.39, or 48% increase over the second quarter of 2025, and a slight increase from the first quarter of 2026. Return on average assets was 0.96%, up 33 basis points over the second quarter of last year, and tangible common equity to assets was 9.62%, up 160 basis points from the second quarter of 2025. Key asset quality metrics were consistent both on a linked quarter and year-over-year basis. Net charge-offs were approximately $96 thousand, or 0.01% of average loans, annualized, and nonperforming assets were 0.27% of total assets. Provision for credit losses decreased by $275 thousand from the prior quarter, and the allowance for credit losses represented 1.10% of loans. "Our second quarter 2026 results continue to show impressive momentum. We increased retail client deposits by $184 million in the second quarter, representing a 22% annualized growth rate, and our loan portfolio grew at an annualized rate of 9% during the quarter. Our efficient business model, vibrant markets, and focus on organic growth are creating value for our clients and our shareholders. Our second quarter net income was $11.2 million, a 70% increase from the same quarter last year and a 13% increase over the first quarter of 2026. We also strengthened our capital position by raising gross proceeds of $65.2 million and issuing 1.2 million additional common shares earlier in the quarter to support our strong growth expectations. As planned, we redeemed a portion of our subordinated notes, which were subject to phase-out from regulatory capital treatment and carried a higher interest rate. We are proud of our team and our accomplishments this quarter, which we believe positions us for continued success in the second half of 2026," stated Art Seaver, Chief Executive Officer. Financial Highlights – Second Quarter 2026: Earnings Diluted earnings per common share was $1.20, up $0.39 or 48% compared to the second quarter of 2025 and up by $0.01 from the first quarter of 2026 Net income improved to $11.2 million, a $4.6 million increase or 70% compared to the second quarter of 2025 and a $1.3 million increase or 13%, compared to the first quarter of 2026 Total revenue was $35.9 million, an increase of $7.2 million or 25% year-over-year and $2.1 million on a linked quarter basis Net interest income improved by $7.1 million or 28% year-over-year driven primarily by new loan volume Net interest margin was 2.87%, a 37-basis point increase from 2.50% for the second quarter of 2025 and a one basis point decrease from the first quarter of 2026, which included a one-time increase in interest income from the repayment of a $5.1 million nonperforming loan Noninterest income was $3.5 million compared to $3.3 million for the second quarter of 2025 Service fees on deposit accounts increased 53% compared to the second quarter of 2025 and 15% from last quarter due in part to an increased focus on treasury management services Noninterest expense to average assets was 1.75%, compared to 1.86% for the second quarter of 2025 Return on average equity was 10.28%, compared to 7.71% for the second quarter of 2025 Return on average assets was 0.96%, compared to 0.63% for the second quarter of 2025 Balance Sheet Total loans were $4.0 billion, up $88 million or 9% (annualized) from the first quarter of 2026 Retail deposits were $3.6 billion, up $184 million or 22% (annualized) from the first quarter of 2026 Wholesale deposits were reduced by $181.3 million, or 32% from the second quarter of 2025 and $122.3 million or 98% (annualized) from the first quarter of 2026 Book value per common share was $47.77, an increase of 15% (annualized) from the first quarter of 2026 Tangible common equity (TCE) ratio was 9.62%, up 133 basis points on a linked quarter basis and up from 8.02% for the second quarter of 2025 Common Equity Tier 1 ratio (CET1) was 12.81%, up 178 basis points from the first quarter of 2026 and up from 10.71% for the second quarter 2025 Book value per share, tangible common equity ratio and Common Equity Tier 1 ratio were each positively affected by our recent capital raise of $65.2 million Asset Quality Nonperforming assets to total assets were 0.27%, compared to 0.26% for the linked quarter, while accruing loans 30 days or more past due to total loans decreased to 0.10%, compared to 0.20% for the first quarter Classified assets/Tier 1 capital plus allowance for credit losses was 3.15% compared to 3.25% for the linked quarter end 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; allowance for credit losses to total loans remained at 1.10% for the quarter Net charge-offs were 0.01% as a percentage of average loans on an annualized basis ABOUT SOUTHERN FIRST BANCSHARESSouthern First Bancshares, Inc., Greenville, South Carolina is a registered bank holding company incorporated under the laws of South Carolina. The company's wholly owned subsidiary, Southern First Bank, is the second largest bank headquartered in South Carolina. Southern First Bank has been providing financial services since 1999 and now operates in 12 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Charlotte, Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately $4.7 billion, and its common stock is traded on The NASDAQ Global Market under the symbol "SFST." More information can be found at www.southernfirst.com. FORWARD-LOOKING STATEMENTSCertain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are identified by words such as "believe," "expect," "anticipate," "estimate," "preliminary", "intend," "plan," "target," "continue," "lasting," and "project," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which the company conducts operations may be different than expected; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan and deposit growth as well as pricing of each product, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, changes affecting oversight of the financial services industry or consumer protection; (5) the impact of changes to Congress and the office of the President on the regulatory landscape and capital markets; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (7) changes in interest rates, which may continue to affect the company's net income, interest expense, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of the company's assets, including its investment securities; (8) trade wars, government shutdowns, or a potential recession which may cause adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; (9) any increase in FDIC assessments which have increased and may continue to increase our cost of doing business; and (10) changes in accounting principles, policies, practices, or guidelines. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf are expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. MEDIA CONTACT:ART SEAVER 864-679-9010 FINANCIAL CONTACT:CHRIS ZYCH 864-679-9070 WEB SITE: www.southernfirst.com View original content to download multimedia:https://www.prnewswire.com/news-releases/southern-first-reports-second-quarter-2026-results-302829683.html

Southern First (SFST) came out with quarterly earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.42%. A quarter ago, it was expected that this holding company for Southern First Bank would post earnings of $1.11 per share when it actually produced earnings of $1.21, delivering a surprise of +9.01%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Southern First, which belongs to the Zacks Banks - Southeast industry, posted revenues of $33.8 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.21%. This compares to year-ago revenues of $26.5 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Southern First shares have added about 8.9% since the beginning of the year versus the S&P 500's gain of 3.9%. While Southern First has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Southern First was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.27 on $33.68 million in revenues for the coming quarter and $5.18 on $136.73 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. South Plains Financial (SPFI), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 28. This company is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. South Plains Financial's revenues are expected to be $54.35 million, up 10.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern First Bancshares, Inc. (SFST) : Free Stock Analysis Report South Plains Financial, Inc. (SPFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research