On October 20, 2026, Southern First Bancshares, Inc. (NASDAQ: SFST) issued a press release announcing its financial results for the three months ended September 30, 2026. The company reported net income of $12.2 million, which represents a $3.6 million increase or 41% compared to the third quarter of 2025. Diluted earnings per share were $1.28, an increase of $0.22 or 21% year-over-year and $0.08 from the prior quarter.
The bank attributed the growth to strong loan growth and continued margin expansion. 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 the third quarter of 2025.
On the balance sheet, total loans increased by $145 million, or 14% annualized, to $4.2 billion. Retail deposits grew by $163 million, or 18% annualized, to $3.7 billion. Wholesale deposits were reduced by $181.5 million, or 32%, from the third quarter of 2025.
Asset quality metrics remained consistent. Nonperforming assets were 0.30% of total assets, and net charge-offs were approximately $719 thousand, or 0.07% of average loans, annualized. The provision for credit losses increased by $375 thousand from the prior quarter to $1.4 million.
Return on average assets was 1.03%, up 23 basis points from the third quarter of last year. Return on average equity was 10.54%. The company’s tangible common equity ratio was 9.47%, and the Common Equity Tier 1 ratio was 12.75%.
