Southern First Bancshares (SFST) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $11.2 million, up 70% year-over-year and 13% sequentially, with diluted EPS rising 48% to $1.20 and strong loan and deposit growth driving a 28% increase in net interest income.

• Total assets reached $4.70 billion at June 30, 2026, up 6.7% from year-end 2025, fueled by loan and deposit growth.

• Focused on organic growth in high-growth Southeast metro markets, maintaining a relationship-driven commercial banking model.

• Continued investment in technology and talent to support expansion and operational efficiency.

• Capital position strengthened by a $65.2 million capital raise and partial redemption of subordinated notes.

Financial highlights

• Total revenue was $35.9 million, up 25% year-over-year; net interest margin was 2.87%, up 37 bps YoY and nearly flat sequentially.

• Loans outstanding grew to $4.03 billion, with commercial loans comprising 62% of the portfolio; deposits increased to $3.94 billion, with retail deposits making up 90.4% of total.

• Noninterest income for Q2 2026 was $3.5 million, up 5.2% year-over-year, driven by treasury management and service fees.

• Noninterest expense rose 5.5% to $20.4 million, mainly due to higher compensation, data processing, and professional fees.

• Efficiency ratio improved to 56.84% from 67.54% a year ago.

Outlook and guidance

• Management expects continued strong performance in H2 2026, supported by organic growth, NIM expansion, and a strengthened capital base.

• Anticipates additional NIM improvement, with further Fed rate cuts likely to accelerate expansion.

• Plans to benefit from repricing of loans and lower deposit costs as higher-cost CDs mature.

• Net interest margin is expected to remain stable, with ongoing focus on core deposit growth and asset-liability management.