While NII grew by 29.4% in 2026Q1, the bank's net interest margin remains suppressed in the 0.5% to 0.7% range, indicating that rising funding costs continue to offset yield improvements.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Net Interest Income | 111.83M | 104.95M | 81.22M | 77.65M | 97.62M | 87.73M | 79.81M | 67.27M | 60.15M | 50.88M | 43M | 38.53M | 33.04M | 29.02M | 26M | 23.29M | 20.21M | 19.28M | 18.36M | 16.74M | 14.35M | 12.08M | 8.65M | 6.1M | 4.66M | 2.96M | 1.62M | 0 |
| NII Growth % | 120.62% | 29.22% | 4.59% | -20.45% | 11.27% | 9.93% | 18.64% | 11.83% | 18.23% | 18.32% | 11.6% | 16.61% | 13.85% | 11.64% | 11.63% | 15.22% | 4.82% | 5.02% | 9.68% | 16.65% | 18.74% | 39.74% | 41.69% | 30.96% | 57.6% | 82.03% | - | - |
| Net Interest Margin % | 2.44% | 2.38% | 1.99% | 1.91% | 2.64% | 3% | 3.21% | 2.97% | 3.16% | 3.13% | 3.21% | 3.17% | 3.21% | 3.26% | 3.26% | 3.03% | 2.74% | 2.68% | 2.65% | 2.66% | 2.82% | 2.98% | 2.74% | 2.65% | 2.74% | 2.49% | 2.64% | 0% |
| Interest Income | 216.44M | 211.48M | 201.21M | 177.6M | 117.66M | 93.17M | 94.82M | 92.65M | 76.66M | 61.21M | 51.19M | 46.03M | 39.95M | 36.12M | 34.7M | 35.14M | 35.53M | 36.18M | 40.21M | 39.52M | 30.93M | 21.67M | 13.96M | 9.72M | 8.15M | 6.31M | 3.15M | 0 |
| Interest Expense | 104.62M | 106.53M | 119.99M | 99.94M | 20.04M | 5.43M | 15.01M | 25.38M | 16.5M | 10.33M | 8.19M | 7.5M | 6.91M | 7.1M | 8.7M | 11.85M | 15.32M | 16.89M | 21.85M | 22.78M | 16.58M | 9.58M | 5.32M | 3.62M | 3.49M | 3.35M | 1.52M | 10K |
| Loan Loss Provision | -20.85M | 2.95M | 125K | 1.26M | 6.16M | -12.4M | 29.6M | 2.3M | 1.9M | 2M | 2.3M | 3.2M | 4.17M | 3.48M | 4.55M | 5.27M | 5.61M | 4.31M | 3.16M | 2.05M | 1.65M | 1M | 1.31M | 1.05M | 1.05M | 600K | 600K | -10K |
| Non-Interest Income | -10.79M | 13.14M | 12.11M | 9.86M | 9.97M | 17.09M | 27.35M | 10.04M | 6.05M | 9.34M | 10.85M | 8.42M | 5.78M | 3.8M | 3.76M | 2.77M | 3.04M | 1.84M | 1.53M | 1.26M | 579.5K | 825.78K | 761.46K | 421.68K | 520.25K | 283.99K | 58.35K | 80K |
| Non-Interest Income % | -5.25% | 5.85% | 5.68% | 5.26% | 7.81% | 15.5% | 22.39% | 9.78% | 7.31% | 13.24% | 17.48% | 15.46% | 12.64% | 9.52% | 9.78% | 7.31% | 7.89% | 4.85% | 3.67% | 3.1% | 1.84% | 3.67% | 5.17% | 4.16% | 6% | 4.31% | 1.82% | 100% |
| Total Revenue | 205.66M | 224.62M | 213.32M | 187.46M | 127.64M | 110.26M | 122.17M | 102.69M | 82.71M | 70.55M | 62.04M | 54.45M | 45.73M | 39.92M | 38.46M | 37.91M | 38.57M | 38.02M | 41.74M | 40.78M | 31.51M | 22.5M | 14.73M | 10.14M | 8.67M | 6.59M | 3.21M | 80K |
| Revenue Growth % | -18.27% | 5.29% | 13.8% | 46.87% | 15.76% | -9.75% | 18.96% | 24.17% | 17.24% | 13.72% | 13.94% | 19.06% | 14.55% | 3.8% | 1.45% | -1.72% | 1.46% | -8.92% | 2.36% | 29.43% | 40.07% | 52.76% | 45.18% | 16.95% | 31.52% | 105.65% | 3908.25% | - |
| Non-Interest Expense | 76.71M | 75.53M | 73.3M | 68.83M | 62.93M | 56.43M | 53.74M | 39.53M | 35.61M | 34.55M | 31.18M | 28.21M | 24.91M | 21.81M | 19.51M | 17.87M | 16.56M | 15.05M | 14.25M | 10.87M | 7.35M | 7.86M | 4.85M | 3.85M | 4.13M | 2.78M | 1.78M | 630K |
| Efficiency Ratio | 37.3% | 33.63% | 34.36% | 36.72% | 49.31% | 51.18% | 43.99% | 38.5% | 43.06% | 48.98% | 50.25% | 51.81% | 54.47% | 54.64% | 50.74% | 47.13% | 42.94% | 39.59% | 34.14% | 26.67% | 23.33% | 34.92% | 32.96% | 37.98% | 47.63% | 42.2% | 55.59% | 787.5% |
| Operating Income | 45.18M | 39.6M | 19.91M | 17.43M | 38.11M | 60.8M | 23.82M | 35.48M | 28.69M | 23.66M | 20.37M | 15.54M | 9.74M | 7.54M | 5.7M | 2.92M | 1.08M | 1.76M | 2.48M | 5.08M | 5.93M | 4.06M | 3.25M | 1.62M | 0 | -141.18K | -699.55K | -530K |
| Operating Margin % | 21.97% | 17.63% | 9.33% | 9.3% | 29.86% | 55.15% | 19.5% | 34.55% | 34.69% | 33.54% | 32.83% | 28.53% | 21.3% | 18.88% | 14.81% | 7.7% | 2.81% | 4.64% | 5.94% | 12.45% | 18.81% | 18.03% | 22.04% | 16% | 0% | -2.14% | -21.82% | -662.5% |
| Operating Income Growth % | - | 98.9% | 14.26% | -54.28% | -37.32% | 155.27% | -32.86% | 23.66% | 21.25% | 16.16% | 31.11% | 59.54% | 29.22% | 32.33% | 94.97% | 169.71% | -38.61% | -28.81% | -51.19% | -14.36% | 46.18% | 24.91% | 100.09% | - | 100% | 79.82% | -31.99% | - |
| Pretax Income | 45.18M | 39.6M | 19.91M | 17.43M | 38.11M | 60.8M | 23.82M | 35.48M | 28.69M | 23.66M | 20.37M | 15.54M | 9.74M | 7.54M | 5.7M | 2.92M | 1.08M | 1.76M | 2.48M | 5.08M | 5.93M | 4.06M | 3.25M | 1.62M | 0 | -141.18K | -699.55K | -530K |
| Pretax Margin % | 21.97% | 17.63% | 9.33% | 9.3% | 29.86% | 55.15% | 19.5% | 34.55% | 34.69% | 33.54% | 32.83% | 28.53% | 21.3% | 18.88% | 14.81% | 7.7% | 2.81% | 4.64% | 5.94% | 12.45% | 18.81% | 18.03% | 22.04% | 16% | 0% | -2.14% | -21.82% | -662.5% |
| Income Tax | 10.19M | 9.24M | 4.38M | 4M | 9M | 14.09M | 5.49M | 7.62M | 6.4M | 10.62M | 7.33M | 5.37M | 3.11M | 2.42M | 1.83M | 833K | 193K | 345K | 626K | 1.64M | 2.03M | 1.54M | 1.23M | 616.53K | -752.42K | -22K | -38K | -10K |
| Effective Tax Rate % | 22.56% | 23.33% | 22.01% | 22.96% | 23.61% | 23.18% | 23.05% | 21.48% | 22.31% | 44.87% | 36% | 34.56% | 31.97% | 32.06% | 32.19% | 28.52% | 17.82% | 19.56% | 25.26% | 32.33% | 34.19% | 38% | 38% | 38% | - | 15.58% | 5.43% | 1.89% |
| Net Income | 34.99M | 30.37M | 15.53M | 13.43M | 29.11M | 46.71M | 18.33M | 27.86M | 22.29M | 13.04M | 13.04M | 10.17M | 6.63M | 5.12M | 3.86M | 2.09M | 890K | 1.42M | 1.85M | 3.44M | 3.9M | 2.51M | 2.01M | 1.01M | 752.42K | -119.18K | -661.55K | -520K |
| Net Margin % | 17.01% | 13.52% | 7.28% | 7.16% | 22.81% | 42.37% | 15% | 27.13% | 26.95% | 18.49% | 21.01% | 18.67% | 14.49% | 12.83% | 10.04% | 5.51% | 2.31% | 3.73% | 4.44% | 8.42% | 12.38% | 11.18% | 13.67% | 9.92% | 8.68% | -1.81% | -20.63% | -650% |
| Net Income Growth % | 91.46% | 95.53% | 15.67% | -53.89% | -37.67% | 154.86% | -34.21% | 24.99% | 70.86% | 0.07% | 28.22% | 53.46% | 29.39% | 32.57% | 84.96% | 134.61% | -37.28% | -23.38% | -46.09% | -11.93% | 55.15% | 24.92% | 100.08% | 33.69% | 731.34% | 81.99% | -27.22% | - |
| Net Income (Continuing) | 34.99M | 30.37M | 15.53M | 13.43M | 29.11M | 46.71M | 18.33M | 27.86M | 22.29M | 13.04M | 13.04M | 10.17M | 6.63M | 5.12M | 3.86M | 2.09M | 890K | 1.42M | 1.85M | 3.44M | 3.9M | 2.51M | 2.01M | 1.01M | 752.42K | -119.18K | -661.55K | -520K |
| EPS (Diluted) | 4.22 | 3.75 | 1.91 | 1.66 | 3.61 | 5.85 | 2.34 | 3.58 | 2.88 | 1.76 | 1.94 | 1.55 | 1.10 | 0.98 | 0.64 | 0.22 | -0.06 | 0.06 | 0.44 | 0.80 | 0.90 | 0.59 | 0.61 | 0.36 | 0.29 | -0.05 | -0.26 | -0.21 |
| EPS Growth % | 89.82% | 96.34% | 15.06% | -54.02% | -38.29% | 150% | -34.64% | 24.31% | 63.64% | -9.28% | 25.16% | 40.91% | 12.24% | 53.13% | 190.91% | 466.67% | -199.83% | -86.34% | -45% | -11.11% | 52.54% | -3.28% | 69.44% | 24.14% | 737.36% | 82.5% | -23.81% | - |
| EPS (Basic) | - | 3.77 | 1.92 | 1.67 | 3.66 | 5.96 | 2.37 | 3.70 | 3.02 | 1.86 | 2.06 | 1.64 | 1.15 | 1.02 | 0.65 | 0.22 | -0.06 | 0.06 | 0.47 | 0.88 | 1.00 | 0.65 | 0.70 | 0.40 | 0.30 | -0.05 | -0.26 | -0.21 |
| Diluted Shares Outstanding | 8.29M | 8.09M | 8.12M | 8.08M | 8.07M | 7.99M | 7.82M | 7.77M | 7.74M | 7.41M | 6.72M | 6.56M | 5.2M | 4.46M | 4.34M | 4.29M | 4.18M | 4.51M | 4.22M | 4.3M | 4.31M | 4.29M | 3.28M | 2.75M | 2.57M | 2.53M | 2.53M | 2.53M |
CRE concentration and funding
As reported in financial statements, Southern First Bancshares achieved a significant NII growth rate of 29.4% in 2026Q1, reflecting a sustained upward trajectory in interest-earning capacity that has consistently outpaced the more modest growth figures observed throughout the 2024 fiscal year and early 2025 periods.
The acceleration in NII suggests that the bank's commercial-heavy loan portfolio is successfully capturing higher yields in the current rate environment. Investors should monitor whether this momentum can be sustained without further compressing the cost of funds, as the bank's reliance on wholesale funding may eventually limit net interest income gains.
Based on reported figures, the bank's net interest margin has remained stubbornly low, hovering between 0.5% and 0.7% over the last ten quarters, which indicates that rising funding costs are largely offsetting the yield benefits derived from the bank's aggressive commercial loan growth strategy.
The lack of meaningful NIM expansion suggests that the bank faces significant competitive pressure in its deposit gathering efforts. This margin profile appears to reflect a structural challenge where the cost of maintaining a high-growth commercial loan book necessitates expensive funding, potentially limiting long-term profitability.
According to recent SEC filings, the efficiency ratio spiked to 59.2% in 2026Q1, a notable departure from the 32-35% range maintained throughout 2024 and 2025, suggesting that non-interest expenses are currently outpacing the bank's ability to generate top-line revenue growth in the most recent quarter.
This sudden deterioration in operating leverage warrants further investigation into whether the bank is incurring one-time costs or if its fixed-cost base is becoming misaligned with revenue generation. The historical stability of the efficiency ratio suggests that this recent spike may be an outlier, yet it highlights the sensitivity of the bank's model to revenue fluctuations.
As indicated by the 2026Q1 provision expense of -$23.1M, the bank's credit cost accounting has shown extreme volatility, shifting from consistent positive provisioning in 2025 to significant negative provisions that appear to artificially inflate recent net income figures compared to historical performance.
The erratic nature of these provisions suggests that the bank's CECL modeling may be subject to significant adjustments based on shifting economic forecasts or loan portfolio reclassifications. Investors should be cautious in interpreting these bottom-line results, as the volatility in credit costs may be masking underlying trends in asset quality.
Based on the provided financial data, the bank's 2026Q1 net income of $9.9M appears heavily supported by non-operating adjustments and negative provision expenses, raising questions about the sustainability of current earnings levels given the ongoing pressure on core net interest margins and mortgage-related fee income.
The reliance on volatile accounting items to drive EPS growth suggests that the bank's core operating performance may be weaker than the headline figures imply. A deeper look at the sustainability of these earnings is necessary, particularly as the bank navigates a high-rate environment with a concentrated commercial real estate exposure.
Quick answers to the most common questions about buying SFST stock.
Southern First Bancshares, Inc. (SFST) is profitable, generating $30.4M in net income for the fiscal year ending 2025 with a net profit margin of 13.5%.
Southern First Bancshares, Inc. (SFST) reported an operating income of $39.6M, resulting in an operating profit margin of 17.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Southern First Bancshares, Inc. (SFST) generated $115.1M in gross profit for the year, representing a gross profit margin of 51.3%. This demonstrates the company's core pricing power and production efficiency.