8-K
SOUTHERN FIRST BANCSHARES INC (SFST)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) January 20, 2026
SouthernFirst Bancshares, Inc.
(Exact name of registrant as specified in its charter)
SouthCarolina
(State or other jurisdiction of incorporation)
| 000-27719 | 58-2459561 |
|---|---|
| (Commission<br> File Number) | (IRS<br> Employer Identification No.) |
| 6 Verdae Boulevard, Greenville, SC | 29607 |
| (Address<br> of principal executive offices) | (Zip<br> Code) |
(864)
679-9000
(Registrant's telephone number, including area code)
100Verdae Boulevard, Suite 100, Greenville, SC
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common<br> Stock | SFST | The<br> Nasdaq Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02. Results
of Operations and Financial Condition.
On January 22, 2026, Southern First Bancshares, Inc., holding company for Southern First Bank, issued a press release announcing its financial results for the period ended December 31, 2025. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
ITEM 5.03
Amendment to Articles of Incorporation or Bylaws.
On January 20, 2026, the Board of Directors of Southern First Bancshares (the “Company”) amended the Company’s Amended and Restated Bylaws (the “Bylaws”) to authorize the Nominating and Corporate Governance Committee of the Company to determine the compensation of Emeritus Directors. A copy of the Amendment to the Amended and Restated Bylaws dated January 20, 2026 is attached hereto as Exhibit 3.1.
ITEM 7.01
Regulation FD Disclosure.
A copy of a slide presentation also highlighting Southern First Bancshares, Inc. financial results for the period ended December 31, 2025 is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation also will be available on our website, www.southernfirst.com, under the “Investor Relations” section.
ITEM 9.01. Financial
Statements and Exhibits.
| (d) Exhibits | The<br> following exhibit index lists the exhibits that are either filed or furnished with the Current Report on Form 8-K. |
|---|
EXHIBIT
INDEX
| Exhibit<br> No. | Description |
|---|---|
| 3.1 | Amendment<br> to Amended and Restated Bylaws |
| 99.1 | Earnings<br> Press Release for the period ended December 31, 2025. |
| 99.2 | Slide<br> Presentation. |
| 104 | Cover<br> Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SOUTHERN FIRST BANCSHARES, INC. | |
|---|---|
| By: | /s/ Christian<br> J. Zych |
| Name: | Christian J. Zych |
| Title: | Chief Financial Officer |
January 22, 2026
Exhibit 3.1
AMENDMENT TO AMENDED AND RESTATED BYLAWS
OF
SOUTHERN FIRST BANCSHARES, INC.
This Amendment is made to the Amended and Restated Bylaws of Southern First Bancshares, Inc. dated March 18, 2008 (the “Bylaws”) as of the 20^th^ day of January , 2026 .
WHEREAS, Southern First Bancshares, Inc. (the “Corporation”) desires to amend the Bylaws of the Corporation in order to amend Article 3, Section 7: Emeritus Directors which sets forth the terms and conditions for Emeritus Directors to exactly mirror the terms and conditions for emeritus directors of the Corporations subsidiary bank, Southern First Bank; and
WHEREAS, after consideration, the Board of Directors of the Corporation has determined that it is in the best interest of the Company, and its shareholders, to amend the Bylaws in this regard.
NOW, THEREFORE BEIT RESOLVED, that the Bylaws are hereby amended by revising Article 3, Section 7: Emeritus Directors as follows:
Section 7: Emeritus Directors. The Board of Directors may, from time to time, appoint individuals (including individuals who have retired from the board) to serve as members of the Emeritus Board of Directors of the Corporation (“Emeritus Director(s)”). Each Emeritus Director, except in the case of his or her earlier death, resignation, retirement, disqualification or removal, shall serve until the next succeeding annual meeting of the board. Emeritus Directors may be removed without cause by a vote of the members of the board. Any individual appointed as an Emeritus Director may, but shall not be required to, attend meetings of the board and may participate in any discussions at such meetings, but such individual may not vote or be counted in determining a quorum at any meeting of the board. It shall be the duty of the members of the Emeritus Board of Directors of the Corporation to serve as goodwill ambassadors of the Corporation, but such individuals shall not have any responsibility or be subject to any liability imposed upon a member of the board or in any manner otherwise be deemed to be a member of the board. Each Emeritus Director shall be paid such compensation as may be set from time to time by the Nominating and Corporate Governance Committee of the Corporation ~~Chairman of the Board of Directors of the Corporation and shall remaineligible to participate in any stock option plan in which directors are eligible to participate which is maintained by, or participatedin, from time to time by the Corporation, according to the terms and conditions thereof~~. [changes noted]
As amended herein, the Bylaws shall remain in full force and effect.
| SOUTHERN FIRST BANCSHARES, INC. | |
|---|---|
| By: | /s/Julie A. Fairchild |
| Julie A. Fairchild | |
| Its: | Corporate Secretary |
Exhibit 99.1
| SouthernFirst Reports Fourth Quarter 2025 Results |
|---|
Greenville,South Carolina, January 22, 2026 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three and twelve months ended December 31, 2025.
“We are very pleased to report our fourth quarter financial performance, which was our strongest of 2025 and clearly demonstrates the continued momentum we achieved throughout the year. We maintained solid loan growth, funded by even stronger growth in client deposits. Our full banking relationship strategy continues to drive improving financial returns, including an expanding net interest margin that increased 10 basis points from last quarter and 36 basis points over last year. We continue to strengthen our balance sheet with higher capital levels and have again achieved outstanding asset quality. Our team remains highly motivated and intentional about improving financial performance while delivering client service at levels that are second to none, and that commitment was clearly reflected in our results this quarter and throughout the year. We are fortunate to operate in some of the strongest markets in the Southeast and will continue expanding our teams to grow our business in the disciplined manner that has defined our success. While we remain mindful of broader economic conditions and factors impacting our business, our markets have proven to be resilient and offer tremendous growth opportunities that we intend to fully capitalize on,” stated Art Seaver, Chief Executive Officer. “Looking ahead to the new year, we are optimistic and have high expectations for continued financial performance improvement. Our business pipeline is strong and our team is ready. We expect to build on our track record of attracting experienced bankers who share our commitment to exceptional client service and to supporting our local communities, which remains at the core of everything we do.”
2025Fourth Quarter Highlights
| ● | Diluted earnings per common share of $1.21, up $0.14, or 13%, from Q3 2025, and up $0.51, or 73%, compared to Q4 2024 | ||||
|---|---|---|---|---|---|
| ● | Net interest margin of 2.72%, compared to 2.62% for Q3 2025 and 2.25% for Q4 2024 | ||||
| ● | Total loans of $3.8 billion, up 6% from Q4 2024; Total deposits of $3.7 billion, up 8% from Q4 2024; Core deposits of $2.9 billion, up 8% from Q4 2024 | ||||
| ● | Nonperforming assets to total assets of 0.32% and past due loans to total loans of 0.13% | ||||
| ● | Book value per common share of $44.89 increased 3% from Q3 2025 and increased 11% compared to Q4 2024; Tangible Common Equity (TCE) ratio of 8.37% | ||||
| Quarter Ended | |||||
| --- | --- | --- | --- | --- | --- |
| December 31 | September 30 | June 30 | March 31 | December 31 | |
| 2025 | 2025 | 2025 | 2025 | 2024 | |
| Earnings<br> ( in thousands, except per share data): | |||||
| Net<br> income available to common shareholders | 9,857 | 8,662 | 6,581 | 5,266 | 5,627 |
| Earnings<br> per common share, diluted | 1.21 | 1.07 | 0.81 | 0.65 | 0.70 |
| Total<br> revenue(1) | 31,834 | 31,129 | 28,629 | 26,497 | 25,237 |
| Net<br> interest margin (tax-equivalent)(2) | 2.72% | 2.62% | 2.50% | 2.41% | 2.25% |
| Return<br> on average assets(3) | 0.90% | 0.80% | 0.63% | 0.52% | 0.54% |
| Return<br> on average equity(3) | 10.77% | 9.78% | 7.71% | 6.38% | 6.80% |
| Efficiency<br> ratio(4) | 57.85% | 60.86% | 67.54% | 71.08% | 73.48% |
| Noninterest<br> expense to average assets (3) | 1.68% | 1.74% | 1.86% | 1.87% | 1.78% |
| Balance<br> Sheet ( in thousands): | |||||
| Total<br> loans(5) | 3,845,124 | 3,789,021 | 3,746,841 | 3,683,919 | 3,631,767 |
| Total<br> deposits | 3,716,803 | 3,676,417 | 3,636,329 | 3,620,886 | 3,435,765 |
| Core<br> deposits(6) | 2,884,163 | 2,884,604 | 2,867,193 | 2,820,194 | 2,661,736 |
| Total<br> assets | 4,403,494 | 4,358,589 | 4,308,067 | 4,284,311 | 4,087,593 |
| Book<br> value per common share | 44.89 | 43.51 | 42.23 | 41.33 | 40.47 |
| Loans<br> to deposits | 103.45% | 103.06% | 103.04% | 101.74% | 105.70% |
| Holding<br> Company Capital Ratios(7): | |||||
| Total<br> risk-based capital ratio | 12.89% | 12.79% | 12.63% | 12.69% | 12.70% |
| Tier<br> 1 risk-based capital ratio | 11.44% | 11.26% | 11.11% | 11.15% | 11.16% |
| Leverage<br> ratio | 8.93% | 8.72% | 8.73% | 8.79% | 8.55% |
| Common<br> equity tier 1 ratio(8) | 11.06% | 10.88% | 10.71% | 10.75% | 10.75% |
| Tangible<br> common equity(9) | 8.37% | 8.18% | 8.02% | 7.88% | 8.08% |
| Asset<br> Quality Ratios: | |||||
| Nonperforming<br> assets/total assets | 0.32% | 0.27% | 0.27% | 0.26% | 0.27% |
| Classified<br> assets/tier one capital plus allowance for credit losses | 4.22% | 3.90% | 4.28% | 4.24% | 4.25% |
| Accruing<br> loans 30 days or more past due/loans(5) | 0.13% | 0.18% | 0.14% | 0.27% | 0.18% |
| Net<br> charge-offs (recoveries)/average loans(5) (YTD annualized) | 0.00% | 0.00% | 0.00% | 0.00% | 0.04% |
| Allowance<br> for credit losses/loans(5) | 1.10% | 1.10% | 1.10% | 1.10% | 1.10% |
| Allowance<br> for credit losses/nonaccrual loans | 305.65% | 364.50% | 362.35% | 378.09% | 366.94% |
All values are in US Dollars.
[Footnotes to table located on page 6]
incomestatements – Unaudited
| Quarter Ended | Twelve Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| Dec 31 | Sept 30 | Jun 30 | Mar 31 | Dec 31 | December 31 | |||
| (in<br> thousands, except per share data) | 2025 | 2025 | 2025 | 2025 | 2024 | 2025 | 2024 | |
| Interest income | ||||||||
| Loans | $ | 51,069 | 50,999 | 48,992 | 47,085 | 47,163 | 198,145 | 186,863 |
| Investment<br> securities | 1,268 | 1,342 | 1,357 | 1,403 | 1,504 | 5,370 | 5,812 | |
| Federal<br> funds sold | 2,193 | 2,645 | 1,969 | 1,159 | 2,465 | 7,966 | 8,537 | |
| Total<br> interest income | 54,530 | 54,986 | 52,318 | 49,647 | 51,132 | 211,481 | 201,212 | |
| Interest expense | ||||||||
| Deposits | 23,052 | 24,703 | 24,300 | 23,569 | 25,901 | 95,624 | 108,774 | |
| Borrowings | 2,734 | 2,754 | 2,723 | 2,695 | 2,773 | 10,906 | 11,216 | |
| Total<br> interest expense | 25,786 | 27,457 | 27,023 | 26,264 | 28,674 | 106,530 | 119,990 | |
| Net<br> interest income | 28,744 | 27,529 | 25,295 | 23,383 | 22,458 | 104,951 | 81,222 | |
| Provision<br> (reversal) for credit losses | 650 | 850 | 700 | 750 | (200) | 2,950 | 125 | |
| Net<br> interest income after provision for credit losses | 28,094 | 26,679 | 24,595 | 22,633 | 22,658 | 102,001 | 81,097 | |
| Noninterest income | ||||||||
| Mortgage<br> banking income | 1,689 | 1,600 | 1,569 | 1,424 | 1,024 | 6,282 | 5,560 | |
| Service<br> fees on deposit accounts | 634 | 625 | 567 | 539 | 499 | 2,365 | 1,764 | |
| ATM<br> and debit card income | 638 | 601 | 586 | 552 | 607 | 2,377 | 2,337 | |
| Income<br> from bank owned life insurance | 450 | 439 | 413 | 403 | 407 | 1,705 | 1,569 | |
| Loss<br> on sale of securities | (515) | - | - | - | - | (515) | - | |
| Other<br> income | 194 | 335 | 199 | 196 | 242 | 924 | 911 | |
| Total<br> noninterest income | 3,090 | 3,600 | 3,334 | 3,114 | 2,779 | 13,138 | 12,141 | |
| Noninterest expense | ||||||||
| Compensation<br> and benefits | 10,529 | 11,299 | 11,674 | 11,304 | 10,610 | 44,806 | 43,546 | |
| Occupancy | 2,465 | 2,447 | 2,523 | 2,548 | 2,587 | 9,983 | 10,291 | |
| Outside<br> service and data processing costs | 2,144 | 2,158 | 2,189 | 2,037 | 2,003 | 8,528 | 7,741 | |
| Insurance | 994 | 961 | 910 | 1,010 | 1,077 | 3,875 | 4,022 | |
| Professional<br> fees | 732 | 605 | 609 | 509 | 656 | 2,455 | 2,404 | |
| Marketing | 346 | 412 | 397 | 374 | 335 | 1,529 | 1,412 | |
| Other | 1,206 | 1,064 | 1,034 | 1,054 | 1,276 | 4,358 | 3,910 | |
| Total<br> noninterest expenses | 18,416 | 18,946 | 19,336 | 18,836 | 18,544 | 75,534 | 73,326 | |
| Income<br> before provision for income taxes | 12,768 | 11,333 | 8,593 | 6,911 | 6,893 | 39,605 | 19,912 | |
| Income tax expense | 2,911 | 2,671 | 2,012 | 1,645 | 1,266 | 9,239 | 4,382 | |
| Net income available to common shareholders | $ | 9,857 | 8,662 | 6,581 | 5,266 | 5,627 | 30,366 | 15,530 |
| Earnings<br> per common share – Basic | $ | 1.23 | 1.08 | 0.81 | 0.65 | 0.70 | 3.77 | 1.92 |
| Earnings<br> per common share – Diluted | 1.21 | 1.07 | 0.81 | 0.65 | 0.70 | 3.75 | 1.91 | |
| Basic<br> weighted average common shares | 8,045 | 8,031 | 8,036 | 8,078 | 8,023 | 8,048 | 8,081 | |
| Diluted<br> weighted average common shares | 8,123 | 8,080 | 8,051 | 8,111 | 8,097 | 8,091 | 8,117 |
[Footnotes to table located on page 6]
Net income for the fourth quarter of 2025 was $9.9 million, or $1.21 per diluted share, a $1.2 million increase from the third quarter of 2025 and a $4.2 million increase from the fourth quarter of 2024. Net interest income increased $1.2 million during the fourth quarter of 2025, as compared to the third quarter of 2025, and increased $6.3 million, as compared to the fourth quarter of 2024. The increase in net interest income from the prior quarter and prior year was primarily driven by an increase in interest income on loans, combined with a decrease in interest expense on deposits.
The provision for credit losses was $650 thousand for the fourth quarter of 2025 compared to a provision for credit losses of $850 thousand for the third quarter of 2025 and a $200 thousand reversal of the provision for credit losses for the fourth quarter of 2024. The provision during the fourth quarter of 2025 includes a $550 thousand provision for credit losses and a $100 thousand provision for the reserve for unfunded commitments. The provision for credit losses in the fourth quarter of 2025 was primarily driven by an increase in the impairment on individually evaluated loans.
Noninterest income was $3.1 million for the fourth quarter of 2025, compared to $3.6 million for the third quarter of 2025, and $2.8 million for the fourth quarter of 2024. Mortgage banking income continues to be the largest component of noninterest income at $1.7 million in fee revenue for the fourth quarter of 2025 and $1.0 million for the fourth quarter of 2024. The decrease in noninterest income from the previous quarter was driven by a $515 thousand loss on the sale of securities, as we executed transactions in our portfolio as part of our overall balance sheet and interest rate risk management strategies.
2
Noninterest expense for the fourth quarter of 2025 was $18.4 million, a $530 thousand decrease from the third quarter of 2025, and a $128 thousand decrease from the fourth quarter of 2024. The decrease in noninterest expense from the previous quarter was driven by a decrease in compensation and benefits primarily related to a reduction in group medical insurance expense, offset in part by an increase in professional fees and other noninterest expenses. The decrease in noninterest expense from the previous year related primarily to decreases in compensation and benefits, occupancy, and insurance expense, offset in part by an increase in outside service and data processing costs.
The effective tax rate was 22.8% for the fourth quarter of 2025, 23.6% for the third quarter of 2025, and 18.4% for the fourth quarter of 2024. The changes in the effective tax rate are driven by the effect of equity compensation transactions during the quarter.
Netinterest income and margin - Unaudited
| For<br> the Three Months Ended | |||
|---|---|---|---|
| December<br> 31, 2025 | September<br> 30, 2025 | December<br> 31, 2024 | |
| (dollars<br> in thousands) | Average<br> Balance | Average<br> Balance | Average<br> Balance |
| Interest-earning assets | |||
| Federal<br> funds sold and interest-bearing deposits | 218,291 | 238,552 | 203,065 |
| Investment<br> securities, taxable | 138,616 | 141,143 | 145,932 |
| Investment<br> securities, nontaxable^(2)^ | 7,641 | 7,811 | 7,988 |
| Loans^(10)^ | 3,830,741 | 3,783,885 | 3,620,765 |
| Total<br> interest-earning assets | 4,195,289 | 4,171,391 | 3,977,750 |
| Noninterest-earning<br> assets | 151,515 | 150,552 | 158,779 |
| Total<br> assets | 4,346,804 | 4,321,943 | 4,136,529 |
| Interest-bearing liabilities | |||
| NOW<br> accounts | 360,509 | 329,301 | 300,902 |
| Savings<br> & money market | 1,614,469 | 1,599,710 | 1,492,534 |
| Time<br> deposits | 937,557 | 984,078 | 992,335 |
| Total<br> interest-bearing deposits | 2,912,535 | 2,913,089 | 2,785,771 |
| FHLB<br> advances and other borrowings | 240,000 | 240,087 | 240,000 |
| Subordinated<br> debentures | 24,903 | 24,903 | 24,903 |
| Total<br> interest-bearing liabilities | 3,177,438 | 3,178,079 | 3,050,674 |
| Noninterest-bearing<br> liabilities | 806,235 | 792,575 | 756,636 |
| Shareholders’<br> equity | 363,131 | 351,289 | 329,219 |
| Total<br> liabilities and shareholders’ equity | 4,346,804 | 4,321,943 | 4,136,529 |
| Net<br> interest spread | |||
| Net<br> interest income (tax equivalent) / margin | |||
| Less:<br> tax-equivalent adjustment^(2)^ | |||
| Net<br> interest income |
All values are in US Dollars.
[Footnotes to table located on page 6]
Net interest income was $28.7 million for the fourth quarter of 2025, a $1.2 million increase from the third quarter of 2025, driven by a $1.7 million decrease in interest expense. The decrease in interest expense was driven by a 22 basis point decrease in the cost of our interest-bearing deposits over the previous quarter. In comparison to the fourth quarter of 2024, net interest income increased $6.3 million, resulting primarily from $218 million growth in the average balances of our interest-earning assets combined with a 56 basis point decrease in the cost of interest-bearing deposits. Net interest margin, on a tax-equivalent basis, was 2.72% for the fourth quarter of 2025, a 10 basis point increase from 2.62% for the third quarter of 2025 and a 47 basis point increase from 2.25% for the fourth quarter of 2024.
3
Balancesheets - Unaudited
| Ending Balance | Dec 31 2025 - | |||||
|---|---|---|---|---|---|---|
| Dec 31 | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Dec 31 2024 | |
| (in<br> thousands, except per share data) | 2025 | 2025 | 2025 | 2025 | 2024 | % Change |
| Assets | ||||||
| Cash<br> and cash equivalents: | ||||||
| Cash<br> and due from banks | 27,821 | 24,600 | 25,184 | 24,904 | 22,553 | 23.36% |
| Federal<br> funds sold | 183,473 | 178,534 | 180,834 | 263,612 | 128,452 | 42.83% |
| Interest-bearing<br> deposits with banks | 58,289 | 79,769 | 65,014 | 16,541 | 11,858 | 391.56% |
| Total<br> cash and cash equivalents | 269,583 | 282,903 | 271,032 | 305,057 | 162,863 | 65.53% |
| Investment<br> securities: | ||||||
| Investment<br> securities available for sale | 127,730 | 131,040 | 128,867 | 131,290 | 132,127 | (3.33%) |
| Other<br> investments | 20,063 | 20,066 | 19,906 | 19,927 | 19,490 | 2.94% |
| Total<br> investment securities | 147,793 | 151,106 | 148,773 | 151,217 | 151,617 | (2.52%) |
| Mortgage<br> loans held for sale | 11,569 | 6,906 | 10,739 | 11,524 | 4,565 | 153.43% |
| Loans<br> (5) | 3,845,124 | 3,789,021 | 3,746,841 | 3,683,919 | 3,631,767 | 5.87% |
| Less<br> allowance for credit losses | (42,280) | (41,799) | (41,285) | (40,687) | (39,914) | 5.93% |
| Loans,<br> net | 3,802,844 | 3,747,222 | 3,705,556 | 3,643,232 | 3,591,853 | 5.87% |
| Bank<br> owned life insurance | 55,775 | 55,324 | 54,886 | 54,473 | 54,070 | 3.15% |
| Property<br> and equipment, net | 83,465 | 84,586 | 85,921 | 87,369 | 88,794 | (6.00%) |
| Deferred<br> income taxes | 13,702 | 12,657 | 12,971 | 13,080 | 13,467 | 1.75% |
| Other<br> assets | 18,763 | 17,885 | 18,189 | 18,359 | 20,364 | (7.86%) |
| Total<br> assets | 4,403,494 | 4,358,589 | 4,308,067 | 4,284,311 | 4,087,593 | 7.73% |
| Liabilities | ||||||
| Deposits | 3,716,803 | 3,676,417 | 3,636,329 | 3,620,886 | 3,435,765 | 8.18% |
| FHLB<br> Advances | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 0.00% |
| Subordinated<br> debentures | 24,903 | 24,903 | 24,903 | 24,903 | 24,903 | 0.00% |
| Other<br> liabilities | 53,131 | 60,921 | 61,373 | 60,924 | 56,481 | (5.93%) |
| Total<br> liabilities | 4,034,837 | 4,002,241 | 3,962,605 | 3,946,713 | 3,757,149 | 7.39% |
| Shareholders’<br> equity | ||||||
| Preferred<br> stock - .01 par value; 10,000,000 shares authorized | - | - | - | - | - | - |
| Common<br> Stock - .01 par value; 10,000,000 shares authorized | 82 | 82 | 82 | 82 | 82 | - |
| Nonvested<br> restricted stock | (1,338) | (1,929) | (2,774) | (3,372) | (3,884) | (65.55%) |
| Additional<br> paid-in capital | 125,924 | 125,035 | 124,839 | 124,561 | 124,641 | 1.03% |
| Accumulated<br> other comprehensive loss | (7,454) | (8,426) | (9,609) | (10,016) | (11,472) | (35.02%) |
| Retained<br> earnings | 251,443 | 241,586 | 232,924 | 226,343 | 221,077 | 13.74% |
| Total<br> shareholders’ equity | 368,657 | 356,348 | 345,462 | 337,598 | 330,444 | 11.56% |
| Total<br> liabilities and shareholders’ equity | 4,403,494 | 4,358,589 | 4,308,067 | 4,284,311 | 4,087,593 | 7.73% |
| Common<br> Stock | ||||||
| Book<br> value per common share | 44.89 | 43.51 | 42.23 | 41.33 | 40.47 | 10.92% |
| Stock<br> price: | ||||||
| High | 55.50 | 45.54 | 38.51 | 38.50 | 44.86 | 23.72% |
| Low | 41.15 | 38.74 | 30.61 | 31.88 | 33.26 | 23.72% |
| Period<br> end | 51.52 | 44.12 | 38.03 | 32.92 | 39.75 | 29.61% |
| Common<br> shares outstanding | 8,213 | 8,189 | 8,181 | 8,169 | 8,165 | 0.59% |
All values are in US Dollars.
[Footnotes to table located on page 6]
4
Assetquality measures - Unaudited
| Quarter Ended | ||||||
|---|---|---|---|---|---|---|
| December 31 | September 30 | June 30 | March 31 | December 31 | ||
| (dollars<br> in thousands) | 2025 | 2025 | 2025 | 2025 | 2024 | |
| Nonperforming Assets | ||||||
| Commercial | ||||||
| Owner<br> occupied RE | $ | 259 | 262 | - | - | - |
| Non-owner<br> occupied RE | 6,917 | 6,911 | 6,941 | 6,950 | 7,641 | |
| Commercial<br> business | 189 | 195 | 717 | 1,087 | 1,016 | |
| Consumer | ||||||
| Real<br> estate | 5,763 | 3,394 | 3,028 | 2,414 | 1,908 | |
| Home<br> equity | 705 | 705 | 708 | 310 | 312 | |
| Total<br> nonaccrual loans | 13,833 | 11,467 | 11,394 | 10,761 | 10,877 | |
| Other<br> real estate owned | 275 | 275 | 275 | 275 | - | |
| Total<br> nonperforming assets | $ | 14,108 | 11,742 | 11,669 | 11,036 | 10,877 |
| Nonperforming<br> assets as a percentage of: | ||||||
| Total<br> assets | 0.32% | 0.27% | 0.27% | 0.26% | 0.27% | |
| Total<br> loans | 0.37% | 0.31% | 0.31% | 0.30% | 0.30% | |
| Classified<br> assets/tier 1 capital plus allowance for credit losses | 4.22% | 3.90% | 4.28% | 4.24% | 4.25% | |
| Quarter Ended | ||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | ||
| (dollars<br> in thousands) | 2025 | 2025 | 2025 | 2025 | 2024 | |
| Allowance for Credit Losses | ||||||
| Balance,<br> beginning of period | $ | 41,799 | 41,285 | 40,687 | 39,914 | 40,166 |
| Loans<br> charged-off | (150) | (55) | (68) | (78) | (143) | |
| Recoveries<br> of loans previously charged-off | 81 | 69 | 16 | 101 | 141 | |
| Net<br> loans (charged-off) recovered | (69) | 14 | (52) | 23 | (2) | |
| Provision<br> for (reversal of) credit losses | 550 | 500 | 650 | 750 | (250) | |
| Balance,<br> end of period | $ | 42,280 | 41,799 | 41,285 | 40,687 | 39,914 |
| Allowance<br> for credit losses to gross loans | 1.10% | 1.10% | 1.10% | 1.10% | 1.10% | |
| Allowance<br> for credit losses to nonaccrual loans | 305.65% | 364.50% | 362.35% | 378.09% | 366.94% | |
| Net<br> charge-offs (recoveries) to average loans QTD (annualized) | 0.01% | 0.00% | 0.01% | 0.00% | 0.00<br> % |
Total nonperforming assets were $14.1 million at December 31, 2025, representing 0.32% of total assets compared to 0.27% for the third quarter of 2025 and 0.27% for the fourth quarter of 2024. In addition, the classified asset ratio increased to 4.22% for the fourth quarter of 2025 from 3.90% in the third quarter of 2025 and decreased from 4.25% in the fourth quarter of 2024.
At December 31, 2025, the allowance for credit losses was $42.3 million, or 1.10% of total loans, compared to $41.8 million, or 1.10% of total loans at September 30, 2025, and $39.9 million, or 1.10% of total loans, at December 31, 2024. We had net charge-offs of $69 thousand for the fourth quarter of 2025, compared to net recoveries of $14 thousand for the third quarter of 2025 and net charge-offs of $2 thousand for the fourth quarter of 2024. There was a provision for credit losses of $550 thousand for the fourth quarter of 2025, compared to a provision for credit losses of $500 thousand for the third quarter of 2025 and a reversal of the provision for credit losses of $250 thousand for the fourth quarter of 2024. The provision during the fourth quarter of 2025 was primarily driven by additional impairment on our individually evaluated loans.
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LOANCOMPOSITION - Unaudited
| Quarter<br> Ended | ||||||
|---|---|---|---|---|---|---|
| December 31 | September 30 | June 30 | March 31 | December 31 | ||
| (dollars<br> in thousands) | 2025 | 2025 | 2025 | 2025 | 2024 | |
| Commercial | ||||||
| Owner<br> occupied RE | $ | 736,979 | 705,383 | 686,424 | 673,865 | 651,597 |
| Non-owner<br> occupied RE | 956,812 | 943,304 | 939,163 | 926,246 | 924,367 | |
| Construction | 63,666 | 71,928 | 68,421 | 90,021 | 103,204 | |
| Business | 619,667 | 604,411 | 589,661 | 561,337 | 556,117 | |
| Total<br> commercial loans | 2,377,124 | 2,325,026 | 2,283,669 | 2,251,469 | 2,235,285 | |
| Consumer | ||||||
| Real<br> estate | 1,153,285 | 1,159,693 | 1,164,187 | 1,147,357 | 1,128,629 | |
| Home<br> equity | 248,685 | 239,996 | 234,608 | 223,061 | 204,897 | |
| Construction | 24,997 | 25,842 | 25,210 | 23,540 | 20,874 | |
| Other | 41,033 | 38,464 | 39,167 | 38,492 | 42,082 | |
| Total<br> consumer loans | 1,468,000 | 1,463,995 | 1,463,172 | 1,432,450 | 1,396,482 | |
| Total<br> gross loans, net of deferred fees | 3,845,124 | 3,789,021 | 3,746,841 | 3,683,919 | 3,631,767 | |
| Less—allowance<br> for credit losses | (42,280) | (41,799) | (41,285) | (40,687) | (39,914) | |
| Total<br> loans, net | $ | 3,802,844 | 3,747,222 | 3,705,556 | 3,643,232 | 3,591,853 |
DEPOSITCOMPOSITION - Unaudited
| Quarter<br> Ended | |||||
|---|---|---|---|---|---|
| December 31 | September 30 | June 30 | March 31 | December 31 | |
| (dollars<br> in thousands) | 2025 | 2025 | 2025 | 2025 | 2024 |
| Non-interest<br> bearing | 732,287 | 736,518 | 761,492 | 671,609 | 683,081 |
| Interest<br> bearing: | |||||
| NOW<br> accounts | 423,270 | 343,615 | 341,903 | 371,052 | 314,588 |
| Money<br> market accounts | 1,573,039 | 1,572,738 | 1,537,400 | 1,563,181 | 1,438,530 |
| Savings | 29,470 | 29,381 | 32,334 | 32,945 | 31,976 |
| Time,<br> less than 250,000 | 180,783 | 202,353 | 194,064 | 181,407 | 193,562 |
| Time<br> and out-of-market deposits, 250,000 and over | 777,954 | 791,812 | 769,136 | 800,692 | 774,028 |
| Total<br> deposits | 3,716,803 | 3,676,417 | 3,636,329 | 3,620,886 | 3,435,765 |
All values are in US Dollars.
| Footnotes to tables: |
|---|
| (1)<br> Total revenue is the sum of net interest income and noninterest income. |
| (2)<br> The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield<br> on a taxable basis. |
| (3)<br> Annualized for the respective three-month period. |
| (4)<br> Noninterest expense divided by the sum of net interest income and noninterest income. |
| (5)<br> Excludes mortgage loans held for sale. |
| (6)<br> Excludes out of market deposits and time deposits greater than $250,000 totaling $777,954,000. |
| (7)<br> December 31, 2025 ratios are preliminary. |
| (8)<br> The common equity tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets. |
| (9) The tangible<br> common equity ratio is calculated as total equity less preferred stock divided by total assets. |
| (10)<br> Includes mortgage loans held for sale. |
AboutSouthern 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 $4.4 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.
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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.
FINANCIAL & MEDIA CONTACT:
ART SEAVER 864-679-9010
WEB SITE: www.southernfirst.com
SOURCE: Southern First Bancshares, Inc.
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Exhibit 99.2
