Southern First Reports Third Quarter 2026 Results

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 SOURCE Southern First Bancshares, Inc.