Southern First Reports First Quarter 2026 Results

, /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST) (Southern First), today announced its financial results for the three months ended March 31, 2026. Strong loan growth and continued margin expansion drove year-over-year net interest income growth of 29%. Net income was $9.9 million and diluted earnings per share was $1.19, representing a $0.54, or 83%, increase over the first quarter of 2025, and relatively unchanged from the fourth quarter of 2025. Return on average assets was 0.91%, up 39 basis points over the first quarter of last year, and tangible common equity to assets was 8.29%, up 41 basis points from the first quarter of 2025. Net charge-offs were approximately $50 thousand, or 0.01% of average loans, annualized, consistent with linked quarter and year-over-year results. Nonperforming assets were 0.26% of total assets, down from 0.32% for the fourth quarter. Provision for credit losses increased by $650 thousand, and the allowance for credit losses represented 1.10% of loans, consistent with the past several quarters. "We are excited to report our first quarter 2026 results which include record retail deposit growth of nearly $210 million, representing a 27% annualized growth rate. Our first quarter 2026 net income was $9.9 million and is 88% higher than the same quarter last year. We have tremendous momentum in growing client relationships and raised additional capital in the form of common equity this quarter to support our growth expectations," stated Art Seaver, Chief Executive Officer. On April 15, 2026, Southern First announced an underwritten public offering of 1,050,000 shares of common stock and granted the underwriters an option to purchase up to 157,500 additional shares. The offering closed on April 17, 2026, with a total of 1,207,500 shares issued at $54.00 per share for aggregate gross proceeds of approximately $65.2 million before discounts and expenses. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include supporting organic growth initiatives, providing capital to the Company's bank subsidiary, redeeming or repurchasing outstanding indebtedness, including subordinated debt, and for working capital purposes. Financial Highlights – First Quarter 2026: Earnings Diluted earnings per common share was $1.19, up $0.54, or 83%, compared to the first quarter of 2025; and down slightly by $0.01 from the fourth quarter of 2025Net income improved to $9.9 million, a $4.6 million increase, or 88%, compared to the first quarter of 2025Total revenue was $33.8 million, an increase of $7.3 million, or 28%, year-over-year and $2.0 million on a linked quarter basisNet interest income improved by $6.9 million, or 29% year-over-year, driven primarily by new loan volumeNet interest margin was 2.88%, a 16 basis point increase from 2.72% for the fourth quarter of 2025, and included a $543 thousand repayment of interest on one large nonaccrual loanNoninterest income was $3.5 million compared to $3.1 million for the first quarter last year; the increase was impacted by a one-time $515 thousand loss on the sale of securities in the fourth quarter of 2025Noninterest expense to average assets was 1.84%, compared to 1.87% for first quarter of 2025Return on average equity was 10.67%, compared to 6.38% for the first quarter of 2025Return on average assets was 0.91%, compared to 0.52% for the first quarter of 2025 Balance Sheet Total loans were $3.9 billion, up $97.1 million, or 10% (annualized), from the fourth quarter of 2025Retail deposits were $3.4 billion, up $207.8 million, or 27% (annualized) from the fourth quarter of 2025Book value per common share was $46.00, an increase of 10% (annualized) from the fourth quarter of 2025Tangible common equity (TCE) ratio was 8.29%, down 8 basis points on a linked quarter basis driven by loan growth, and up from 7.88% for the first quarter of 2025Common equity Tier1 ratio (CET1) was 11.03%, down slightly from the fourth quarter of 2025, and up from 10.75% for the first quarter 2025 Asset Quality Nonperforming assets to total assets were 0.26%, compared to 0.32% for the linked quarter, primarily due to the repayment of a large nonaccrual loan, while accruing loans 30 days or more past due to total loans were 0.20%, compared to 0.14% for the fourth quarterClassified assets were 3.25% as a percentage of total loans compared to 4.28% for the linked quarter endProvision for credit losses was $1.3 million and includes a $1.2 million provision for loan losses and a $150 thousand provision for unfunded commitments driven by new loan growth; Allowance for credit losses to total loans remained at 1.10% for the quarterNet charge-offs were 0.01% as a percentage of average loans on an annualized basis SELECTED FINANCIAL DATA Quarter Ended Mar 31 2026- March 31 December 31 September 30 June 30 March 31 Mar 31 2025 2026 2025 2025 2025 2025 Change Income Statement Summary ($ in thousands): Net interest income $ 30,259 28,744 27,529 25,295 23,383 29.4 % Noninterest income 3,540 3,090 3,600 3,334 3,114 13.7 % Total Revenue 33,799 31,834 31,129 28,629 26,497 27.6 % Provision for credit losses 1,300 650 850 700 750 73.3 % Noninterest expense 20,015 18,416 18,946 19,336 18,836 6.3 % Income before income tax expense 12,484 12,768 11,333 8,593 6,911 80.6 % Income tax expense 2,597 2,911 2,671 2,012 1,645 57.9 % Net income available to common shareholders 9,887 9,857 8,662 6,581 5,266 87.8 % Earnings ($ in thousands, except per share data): Earnings per common share, diluted 1.19 1.20 1.06 0.81 0.65 83.1 % Net interest margin (tax-equivalent)(1) 2.88 % 2.72 % 2.62 % 2.50 % 2.41 % 0.47 Return on average assets(2) 0.91 % 0.90 % 0.80 % 0.63 % 0.52 % 0.39 Return on average equity(2) 10.67 % 10.77 % 9.78 % 7.71 % 6.38 % 4.29 Efficiency ratio(3) 59.22 % 57.85 % 60.86 % 67.54 % 71.08 % (11.86) Noninterest expense to average assets(2) 1.84 % 1.68 % 1.74 % 1.86 % 1.87 % (0.03) Balance Sheet ($ in thousands): Total loans(4) $ 3,942,219 3,845,124 3,789,021 3,746,841 3,683,919 7.0 % Total deposits 3,873,455 3,716,803 3,676,417 3,636,329 3,620,886 7.0 % Retail deposits(5) 3,371,721 3,163,914 3,108,411 3,075,631 3,020,392 11.6 % Total assets 4,578,402 4,403,494 4,358,589 4,308,067 4,284,311 6.9 % Book value per common share 46.00 44.89 43.51 42.23 41.33 11.3 % Loans to deposits 101.78 % 103.45 % 103.06 % 103.04 % 101.74 % 0.04 Holding Company Capital Ratios(6): Total risk-based capital ratio 12.83 % 12.89 % 12.79 % 12.63 % 12.69 % 0.14 Tier 1 risk-based capital ratio 11.40 % 11.44 % 11.26 % 11.11 % 11.15 % 0.25 Leverage ratio 9.05 % 8.93 % 8.72 % 8.73 % 8.79 % 0.26 Common equity Tier 1 ratio(7) 11.03 % 11.06 % 10.88 % 10.71 % 10.75 % 0.28 Tangible common equity(8) 8.29 % 8.37 % 8.18 % 8.02 % 7.88 % 0.41 Asset Quality Ratios: Nonperforming assets/total assets 0.26 % 0.32 % 0.27 % 0.27 % 0.26 % ­­— Classified assets/Tier 1 capital plus allowance for credit losses 3.25 % 4.28 % 3.97 % 4.35 % 4.31 % (1.06) Accruing loans 30 days or more past due/loans(4) 0.20 % 0.14 % 0.18 % 0.14 % 0.27 % (0.07) Net charge-offs (recoveries)/average loans(4) (YTD annualized) 0.01 % 0.00 % 0.00 % 0.00 % 0.00 % 0.01 Allowance for credit losses/loans(4) 1.10 % 1.10 % 1.10 % 1.10 % 1.10 % — Allowance for credit losses/nonaccrual loans 378.22 % 305.65 % 364.50 % 362.35 % 378.09 % 0.13 INCOME STATEMENTS – Unaudited Quarter Ended Mar 31 2026 - Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Mar 31 2025 (in thousands, except per share data) 2026 2025 2025 2025 2025 Change Interest income Loans $ 51,257 51,069 50,999 48,992 47,085 8.9 % Investment securities 1,399 1,268 1,342 1,357 1,403 (0.3 %) Federal funds sold 1,955 2,193 2,645 1,969 1,159 68.7 % Total interest income 54,611 54,530 54,986 52,318 49,647 10.0 % Interest expense Deposits 21,697 23,052 24,703 24,300 23,569 (7.9 %) Borrowings 2,655 2,734 2,754 2,723 2,695 (1.5 %) Total interest expense 24,352 25,786 27,457 27,023 26,264 (7.3 %) Net interest income 30,259 28,744 27,529 25,295 23,383 29.4 % Provision for credit losses 1,300 650 850 700 750 73.3 % Net interest income after provision for credit losses 28,959 28,094 26,679 24,595 22,633 27.9 % Noninterest income Mortgage banking income 1,493 1,689 1,600 1,569 1,424 4.8 % Service fees on deposit accounts 756 634 625 567 539 40.3 % ATM and debit card income 588 638 601 586 552 6.5 % Income from bank owned life insurance 446 450 439 413 403 10.7 % Loss on sale of securities - (515) - - - 0.0 % Other income 257 194 335 199 196 31.1 % Total noninterest income 3,540 3,090 3,600 3,334 3,114 13.7 % Noninterest expense Compensation and benefits 11,980 10,529 11,299 11,674 11,304 6.0 % Occupancy 2,490 2,465 2,447 2,523 2,548 (2.3 %) Outside service and data processing costs 2,267 2,144 2,158 2,189 2,037 11.3 % Insurance 892 994 961 910 1,010 (11.7 %) Professional fees 675 732 605 609 509 32.6 % Marketing 399 346 412 397 374 6.7 % Other 1,312 1,206 1,064 1,034 1,054 24.5 % Total noninterest expenses 20,015 18,416 18,946 19,336 18,836 6.3 % Income before provision for income taxes 12,484 12,768 11,333 8,593 6,911 80.6 % Income tax expense 2,597 2,911 2,671 2,012 1,645 57.9 % Net income available to common shareholders $ 9,887 9,857 8,662 6,581 5,266 87.7 % Earnings per common share – Basic $ 1.21 1.22 1.07 0.81 0.65 86.2 % Earnings per common share – Diluted 1.19 1.20 1.06 0.81 0.65 83.1 % Basic weighted average common shares 8,163 8,106 8,091 8,090 8,078 1.1 % Diluted weighted average common shares 8,293 8,229 8,176 8,124 8,111 2.2 % [Footnotes to table located on page 6] NET INTEREST INCOME AND MARGIN - Unaudited For the Three Months Ended March 31, 2026 December 31, 2025 March 31, 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 $ 211,039 $ 1,956 3.76 % $ 218,291 $ 2,193 3.99 % $ 107,821 $ 1,159 4.36 % Investment securities, taxable 141,309 1,368 3.93 % 138,616 1,229 3.52 % 143,609 1,361 3.84 % Investment securities, nontaxable(1) 6,332 40 2.58 % 7,641 51 2.63 % 7,914 55 2.80 % Loans(9) 3,899,002 51,257 5.33 % 3,830,741 51,069 5.29 % 3,673,912 47,085 5.20 % Total interest-earning assets 4,257,682 54,621 5.20 % 4,195,289 54,542 5.16 % 3,933,256 49,660 5.12 % Noninterest-earning assets 156,466 151,515 157,053 Total assets $4,414,148 $4,346,804 $4,090,309 Interest-bearing liabilities NOW accounts $ 421,527 1,102 1.06 % $ 360,509 834 0.92 % $ 306,707 597 0.79 % Savings & money market 1,649,248 11,819 2.91 % 1,614,469 12,530 3.08 % 1,520,632 12,750 3.40 % Time deposits 895,101 8,776 3.98 % 937,557 9,688 4.10 % 930,282 10,222 4.46 % Total interest-bearing deposits 2,965,876 21,697 2.97 % 2,912,535 23,052 3.14 % 2,757,621 23,569 3.47 % FHLB advances and other borrowings 240,000 2,245 3.79 % 240,000 2,295 3.79 % 240,000 2,244 3.79 % Subordinated debentures 24,903 411 6.69 % 24,903 439 6.99 % 24,903 451 7.34 % Total interest-bearing liabilities 3,230,779 24,353 3.06 % 3,177,438 25,786 3.22 % 3,022,524 26,264 3.52 % Noninterest-bearing liabilities 807,686 806,235 732,761 Shareholders' equity 375,683 363,131 335,024 Total liabilities and shareholders' equity $4,414,148 $4,346,804 $4,090,309 Net interest spread 2.15 % 1.94 % 1.60 % Net interest income (tax equivalent) / margin $30,268 2.88 % $28,756 2.72 % $23,396 2.41 % Less: tax-equivalent adjustment(1) 9 12 13 Net interest income $30,259 $28,744 $23,383 [Footnotes to table located on page 6] BALANCE SHEETS - Unaudited Ending Balance Mar 31 2026 - Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Mar 31 2025 (in thousands, except per share data) 2026 2025 2025 2025 2025 Change Assets Cash and cash equivalents: Cash and due from banks $ 32,723 27,821 24,600 25,184 24,904 31.4 % Federal funds sold 228,235 183,473 178,534 180,834 263,612 (13.4 %) Interest-bearing deposits with banks 81,818 58,289 79,769 65,014 16,541 394.6 % Total cash and cash equivalents 342,776 269,583 282,903 271,032 305,057 12.4 % Investment securities: Investment securities available for sale 124,224 127,730 131,040 128,867 131,290 (5.4 %) Other investments 20,377 20,063 20,066 19,906 19,927 2.3 % Total investment securities 144,601 147,793 151,106 148,773 151,217 (4.4 %) Mortgage loans held for sale 13,723 11,569 6,906 10,739 11,524 19.1 % Loans(5) 3,942,219 3,845,124 3,789,021 3,746,841 3,683,919 7.0 % Less allowance for credit losses (43,378) (42,280) (41,799) (41,285) (40,687) 6.6 % Loans, net 3,898,841 3,802,844 3,747,222 3,705,556 3,643,232 7.0 % Bank owned life insurance 56,221 55,775 55,324 54,886 54,473 3.2 % Property and equipment, net 88,580 83,465 84,586 85,921 87,369 1.4 % Deferred income taxes 13,812 13,702 12,657 12,971 13,080 5.6 % Other assets 19,848 18,763 17,885 18,189 18,359 8.1 % Total assets $ 4,578,402 4,403,494 4,358,589 4,308,067 4,284,311 6.9 % Liabilities Deposits $ 3,873,455 3,716,803 3,676,417 3,636,329 3,620,886 7.0 % FHLB Advances 240,000 240,000 240,000 240,000 240,000 0.0 % Subordinated debentures 24,903 24,903 24,903 24,903 24,903 0.0 % Other liabilities 60,631 53,131 60,921 61,373 60,924 (0.5 %) Total liabilities 4,198,989 4,034,837 4,002,241 3,962,605 3,946,713 6.4 % Shareholders' equity Preferred stock - $.01 par value; 10,000,000 shares authorized - - - - - 0.0 % Common Stock - $.01 par value; 10,000,000 shares authorized 82 82 82 82 82 0.0 % Nonvested restricted stock (1,302) (1,338) (1,929) (2,774) (3,372) (61.4 %) Additional paid-in capital 127,168 125,924 125,035 124,839 124,561 2.1 % Accumulated other comprehensive loss (7,865) (7,454) (8,426) (9,609) (10,016) (21.5 %) Retained earnings 261,330 251,443 241,586 232,924 226,343 15.5 % Total shareholders' equity 379,413 368,657 356,348 345,462 337,598 12.4 % Total liabilities and shareholders' equity $ 4,578,402 4,403,494 4,358,589 4,308,067 4,284,311 6.9 % Common Stock Book value per common share $ 46.00 44.89 43.51 42.23 41.33 11.3 % Stock price: High 61.08 55.50 45.54 38.51 38.50 58.6 % Low 51.26 41.15 38.74 30.61 31.88 60.8 % Period end 54.50 51.52 44.12 38.03 32.92 65.6 % Common shares outstanding 8,248 8,213 8,189 8,181 8,169 1.0 % [Footnotes to table located on page 6] ASSET QUALITY MEASURES - Unaudited Quarter Ended March 31 December 31 September 30 June 30 March 31 (dollars in thousands) 2026 2025 2025 2025 2025 Nonperforming Assets Commercial Owner occupied RE $ 2,317 259 262 - - Non-owner occupied RE 1,712 6,917 6,911 6,941 6,950 Commercial business 909 189 195 717 1,087 Consumer Real estate 5,786 5,763 3,394 3,028 2,414 Home equity 745 705 705 708 310 Total nonaccrual loans 11,469 13,833 11,467 11,394 10,761 Other real estate owned 475 275 275 275 275 Total nonperforming assets $ 11,944 14,108 11,742 11,669 11,036 Nonperforming assets as a percentage of: Total assets 0.26 % 0.32 % 0.27 % 0.27 % 0.26 % Total loans 0.30 % 0.37 % 0.31 % 0.31 % 0.30 % Classified assets/Tier 1 capital plus allowance for credit losses 3.14 % 4.22 % 3.90 % 4.28 % 4.24 % Accruing loans 30 days or more past due/loans(4) 0.20 % 0.14 % 0.18 % 0.14 % 0.27 % Quarter Ended March 31 December 31 September 30 June 30 March 31 (dollars in thousands) 2026 2025 2025 2025 2025 Allowance for Credit Losses Balance, beginning of period $ 42,280 41,799 41,285 40,687 39,914 Loans charged-off (78) (150) (55) (68) (78) Recoveries of loans previously charged-off 26 81 69 16 101 Net loans (charged-off) recovered (52) (69) 14 (52) 23 Provision for credit losses 1,150 550 500 650 750 Balance, end of period $ 43,378 42,280 41,799 41,285 40,687 Allowance for credit losses to gross loans 1.10 % 1.10 % 1.10 % 1.10 % 1.10 % Allowance for credit losses to nonaccrual loans 378.22 % 305.65 % 364.50 % 362.35 % 378.09 % Net charge-offs (recoveries) to average loans QTD (annualized) 0.01 % 0.01 % 0.00 % 0.01 % 0.00 % [Footnotes to table located on page 6] LOAN COMPOSITION - Unaudited Quarter Ended Qtr Yr March 31 December 31 September 30 June 30 March 31 Over Qtr Over Yr (dollars in thousands) 2026 2025 2025 2025 2025 $ Change $ Change Commercial Owner occupied RE $ 759,602 736,979 705,383 686,424 673,865 22,623 85,737 Non-owner occupied RE 950,696 956,812 943,304 939,163 926,246 (6,116) 24,450 Construction 69,463 63,666 71,928 68,421 90,021 5,797 (20,558) Business 677,742 619,667 604,411 589,661 561,337 58,075 116,405 Total commercial loans 2,457,503 2,377,124 2,325,026 2,283,669 2,251,469 80,379 206,034 Consumer Real estate 1,148,129 1,153,285 1,159,693 1,164,187 1,147,357 (5,156) 772 Home equity 262,530 248,685 239,996 234,608 223,061 13,845 39,469 Construction 33,879 24,997 25,842 25,210 23,540 8,882 10,339 Other 40,178 41,033 38,464 39,167 38,492 (855) 1,686 Total consumer loans 1,484,716 1,468,000 1,463,995 1,463,172 1,432,450 16,716 52,266 Total gross loans, net of deferred fees  3,942,219 3,845,124 3,789,021 3,746,841 3,683,919 97,095 258,300 Less—allowance for credit losses (43,378) (42,280) (41,799) (41,285) (40,687) (1,098) (2,691) Total loans, net $ 3,898,841 3,802,844 3,747,222 3,705,556 3,643,232 95,997 255,609 Yield on average loans 5.33 % 5.29 % 5.35 % 5.28 % 5.20 % n/a n/a DEPOSIT COMPOSITION - Unaudited Quarter Ended Qtr Yr March 31 December 31 September 30 June 30 March 31 Over Qtr Over Yr (dollars in thousands) 2026 2025 2025 2025 2025 $ Change $ Change Non-interest bearing $ 799,692 732,287 736,518 761,492 671,609 67,405 128,083 Interest bearing: NOW accounts 495,657 423,270 343,615 341,903 371,052 72,387 124,605 Money market accounts 1,652,125 1,573,039 1,572,738 1,537,400 1,563,181 79,086 88,944 Savings 30,332 29,470 29,381 32,334 32,945 862 (2,613) Time deposits, less than $250,000 170,496 180,783 202,353 194,064 181,407 (10,287) (10,911) Time deposits, $250,000 and over(10) 725,153 777,954 791,812 769,136 800,692 (52,801) (75,539) Total deposits $ 3,873,455 3,716,803 3,676,417 3,636,329 3,620,886 156,652 252,569 Total retail deposits 3,371,721 3,163,914 3,108,411 3,075,631 3,020,392 207,807 351,329 Total wholesale deposits 501,734 552,889 568,006 560,697 600,494 (51,155) (98,760) Cost of average deposits 2.37 % 2.50 % 2.69 % 2.75 % 2.78 % n/a n/a Cost of average retail deposits 2.06 % 2.18 % 2.36 % 2.42 % 2.43 % n/a n/a Loans to deposits 101.78 % 103.45 % 103.06 % 103.04 % 101.74 % n/a n/a 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 $501.7 million. (6) March 31, 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 $4.6 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-first-quarter-2026-results-302747706.html SOURCE Southern First Bancshares, Inc.