Greenville, South Carolina, October 20, 2026 – 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