Southern First (NASDAQ: SFST) lifts earnings 41% on stronger loans and margins

What happened

Southern First Bancshares, Inc. (NASDAQ: SFST) reported third-quarter 2026 net income of $12.2 million and diluted EPS of $1.28.

Total revenue was $37.5 million, up $6.4 million from a year earlier and $1.7 million from the second quarter. Net interest income rose 26% year over year as loan growth and margin expansion continued.

Return on average assets was 1.03%, while tangible common equity to assets was 9.47%. Net charge-offs were about $719 thousand and nonperforming assets were 0.30% of total assets.

The bank also said retail client deposits rose by $163 million and the loan portfolio grew by $145 million. Book value per common share reached $48.68, up 11.9% from the third quarter of 2025.

Key numbers

Metric	Latest	Change	Source
Total revenue	$37.53 million	from $31.13 million, +20.6%	SEC 8-K earnings release
Net income available to common shareholders	$12.23 million	from $8.66 million, +41.2%	SEC 8-K earnings release
Diluted EPS	$1.28	from $1.06, +20.8%	SEC 8-K earnings release
Total loans	$4.18 billion	from $3.79 billion, +10.2%	SEC 8-K earnings release
Total deposits	$4.11 billion	from $3.68 billion, +11.7%	SEC 8-K earnings release

Read more: Southern First Bancshares (SFST) stock analysis and investment case

Why it matters

OptimistFi's case is that SFST can compound per-share value if earning assets keep growing while funding costs and credit remain controlled. This filing supports that view with total loans at $4.2 billion, retail deposits at $3.7 billion, and a net interest margin of 3.02%.

OptimistFi's calculation shows total revenue rose 20.6% year over year, from $31.13 million to $37.53 million. That growth matters because it came alongside a 41% increase in net income and a 21% increase in diluted EPS, which points to stronger operating leverage in the quarter.

Noninterest income fell to $2.9 million from $3.6 million a year earlier because the bank retained a larger percentage of mortgage loans rather than selling to the secondary market. Provision for credit losses also increased by $375 thousand from the prior quarter, which shows credit costs can still move against results even as the core franchise improves.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

What's next

The next quarterly report is the test for whether the bank can keep growing loans and deposits while maintaining margin and credit discipline.

If the next report shows continued balance-sheet growth and stable asset quality, that would support the case. If margins or credit weaken, the thesis loses support.

More from OptimistFi

• SFST stock: the Southern First Bancshares thesis, its status and the next test to watch
• Stock research on every company OptimistFi covers

From OptimistFi Perps