EX-99.1 2 sfst4472061-ex991.htm EARNINGS PRESS RELEASE FOR THE PERIOD ENDED MARCH 31, 2025

Exhibit 99.1

Southern First Reports First Quarter 2025 Results

Greenville, South Carolina, April 22, 2025 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three months ended March 31, 2025.

“We are pleased to report our first quarter results, which reflect our continued momentum and a great start to the year. We had exceptional loan and deposit growth and another quarter of solid margin expansion. We are well positioned for any additional Fed moves but are confident in our ability to increase profitability without them. Asset quality, which has always been a strength of our company, remains excellent. Our capital ratios are strong and provide the balance sheet strength and support we need for continued growth and increasing performance. We are prepared for the uncertainty and potential instability in our immediate operating environment and in the broader economy based on recent trade and tariff events,” stated Art Seaver, Chief Executive Officer. “We recently celebrated the 25th anniversary of our grand opening, and I am extremely proud of our great team and the company they’ve built. Our people are highly energized and ready to drive our future success through impacting lives in our markets. Our business opportunities have continued to increase, we have continued to hire experienced and successful bankers to expand our markets, and we remain focused on supporting our communities and enhancing value for our shareholders.”

2025 First Quarter Highlights

| · | Net income of $5.3 million and diluted earnings per common share of $0.65, up 109% compared to Q1 2024

| · | Net interest margin of 2.41%, compared to 2.25% for Q4 2024 and 1.94% for Q1 2024

| · | Total loans of $3.7 billion, up 6% (annualized) over Q4 2024

| · | Core deposits of $2.8 billion, up 23% (annualized) over Q4 2024

| · | Nonperforming assets to total assets of 0.26% and past due loans to total loans of 0.27%

| · | Book value per common share of $41.33 and a Tangible Common Equity (TCE) ratio of 7.88%

|  | Quarter Ended
|  | March 31 | December 31 | September 30 | June 30 | March 31
|  | 2025 | 2024 | 2024 | 2024 | 2024
Earnings ($ in thousands, except per share data): |  |  |  |  |  |
Net income available to common shareholders | $ | 5,266 | 5,627 | 4,382 | 2,999 | 2,522
Earnings per common share, diluted |  | 0.65 | 0.70 | 0.54 | 0.37 | 0.31
Total revenue(1) |  | 26,497 | 25,237 | 23,766 | 23,051 | 21,309
Net interest margin (tax-equivalent)(2) |  | 2.41% | 2.25% | 2.08% | 1.98% | 1.94%
Return on average assets(3) |  | 0.52% | 0.54% | 0.43% | 0.29% | 0.25%
Return on average equity(3) |  | 6.38% | 6.80% | 5.40% | 3.81% | 3.22%
Efficiency ratio(4) |  | 71.08% | 73.48% | 75.90% | 80.87% | 84.94%
Noninterest expense to average assets (3) |  | 1.87% | 1.78% | 1.75% | 1.81% | 1.81%
Balance Sheet ($ in thousands): |  |  |  |  |  |
Total loans(5) | $ | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | 3,643,766
Total deposits |  | 3,620,886 | 3,435,765 | 3,518,825 | 3,459,869 | 3,460,681
Core deposits(6) |  | 2,820,194 | 2,661,736 | 2,705,429 | 2,788,223 | 2,807,473
Total assets |  | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704
Book value per common share |  | 41.33 | 40.47 | 40.04 | 39.09 | 38.65
Loans to deposits |  | 101.74% | 105.70% | 102.86% | 104.70% | 105.29%
Holding Company Capital Ratios(7): |  |  |  |  |  |
Total risk-based capital ratio |  | 12.69% | 12.70% | 12.61% | 12.77% | 12.59%
Tier 1 risk-based capital ratio |  | 11.15% | 11.16% | 10.99% | 10.80% | 10.63%
Leverage ratio |  | 8.79% | 8.55% | 8.50% | 8.27% | 8.44%
Common equity tier 1 ratio(8) |  | 10.75% | 10.75% | 10.58% | 10.39% | 10.22%
Tangible common equity(9) |  | 7.88% | 8.08% | 7.82% | 7.76% | 7.68%
Asset Quality Ratios: |  |  |  |  |  |
Nonperforming assets/total assets |  | 0.26% | 0.27% | 0.28% | 0.27% | 0.09%
Classified assets/tier one capital plus allowance for credit losses |  | 4.24% | 4.25% | 4.35% | 4.22% | 3.99%
Accruing loans 30 days or more past due/loans(5) |  | 0.27% | 0.18% | 0.09% | 0.06% | 0.32%
Net charge-offs (recoveries)/average loans(5) (YTD annualized) |  | 0.00% | 0.04% | 0.05% | 0.07% | 0.03%
Allowance for credit losses/loans(5) |  | 1.10% | 1.10% | 1.11% | 1.11% | 1.11%
Allowance for credit losses/nonaccrual loans |  | 378.09% | 366.94% | 346.78% | 357.95% | 1,109.13%

[Footnotes to table located on page 6]

1

Exhibit 99.1

income statements – Unaudited

|  | Quarter Ended |  | Mar 31 2025 -
|  | Mar 31 | Dec 31 | Sept 30 | Jun 30 | Mar 31 |  | Mar 31 2024
(in thousands, except per share data) |  | 2025 | 2024 | 2024 | 2024 | 2024 |  | % Change
Interest income |  |  |  |  |  |  |  |
Loans | $ | 47,085 | 47,163 | 47,550 | 46,545 | 45,605 |  | 3.25%
Investment securities |  | 1,403 | 1,504 | 1,412 | 1,418 | 1,478 |  | (5.07%)
Federal funds sold |  | 1,159 | 2,465 | 2,209 | 2,583 | 1,280 |  | (9.45%)
Total interest income |  | 49,647 | 51,132 | 51,171 | 50,546 | 48,363 |  | 2.65%
Interest expense |  |  |  |  |  |  |  |
Deposits |  | 23,569 | 25,901 | 27,725 | 28,216 | 26,932 |  | (12.49%)
Borrowings |  | 2,695 | 2,773 | 2,855 | 2,802 | 2,786 |  | (3.27%)
Total interest expense |  | 26,264 | 28,674 | 30,580 | 31,018 | 29,718 |  | (11.62%)
Net interest income |  | 23,383 | 22,458 | 20,591 | 19,528 | 18,645 |  | 25.41%
Provision (reversal) for credit losses |  | 750 | (200) | - | 500 | (175) |  | (528.57%)
Net interest income after provision for credit losses |  | 22,633 | 22,658 | 20,591 | 19,028 | 18,820 |  | 20.26%
Noninterest income |  |  |  |  |  |  |  |
Mortgage banking income |  | 1,424 | 1,024 | 1,449 | 1,923 | 1,164 |  | 22.34%
Service fees on deposit accounts |  | 539 | 499 | 455 | 423 | 387 |  | 39.28%
ATM and debit card income |  | 552 | 607 | 599 | 587 | 544 |  | 1.47%
Income from bank owned life insurance |  | 402 | 407 | 401 | 384 | 377 |  | 6.63%
Other income |  | 197 | 242 | 271 | 206 | 192 |  | 2.60%
Total noninterest income |  | 3,114 | 2,779 | 3,175 | 3,523 | 2,664 |  | 16.89%
Noninterest expense |  |  |  |  |  |  |  |
Compensation and benefits |  | 11,304 | 10,610 | 10,789 | 11,290 | 10,857 |  | 4.12%
Occupancy |  | 2,548 | 2,587 | 2,595 | 2,552 | 2,557 |  | (0.35%)
Outside service and data processing costs |  | 2,037 | 2,003 | 1,930 | 1,962 | 1,846 |  | 10.35%
Insurance |  | 1,010 | 1,077 | 1,025 | 965 | 955 |  | 5.76%
Professional fees |  | 509 | 656 | 548 | 582 | 618 |  | (17.64%)
Marketing |  | 374 | 335 | 319 | 389 | 369 |  | 1.36%
Other |  | 1,054 | 1,276 | 833 | 903 | 898 |  | 17.26%
Total noninterest expenses |  | 18,836 | 18,544 | 18,039 | 18,643 | 18,100 |  | 4.07%
Income before provision for income taxes |  | 6,911 | 6,893 | 5,727 | 3,908 | 3,384 |  | 104.23%
Income tax expense |  | 1,645 | 1,266 | 1,345 | 909 | 862 |  | 90.84%
Net income available to common shareholders | $ | 5,266 | 5,627 | 4,382 | 2,999 | 2,522 |  | 108.80%
Earnings per common share – Basic | $ | 0.65 | 0.70 | 0.54 | 0.37 | 0.31 |  |
Earnings per common share – Diluted |  | 0.65 | 0.70 | 0.54 | 0.37 | 0.31 |  |
Basic weighted average common shares |  | 8,078 | 8,023 | 8,064 | 8,126 | 8,110 |  |
Diluted weighted average common shares |  | 8,111 | 8,097 | 8,089 | 8,141 | 8,142 |  |

[Footnotes to table located on page 6]

Net income for the first quarter of 2025 was $5.3 million, or $0.65 per diluted share, a $361 thousand decrease from the fourth quarter of 2024 and a $2.7 million increase from the first quarter of 2024. Net interest income increased $925 thousand during the first quarter of 2025, compared to the fourth quarter of 2024, and increased $4.7 million, compared to the first quarter of 2024. The increase in net interest income from the prior quarter and prior year was primarily driven by a decrease in interest expense on deposits. In addition, an increase in loan interest income also drove the increase in net interest income from the first quarter of the prior year.

The provision for credit losses was $750 thousand for the first quarter of 2025 compared to a reversal of $200 thousand for the fourth quarter of 2024 and a reversal of $175 thousand for the first quarter of 2024. The provision during the first quarter of 2025 includes a $750 thousand provision for credit losses and no provision for the reserve for unfunded commitments. The provision for credit losses in the first quarter of 2025 was primarily driven by a $52.2 million increase in our loan portfolio.

Noninterest income was $3.1 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $2.7 million for the first quarter of 2024. Mortgage banking income continues to be the largest component of our noninterest income at $1.4 million in fee revenue for the first quarter of 2025, $1.0 million for the fourth quarter of 2024, and $1.2 million for the first quarter of 2024. Mortgage origination volume increased in the first quarter of 2025, driving the increase in revenue from the prior quarter and prior year.

2

Noninterest expense for the first quarter of 2025 was $18.8 million, a $292 thousand increase from the fourth quarter of 2024, and a $736 thousand increase from the first quarter of 2024. The increase in noninterest expense from the previous quarter was driven by an increase in compensation and benefits, offset in part by decreases in professional fees and other noninterest expense. The increase in noninterest expense from the previous year related primarily to increases in compensation and benefits, outside service and data processing costs, and other noninterest expenses.

Our effective tax rate was 23.8% for the first quarter of 2025, 18.4% for the fourth quarter of 2024, and 25.5% for the first quarter of 2024. The changes in the effective tax rate are driven by the effect of equity compensation transactions and return to provision differences on our actual tax rate during the quarter compared to what was estimated during the year.

Net interest income and margin - Unaudited

|  | For the Three Months Ended
| March 31, 2025 | December 31, 2024 | March 31, 2024
(dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate(3) | Average Balance | Income/ Expense | Yield/ Rate(3) | Average Balance | Income/ Expense | Yield/ Rate(3)
Interest-earning assets |  |  |  |  |  |  |  |  |
Federal funds sold and interest-bearing deposits | $ 107,821 | $ 1,159 | 4.36% | $ 203,065 | $ 2,465 | 4.83% | $ 89,969 | $ 1,280 | 5.71%
Investment securities, taxable | 143,609 | 1,361 | 3.84% | 145,932 | 1,462 | 3.99% | 137,271 | 1,436 | 4.20%
Investment securities, nontaxable(2) | 7,914 | 55 | 2.80% | 7,988 | 55 | 2.72% | 8,097 | 55 | 2.70%
Loans(10) | 3,673,912 | 47,085 | 5.20% | 3,620,765 | 47,163 | 5.18% | 3,622,972 | 45,605 | 5.05%
Total interest-earning assets | 3,933,256 | 49,660 | 5.12% | 3,977,750 | 51,145 | 5.12% | 3,858,309 | 48,376 | 5.03%
Noninterest-earning assets | 157,053 |  |  | 158,779 |  |  | 159,813 |  |
Total assets | $4,090,309 |  |  | $4,136,529 |  |  | $4,018,122 |  |
Interest-bearing liabilities |  |  |  |  |  |  |  |  |
NOW accounts | $ 306,707 | 597 | 0.79% | $ 300,902 | 693 | 0.92% | $ 295,774 | 660 | 0.90%
Savings & money market | 1,520,632 | 12,750 | 3.40% | 1,492,534 | 13,525 | 3.61% | 1,620,521 | 16,299 | 4.03%
Time deposits | 930,282 | 10,222 | 4.46% | 992,335 | 11,683 | 4.68% | 801,734 | 9,973 | 4.99%
Total interest-bearing deposits | 2,757,621 | 23,569 | 3.47% | 2,785,771 | 25,901 | 3.70% | 2,718,029 | 26,932 | 3.97%
FHLB advances and other borrowings | 240,000 | 2,244 | 3.79% | 240,000 | 2,295 | 3.80% | 241,319 | 2,229 | 3.71%
Subordinated debentures | 24,903 | 451 | 7.34% | 24,903 | 478 | 7.64% | 36,333 | 557 | 6.15%
Total interest-bearing liabilities | 3,022,524 | 26,264 | 3.52% | 3,050,674 | 28,674 | 3.74% | 2,995,681 | 29,718 | 3.98%
Noninterest-bearing liabilities | 732,761 |  |  | 756,636 |  |  | 707,890 |  |
Shareholders’ equity | 335,024 |  |  | 329,219 |  |  | 314,551 |  |
Total liabilities and shareholders’ equity | $4,090,309 |  |  | $4,136,529 |  |  | $4,018,122 |  |
Net interest spread |  |  | 1.60% |  |  | 1.38% |  |  | 1.05%
Net interest income (tax equivalent) / margin |  | $23,396 | 2.41% |  | $22,471 | 2.25% |  | $18,658 | 1.94%
Less: tax-equivalent adjustment(2) |  | 13 |  |  | 13 |  |  | 13 |
Net interest income |  | $23,383 |  |  | $22,458 |  |  | $18,645 |

[Footnotes to table located on page 6]

Net interest income was $23.4 million for the first quarter of 2025, a $925 thousand increase from the fourth quarter of 2024, driven by a $2.4 million decrease in interest expense, partially offset by a $1.5 million decrease in interest income. The decrease in interest expense was driven by a 23 basis point reduction in rate on our interest-bearing deposits over the previous quarter. In comparison to the first quarter of 2024, net interest income increased $4.7 million, resulting primarily from a 50 basis point decrease in the cost of our interest-bearing deposits. Our net interest margin, on a tax-equivalent basis, was 2.41% for the first quarter of 2025, a 16 basis point increase from 2.25% for the fourth quarter of 2024 and a 47 basis point increase from 1.94% for the first quarter of 2024.

3

Balance sheets - Unaudited

|  | Ending Balance | Mar 31 2025 –
|  | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Mar 31 2024
(in thousands, except per share data) |  | 2025 | 2024 | 2024 | 2024 | 2024 | % Change
Assets |  |  |  |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |  |
Cash and due from banks | $ | 24,904 | 22,553 | 25,289 | 21,567 | 13,925 | 78.84%
Federal funds sold |  | 263,612 | 128,452 | 226,110 | 164,432 | 144,595 | 82.31%
Interest-bearing deposits with banks |  | 16,541 | 11,858 | 9,176 | 8,828 | 8,789 | 88.20%
Total cash and cash equivalents |  | 305,057 | 162,863 | 260,575 | 194,827 | 167,309 | 82.33%
Investment securities: |  |  |  |  |  |  |
Investment securities available for sale |  | 131,290 | 132,127 | 134,597 | 121,353 | 125,996 | 4.20%
Other investments |  | 19,927 | 19,490 | 19,640 | 18,653 | 18,499 | 7.72%
Total investment securities |  | 151,217 | 151,617 | 154,237 | 140,006 | 144,495 | 4.65%
Mortgage loans held for sale |  | 11,524 | 4,565 | 8,602 | 14,759 | 11,842 | (2.69%)
Loans (5) |  | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | 3,643,766 | 1.10%
Less allowance for credit losses |  | (40,687) | (39,914) | (40,166) | (40,157) | (40,441) | 0.61%
Loans, net |  | 3,643,232 | 3,591,853 | 3,579,390 | 3,582,364 | 3,603,325 | 1.11%
Bank owned life insurance |  | 54,473 | 54,070 | 53,663 | 53,263 | 52,878 | 3.02%
Property and equipment, net |  | 87,369 | 88,794 | 90,158 | 91,533 | 93,007 | (6.06%)
Deferred income taxes |  | 13,080 | 13,467 | 11,595 | 12,339 | 12,321 | 6.16%
Other assets |  | 18,359 | 20,364 | 16,411 | 20,758 | 20,527 | (10.56%)
Total assets | $ | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 | 4.35%
Liabilities |  |  |  |  |  |  |
Deposits | $ | 3,620,886 | 3,435,765 | 3,518,825 | 3,459,869 | 3,460,681 | 4.63%
FHLB Advances |  | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 0.00%
Subordinated debentures |  | 24,903 | 24,903 | 24,903 | 36,376 | 36,349 | (31.49%)
Other liabilities |  | 60,924 | 56,481 | 64,365 | 54,856 | 53,418 | 14.05%
Total liabilities |  | 3,946,713 | 3,757,149 | 3,848,093 | 3,791,101 | 3,790,448 | 4.12%
Shareholders’ equity |  |  |  |  |  |  |
Preferred stock - $.01 par value; 10,000,000 shares authorized |  | - | - | - | - | - |
Common Stock - $.01 par value; 10,000,000 shares authorized |  | 82 | 82 | 82 | 82 | 82 |
Nonvested restricted stock |  | (3,372) | (3,884) | (4,219) | (4,710) | (5,257) | (35.86%)
Additional paid-in capital |  | 124,561 | 124,641 | 124,288 | 124,174 | 124,159 | 0.32%
Accumulated other comprehensive loss |  | (10,016) | (11,472) | (9,063) | (11,866) | (11,797) | (15.10%)
Retained earnings |  | 226,343 | 221,077 | 215,450 | 211,068 | 208,069 | 8.78%
Total shareholders’ equity |  | 337,598 | 330,444 | 326,538 | 318,748 | 315,256 | 7.09%
Total liabilities and shareholders’ equity | $ | 4,284,311 | 4,087,593 | 4,174,631 | 4,109,849 | 4,105,704 | 4.35%
Common Stock |  |  |  |  |  |  |
Book value per common share | $ | 41.33 | 40.47 | 40.04 | 39.09 | 38.65 | 6.99%
Stock price: |  |  |  |  |  |  |
High |  | 38.50 | 44.86 | 36.45 | 30.36 | 38.71 | (0.54%)
Low |  | 31.88 | 33.26 | 27.70 | 25.70 | 29.80 | 6.98%
Period end |  | 32.92 | 39.75 | 34.08 | 29.24 | 31.76 | 3.65%
Common shares outstanding |  | 8,169 | 8,165 | 8,156 | 8,155 | 8,156 | 0.16%

[Footnotes to table located on page 6]

4

Asset quality measures - Unaudited

|  | Quarter Ended
|  | March 31 | December 31 | September 30 | June 30 | March 31
(dollars in thousands) |  | 2025 | 2024 | 2024 | 2024 | 2024
Nonperforming Assets |  |  |  |  |  |
Commercial |  |  |  |  |  |
Non-owner occupied RE | $ | 6,950 | 7,641 | 7,904 | 7,949 | 1,410
Commercial business |  | 1,087 | 1,016 | 838 | 829 | 488
Consumer |  |  |  |  |  |
Real estate |  | 2,414 | 1,908 | 2,448 | 1,875 | 1,380
Home equity |  | 310 | 312 | 393 | 565 | 367
Other |  | - | - | - | - | 1
Total nonaccrual loans |  | 10,761 | 10,877 | 11,583 | 11,218 | 3,646
Other real estate owned |  | 275 | - | - | - | -
Total nonperforming assets | $ | 11,036 | 10,877 | 11,583 | 11,218 | 3,646
Nonperforming assets as a percentage of: |  |  |  |  |  |
Total assets |  | 0.26% | 0.27% | 0.28% | 0.27% | 0.09%
Total loans |  | 0.30% | 0.30% | 0.32% | 0.31% | 0.10%
Classified assets/tier 1 capital plus allowance for credit losses |  | 4.24% | 4.25% | 4.35% | 4.22% | 3.99%
|  | Quarter Ended
|  | March 31 | December 31 | September 30 | June 30 | March 31
(dollars in thousands) |  | 2025 | 2024 | 2024 | 2024 | 2024
Allowance for Credit Losses |  |  |  |  |  |
Balance, beginning of period | $ | 39,914 | 40,166 | 40,157 | 40,441 | 40,682
Loans charged-off |  | (78) | (143) | (118) | (1,049) | (424)
Recoveries of loans previously charged-off |  | 101 | 141 | 127 | 15 | 183
Net loans (charged-off) recovered |  | 23 | (2) | 9 | (1,034) | (241)
Provision for (reversal of) credit losses |  | 750 | (250) | - | 750 | -
Balance, end of period | $ | 40,687 | 39,914 | 40,166 | 40,157 | 40,441
Allowance for credit losses to gross loans |  | 1.10 % | 1.10 % | 1.11 % | 1.11 % | 1.11 %
Allowance for credit losses to nonaccrual loans |  | 378.09 % | 366.94 % | 346.78 % | 357.95 % | 1,109.13 %
Net charge-offs (recoveries) to average loans QTD (annualized) |  | 0.00 % | 0.00 % | 0.00 % | 0.11 % | 0.03 %

Total nonperforming assets were $11.0 million at March 31, 2025, representing 0.26% of total assets compared to 0.27% for the fourth quarter of 2024 and 0.09% for the first quarter of 2024. In addition, our classified asset ratio remained stable at 4.24% for the first quarter of 2025 from 4.25% in the fourth quarter of 2024 and increased from 3.99% in the first quarter of 2024.

At March 31, 2025, the allowance for credit losses was $40.7 million, or 1.10% of total loans, compared to $39.9 million, or 1.10% of total loans at December 31, 2024, and $40.4 million, or 1.11% of total loans, at March 31, 2024. We had net recoveries of $23 thousand, or 0.00% annualized, for the first quarter of 2025, compared to net charge-offs of $2 thousand for the fourth quarter of 2024 and net charge-offs of $241 thousand for the first quarter of 2024. There was a provision for credit losses of $750 thousand for the first quarter of 2025, compared to a reversal of provision for credit losses of $250 thousand for the fourth quarter of 2024 and no provision for credit losses for the first quarter of 2024. The provision during the first quarter was primarily driven by growth in our loan portfolio during the quarter.

5

LOAN COMPOSITION - Unaudited

|  | Quarter Ended
|  | March 31 | December 31 | September 30 | June 30 | March 31
(dollars in thousands) |  | 2025 | 2024 | 2024 | 2024 | 2024
Commercial |  |  |  |  |  |
Owner occupied RE | $ | 673,865 | 651,597 | 642,608 | 642,008 | 631,047
Non-owner occupied RE |  | 926,246 | 924,367 | 917,642 | 917,034 | 944,530
Construction |  | 90,021 | 103,204 | 144,665 | 144,968 | 157,464
Business |  | 561,337 | 556,117 | 521,535 | 527,017 | 520,073
Total commercial loans |  | 2,251,469 | 2,235,285 | 2,226,450 | 2,231,027 | 2,253,114
Consumer |  |  |  |  |  |
Real estate |  | 1,147,357 | 1,128,629 | 1,132,371 | 1,126,155 | 1,101,573
Home equity |  | 223,061 | 204,897 | 195,383 | 189,294 | 184,691
Construction |  | 23,540 | 20,874 | 21,582 | 32,936 | 53,216
Other |  | 38,492 | 42,082 | 43,770 | 43,109 | 51,172
Total consumer loans |  | 1,432,450 | 1,396,482 | 1,393,106 | 1,391,494 | 1,390,652
Total gross loans, net of deferred fees |  | 3,683,919 | 3,631,767 | 3,619,556 | 3,622,521 | 3,643,766
Less—allowance for credit losses |  | (40,687) | (39,914) | (40,166) | (40,157) | (40,441)
Total loans, net | $ | 3,643,232 | 3,591,853 | 3,579,390 | 3,582,364 | 3,603,325

DEPOSIT COMPOSITION - Unaudited

|  | Quarter Ended
|  | March 31 | December 31 | September 30 | June 30 | March 31
(dollars in thousands) |  | 2025 | 2024 | 2024 | 2024 | 2024
Non-interest bearing | $ | 671,609 | 683,081 | 689,749 | 683,291 | 671,708
Interest bearing: |  |  |  |  |  |
NOW accounts |  | 371,052 | 314,588 | 339,412 | 293,875 | 293,064
Money market accounts |  | 1,563,181 | 1,438,530 | 1,423,403 | 1,562,786 | 1,603,796
Savings |  | 32,945 | 31,976 | 29,283 | 28,739 | 32,248
Time, less than $250,000 |  | 181,407 | 193,562 | 223,582 | 219,532 | 206,657
Time and out-of-market deposits, $250,000 and over |  | 800,692 | 774,028 | 813,396 | 671,646 | 653,208
Total deposits | $ | 3,620,886 | 3,435,765 | 3,518,825 | 3,459,869 | 3,460,681

Footnotes to tables:

(1) Total revenue is the sum of net interest income and noninterest income.

(2) 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.

(3) Annualized for the respective three-month period.

(4) Noninterest expense divided by the sum of net interest income and noninterest income.

(5) Excludes mortgage loans held for sale.

(6) Excludes out of market deposits and time deposits greater than $250,000 totaling $800,692,000.

(7) March 31, 2025 ratios are preliminary.

(8) The common equity tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets.

(9) The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets.

(10) Includes mortgage loans held for sale.

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 $4.3 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 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 is 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

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