Southern First Bancshares (NASDAQ:SFST) closed out 2025 with its highest quarterly net income of the year, driven by a sharp 10-basis-point expansion in its net interest margin (NIM).
The Greenville-based lender reported fourth-quarter profit of $9.9 million, or $1.21 per diluted share, representing a significant jump from the $5.6 million recorded in the same period last year.
Despite the bottom-line strength, the results provided a mixed signal on growth.
Revenue net of interest expense came in at $31.8 million, missing consensus estimates as higher funding costs partially offset the gains from loan yields.
For the full year, the bank generated $30.4 million in net income, or $3.75 per share, on total revenue of $118.1 million.
The quarter’s defining metric was the tax-equivalent net interest margin, which climbed to 2.72%, up 36 basis points over the prior year.
CEO Art Seaver attributed the margin resilience to the bank’s "full banking relationship strategy," which helped secure low-cost client deposits to fund a loan portfolio that reached $3.8 billion by year-end.
Asset quality also remained a pillar of the bank’s performance.
Nonperforming assets as a percentage of total assets held steady at approximately 0.27%, a level Seaver described as "outstanding" given the broader economic pressures on the regional banking sector.
The bank enters 2026 with a strengthened capital position, reporting a book value per share of $44.75, an 11% increase over the previous year.