Southern First Bancshares Posts 83% EPS Gain, Raises $65.2M in Equity Offering
Southern First Bancshares reported Q1 net income of $9.9 million and diluted EPS of $1.19, an 83% year-over-year increase driven by 29% net interest income growth to $30.3 million and 27% annualized retail deposit growth. The bank raised $65.2 million through an equity offering of 1,207,500 shares priced at $54.
1. Q1 Financial Results
Southern First Bancshares delivered net income of $9.9 million in the first quarter, translating to diluted earnings of $1.19 per share, up 83% from the prior year. Total revenue net of interest expense reached $33.8 million, with net interest income rising 29% year-over-year to $30.3 million and a net interest margin of 2.88%.
2. Asset and Deposit Growth
Total loans grew to $3.94 billion, a 10% annualized increase from the fourth quarter, while retail deposits expanded by $207.8 million, representing a 27% annualized growth rate. Nonperforming assets declined to 0.26% of total assets, reflecting the repayment of a large nonaccrual loan and continued credit quality management.
3. Equity Offering and Capital Use
On April 17, the company completed an underwritten offering of 1,207,500 common shares at $54 per share, generating gross proceeds of $65.2 million. The capital infusion is intended to support organic growth initiatives, strengthen the bank subsidiary’s capital base, and provide flexibility for potential debt redemptions.
4. Profitability and Efficiency Metrics
Return on average equity improved to 10.67% and return on average assets rose to 0.91%, up 39 basis points year-over-year. The efficiency ratio stood at 59.22%, and credit provisions increased modestly to $1.3 million, maintaining an allowance for credit losses of 1.10% of total loans.