Southern First Q2 2026: EPS Jumps 48% to $1.20 as NIM Hits 2.87%
SFST sits 60% above its 52-week low of $38.301.
Summary
Southern First Bancshares posted Q2 2026 diluted EPS of $1.20, a 48% year-over-year increase, driven by robust loan growth and net interest margin expansion to 2.87%. Earlier in the quarter, the bank completed a $65.2 million capital raise, strengthening capital ratios, and redeemed $11.5 million of high-cost subordinated debt.
Key Events · Earnings and Guidance · SFST
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Q2 Earnings Beat
Net income reached $11.2 million, translating to diluted EPS of $1.20—up 48% year-over-year and slightly above the Q1 2026 level. Driving the performance, net interest income climbed 28% from a year ago to $32.4 million.
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Margin Expansion
The net interest margin widened to 2.87%, a 37-basis-point improvement year-over-year, reflecting higher loan yields and lower deposit costs. The average loan yield stood at 5.35%, compared with an average deposit cost of 2.37%.
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Capital Raise Completed
In April 2026, the company issued 1,207,500 shares, generating gross proceeds of $65.2 million. This lifted the CET1 ratio to 12.81% and tangible common equity to 9.62%.
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Strong Loan and Deposit Growth
Total loans grew to $4.0 billion, an annualized 9% increase from the prior quarter. Retail deposits expanded at a 22% annualized pace to $3.6 billion, while wholesale deposits shrank to 10% of total deposits.
Analysis · SFST · Finance
A standout quarter saw net income surge 70% year-over-year to $11.2 million, fueled by a 28% jump in net interest income and meaningful margin expansion. The balance sheet got an additional lift from a $65.2 million capital raise in April, which pushed tangible common equity to 9.62% and CET1 to 12.81%. Asset quality remains a bright spot, with nonperforming assets at just 0.27% of total assets. The results underscore the bank's organic growth trajectory in attractive Southeast markets, though the stock is already trading near its 52-week high, suggesting much of the good news may be priced in.
How filings like this one have moved
In the 30 days to Sep 23, 2026, 29.1% of the 1683 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.32%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SFST was trading at $61.39 on NASDAQ in the Finance sector, with a market capitalization of approximately $580.5M. The 52-week trading range was $38.30 to $64.06. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.