Southern First Bancshares Q3 2026: Net Income Jumps 41% on Margin Surge
As seen on the 24/7 Wall St. homepage on October 20, 2026.
Loan repricing is doing the heavy lifting at this $560 million Southeast lender: new loans are being written at 6.44%, a full 102 basis points above the existing portfolio yield. That repricing expanded net interest margin to 3.02% and lifted net income 41% year over year to $12.2 million.
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Southern First Bancshares posted diluted EPS of $1.28 for Q3 2026, beating the consensus estimate, while revenue of $37.53 million came in missing expectations. Net interest income surged 26% as the margin expanded 40 basis points year over year to 3.02%.
Loan repricing is driving that margin: new loans are being written at 6.44%, a full 102 basis points above the yield on the existing portfolio. Management noted that fixed-rate loans currently below 6% will continue rolling over into that higher range.
That repricing dynamic lifted net income 41% year over year to $12.2 million and pushed the efficiency ratio down to 54.10% from 60.86% a year ago. The loan portfolio grew 14% annualized during the quarter and retail client deposits grew 18% annualized, cutting reliance on wholesale funding to 9% of total deposits.
CEO Art Seaver pointed to organic loan growth, deposit gathering, and disciplined expense management as the factors he expects to carry momentum into the end of 2026. After posting $1.19 against a $1.23 estimate in Q1 2026, the bank has met or exceeded expectations in the last two quarters.
Mentioned: SFST