Southern First Bancshares Q3 revenue rises 21% on loan growth

Overview

• U.S. regional bank's Q3 revenue rose 21% yr/yr, driven by loan growth and margin expansion

• Diluted EPS for Q3 rose 21% yr/yr to $1.28

• Net income increased 41% yr/yr

Outlook

• Company did not provide specific financial guidance for future quarters or the full year in the press release

Result Drivers

• LOAN GROWTH - Co said strong loan growth drove net interest income up 26% yr/yr

• MARGIN EXPANSION - Net interest margin rose to 3.02%, up 40 basis points from 3Q25, helping boost profitability

• RETAIL DEPOSIT GROWTH - Retail client deposits increased by $163 mln, up 18% annualized, supporting loan growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Southern First Bancshares Inc is $68.50, about 15.8% above its October 19 closing price of $59.13

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

• Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin

• Oct 19 - SmartFinancial Q3 net income rises, driven by organic loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)