Southern First Bancshares Inc (SFST) has reported a 15.35 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $3.29 million, or $0.49 a share in the quarter, compared with $2.85 million, or $0.43 a share for the same period last year. Revenue during the quarter grew 14.66 percent to $13.15 million from $11.47 million in the previous year period. Net interest income for the quarter rose 11.53 percent over the prior year period to $11.30 million. Non-interest income for the quarter rose 4.32 percent over the last year period to $2.12 million.
Southern First Bancshares has made provision of $0.28 million for loan losses during the quarter, down 60.71 percent from $0.70 million in the same period last year.
Net interest margin improved 15 basis points to 3.63 percent in the quarter from 3.48 percent in the last year period. Efficiency ratio for the quarter deteriorated to 59.64 percent from 59.44 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
“I am proud of our 2016 accomplishments of our Southern First team as we generated record earnings of $13.0 million and experienced significant growth in loans, core deposits and mortgage fee income,” stated Art Seaver, the Company’s chief executive officer. “We also recently received regulatory approval to open our new office in the Triangle region of North Carolina and carry great momentum going into the new year.”
Assets outpace liabilities growth
Total assets stood at $1,339.94 million as on Dec. 31, 2016, up 10.08 percent compared with $1,217.29 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,219.75 million as on Dec. 31, 2016, up 8.61 percent from $1,123.05 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $1,148.79 million as on Dec. 31, 2016, up 15.89 percent compared with $991.32 million on Dec. 31, 2015. Deposits stood at $1,091.15 million as on Dec. 31, 2016, up 10.69 percent compared with $985.73 million on Dec. 31, 2015. Loans to deposits ratio was 106.64 percent for the quarter, up from 101.95 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $235.54 million or 21.59 percent of total deposits on Dec. 31, 2016, compared with $189.69 million or 19.24 percent of total deposits on Dec. 31, 2015.
Investments stood at $70.22 million as on Dec. 31, 2016, down 26.45 percent or $25.25 million from year-ago. Shareholders equity stood at $108.91 million as on Dec. 31, 2016, up 15.56 percent or $14.67 million from year-ago.
Return on average assets moved up 7 basis points to 1 percent in the quarter from 0.93 percent in the last year period. At the same time, return on average equity increased 3 basis points to 12.14 percent in the quarter from 12.11 percent in the last year period.
Credit quality improves
Southern First Bancshares Inc recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 32.68 percent or $2.97 million to $6.12 million on Dec. 31, 2016 from $9.09 million on Dec. 31, 2015. Nonperforming assets to total loans was 0.53 percent in the quarter, down from 0.90 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.46 percent in the quarter, down from 0.75 percent in the last year period. Book value per share was $16.85 for the quarter, up 12.48 percent or $1.87 compared to $14.98 for the same period last year.
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