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Southern First Bancshares (SFST)
NASDAQ:SFST
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Southern First Bancshares (SFST) AI Stock Analysis

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SFST

Southern First Bancshares

(NASDAQ:SFST)

Rating:73Outperform
Price Target:
$49.00
▲(15.89%Upside)
The most significant factor is the company's solid financial performance and strong cash flow generation, which underpin its operational resilience. Positive corporate events, including strong quarterly results and strategic board appointments, further bolster confidence. While technical indicators show positive momentum, caution is advised due to overbought conditions. The valuation is attractive, supporting a positive outlook for growth-oriented investors.

Southern First Bancshares (SFST) vs. SPDR S&P 500 ETF (SPY)

Southern First Bancshares Business Overview & Revenue Model

Company DescriptionSouthern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides various banking products and services to general public in South Carolina, North Carolina, and Georgia. It operates through three segments: Commercial and Retail Banking, Mortgage Banking, and Corporate Operations. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. It operates through eight retail offices located in Greenville, Charleston, and Columbia; three retail offices located in Raleigh, Greensboro, and Charlotte markets; and one retail office located in Atlanta. The company was incorporated in 1999 and is headquartered in Greenville, South Carolina.
How the Company Makes MoneySouthern First Bancshares generates revenue primarily through interest income from a variety of lending activities, including commercial and residential loans. The company earns interest by charging borrowers higher rates than it pays depositors. Additionally, Southern First collects non-interest income from service charges on deposit accounts, mortgage banking activities, and other financial services. The company also benefits from strategic partnerships and local market expertise, which help enhance its growth and profitability in the competitive banking sector.

Southern First Bancshares Financial Statement Overview

Summary
Southern First Bancshares exhibits solid financial performance with steady revenue and profit growth. The balance sheet shows moderate leverage, but potential risks due to low equity relative to assets. Strong cash flow generation underpins operational resilience, although cash flow volatility warrants attention. Overall, the company is well-positioned but should focus on improving cost efficiency and maintaining financial stability.
Income Statement
75
Positive
Southern First Bancshares shows consistent revenue growth with a TTM revenue growth rate of 0.81% and a healthy net profit margin of 8.50% for TTM. However, recent declines in gross profit margin from 79.17% in 2022 to 45.23% in TTM suggest some pressure on cost management. EBIT margin improved slightly to 10.90% TTM, indicating operational efficiency gains.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio of 0.78, demonstrating balanced leverage. Return on equity is strong at 5.41% TTM, although down from prior years, reflecting a stable use of equity to generate profits. The equity ratio of 7.88% TTM indicates a relatively low equity position compared to total assets, suggesting potential risks in financial stability.
Cash Flow
80
Positive
Free cash flow has grown by 43% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.97, signifying effective cash conversion. However, significant fluctuations in investing and financing cash flows could suggest volatility in strategic investments and financings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue213.32M187.46M127.64M110.26M122.17M
Gross Profit93.33M86.25M101.05M117.23M77.56M
EBITDA24.72M22.24M41.81M63.12M26.01M
Net Income15.53M13.43M29.11M46.71M18.33M
Balance Sheet
Total Assets4.09B4.06B3.69B2.93B2.48B
Cash, Cash Equivalents and Short-Term Investments34.87M46.29M162.94M200.61M173.67M
Total Debt264.90M311.32M211.21M36.11M61.00M
Total Liabilities3.76B3.74B3.40B2.65B2.25B
Stockholders Equity330.44M312.47M294.51M277.90M228.29M
Cash Flow
Free Cash Flow24.77M16.41M36.35M51.56M13.34M
Operating Cash Flow25.56M17.65M50.30M78.07M20.62M
Investing Cash Flow-28.86M-378.57M-792.58M-410.63M-230.77M
Financing Cash Flow9.99M346.22M745.94M399.08M183.02M

Southern First Bancshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price42.28
Price Trends
50DMA
38.37
Positive
100DMA
36.00
Positive
200DMA
37.32
Positive
Market Momentum
MACD
1.64
Negative
RSI
58.38
Neutral
STOCH
62.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFST, the sentiment is Positive. The current price of 42.28 is above the 20-day moving average (MA) of 41.11, above the 50-day MA of 38.37, and above the 200-day MA of 37.32, indicating a bullish trend. The MACD of 1.64 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 62.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFST.

Southern First Bancshares Risk Analysis

Southern First Bancshares disclosed 46 risk factors in its most recent earnings report. Southern First Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Southern First Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$286.78M9.8811.76%5.66%12.08%9.69%
78
Outperform
$288.46M10.469.90%2.74%7.07%24.85%
78
Outperform
$306.50M10.058.65%3.64%11.93%29.80%
75
Outperform
$345.95M10.9414.76%1.89%6.08%-23.52%
73
Outperform
$353.79M15.686.58%4.79%58.67%
70
Outperform
$261.76M9.209.62%3.43%9.53%63.45%
67
Neutral
$17.06B11.249.31%3.84%11.08%-3.39%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SFST
Southern First Bancshares
42.28
7.68
22.20%
CBAN
Colony Bankcorp
16.51
1.44
9.56%
FNLC
First Bancorp
25.31
-1.31
-4.92%
CZFS
Citizens Financial Services
53.50
2.29
4.47%
PCB
PCB Bancorp
20.88
2.35
12.68%
OBT
Orange County Bancorp
25.46
-5.06
-16.58%

Southern First Bancshares Corporate Events

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Southern First Bancshares Reports Strong Q2 2025 Results
Positive
Jul 22, 2025

Southern First Bancshares reported strong financial results for the second quarter of 2025, with a 24% increase in total revenue compared to the same quarter the previous year. The company achieved significant margin expansion and added three new board members, reflecting its commitment to growth and leadership in the banking sector. The company’s asset quality remains among the best in the industry, and it continues to attract talented bankers, indicating a positive outlook for future growth.

The most recent analyst rating on (SFST) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Southern First Bancshares stock, see the SFST Stock Forecast page.

Stock Buyback
Southern First Bancshares Announces Share Repurchase Plan
Neutral
Jun 18, 2025

Southern First Bancshares, Inc. has announced a share repurchase plan authorizing the buyback of up to $5 million, or approximately 2%, of its common stock. This initiative is aimed at providing capital management opportunities, with the flexibility to adjust based on market conditions, stock prices, and regulatory requirements, although the company is not obligated to repurchase any shares.

The most recent analyst rating on (SFST) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Southern First Bancshares stock, see the SFST Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Southern First Bancshares Appoints Three New Directors
Positive
Jun 2, 2025

On June 1, 2025, Southern First Bancshares, Inc. and Southern First Bank announced the appointment of three new directors: Ms. Jennifer S. Cluverius, Mr. Darrin Goss, Sr., and Mr. William M. McClatchey, Jr. These appointments are expected to enhance the company’s governance through their diverse expertise. Ms. Cluverius will serve on the Compensation Committee, Mr. Goss on the Audit Committee, and Mr. McClatchey on the Risk Committee. The new directors bring valuable skills from their respective fields, which are anticipated to positively impact the company’s strategic direction and operational oversight.

Executive/Board ChangesShareholder Meetings
Southern First Bancshares Annual Shareholders’ Meeting Highlights
Neutral
May 21, 2025

On May 20, 2025, Southern First Bancshares held its Annual Shareholders’ Meeting where 90.38% of the shares were represented. Shareholders approved the election of eight directors for a one-year term, endorsed the executive compensation policies, decided on the frequency of future advisory votes on executive compensation, and ratified the appointment of Elliott Davis, LLC as the independent public accountant.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025