Southern First Stock Nears 52-Week High on Strong Q4 Earnings
The regional bank beat profit estimates by 36% and expanded its net interest margin, signaling strong momentum heading into 2026.
Shares of Southern First Bancshares (NASDAQ: SFST) jumped to a near 52-week high on Wednesday after the Greenville, South Carolina-based bank reported fourth-quarter earnings that significantly outpaced analyst expectations and showed crucial growth in profitability.
The stock climbed approximately 4.5% to trade at $56.86, just shy of its 52-week peak of $57.24. The rally, which places the company's market capitalization at over $445 million, was fueled by a report that demonstrated strong execution in a complex environment for regional lenders.
For the fourth quarter of 2025, Southern First announced earnings per share of $1.21, a figure that soared 36% above the consensus analyst estimate of $0.89. Revenue also came in strong at $31.8 million, surpassing the expected $30.2 million, according to a company announcement. This performance reflects a robust 27.4% year-over-year growth in quarterly revenue and a 98.1% increase in earnings compared to the same period last year.
Crucially, the bank reported a sequential expansion of its net interest margin (NIM) by 10 basis points to 2.72%. This metric, which measures the difference between interest earned on loans and interest paid on deposits, is a key indicator of a bank's core profitability. The ability to widen this margin is particularly noteworthy in a period where many banks have faced pressure on profitability due to fluctuating interest rates and rising deposit costs.
CEO Art Seaver expressed confidence in the bank's trajectory, citing a "strong business pipeline" entering the new year. In the earnings release, Seaver stated he has high expectations for "continued financial performance improvement," signaling to investors that the fourth-quarter success may be sustainable.
This positive sentiment from management appears to be resonating with investors, who have pushed the stock price well above the average analyst price target of $49.00. The strong beat and optimistic guidance could prompt analysts to revise their forecasts upward in the coming days.
The performance of Southern First stands out against a mixed but recovering backdrop for the regional banking sector. While the SPDR S&P Regional Banking ETF (KRE) has rebounded more than 17% since mid-November, according to recent market analysis, investor concerns have lingered around commercial real estate exposure and funding costs. Southern First’s ability to deliver strong loan growth and simultaneously expand its margin suggests a disciplined operational model that is navigating the economic landscape effectively.
With a price-to-earnings ratio of approximately 16.9, Southern First is positioning itself as a premium performer in the southeastern banking market. Investors will be closely watching to see if the bank can capitalize on its strong business pipeline and maintain its margin and earnings momentum throughout 2026.