Southern States Bancshares, Inc. Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

Southern States Bancshares (NASDAQ: SSBK) reported Q2 2024 net income of $8.2 million, or $0.90 per diluted share. Core net income was $9.1 million, or $1.00 per diluted share. Key highlights include:

- Net interest income: $21.6 million, up 3.6% from Q1 2024
- Net interest margin: 3.56%, down 3 basis points from Q1 2024
- ROAA: 1.29%; ROAE: 14.55%; ROATCE: 15.79%
- Loans grew 10.3% annualized from Q1 2024
- Total deposits grew 12.6% annualized from Q1 2024
- Efficiency ratio: 49.78%; core efficiency ratio: 44.75%

The company maintained strong profitability metrics and experienced balanced loan and deposit growth across its major lending areas. Southern States is preparing to close its acquisition of CBB Bancorp on August 1, which is expected to strengthen its platform and expand its presence in Georgia markets.

Positive

• Net income increased to $8.2 million in Q2 2024, up from $8.1 million in Q1 2024
• Core net income rose to $9.1 million in Q2 2024, compared to $8.1 million in Q1 2024
• Net interest income grew 3.6% quarter-over-quarter to $21.6 million
• Loans grew at an annualized rate of 10.3% from the previous quarter
• Total deposits increased at an annualized rate of 12.6% from the previous quarter
• Core efficiency ratio improved to 44.75%, the second-highest for the company

Negative

• Net interest margin decreased to 3.56%, down 3 basis points from the previous quarter
• Noninterest expense increased 10% quarter-over-quarter, partly due to a $1.2 million wire fraud loss
• Nonperforming loans increased to $3.8 million, or 0.19% of gross loans, up from 0.17% in the previous quarter

Financial Analyst

The second quarter 2024 results for Southern States Bancshares, Inc. reveal a stable and positive financial performance. The net income of $8.2 million ($0.90 per diluted share) reflects consistent quarterly earnings, showing slight growth from the first quarter of 2024 and maintaining a degree of stability from the second quarter of 2023. Notably, core net income saw appreciable growth, highlighting the company's operational efficiency and robust performance in core banking activities.

The net interest income increased by 3.6% from the previous quarter, primarily driven by higher yields on interest-earning assets, indicating effective asset management amid rising interest rates. However, the net interest margin experienced a slight decline due to increased costs of interest-bearing deposits, a trend that investors should monitor.

The company's efficiency ratio of 49.78% and core efficiency ratio of 44.75% underscore its effective expense management and operational efficiency. Loan growth of 10.3% annualized and deposit growth of 12.6% annualized illustrate solid business development and customer trust, which are critical for sustained growth.

Considering these metrics, Southern States Bancshares appears to be managing well through economic cycles, maintaining profitability and demonstrating strong credit quality with a conservative provisioning approach.

Market Research Analyst

Southern States Bancshares' recent performance shows a strong market position, particularly with its strategic growth in loans and deposits. The company’s total loan growth of 10.3% (annualized) and total deposit growth of 12.6% highlight their effective business development strategies and the trust they have garnered from customers. This is particularly impressive given the competitive banking landscape and economic uncertainties.

The increase in both interest and noninterest-bearing deposits suggests a healthy balance between the bank's ability to attract new customers and retain existing ones. The company's strategic acquisition of CBB Bancorp, expected to close soon, is poised to further strengthen their market position, especially in the growing Georgia markets. This acquisition aligns well with their cultural and operational goals and should yield synergies beneficial to customers and stakeholders.

From a market perspective, Southern States' efficient expense management and high profitability metrics are likely to attract more investors, potentially driving up stock prices in the long term. However, the slight decrease in net interest margin due to rising costs of interest-bearing deposits is a point to monitor, as continued pressure could impact future profitability.

Credit Expert

The credit quality metrics for Southern States Bancshares remain robust despite a slight uptick in nonperforming loans (NPLs). With NPLs at 0.19% of gross loans, up from 0.17% last quarter, it is still within manageable levels and indicative of strong credit management practices. The allowance for credit losses (ACL) has been maintained at 1.28% of total loans, showing a prudent approach to risk management.

The company's net charge-offs decreased from the previous quarter, which is a positive indicator of credit risk mitigation. It's also worth noting the conservative approach taken with the purchased pool of consumer loans, where a significant portion was charged off due to borrower bankruptcy, reflecting cautious credit quality management.

The provision for credit losses has slightly decreased, aligning with the overall improvement in loan performance and economic conditions. This cautious but proactive approach to provisioning should reassure investors about the bank's resilience and readiness to absorb potential credit losses.

Second Quarter 2024 Performance and Operational Highlights

• Net income of $8.2 million, or $0.90 per diluted share
• Core net income⁽¹⁾ of $9.1 million, or $1.00 per diluted share⁽¹⁾
• Net interest income of $21.6 million, an increase of $740,000 from the prior quarter
• Net interest margin (“NIM”) of 3.56%, down 3 basis points from the prior quarter
• NIM of 3.57% on a fully-taxable equivalent basis (“NIM - FTE”)⁽¹⁾
• Return on average assets (“ROAA”) of 1.29%; return on average stockholders’ equity (“ROAE”) of 14.55%; and return on average tangible common equity (“ROATCE”)(1) of 15.79%
  
• Core ROAA⁽¹⁾ of 1.43%; and core ROATCE⁽¹⁾ of 17.44%
• Efficiency ratio of 49.78%; and core efficiency ratio of 44.75%
• Linked-quarter loans grew 10.3% annualized
• Linked-quarter total deposits grew 12.6% annualized
• Linked-quarter total deposits, excluding brokered deposits, grew 15.2% annualized

(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

ANNISTON, Ala., July 22, 2024 (GLOBE NEWSWIRE) -- Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States” or the “Company”), the holding company for Southern States Bank, an Alabama state-chartered commercial bank (the “Bank”), today reported net income of $8.2 million, or $0.90 diluted earnings per share, for the second quarter of 2024. This compares to net income of $8.1 million, or $0.90 diluted earnings per share, for the first quarter of 2024, and net income of $8.8 million, or $0.98 diluted earnings per share, for the second quarter of 2023. The Company reported core net income of $9.1 million, or $1.00 diluted core earnings per share, for the second quarter of 2024. This compares to core net income of $8.1 million, or $0.90 diluted core earnings per share, for the first quarter of 2024, and core net income of $7.1 million, or $0.79 diluted core earnings per share, for the second quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures”).

CEO Commentary
Mark Chambers, Chief Executive Officer and President of Southern States said, “We generated consistent growth in the second quarter with continued progress in business development adding high-quality loans and core deposits. We are seeing well-balanced loan growth across all our major areas of lending. Our total loan growth of 10.3% (annualized from the prior quarter) and total deposit growth of 12.6% reflected our ability to perform well through economic cycles.”
“We continue to be a high-performing bank with strong profitability metrics including ROATCE of 15.79%. Effective expense management resulted in our second highest core efficiency ratio of 44.75%.”
“Consistent with our prudent approach to risk management, we have a strong and durable foundation with high levels of capital reserves and strong credit quality. The addition of CBB Bancorp, which we expect to close on August 1, will strengthen our platform, drive loan and deposit growth, and expand our franchise in growing and attractive Georgia markets. Our two organizations are culturally aligned with a ‘Customer First’ mindset and we are excited to realize all the synergies that will benefit our customers, employees, shareholders, and the communities we serve.”

Net Interest Income and Net Interest Margin

	Three Months Ended												% Change June 30, 2024 vs.
	June 30, 2024				March 31, 2024				June 30, 2023				March 31, 2024			June 30, 2023
	(Dollars in thousands)
Average interest-earning assets	$	2,440,425			$	2,336,369			$	2,091,998			4.5	%		16.7	%
Net interest income	$	21,579			$	20,839			$	19,432			3.6	%		11.0	%
Net interest margin		3.56	%			3.59	%			3.73	%		(3)	bps		(17)	bps

Net interest income for the second quarter of 2024 was $21.6 million, an increase of 3.6% from $20.8 million in the first quarter of 2024. The increase was primarily driven by a higher yield on interest-earning assets resulting from growth at higher interest rates, which more than offset a higher cost of interest-bearing deposits due to both higher interest rates and competition.

Relative to the second quarter of 2023, net interest income increased $2.1 million, or 11.0%. The increase was mainly driven by growth, which offset the slight decline in net interest margin.

Net interest margin for the second quarter of 2024 was 3.56%, compared to 3.59% for the first quarter of 2024. The decrease was primarily due to an increase in the cost of interest-bearing deposits, which was greater than the increase in the yield on interest-earning assets.

Relative to the second quarter of 2023, net interest margin decreased from 3.73%. The decrease was primarily the result of the increase in interest rates, which accelerated the cost of interest-bearing liabilities at a greater pace than the yield received on interest-earning assets. A shift from noninterest-bearing deposits into interest-bearing deposits also had a negative impact on net interest margin.

Noninterest Income

	Three Months Ended											% Change June 30, 2024 vs.
	June 30, 2024			March 31, 2024				June 30, 2023				March 31, 2024			June 30, 2023
	(Dollars in thousands)
Service charges on deposit accounts	$	462		$	463			$	456			(0.2	)%		1.3	%
Swap fees		4			15				173			(73.3	)%		(97.7	)%
SBA/USDA fees		58			64				66			(9.4	)%		(12.1	)%
Mortgage origination fees		92			96				188			(4.2	)%		(51.1	)%
Net gain (loss) on securities		20			(12	)			(45	)		(266.7	)%		(144.4	)%
Employee retention credit and related revenue (“ERC”)		—			—				5,100			N/A			N/A
Other operating income		732			642				924			14.0	%		(20.8	)%
Total noninterest income	$	1,368		$	1,268			$	6,862			7.9	%		(80.1	)%

Noninterest income for the second quarter of 2024 was $1.4 million, an increase of 7.9% from $1.3 million in the first quarter of 2024. The increase primarily reflected the purchase of additional bank owned life insurance (“BOLI”) that resulted in increased BOLI income, a realized net gain on securities during the second quarter of 2024 compared to a net loss on securities during the first quarter of 2024, and an increase in interchange fees.

Relative to the second quarter of 2023, noninterest income decreased 80.1% from $6.9 million. In the second quarter of 2023, the Company received $5.1 million in ERC from the Internal Revenue Service (“IRS”), which was subsequently returned in the third quarter of 2023 as a result of revised IRS eligibility guidelines. Other operating income decreased as a result of the Company receiving less nonrecurring income from a third party during the second quarter of 2024. In addition, there was a decline in swap fees during the second quarter of 2024, substantially as a result of the Company not participating in any swap transactions.

Noninterest Expense

	Three Months Ended									% Change June 30, 2024 vs.
	June 30, 2024			March 31, 2024			June 30, 2023			March 31, 2024			June 30, 2023
	(Dollars in thousands)
Salaries and employee benefits	$	6,112		$	6,231		$	7,863		(1.9	)%		(22.3	)%
Equipment and occupancy expenses		667			689			694		(3.2	)%		(3.9	)%
Data processing fees		686			643			646		6.7	%		6.2	%
Regulatory assessments		375			360			180		4.2	%		108.3	%
Professional fees related to ERC		—			—			1,243		N/A			N/A
Other operating expenses		3,571			2,452			2,806		45.6	%		27.3	%
Total noninterest expenses	$	11,411		$	10,375		$	13,432		10.0	%		(15.0	)%

Noninterest expense for the second quarter of 2024 was $11.4 million, an increase of 10.0% from $10.4 million in the first quarter of 2024. The second quarter of 2024 included a $1.2 million wire fraud loss. This was not a systematic issue with systems, only a procedural incident. The increase was partially offset by a reduction in salaries and benefits during the second quarter of 2024, substantially due to higher payroll taxes and 401k matching brought about by incentive expense paid during the first quarter of 2024.

Relative to the second quarter of 2023, noninterest expense decreased 15.0% from $13.4 million. The decrease was primarily attributable to a decrease in salaries and benefits, substantially as a result of one-time retirement-related expenses of $1.6 million paid to our former CEO in May 2023 and professional fees paid to a third party during the second quarter of 2023 related to ERC, which were subsequently refunded during the third quarter of 2023. These decreases were significantly offset by the wire fraud loss the Company incurred during the second quarter of 2024. As previously mentioned, this was not a systematic issue with systems, only a procedural incident.

Loans and Credit Quality

	Three Months Ended												% Change June 30, 2024 vs.
	June 30, 2024				March 31, 2024				June 30, 2023				March 31, 2024			June 30, 2023
	(Dollars in thousands)
Gross loans	$	2,021,877			$	1,971,396			$	1,722,278			2.6	%		17.4	%
Unearned income		(6,443	)			(6,247	)			(5,766	)		3.1	%		11.7	%
Loans, net of unearned income (“Loans”)		2,015,434				1,965,149				1,716,512			2.6	%		17.4	%
Average loans, net of unearned (“Average loans”)	$	1,987,533			$	1,916,288			$	1,676,816			3.7	%		18.5	%
Nonperforming loans (“NPL”)	$	3,784			$	3,446			$	1,010			9.8	%		274.7	%
Provision for credit losses	$	1,067			$	1,236			$	1,557			(13.7	)%		(31.5	)%
Allowance for credit losses (“ACL”)	$	25,828			$	25,144			$	21,385			2.7	%		20.8	%
Net charge-offs	$	383			$	470			$	27			(18.5	)%		1318.5	%
NPL to gross loans		0.19	%			0.17	%			0.06	%
Net charge-offs to average loans(1)		0.08	%			0.10	%			0.01	%
ACL to loans		1.28	%			1.28	%			1.25	%
(1) Ratio is annualized.

Loans, net of unearned income, were $2.0 billion at June 30, 2024, up $50.3 million from March 31, 2024 and up $298.9 million from June 30, 2023. The linked-quarter and year-over-year increases in loans were primarily attributable to new business growth across our footprint.

Nonperforming loans totaled $3.8 million, or 0.19% of gross loans, at June 30, 2024, compared with $3.4 million, or 0.17% of gross loans, at March 31, 2024, and $1.0 million, or 0.06% of gross loans, at June 30, 2023. The $338,000 net increase in nonperforming loans in the second quarter of 2024 was primarily attributable to a commercial and industrial loan that was added to nonaccrual status and partially offset by a commercial and industrial loan that was charged-off. The $2.8 million net increase in nonperforming loans from June 30, 2023, was primarily attributable to a significant commercial real estate loan and two commercial and industrial loans that were added to nonaccrual status.

The Company recorded a provision for credit losses of $1.1 million for the second quarter of 2024, compared to $1.2 million for the first quarter of 2024. Provision in the second quarter of 2024 was based primarily on loan growth along with qualitative economic factors and individually analyzed loans.

Net charge-offs for the second quarter of 2024 were $383,000, or 0.08% of average loans on an annualized basis, compared to net charge-offs of $470,000, or 0.10% of average loans on an annualized basis, for the first quarter of 2024, and net charge-offs of $27,000, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. The charge-offs recorded during the the first and second quarters of 2024 were substantially related to the charge-off of approximately 70% of a purchased pool of consumer loans, as the borrower has filed for bankruptcy. This was a conservative approach based on uncertainty.

The Company’s allowance for credit losses was 1.28% of total loans and 682.56% of nonperforming loans at June 30, 2024, compared with 1.28% of total loans and 729.66% of nonperforming loans at March 31, 2024. Allowance for credit losses on unfunded commitments was $1.2 million at June 30, 2024.

Deposits

	Three Months Ended												% Change June 30, 2024 vs.
	June 30, 2024				March 31, 2024				June 30, 2023				March 31, 2024			June 30, 2023
	(Dollars in thousands)
Noninterest-bearing deposits	$	416,068			$	416,704			$	449,433			(0.2	)%		(7.4	)%
Interest-bearing deposits		1,759,610				1,693,094				1,474,478			3.9	%		19.3	%
Total deposits	$	2,175,678			$	2,109,798			$	1,923,911			3.1	%		13.1	%
Uninsured deposits	$	645,283			$	610,122			$	553,084			5.8	%		16.7	%
Uninsured deposits to total deposits		29.66	%			28.92	%			28.75	%
Noninterest deposits to total deposits		19.12	%			19.75	%			23.36	%

Total deposits were $2.2 billion at June 30, 2024, up from $2.1 billion at March 31, 2024 and $1.9 billion at June 30, 2023. The $65.9 million increase in total deposits in the second quarter was primarily due to an increase of $66.5 million in interest-bearing deposits, which included a $2.7 million decrease in brokered deposits, partially offset by a $636,000 decrease in noninterest-bearing deposits. Total brokered deposits were $288.3 million at June 30, 2024, compared to 291.0 million at March 31, 2024.

Capital

	June 30, 2024						March 31, 2024						June 30, 2023
	Company			Bank			Company			Bank			Company			Bank
Tier 1 capital ratio to average assets	8.72	%		11.52	%		8.79	%		11.67	%		8.70	%		11.82	%
Risk-based capital ratios:
Common equity tier 1 (“CET1”) capital ratio	9.54	%		12.61	%		9.39	%		12.47	%		9.11	%		12.37	%
Tier 1 capital ratio	9.54	%		12.61	%		9.39	%		12.47	%		9.11	%		12.37	%
Total capital ratio	14.50	%		13.77	%		14.42	%		13.63	%		14.42	%		13.47	%

As of June 30, 2024, total stockholders’ equity was $230.6 million, up from $222.9 million at March 31, 2024. The increase of $7.7 million was substantially due to earnings growth.

About Southern States Bancshares, Inc.

Headquartered in Anniston, Alabama, Southern States Bancshares, Inc. is a bank holding company that operates primarily through its wholly-owned subsidiary, Southern States Bank. The Bank is a full service community banking institution, which offers an array of deposit, loan and other banking-related products and services to businesses and individuals in its communities. The Bank operates 13 branches in Alabama and Georgia and two loan production offices in Atlanta.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which reflect our current expectations and beliefs with respect to, among other things, future events and our financial performance. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. This may be especially true given recent events and trends in the banking industry and the inflationary environment. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the dates made, we cannot give any assurance that such expectations will prove correct and actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 under the section entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict.

These statements are often, but not always, made through the use of words or phrases such as “may,” “can,” “should,” “could,” “to be,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “likely,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would” and “outlook,” or the negative version of those words or other similar words or phrases of a future or forward-looking nature. Forward-looking statements appear in a number of places in this press release and may include statements about our acquisition of Century Bank of Georgia, business strategy and prospects for growth, operations, ability to pay dividends, competition, regulation and general economic conditions.

Contact Information
Lynn Joyce				Margaret Boyce
(205) 820-8065				(310) 622-8247
ljoyce@ssbank.bank				ssbankir@finprofiles.com

SELECT FINANCIAL DATA
(Dollars in thousands, except share and per share amounts)
	Three Months Ended												Six Months Ended
	June 30, 2024				March 31, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Results of Operations
Interest income	$	41,007			$	38,736			$	32,185			$	79,743			$	60,884
Interest expense		19,428				17,897				12,753				37,325				21,906
Net interest income		21,579				20,839				19,432				42,418				38,978
Provision for credit losses		1,067				1,236				1,557				2,303				2,738
Net interest income after provision		20,512				19,603				17,875				40,115				36,240
Noninterest income		1,368				1,268				6,862				2,636				8,648
Noninterest expense		11,411				10,375				13,432				21,786				23,590
Income tax expense		2,271				2,377				2,549				4,648				4,871
Net income	$	8,198			$	8,119			$	8,756			$	16,317			$	16,427
Core net income(1)	$	9,058			$	8,128			$	7,058			$	17,186			$	14,339
Share and Per Share Data
Shares issued and outstanding		8,908,130				8,894,794				8,738,814				8,908,130				8,738,814
Weighted average shares outstanding:
Basic		8,957,608				8,913,477				8,763,635				8,935,542				8,763,046
Diluted		9,070,568				9,043,122				8,950,847				9,062,548				9,001,600
Earnings per share:
Basic	$	0.91			$	0.91			$	1.00			$	1.82			$	1.87
Diluted		0.90				0.90				0.98				1.80				1.82
Core - diluted(1)		1.00				0.90				0.79				1.90				1.59
Book value per share		25.88				25.06				22.57				25.88				22.57
Tangible book value per share(1)		23.91				23.07				20.52				23.91				20.52
Cash dividends per common share		0.09				0.09				0.09				0.18				0.18
Performance and Financial Ratios
ROAA		1.29	%			1.33	%			1.60	%			1.31	%			1.56	%
ROAE		14.55	%			14.87	%			18.15	%			14.71	%			17.43	%
Core ROAA(1)		1.43	%			1.34	%			1.29	%			1.38	%			1.36	%
ROATCE(1)		15.79	%			16.17	%			20.01	%			15.98	%			19.25	%
Core ROATCE(1)		17.44	%			16.19	%			16.13	%			16.83	%			16.80	%
NIM		3.56	%			3.59	%			3.73	%			3.57	%			3.89	%
NIM - FTE(1)		3.57	%			3.60	%			3.74	%			3.58	%			3.90	%
Net interest spread		2.59	%			2.63	%			2.86	%			2.60	%			3.08	%
Yield on loans		7.17	%			7.06	%			6.61	%			7.11	%			6.50	%
Yield on interest-earning assets		6.76	%			6.67	%			6.17	%			6.71	%			6.08	%
Cost of interest-bearing liabilities		4.17	%			4.04	%			3.31	%			4.11	%			3.00	%
Cost of funds(2)		3.41	%			3.27	%			2.58	%			3.34	%			2.31	%
Cost of interest-bearing deposits		4.07	%			3.92	%			3.12	%			4.00	%			2.79	%
Cost of total deposits		3.27	%			3.12	%			2.38	%			3.20	%			2.11	%
Noninterest deposits to total deposits		19.12	%			19.75	%			23.36	%			19.12	%			23.36	%
Core deposits to total deposits		81.78	%			81.45	%			86.43	%			81.78	%			86.43	%
Uninsured deposits to total deposits		29.66	%			28.92	%			28.75	%			29.66	%			28.75	%
Total loans to total deposits		92.63	%			93.14	%			89.22	%			92.63	%			89.22	%
Efficiency ratio		49.78	%			46.90	%			51.00	%			48.36	%			50.02	%
Core efficiency ratio(1)		44.75	%			46.90	%			49.96	%			45.81	%			49.38	%

^{(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(2) Includes total interest-bearing liabilities and noninterest deposits.}

SELECT FINANCIAL DATA
(Dollars in thousands)
	Three Months Ended												Six Months Ended
	June 30, 2024				March 31, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Financial Condition (ending)
Total loans	$	2,015,434			$	1,965,149			$	1,716,512			$	2,015,434			$	1,716,512
Total securities		204,131				197,006				182,717				204,131				182,717
Total assets		2,572,011				2,510,975				2,277,803				2,572,011				2,277,803
Total noninterest-bearing deposits		416,068				416,704				449,433				416,068				449,433
Total core deposits(1)		1,779,253				1,718,333				1,662,855				1,779,253				1,662,855
Total deposits		2,175,678				2,109,798				1,923,911				2,175,678				1,923,911
Total borrowings		136,873				146,773				131,472				136,873				131,472
Total liabilities		2,341,430				2,288,094				2,080,553				2,341,430				2,080,553
Total shareholders’ equity		230,581				222,881				197,250				230,581				197,250
Financial Condition (average)
Total loans	$	1,987,533			$	1,916,288			$	1,676,816			$	1,951,910			$	1,643,376
Total securities		210,678				208,954				196,731				209,816				194,552
Total other interest-earning assets		242,214				211,127				218,451				226,671				182,447
Total interest-earning assets		2,440,425				2,336,369				2,091,998				2,388,397				2,020,375
Total assets		2,553,010				2,447,278				2,200,843				2,500,144				2,129,328
Total noninterest-bearing deposits		420,885				416,141				438,987				418,513				438,862
Total interest-bearing deposits		1,729,682				1,633,307				1,412,047				1,681,494				1,356,648
Total deposits		2,150,567				2,049,448				1,851,034				2,100,007				1,795,510
Total borrowings		143,189				148,771				131,411				145,980				118,229
Total interest-bearing liabilities		1,872,871				1,782,078				1,543,458				1,827,474				1,474,877
Total shareholders’ equity		226,527				219,622				193,516				223,075				190,096
Asset Quality
Nonperforming loans	$	3,784			$	3,446			$	1,010			$	3,784			$	1,010
Other real estate owned (“OREO”)	$	33			$	33			$	2,870			$	33			$	2,870
Nonperforming assets (“NPA”)	$	3,817			$	3,479			$	3,880			$	3,817			$	3,880
Net charge-offs to average loans(2)		0.08	%			0.10	%			0.01	%			0.09	%			0.03	%
Provision for credit losses to average loans(2)		0.22	%			0.26	%			0.37	%			0.24	%			0.34	%
ACL to loans		1.28	%			1.28	%			1.25	%			1.28	%			1.25	%
ACL to gross loans		1.28	%			1.28	%			1.24	%			1.28	%			1.24	%
ACL to NPL		682.56	%			729.66	%			2117.33	%			682.56	%			2117.33	%
NPL to loans		0.19	%			0.18	%			0.06	%			0.19	%			0.06	%
NPL to gross loans		0.19	%			0.17	%			0.06	%			0.19	%			0.06	%
NPA to gross loans and OREO		0.19	%			0.18	%			0.22	%			0.19	%			0.22	%
NPA to total assets		0.15	%			0.14	%			0.17	%			0.15	%			0.17	%
Regulatory and Other Capital Ratios
Total shareholders’ equity to total assets		8.97	%			8.88	%			8.66	%			8.97	%			8.66	%
Tangible common equity to tangible assets(3)		8.34	%			8.23	%			7.94	%			8.34	%			7.94	%
Tier 1 capital ratio to average assets		8.72	%			8.79	%			8.70	%			8.72	%			8.70	%
Risk-based capital ratios:
CET1 capital ratio		9.54	%			9.39	%			9.11	%			9.51	%			9.11	%
Tier 1 capital ratio		9.54	%			9.39	%			9.11	%			9.51	%			9.11	%
Total capital ratio		14.50	%			14.42	%			14.42	%			14.45	%			14.42	%

^{(1) We define core deposits as total deposits excluding brokered deposits and time deposits greater than $250,000.
(2) Ratio is annualized.
(3) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.}

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
	June 30, 2024				March 31, 2024				December 31, 2023				June 30, 2023
	(Unaudited)				(Unaudited)				(Audited)				(Unaudited)
Assets
Cash and due from banks	$	21,598			$	20,470			$	19,710			$	21,299
Interest-bearing deposits in banks		140,440				129,917				134,846				159,818
Federal funds sold		76,334				86,736				96,095				84,812
Total cash and cash equivalents		238,372				237,123				250,651				265,929
Securities available for sale, at fair value		184,510				177,379				179,000				163,075
Securities held to maturity, at amortized cost		19,621				19,627				19,632				19,642
Other equity securities, at fair value		3,658				3,638				3,649				3,762
Restricted equity securities, at cost		4,633				5,108				5,684				3,862
Loans held for sale		1,716				425				450				1,589
Loans, net of unearned income		2,015,434				1,965,149				1,884,508				1,716,512
Less allowance for credit losses		25,828				25,144				24,378				21,385
Loans, net		1,989,606				1,940,005				1,860,130				1,695,127
Premises and equipment, net		26,192				26,262				26,426				26,957
Accrued interest receivable		9,654				9,561				8,711				7,372
Bank owned life insurance		33,000				30,075				29,884				29,521
Annuities		15,918				15,939				15,036				15,359
Foreclosed assets		33				33				33				2,870
Goodwill		16,862				16,862				16,862				16,862
Core deposit intangible		735				817				899				1,062
Other assets		27,501				28,121				29,616				24,814
Total assets	$	2,572,011			$	2,510,975			$	2,446,663			$	2,277,803
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	416,068			$	416,704			$	437,959			$	449,433
Interest-bearing		1,759,610				1,693,094				1,580,230				1,474,478
Total deposits		2,175,678				2,109,798				2,018,189				1,923,911
Other borrowings		8,000				7,997				26,994				(13	)
FHLB advances		42,000				52,000				70,000				45,000
Subordinated notes		86,873				86,776				86,679				86,485
Accrued interest payable		2,024				1,805				1,519				1,063
Other liabilities		26,855				29,718				28,318				24,107
Total liabilities		2,341,430				2,288,094				2,231,699				2,080,553
Stockholders' equity:
Common stock		44,813				44,746				44,479				43,831
Capital surplus		79,248				79,282				78,361				77,101
Retained earnings		117,233				109,838				102,523				88,603
Accumulated other comprehensive loss		(8,333	)			(8,401	)			(8,379	)			(10,799	)
Unvested restricted stock		(826	)			(1,030	)			(466	)			(709	)
Vested restricted stock units		(1,554	)			(1,554	)			(1,554	)			(777	)
Total stockholders' equity		230,581				222,881				214,964				197,250
Total liabilities and stockholders' equity	$	2,572,011			$	2,510,975			$	2,446,663			$	2,277,803

CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
	Three Months Ended											Six Months Ended
	June 30, 2024			March 31, 2024				June 30, 2023				June 30, 2024			June 30, 2023
	(Unaudited)			(Unaudited)				(Unaudited)				(Unaudited)			(Unaudited)
Interest income:
Loans, including fees	$	35,421		$	33,628			$	27,630			$	69,049		$	52,965
Taxable securities		2,039			1,981				1,641				4,020			3,024
Nontaxable securities		231			229				228				460			519
Other interest and dividends		3,316			2,898				2,686				6,214			4,376
Total interest income		41,007			38,736				32,185				79,743			60,884
Interest expense:
Deposits		17,511			15,906				10,998				33,417			18,766
Other borrowings		1,917			1,991				1,755				3,908			3,140
Total interest expense		19,428			17,897				12,753				37,325			21,906
Net interest income		21,579			20,839				19,432				42,418			38,978
Provision for credit losses		1,067			1,236				1,557				2,303			2,738
Net interest income after provision for credit losses		20,512			19,603				17,875				40,115			36,240
Noninterest income:
Service charges on deposit accounts		462			463				456				925			906
Swap fees		4			15				173				19			169
SBA/USDA fees		58			64				66				122			200
Mortgage origination fees		92			96				188				188			288
Net gain (loss) on securities		20			(12	)			(45	)			8			469
Employee retention credit and related revenue		—			—				5,100				—			5,100
Other operating income		732			642				924				1,374			1,516
Total noninterest income		1,368			1,268				6,862				2,636			8,648
Noninterest expenses:
Salaries and employee benefits		6,112			6,231				7,863				12,343			14,174
Equipment and occupancy expenses		667			689				694				1,356			1,377
Data processing fees		686			643				646				1,329			1,239
Regulatory assessments		375			360				180				735			522
Professional fees related to ERC		—			—				1,243				—			1,243
Other operating expenses		3,571			2,452				2,806				6,023			5,035
Total noninterest expenses		11,411			10,375				13,432				21,786			23,590
Income before income taxes		10,469			10,496				11,305				20,965			21,298
Income tax expense		2,271			2,377				2,549				4,648			4,871
Net income	$	8,198		$	8,119			$	8,756			$	16,317		$	16,427
Basic earnings per share	$	0.91		$	0.91			$	1.00			$	1.82		$	1.87
Diluted earnings per share	$	0.90		$	0.90			$	0.98			$	1.80		$	1.82

AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
(Dollars in thousands)
	Three Months Ended
	June 30, 2024										March 31, 2024										June 30, 2023
	Average Balance				Interest			Yield/Rate			Average Balance				Interest			Yield/Rate			Average Balance				Interest			Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income(1)	$	1,987,533			$	35,421		7.17	%		$	1,916,288			$	33,628		7.06	%		$	1,676,816			$	27,630		6.61	%
Taxable securities		165,141				2,039		4.97	%			163,586				1,981		4.87	%			151,107				1,641		4.36	%
Nontaxable securities		45,537				231		2.04	%			45,368				229		2.03	%			45,624				228		2.00	%
Other interest-earnings assets		242,214				3,316		5.51	%			211,127				2,898		5.52	%			218,451				2,686		4.93	%
Total interest-earning assets	$	2,440,425			$	41,007		6.76	%		$	2,336,369			$	38,736		6.67	%		$	2,091,998			$	32,185		6.17	%
Allowance for credit losses		(25,332	)									(24,313	)									(20,154	)
Noninterest-earning assets		137,917										135,222										128,999
Total Assets	$	2,553,010									$	2,447,278									$	2,200,843
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts		85,976				21		0.10	%			85,858				26		0.12	%			92,245				20		0.09	%
Savings and money market accounts		929,930				9,229		3.99	%			902,361				8,804		3.92	%			845,742				6,872		3.26	%
Time deposits		713,776				8,261		4.65	%			645,088				7,076		4.41	%			474,060				4,106		3.47	%
FHLB advances		48,374				596		4.96	%			53,121				655		4.96	%			45,000				529		4.72	%
Other borrowings		94,815				1,321		5.60	%			95,650				1,336		5.62	%			86,411				1,226		5.69	%
Total interest-bearing liabilities	$	1,872,871			$	19,428		4.17	%		$	1,782,078			$	17,897		4.04	%		$	1,543,458			$	12,753		3.31	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	420,885									$	416,141									$	438,987
Other liabilities		32,727										29,437										24,882
Total noninterest-bearing liabilities	$	453,612									$	445,578									$	463,869
Stockholders’ Equity		226,527										219,622										193,516
Total Liabilities and Stockholders’ Equity	$	2,553,010									$	2,447,278									$	2,200,843
Net interest income					$	21,579									$	20,839									$	19,432
Net interest spread(2)								2.59	%									2.63	%									2.86	%
Net interest margin(3)								3.56	%									3.59	%									3.73	%
Net interest margin - FTE(4)(5)								3.57	%									3.60	%									3.74	%
Cost of funds(6)								3.41	%									3.27	%									2.58	%
Cost of interest-bearing deposits								4.07	%									3.92	%									3.12	%
Cost of total deposits								3.27	%									3.12	%									2.38	%

^{(1) Includes nonaccrual loans.
(2) Net interest spread is the difference between interest rates earned on interest-earning assets and interest rates paid on interest-bearing liabilities.
(3) Net interest margin is a ratio of net interest income to average interest-earning assets for the same period.
(4) Net interest margin - FTE is a ratio of fully-taxable equivalent net interest income to average interest-earning assets for the same period. It assumes a 24.0% tax rate.
(5) Refer to “Reconciliation of Non-GAAP Financial Measures”.
(6) Includes total interest-bearing liabilities and noninterest deposits.}

AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
(Dollars in thousands)
	Six Months Ended
	June 30, 2024										June 30, 2023
	Average Balance				Interest			Yield/Rate			Average Balance				Interest			Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income(1)	$	1,951,910			$	69,049		7.11	%		$	1,643,376			$	52,965		6.50	%
Taxable securities		164,363				4,020		4.92	%			145,344				3,024		4.20	%
Nontaxable securities		45,453				460		2.04	%			49,208				519		2.13	%
Other interest-earnings assets		226,671				6,214		5.51	%			182,447				4,376		4.84	%
Total interest-earning assets	$	2,388,397			$	79,743		6.71	%		$	2,020,375			$	60,884		6.08	%
Allowance for credit losses		(24,822	)									(20,315	)
Noninterest-earning assets		136,569										129,268
Total Assets	$	2,500,144									$	2,129,328
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts		85,917				48		0.11	%			93,093				40		0.09	%
Savings and money market accounts		916,145				18,032		3.96	%			825,982				11,911		2.91	%
Time deposits		679,432				15,337		4.54	%			437,573				6,815		3.14	%
FHLB advances		50,747				1,251		4.96	%			31,862				688		4.35	%
Other borrowings		95,233				2,657		5.61	%			86,367				2,452		5.73	%
Total interest-bearing liabilities	$	1,827,474			$	37,325		4.11	%		$	1,474,877			$	21,906		3.00	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	418,513									$	438,862
Other liabilities		31,082										25,493
Total noninterest-bearing liabilities	$	449,595									$	464,355
Stockholders’ Equity		223,075										190,096
Total Liabilities and Stockholders’ Equity	$	2,500,144									$	2,129,328
Net interest income					$	42,418									$	38,978
Net interest spread(2)								2.60	%									3.08	%
Net interest margin(3)								3.57	%									3.89	%
Net interest margin - FTE(4)(5)								3.58	%									3.90	%
Cost of funds(6)								3.34	%									2.31	%
Cost of interest-bearing deposits								4.00	%									2.79	%
Cost of total deposits								3.20	%									2.11	%

^{(1) Includes nonaccrual loans.
(2) Net interest spread is the difference between interest rates earned on interest-earning assets and interest rates paid on interest-bearing liabilities.
(3) Net interest margin is a ratio of net interest income to average interest-earning assets for the same period.
(4) Net interest margin - FTE is a ratio of fully-taxable equivalent net interest income to average interest-earning assets for the same period. It assumes a 24.0% tax rate.
(5) Refer to “Reconciliation of Non-GAAP Financial Measures”.
(6) Includes total interest-bearing liabilities and noninterest deposits.}

LOAN COMPOSITION
(Dollars in thousands)
	June 30, 2024							March 31, 2024							December 31, 2023							June 30, 2023
	Amount				% of gross			Amount				% of gross			Amount				% of gross			Amount				% of gross
Real estate mortgages:
Construction and development	$	242,573			12.0	%		$	252,934			12.8	%		$	242,960			12.9	%		$	228,236			13.3	%
Residential		249,498			12.3	%			238,702			12.1	%			224,603			11.9	%			214,897			12.5	%
Commercial		1,222,739			60.5	%			1,182,634			60.0	%			1,144,867			60.5	%			1,011,815			58.7	%
Commercial and industrial		297,501			14.7	%			288,701			14.7	%			269,961			14.3	%			259,195			15.0	%
Consumer and other		9,566			0.5	%			8,425			0.4	%			8,286			0.4	%			8,135			0.5	%
Gross loans		2,021,877			100.0	%			1,971,396			100.0	%			1,890,677			100.0	%			1,722,278			100.0	%
Unearned income		(6,443	)						(6,247	)						(6,169	)						(5,766	)
Loans, net of unearned income		2,015,434							1,965,149							1,884,508							1,716,512
Allowance for credit losses		(25,828	)						(25,144	)						(24,378	)						(21,385	)
Loans, net	$	1,989,606						$	1,940,005						$	1,860,130						$	1,695,127

DEPOSIT COMPOSITION
(Dollars in thousands)
	June 30, 2024						March 31, 2024						December 31, 2023						June 30, 2023
	Amount			% of total			Amount			% of total			Amount			% of total			Amount			% of total
Noninterest-bearing transaction	$	416,068		19.1	%		$	416,704		19.7	%		$	437,959		21.7	%		$	449,433		23.3	%
Interest-bearing transaction		1,006,687		46.3	%			974,079		46.2	%			946,347		46.9	%			922,835		48.0	%
Savings		32,527		1.5	%			33,909		1.6	%			35,412		1.7	%			41,574		2.2	%
Time deposits, $250,000 and under		612,299		28.1	%			584,658		27.7	%			500,406		24.8	%			438,228		22.8	%
Time deposits, over $250,000		108,097		5.0	%			100,448		4.8	%			98,065		4.9	%			71,841		3.7	%
Total deposits	$	2,175,678		100.0	%		$	2,109,798		100.0	%		$	2,018,189		100.0	%		$	1,923,911		100.0	%

Nonperforming Assets
(Dollars in thousands)
	June 30, 2024				March 31, 2024				December 31, 2023				June 30, 2023
Nonaccrual loans	$	3,784			$	3,446			$	1,017			$	1,010
Past due loans 90 days or more and still accruing interest		—				—				160				—
Total nonperforming loans		3,784				3,446				1,177				1,010
OREO		33				33				33				2,870
Total nonperforming assets	$	3,817			$	3,479			$	1,210			$	3,880
Financial difficulty modification loans – nonaccrual(1)		647				675				907				724
Financial difficulty modification loans – accruing		1,093				1,283				1,095				1,328
Financial difficulty modification loans	$	1,740			$	1,958			$	2,002			$	2,052
Allowance for credit losses	$	25,828			$	25,144			$	24,378			$	21,385
Loans, net of unearned income at the end of the period	$	2,015,434			$	1,965,149			$	1,884,508			$	1,716,512
Gross loans outstanding at the end of period	$	2,021,877			$	1,971,396			$	1,890,677			$	1,722,278
Total assets	$	2,572,011			$	2,510,975			$	2,446,663			$	2,277,803
Allowance for credit losses to nonperforming loans		682.56	%			729.66	%			2071.20	%			2117.33	%
Nonperforming loans to loans, net of unearned income		0.19	%			0.18	%			0.06	%			0.06	%
Nonperforming loans to gross loans		0.19	%			0.17	%			0.06	%			0.06	%
Nonperforming assets to gross loans and OREO		0.19	%			0.18	%			0.06	%			0.22	%
Nonperforming assets to total assets		0.15	%			0.14	%			0.05	%			0.17	%
Nonaccrual loans by category:
Real estate mortgages:
Construction & Development	$	—			$	—			$	—			$	33
Residential Mortgages		393				246				252				297
Commercial Real Estate Mortgages		2,182				2,422				765				671
Commercial & Industrial		1,209				778				—				9
Consumer and other		—				—				—				—
Total	$	3,784			$	3,446			$	1,017			$	1,010

^{(1) Financial difficulty modifications loans are excluded from nonperforming loans unless they otherwise meet the definition of nonaccrual loans or are more than 90 days past due.}

Allowance for Credit Losses
(Dollars in thousands)
	Three Months Ended												Six Months Ended
	June 30, 2024				March 31, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Average loans, net of unearned income	$	1,987,533			$	1,916,288			$	1,676,816			$	1,951,910			$	1,643,376
Loans, net of unearned income		2,015,434				1,965,149				1,716,512				2,015,434				1,716,512
Gross loans		2,021,877				1,971,396				1,722,278				2,021,877				1,722,278
Allowance for credit losses at beginning of the period		25,144				24,378				19,855				24,378				20,156
Impact of adoption of ASC 326		—				—				—				—				(1,285	)
Charge-offs:
Construction and development		—				—				—				—				—
Residential		—				11				—				11				—
Commercial		11				27				—				38				—
Commercial and industrial		384				442				44				826				262
Consumer and other		10				15				—				25				6
Total charge-offs		405				495				44				900				268
Recoveries:
Construction and development		—				—				—				—				—
Residential		6				8				17				14				28
Commercial		—				—				—				—				—
Commercial and industrial		15				16				—				31				14
Consumer and other		1				1				—				2				2
Total recoveries		22				25				17				47				44
Net charge-offs	$	383			$	470			$	27			$	853			$	224
Provision for credit losses	$	1,067			$	1,236			$	1,557			$	2,303			$	2,738
Balance at end of the period	$	25,828			$	25,144			$	21,385			$	25,828			$	21,385
Allowance for credit losses on unfunded commitments at beginning of the period	$	1,288			$	1,239			$	1,285			$	1,239			$	—
Impact of adoption of ASC 326		—				—				—				—				1,285
(Credit) provision for credit losses on unfunded commitments		(82	)			49				210				(33	)			210
Balance at the end of the period	$	1,206			$	1,288			$	1,495			$	1,206			$	1,495
Allowance to loans, net of unearned income		1.28	%			1.28	%			1.25	%			1.28	%			1.25	%
Allowance to gross loans		1.28	%			1.28	%			1.24	%			1.28	%			1.24	%
Net charge-offs to average loans, net of unearned income(1)		0.08	%			0.10	%			0.01	%			0.09	%			0.03	%
Provision for credit losses to average loans, net of unearned income(1)		0.22	%			0.26	%			0.37	%			0.24	%			0.34	%

^{(1) Ratio is annualized.}

Reconciliation of Non-GAAP Financial Measures

Noninterest Expense

In addition to reporting GAAP results, the Company reports non-GAAP financial measures in this earnings release and other disclosures. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

The following table provides a reconciliation of the non-GAAP financial measures to their most directly comparable financial measure presented in accordance with GAAP.

Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts)
	Three Months Ended												Six Months Ended
	June 30, 2024				March 31, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Net income	$	8,198			$	8,119			$	8,756			$	16,317			$	16,427
Add: One-time retirement related expenses		—				—				1,571				—				1,571
Add: Professional fees related to ERC		—				—				1,243				—				1,243
Add: Wire fraud loss		1,155				—				—				1,155				—
Add: Net OREO (gain) loss		(3	)			—				7				(3	)			7
Less: Employee retention related revenue		—				—				5,100				—				5,100
Less: Net gain (loss) on securities		20				(12	)			(45	)			8				469
Less: Tax effect		272				3				(536	)			275				(660	)
Core net income	$	9,058			$	8,128			$	7,058			$	17,186			$	14,339
Average assets	$	2,553,010			$	2,447,278			$	2,200,843			$	2,500,144			$	2,129,328
Core return on average assets		1.43	%			1.34	%			1.29	%			1.38	%			1.36	%
Net income	$	8,198			$	8,119			$	8,756			$	16,317			$	16,427
Add: One-time retirement related expenses		—				—				1,571				—				1,571
Add: Professional fees related to ERC		—				—				1,243				—				1,243
Add: Wire fraud loss		1,155				—				—				1,155				—
Add: Net OREO (gain) loss		(3	)			—				7				(3	)			7
Add: Provision		1,067				1,236				1,557				2,303				2,738
Less: Employee retention related revenue		—				—				5,100				—				5,100
Less: Net gain (loss) on securities		20				(12	)			(45	)			8				469
Add: Income taxes		2,271				2,377				2,549				4,648				4,871
Pretax pre-provision core net income	$	12,668			$	11,744			$	10,628			$	24,412			$	21,288
Average assets	$	2,553,010			$	2,447,278			$	2,200,843			$	2,500,144			$	2,129,328
Pretax pre-provision core return on average assets		2.00	%			1.93	%			1.94	%			1.96	%			2.02	%
Net interest income	$	21,579			$	20,839			$	19,432			$	42,418			$	38,978
Add: Fully-taxable equivalent adjustments(1)		73				73				65				146				143
Net interest income - FTE	$	21,652			$	20,912			$	19,497			$	42,564			$	39,121
Net interest margin		3.56	%			3.59	%			3.73	%			3.57	%			3.89	%
Effect of fully-taxable equivalent adjustments(1)		0.01	%			0.01	%			0.01	%			0.01	%			0.01	%
Net interest margin - FTE		3.57	%			3.60	%			3.74	%			3.58	%			3.90	%
Total stockholders' equity	$	230,581			$	222,881			$	197,250			$	230,581			$	197,250
Less: Intangible assets		17,597				17,679				17,924				17,597				17,924
Tangible common equity	$	212,984			$	205,202			$	179,326			$	212,984			$	179,326
(1) Assumes a 24.0% tax rate.
Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts)
	Three Months Ended												Six Months Ended
	June 30, 2024				March 31, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Core net income	$	9,058			$	8,128			$	7,058			$	17,186			$	14,339
Diluted weighted average shares outstanding		9,070,568				9,043,122				8,950,847				9,062,548				9,001,600
Diluted core earnings per share	$	1.00			$	0.90			$	0.79			$	1.90			$	1.59
Common shares outstanding at year or period end		8,908,130				8,894,794				8,738,814				8,908,130				8,738,814
Tangible book value per share	$	23.91			$	23.07			$	20.52			$	23.91			$	20.52
Total assets at end of period	$	2,572,011			$	2,510,975			$	2,277,803			$	2,572,011			$	2,277,803
Less: Intangible assets		17,597				17,679				17,924				17,597				17,924
Adjusted assets at end of period	$	2,554,414			$	2,493,296			$	2,259,879			$	2,554,414			$	2,259,879
Tangible common equity to tangible assets		8.34	%			8.23	%			7.94	%			8.34	%			7.94	%
Total average shareholders equity	$	226,527			$	219,622			$	193,516			$	223,075			$	190,096
Less: Average intangible assets		17,646				17,730				17,974				17,688				18,014
Average tangible common equity	$	208,881			$	201,892			$	175,542			$	205,387			$	172,082
Net income to common shareholders	$	8,198			$	8,119			$	8,756			$	16,317			$	16,427
Return on average tangible common equity		15.79	%			16.17	%			20.01	%			15.98	%			19.25	%
Average tangible common equity	$	208,881			$	201,892			$	175,542			$	205,387			$	172,082
Core net income	$	9,058			$	8,128			$	7,058			$	17,186			$	14,339
Core return on average tangible common equity		17.44	%			16.19	%			16.13	%			16.83	%			16.80	%
Net interest income	$	21,579			$	20,839			$	19,432			$	42,418			$	38,978
Add: Noninterest income		1,368				1,268				6,862				2,636				8,648
Less: Employee retention related revenue		—				—				5,100				—				5,100
Less: Net gain (loss) on securities		20				(12	)			(45	)			8				469
Operating revenue	$	22,927			$	22,119			$	21,239			$	45,046			$	42,057
Expenses:
Total noninterest expense	$	11,411			$	10,375			$	13,432			$	21,786			$	23,590
Less: One-time retirement related expenses		—				—				1,571				—				1,571
Less: Professional fees related to ERC		—				—				1,243				—				1,243
Less: Wire fraud loss		1,155				—				—				1,155				—
Less: Net OREO (gain) loss		(3	)			—				7				(3	)			7
Adjusted noninterest expenses	$	10,259			$	10,375			$	10,611			$	20,634			$	20,769
Core efficiency ratio		44.75	%			46.90	%			49.96	%			45.81	%			49.38	%

FAQ

What was Southern States Bancshares' (SSBK) net income for Q2 2024?

Southern States Bancshares (SSBK) reported net income of $8.2 million, or $0.90 per diluted share, for Q2 2024.

How did SSBK's loan portfolio perform in Q2 2024?

SSBK's loan portfolio grew at an annualized rate of 10.3% from the previous quarter, reaching $2.0 billion in Q2 2024.

What was Southern States Bancshares' (SSBK) net interest margin in Q2 2024?

Southern States Bancshares' net interest margin was 3.56% in Q2 2024, down 3 basis points from the previous quarter.

How did SSBK's deposits change in Q2 2024?

SSBK's total deposits grew at an annualized rate of 12.6% from the previous quarter, reaching $2.2 billion in Q2 2024.

What acquisition is Southern States Bancshares (SSBK) planning to close?

Southern States Bancshares (SSBK) is planning to close its acquisition of CBB Bancorp on August 1, 2024, which is expected to expand its presence in Georgia markets.