Southern States Bancshares, Inc. Announces Third Quarter 2024 Financial Results
Southern States Bancshares, Inc. (NASDAQ: SSBK) reported its third quarter 2024 financial results, with a net income of $7.4 million, or $0.76 per diluted share, compared to $8.2 million, or $0.90 per diluted share, in the previous quarter. The company’s core net income was $8.7 million, or $0.89 per diluted share.
Key highlights include:
- Net interest income of $24.2 million, a 12.4% increase from Q2 2024.
- Net interest margin of 3.65%, up 9 basis points from Q2 2024.
- Loan growth of 36.3% annualized, and deposit growth of 44.8% annualized.
- Completion of CBB Bancorp acquisition on August 1, 2024.
Noninterest income rose to $1.8 million, a 28.4% increase from Q2. Noninterest expense increased to $13.7 million, up 19.9% from Q2, mainly due to merger-related expenses.
Loans were $2.2 billion, up 9.1% from Q2. Nonperforming loans increased to $7.9 million. Total deposits were $2.4 billion, up 11.3% from Q2. The company’s total stockholders’ equity was $271.4 million, up from $230.6 million in Q2.
Southern States Bancshares, Inc. (NASDAQ: SSBK) ha riportato i risultati finanziari del terzo trimestre 2024, con un utile netto di 7,4 milioni di dollari, ovvero 0,76 dollari per azione diluita, rispetto a 8,2 milioni di dollari, o 0,90 dollari per azione diluita, nel trimestre precedente. L'utile netto core dell'azienda è stato di 8,7 milioni di dollari, pari a 0,89 dollari per azione diluita.
I punti salienti includono:
- Reddito da interessi netti di 24,2 milioni di dollari, un aumento del 12,4% rispetto al secondo trimestre 2024.
- Margine di interesse netto del 3,65%, in aumento di 9 punti base rispetto al secondo trimestre 2024.
- Crescita dei prestiti del 36,3% annualizzata e crescita dei depositi del 44,8% annualizzata.
- Completamento dell' il 1° agosto 2024.
Il reddito non da interessi è aumentato a 1,8 milioni di dollari, un incremento del 28,4% rispetto al secondo trimestre. Le spese non da interessi sono aumentate a 13,7 milioni di dollari, con un aumento del 19,9% rispetto al secondo trimestre, principalmente a causa delle spese legate alla fusione.
I prestiti ammontavano a 2,2 miliardi di dollari, in aumento del 9,1% rispetto al secondo trimestre. I prestiti performanti sono aumentati a 7,9 milioni di dollari. I depositi totali ammontavano a 2,4 miliardi di dollari, in aumento dell'11,3% rispetto al secondo trimestre. Il capitale totale dei soci dell'azienda era di 271,4 milioni di dollari, in aumento rispetto a 230,6 milioni di dollari nel secondo trimestre.
Southern States Bancshares, Inc. (NASDAQ: SSBK) informó sus resultados financieros del tercer trimestre de 2024, con una utilidad neta de 7,4 millones de dólares, o 0,76 dólares por acción diluida, comparado con 8,2 millones de dólares, o 0,90 dólares por acción diluida, en el trimestre anterior. La utilidad neta fundamental de la compañía fue de 8,7 millones de dólares, o 0,89 dólares por acción diluida.
Los aspectos destacados incluyen:
- Ingreso neto por intereses de 24,2 millones de dólares, un aumento del 12,4% con respecto al segundo trimestre de 2024.
- Margen de interés neto del 3,65%, un aumento de 9 puntos base respecto al segundo trimestre de 2024.
- Crecimiento de préstamos del 36,3% anualizado, y crecimiento de depósitos del 44,8% anualizado.
- Finalización de la adquisición de CBB Bancorp el 1 de agosto de 2024.
Los ingresos no por intereses aumentaron a 1,8 millones de dólares, un incremento del 28,4% respecto al segundo trimestre. Los gastos no por intereses aumentaron a 13,7 millones de dólares, un aumento del 19,9% con respecto al segundo trimestre, principalmente debido a los gastos relacionados con la fusión.
Los préstamos ascendieron a 2,2 mil millones de dólares, un aumento del 9,1% en comparación con el segundo trimestre. Los préstamos no productivos aumentaron a 7,9 millones de dólares. Los depósitos totales fueron de 2,4 mil millones de dólares, un aumento del 11,3% respecto al segundo trimestre. El capital total de los accionistas de la compañía fue de 271,4 millones de dólares, en comparación con 230,6 millones de dólares en el segundo trimestre.
Southern States Bancshares, Inc. (NASDAQ: SSBK)는 2024년 3분기 재무 결과를 보고했으며, 순이익은 740만 달러, 또는 희석 주당 0.76달러로, 전 분기의 820만 달러, 또는 희석 주당 0.90달러와 비교되었습니다. 회사의 핵심 순이익은 870만 달러, 또는 희석 주당 0.89달러였습니다.
주요 하이라이트는 다음과 같습니다:
- 순이자 수익은 2420만 달러로, 2024년 2분기 대비 12.4% 증가했습니다.
- 순이자 마진은 3.65%로, 2024년 2분기 대비 9베이시스 포인트 상승했습니다.
- 대출 성장률은 연환산 36.3%, 예금 성장률은 연환산 44.8% 증가했습니다.
- 2024년 8월 1일에 CBB Bancorp 인수가 완료되었습니다.
비이자 수익은 180만 달러로 증가, 2분기 대비 28.4% 상승했습니다. 비이자 비용은 1370만 달러로 늘어나며, 2분기 대비 19.9% 증가하였으며, 이는 주로 합병 관련 비용 때문입니다.
대출 잔액은 22억 달러로, 2분기 대비 9.1% 증가했습니다. 부실 대출은 790만 달러로 증가했습니다. 총 예금은 24억 달러로, 2분기 대비 11.3% 증가했습니다. 회사의 총 주주 자본은 2억 7140만 달러로, 2분기 2억 3060만 달러에서 증가했습니다.
Southern States Bancshares, Inc. (NASDAQ: SSBK) a annoncé ses résultats financiers du troisième trimestre 2024, avec un revenu net de 7,4 millions de dollars, soit 0,76 dollar par action diluée, comparé à 8,2 millions de dollars, soit 0,90 dollar par action diluée, au trimestre précédent. Le revenu net de base de l'entreprise s'élevait à 8,7 millions de dollars, soit 0,89 dollar par action diluée.
Les points clés comprennent :
- Revenu net d'intérêts de 24,2 millions de dollars, soit une augmentation de 12,4 % par rapport au T2 2024.
- Marche d'intérêt net de 3,65 %, en hausse de 9 points de base par rapport au T2 2024.
- Croissance des prêts de 36,3 % annualisée, et une croissance des dépôts de 44,8 % annualisée.
- Finalisation de l'acquisition de CBB Bancorp le 1er août 2024.
Le revenu non lié aux intérêts a augmenté à 1,8 million de dollars, soit une augmentation de 28,4 % par rapport au T2. Les dépenses non liées aux intérêts ont augmenté à 13,7 millions de dollars, en hausse de 19,9 % par rapport au T2, principalement en raison des coûts liés à la fusion.
Les prêts s'élevaient à 2,2 milliards de dollars, en hausse de 9,1 % par rapport au T2. Les prêts non performants ont augmenté à 7,9 millions de dollars. Les dépôts totaux s'élevaient à 2,4 milliards de dollars, en hausse de 11,3 % par rapport au T2. Le capital total des actionnaires de l'entreprise était de 271,4 millions de dollars, en hausse par rapport à 230,6 millions de dollars au T2.
Southern States Bancshares, Inc. (NASDAQ: SSBK) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, mit einem Nettoergebnis von 7,4 Millionen Dollar oder 0,76 Dollar pro verwässerter Aktie, verglichen mit 8,2 Millionen Dollar oder 0,90 Dollar pro verwässerter Aktie im vorherigen Quartal. Das Kernergebnis des Unternehmens betrug 8,7 Millionen Dollar oder 0,89 Dollar pro verwässerter Aktie.
Wichtige Höhepunkte sind:
- Nettozinsüberschuss von 24,2 Millionen Dollar, ein Anstieg von 12,4 % im Vergleich zum 2. Quartal 2024.
- Nettozinsmarge von 3,65 %, ein Anstieg um 9 Basispunkte im Vergleich zum 2. Quartal 2024.
- Darlehenswachstum von 36,3 % annualisiert und Einlagenwachstum von 44,8 % annualisiert.
- Abschluss der CBB Bancorp Akquisition am 1. August 2024.
Nichtzinsliche Erträge stiegen auf 1,8 Millionen Dollar, ein Anstieg von 28,4 % im Vergleich zum 2. Quartal. Nichtzinsliche Ausgaben stiegen auf 13,7 Millionen Dollar, ein Anstieg von 19,9 % im Vergleich zum 2. Quartal, hauptsächlich aufgrund von fusionsbezogenen Kosten.
Darlehen betrugen 2,2 Milliarden Dollar, ein Anstieg von 9,1 % im Vergleich zum 2. Quartal. Ausfallkredite stiegen auf 7,9 Millionen Dollar. Gesamteinlagen betrugen 2,4 Milliarden Dollar, ein Anstieg von 11,3 % im Vergleich zum 2. Quartal. Das gesamte Eigenkapital der Gesellschaft betrug 271,4 Millionen Dollar, ein Anstieg gegenüber 230,6 Millionen Dollar im 2. Quartal.
- Net interest income increased by 12.4% to $24.2 million.
- Net interest margin improved to 3.65%, up 9 basis points from Q2 2024.
- Loan growth of 36.3% annualized.
- Deposit growth of 44.8% annualized.
- Completion of CBB Bancorp acquisition.
- Net income decreased to $7.4 million from $8.2 million in Q2 2024.
- Nonperforming loans increased to $7.9 million.
- Noninterest expense rose by 19.9% to $13.7 million.
Insights
Southern States Bancshares reported solid Q3 2024 results, driven by the acquisition of Century Bank. Key highlights include:
- Net income of
$7.4 million ($0.76 per diluted share) - Core net income of
$8.7 million ($0.89 per diluted share) - Net interest income increased
12.4% quarter-over-quarter to$24.2 million - Net interest margin improved to
3.65% , up 9 basis points - Loans grew
36.3% annualized on a linked-quarter basis - Total deposits increased
44.8% annualized
The Century Bank acquisition strengthened SSBK's platform, contributing to loan and deposit growth. However, merger-related expenses of
The acquisition of Century Bank has significantly bolstered Southern States Bancshares' market position and financial metrics. Key points for investors:
- Substantial growth: Total assets increased
21.6% year-over-year, with loans up24.0% and deposits up26.3% - Improved efficiency: Core efficiency ratio of
46.96% indicates strong cost management - Market recognition: Included in Piper Sandler's Sm-All Stars for the third consecutive year, highlighting consistent performance
- Potential concerns: Nonperforming loans increased to
$7.9 million (0.36% of gross loans), up from$3.8 million in Q2
The bank's expansion into attractive Georgia markets through the Century Bank acquisition presents growth opportunities. However, investors should monitor the slight uptick in nonperforming loans and integration costs. The bank's strong capital position and improved net interest margin provide a solid foundation for future growth and profitability.
Third Quarter 2024 Performance and Operational Highlights
- Net income of
$7.4 million , or$0.76 per diluted share - Core net income(1) of
$8.7 million , or$0.89 per diluted share(1) - Core pretax pre-provision net income(1) of
$13.8 million - Net interest income of
$24.2 million , an increase of$2.7 million from the prior quarter - Net interest margin (“NIM”) of
3.65% , up 9 basis points from the prior quarter - NIM of
3.66% on a fully-taxable equivalent basis (“NIM - FTE”)(1) - Return on average assets (“ROAA”) of
1.05% ; return on average stockholders’ equity (“ROAE”) of11.89% ; and return on average tangible common equity (“ROATCE”)(1) of13.35% - Core ROAA(1) of
1.24% ; and core ROATCE(1) of15.74% - Efficiency ratio of
52.79% ; and core efficiency ratio of46.96% - Linked-quarter loans grew
36.3% annualized; and legacy loans grew10.3% annualized - Linked-quarter total deposits grew
44.8% annualized - Linked-quarter total deposits, excluding brokered deposits, grew
71.5% annualized; and legacy total deposits, excluding brokered deposits grew9.6% 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., Oct. 21, 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
CEO Commentary
Mark Chambers, Chief Executive Officer and President of Southern States said, “The top highlight of our third quarter was the completion of the CBB Bancorp acquisition on August 1 as planned. I want to welcome our new colleagues who contributed to a seamless integration between two organizations that share a common culture. Our combination with Century Bank has strengthened our platform to drive loan and deposit growth across growing and attractive Georgia markets.” | ||||
“Net interest income for the third quarter increased more than | ||||
“Finally, we were pleased to be recognized in Piper Sandler’s Sm-All Stars: Class of 2024 for the third year in a row. The Sm-All Stars’ objective is to identify the top performing U.S. small-cap banks and thrifts based on growth, profitability, credit quality, and capital strength. Our objective is to run a highly efficient bank, consistently deliver the highest level of customer satisfaction and increase value for our shareholders.” |
Net Interest Income and Net Interest Margin | |||||||||||||||||
Three Months Ended | % Change September 30, 2024 vs. | ||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Average interest-earning assets | $ | 2,645,388 | $ | 2,440,425 | $ | 2,175,103 | 8.4 | % | 21.6 | % | |||||||
Net interest income | $ | 24,246 | $ | 21,579 | $ | 20,731 | 12.4 | % | 17.0 | % | |||||||
Net interest margin | 3.65 | % | 3.56 | % | 3.78 | % | 9 bps | (13) bps | |||||||||
Net interest income for the third quarter of 2024 was
Relative to the third quarter of 2023, net interest income increased
Net interest margin for the third quarter of 2024 was
Relative to the third quarter of 2023, net interest margin decreased from
Noninterest Income | ||||||||||||||||
Three Months Ended | % Change September 30, 2024 vs. | |||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Service charges on deposit accounts | $ | 532 | $ | 462 | $ | 442 | 15.2 | % | 20.4 | % | ||||||
Swap (expense) fees | (9 | ) | 4 | 453 | 325.0 | % | 102.0 | % | ||||||||
SBA/USDA fees | 179 | 58 | 74 | 208.6 | % | 141.9 | % | |||||||||
Mortgage origination fees | 112 | 92 | 158 | 21.7 | % | (29.1 | )% | |||||||||
Net gain (loss) on securities | 75 | 20 | (12 | ) | 275.0 | % | 725.0 | % | ||||||||
Employee retention credit and related revenue (“ERC”) | — | — | (5,100 | ) | N/A | N/A | ||||||||||
Other operating income | 868 | 732 | 1,091 | 18.6 | % | (20.4 | )% | |||||||||
Total noninterest income | $ | 1,757 | $ | 1,368 | $ | (2,894 | ) | 28.4 | % | 160.7 | % | |||||
Noninterest income for the third quarter of 2024 was
Relative to the third quarter of 2023, noninterest income increased
Noninterest Expense | |||||||||||||||
Three Months Ended | % Change September 30, 2024 vs. | ||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||||||||
(Dollars in thousands) | |||||||||||||||
Salaries and employee benefits | $ | 6,876 | $ | 6,112 | $ | 5,752 | 12.5 | % | 19.5 | % | |||||
Equipment and occupancy expenses | 814 | 667 | 718 | 22.0 | % | 13.4 | % | ||||||||
Data processing fees | 781 | 686 | 650 | 13.8 | % | 20.2 | % | ||||||||
Regulatory assessments | 414 | 375 | 322 | 10.4 | % | 28.6 | % | ||||||||
Professional fees related to ERC | — | — | (1,243 | ) | N/A | N/A | |||||||||
Merger-related expenses | 1,511 | — | — | N/A | N/A | ||||||||||
Other operating expenses | 3,291 | 3,571 | 2,370 | (7.8 | )% | 38.9 | % | ||||||||
Total noninterest expenses | $ | 13,687 | $ | 11,411 | $ | 8,569 | 19.9 | % | 59.7 | % | |||||
Noninterest expense for the third quarter of 2024 was
Relative to the third quarter of 2023, noninterest expense increased
Loans and Credit Quality | |||||||||||||||||
Three Months Ended | % Change September 30, 2024 vs. | ||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Gross loans | $ | 2,205,747 | $ | 2,021,877 | $ | 1,779,846 | 9.1 | % | 23.9 | % | |||||||
Unearned income | (6,536 | ) | (6,443 | ) | (5,698 | ) | 1.4 | % | 14.7 | % | |||||||
Loans, net of unearned income (“Loans”) | 2,199,211 | 2,015,434 | 1,774,148 | 9.1 | % | 24.0 | % | ||||||||||
Average loans, net of unearned (“Average loans”) | $ | 2,134,318 | $ | 1,987,533 | $ | 1,740,582 | 7.4 | % | 22.6 | % | |||||||
Nonperforming loans (“NPL”) | $ | 7,868 | $ | 3,784 | $ | 1,082 | 107.9 | % | 627.2 | % | |||||||
Provision for credit losses | $ | 2,583 | $ | 1,067 | $ | 773 | 142.1 | % | 234.2 | % | |||||||
Allowance for credit losses (“ACL”) | $ | 28,061 | $ | 25,828 | $ | 22,181 | 8.6 | % | 26.5 | % | |||||||
Net charge-offs (recoveries) | $ | 350 | $ | 383 | $ | (23 | ) | (8.6 | )% | 1621.7 | % | ||||||
NPL to gross loans | 0.36 | % | 0.19 | % | 0.06 | % | |||||||||||
Net charge-offs (recoveries) to average loans(1) | 0.07 | % | 0.08 | % | (0.01 | )% | |||||||||||
ACL to loans | 1.28 | % | 1.28 | % | 1.25 | % | |||||||||||
(1) Ratio is annualized. | |||||||||||||||||
Loans, net of unearned income, were
Nonperforming loans totaled
The Company recorded a provision for credit losses of
Net charge-offs for the third quarter of 2024 were
The Company’s allowance for credit losses was
Deposits | |||||||||||||||||
Three Months Ended | % Change September 30, 2024 vs. | ||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Noninterest-bearing deposits | $ | 546,282 | $ | 416,068 | $ | 418,125 | 31.3 | % | 30.7 | % | |||||||
Interest-bearing deposits | 1,874,264 | 1,759,610 | 1,498,276 | 6.5 | % | 25.1 | % | ||||||||||
Total deposits | $ | 2,420,546 | $ | 2,175,678 | $ | 1,916,401 | 11.3 | % | 26.3 | % | |||||||
Uninsured deposits | $ | 964,528 | $ | 645,283 | $ | 568,323 | 49.5 | % | 69.7 | % | |||||||
Uninsured deposits to total deposits | 39.85 | % | 29.66 | % | 29.66 | % | |||||||||||
Noninterest deposits to total deposits | 22.57 | % | 19.12 | % | 21.82 | % | |||||||||||
Total deposits were
Capital | |||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||
Company | Bank | Company | Bank | Company | Bank | ||||||||||||
Tier 1 capital ratio to average assets | 8.64 | % | 11.48 | % | 8.72 | % | 11.52 | % | 8.70 | % | 11.71 | % | |||||
Risk-based capital ratios: | |||||||||||||||||
Common equity tier 1 (“CET1”) capital ratio | 9.36 | % | 12.43 | % | 9.54 | % | 12.61 | % | 9.32 | % | 12.55 | % | |||||
Tier 1 capital ratio | 9.36 | % | 12.43 | % | 9.54 | % | 12.61 | % | 9.32 | % | 12.55 | % | |||||
Total capital ratio | 14.18 | % | 13.59 | % | 14.50 | % | 13.77 | % | 14.60 | % | 13.67 | % | |||||
As of September 30, 2024, total stockholders’ equity was
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 15 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. 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 | Nine Months Ended | ||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
Results of Operations | |||||||||||||||||||
Interest income | $ | 45,068 | $ | 41,007 | $ | 35,204 | $ | 124,811 | $ | 96,088 | |||||||||
Interest expense | 20,822 | 19,428 | 14,473 | 58,147 | 36,379 | ||||||||||||||
Net interest income | 24,246 | 21,579 | 20,731 | 66,664 | 59,709 | ||||||||||||||
Provision for credit losses | 2,583 | 1,067 | 773 | 4,885 | 3,511 | ||||||||||||||
Net interest income after provision | 21,663 | 20,512 | 19,958 | 61,779 | 56,198 | ||||||||||||||
Noninterest income | 1,757 | 1,368 | (2,894 | ) | 4,393 | 5,755 | |||||||||||||
Noninterest expense | 13,687 | 11,411 | 8,569 | 35,473 | 32,159 | ||||||||||||||
Income tax expense | 2,380 | 2,271 | 1,866 | 7,029 | 6,738 | ||||||||||||||
Net income | $ | 7,353 | $ | 8,198 | $ | 6,629 | $ | 23,670 | $ | 23,056 | |||||||||
Core net income(1) | $ | 8,675 | $ | 9,058 | $ | 9,563 | $ | 25,862 | $ | 23,901 | |||||||||
Share and Per Share Data | |||||||||||||||||||
Shares issued and outstanding | 9,882,350 | 8,908,130 | 8,834,168 | 9,882,350 | 8,834,168 | ||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 9,608,868 | 8,957,608 | 8,846,018 | 9,161,622 | 8,791,007 | ||||||||||||||
Diluted | 9,725,884 | 9,070,568 | 9,040,687 | 9,297,778 | 9,016,603 | ||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.76 | $ | 0.91 | $ | 0.75 | $ | 2.58 | $ | 2.62 | |||||||||
Diluted | 0.76 | 0.90 | 0.73 | 2.54 | 2.56 | ||||||||||||||
Core - diluted(1) | 0.89 | 1.00 | 1.06 | 2.78 | 2.65 | ||||||||||||||
Book value per share | 27.46 | 25.88 | 22.86 | 27.46 | 22.86 | ||||||||||||||
Tangible book value per share(1) | 23.38 | 23.91 | 20.84 | 23.38 | 20.84 | ||||||||||||||
Cash dividends per common share | 0.09 | 0.09 | 0.09 | 0.27 | 0.27 | ||||||||||||||
Performance and Financial Ratios | |||||||||||||||||||
ROAA | 1.05 | % | 1.29 | % | 1.15 | % | 1.22 | % | 1.41 | % | |||||||||
ROAE | 11.89 | % | 14.55 | % | 12.96 | % | 13.70 | % | 15.85 | % | |||||||||
Core ROAA(1) | 1.24 | % | 1.43 | % | 1.66 | % | 1.33 | % | 1.47 | % | |||||||||
ROATCE(1) | 13.35 | % | 15.79 | % | 14.21 | % | 15.05 | % | 17.47 | % | |||||||||
Core ROATCE(1) | 15.74 | % | 17.44 | % | 20.50 | % | 16.45 | % | 18.11 | % | |||||||||
NIM | 3.65 | % | 3.56 | % | 3.78 | % | 3.60 | % | 3.85 | % | |||||||||
NIM - FTE(1) | 3.66 | % | 3.57 | % | 3.79 | % | 3.61 | % | 3.87 | % | |||||||||
Net interest spread | 2.66 | % | 2.59 | % | 2.84 | % | 2.63 | % | 3.00 | % | |||||||||
Yield on loans | 7.21 | % | 7.17 | % | 6.86 | % | 7.15 | % | 6.62 | % | |||||||||
Yield on interest-earning assets | 6.78 | % | 6.76 | % | 6.42 | % | 6.74 | % | 6.20 | % | |||||||||
Cost of interest-bearing liabilities | 4.12 | % | 4.17 | % | 3.58 | % | 4.11 | % | 3.20 | % | |||||||||
Cost of funds(2) | 3.31 | % | 3.41 | % | 2.80 | % | 3.33 | % | 2.48 | % | |||||||||
Cost of interest-bearing deposits | 4.03 | % | 4.07 | % | 3.43 | % | 4.01 | % | 3.02 | % | |||||||||
Cost of total deposits | 3.19 | % | 3.27 | % | 2.63 | % | 3.20 | % | 2.29 | % | |||||||||
Noninterest deposits to total deposits | 22.57 | % | 19.12 | % | 21.82 | % | 22.57 | % | 21.82 | % | |||||||||
Core deposits to total deposits | 86.30 | % | 81.78 | % | 86.58 | % | 86.30 | % | 86.58 | % | |||||||||
Uninsured deposits to total deposits | 39.85 | % | 29.66 | % | 29.66 | % | 39.85 | % | 29.66 | % | |||||||||
Total loans to total deposits | 90.86 | % | 92.63 | % | 92.58 | % | 90.86 | % | 92.58 | % | |||||||||
Efficiency ratio | 52.79 | % | 49.78 | % | 48.01 | % | 49.98 | % | 49.47 | % | |||||||||
Core efficiency ratio(1) | 46.96 | % | 44.75 | % | 42.79 | % | 46.23 | % | 47.06 | % | |||||||||
(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 | Nine Months Ended | ||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
Financial Condition (ending) | |||||||||||||||||||
Total loans | $ | 2,199,211 | $ | 2,015,434 | $ | 1,774,148 | $ | 2,199,211 | $ | 1,774,148 | |||||||||
Total securities | 217,692 | 204,131 | 189,496 | 217,692 | 189,496 | ||||||||||||||
Total assets | 2,841,440 | 2,572,011 | 2,296,527 | 2,841,440 | 2,296,527 | ||||||||||||||
Total noninterest-bearing deposits | 546,282 | 416,068 | 418,125 | 546,282 | 418,125 | ||||||||||||||
Total core deposits(1) | 2,088,993 | 1,779,253 | 1,659,291 | 2,088,993 | 1,659,291 | ||||||||||||||
Total deposits | 2,420,546 | 2,175,678 | 1,916,401 | 2,420,546 | 1,916,401 | ||||||||||||||
Total borrowings | 121,083 | 136,873 | 146,573 | 121,083 | 146,573 | ||||||||||||||
Total liabilities | 2,570,070 | 2,341,430 | 2,094,603 | 2,570,070 | 2,094,603 | ||||||||||||||
Total shareholders’ equity | 271,370 | 230,581 | 201,924 | 271,370 | 201,924 | ||||||||||||||
Financial Condition (average) | |||||||||||||||||||
Total loans | $ | 2,134,318 | $ | 1,987,533 | $ | 1,740,582 | $ | 2,013,157 | $ | 1,676,134 | |||||||||
Total securities | 223,750 | 210,678 | 201,830 | 214,494 | 197,005 | ||||||||||||||
Total other interest-earning assets | 287,320 | 242,214 | 232,691 | 247,035 | 199,379 | ||||||||||||||
Total interest-earning assets | 2,645,388 | 2,440,425 | 2,175,103 | 2,474,686 | 2,072,518 | ||||||||||||||
Total assets | 2,777,215 | 2,553,010 | 2,282,217 | 2,593,175 | 2,180,851 | ||||||||||||||
Total noninterest-bearing deposits | 490,450 | 420,885 | 448,616 | 442,667 | 442,149 | ||||||||||||||
Total interest-bearing deposits | 1,874,861 | 1,729,682 | 1,472,024 | 1,746,420 | 1,395,529 | ||||||||||||||
Total deposits | 2,365,311 | 2,150,567 | 1,920,640 | 2,189,087 | 1,837,678 | ||||||||||||||
Total borrowings | 134,035 | 143,189 | 129,882 | 141,970 | 122,156 | ||||||||||||||
Total interest-bearing liabilities | 2,008,896 | 1,872,871 | 1,601,906 | 1,888,390 | 1,517,685 | ||||||||||||||
Total shareholders’ equity | 246,081 | 226,527 | 202,955 | 230,799 | 194,430 | ||||||||||||||
Asset Quality | |||||||||||||||||||
Nonperforming loans | $ | 7,868 | $ | 3,784 | $ | 1,082 | $ | 7,868 | $ | 1,082 | |||||||||
Other real estate owned (“OREO”) | $ | 33 | $ | 33 | $ | 2,903 | $ | 33 | $ | 2,903 | |||||||||
Nonperforming assets (“NPA”) | $ | 7,901 | $ | 3,817 | $ | 3,985 | $ | 7,901 | $ | 3,985 | |||||||||
Net charge-offs to average loans(2) | 0.07 | % | 0.08 | % | (0.01 | )% | 0.08 | % | 0.02 | % | |||||||||
Provision for credit losses to average loans(2) | 0.48 | % | 0.22 | % | 0.18 | % | 0.32 | % | 0.28 | % | |||||||||
ACL to loans | 1.28 | % | 1.28 | % | 1.25 | % | 1.28 | % | 1.25 | % | |||||||||
ACL to gross loans | 1.27 | % | 1.28 | % | 1.25 | % | 1.27 | % | 1.25 | % | |||||||||
ACL to NPL | 356.65 | % | 682.56 | % | 2050.00 | % | 356.65 | % | 2050.00 | % | |||||||||
NPL to loans | 0.36 | % | 0.19 | % | 0.06 | % | 0.36 | % | 0.06 | % | |||||||||
NPL to gross loans | 0.36 | % | 0.19 | % | 0.06 | % | 0.36 | % | 0.06 | % | |||||||||
NPA to gross loans and OREO | 0.36 | % | 0.19 | % | 0.22 | % | 0.36 | % | 0.22 | % | |||||||||
NPA to total assets | 0.28 | % | 0.15 | % | 0.17 | % | 0.28 | % | 0.17 | % | |||||||||
Regulatory and Other Capital Ratios | |||||||||||||||||||
Total shareholders’ equity to total assets | 9.55 | % | 8.97 | % | 8.79 | % | 9.55 | % | 8.79 | % | |||||||||
Tangible common equity to tangible assets(3) | 8.25 | % | 8.34 | % | 8.08 | % | 8.25 | % | 8.08 | % | |||||||||
Tier 1 capital ratio to average assets | 8.64 | % | 8.72 | % | 8.70 | % | 8.64 | % | 8.70 | % | |||||||||
Risk-based capital ratios: | |||||||||||||||||||
CET1 capital ratio | 9.36 | % | 9.54 | % | 9.32 | % | 9.36 | % | 9.32 | % | |||||||||
Tier 1 capital ratio | 9.36 | % | 9.54 | % | 9.32 | % | 9.36 | % | 9.32 | % | |||||||||
Total capital ratio | 14.18 | % | 14.50 | % | 14.60 | % | 14.18 | % | 14.60 | % | |||||||||
(1) We define core deposits as total deposits excluding brokered deposits and time deposits greater than
(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) | |||||||||||||||
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||
(Unaudited) | (Unaudited) | (Audited) | (Unaudited) | ||||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 24,225 | $ | 21,598 | $ | 19,710 | $ | 31,047 | |||||||
Interest-bearing deposits in banks | 182,559 | 140,440 | 134,846 | 103,646 | |||||||||||
Federal funds sold | 71,072 | 76,334 | 96,095 | 81,487 | |||||||||||
Total cash and cash equivalents | 277,856 | 238,372 | 250,651 | 216,180 | |||||||||||
Securities available for sale, at fair value | 198,076 | 184,510 | 179,000 | 169,859 | |||||||||||
Securities held to maturity, at amortized cost | 19,616 | 19,621 | 19,632 | 19,637 | |||||||||||
Other equity securities, at fair value | 3,733 | 3,658 | 3,649 | 3,654 | |||||||||||
Restricted equity securities, at cost | 4,418 | 4,633 | 5,684 | 4,971 | |||||||||||
Loans held for sale | 415 | 1,716 | 450 | 1,799 | |||||||||||
Loans, net of unearned income | 2,199,211 | 2,015,434 | 1,884,508 | 1,774,148 | |||||||||||
Less allowance for credit losses | 28,061 | 25,828 | 24,378 | 22,181 | |||||||||||
Loans, net | 2,171,150 | 1,989,606 | 1,860,130 | 1,751,967 | |||||||||||
Premises and equipment, net | 32,319 | 26,192 | 26,426 | 26,694 | |||||||||||
Accrued interest receivable | 10,114 | 9,654 | 8,711 | 8,321 | |||||||||||
Bank owned life insurance | 39,159 | 33,000 | 29,884 | 29,697 | |||||||||||
Annuities | 16,843 | 15,918 | 15,036 | 15,266 | |||||||||||
Foreclosed assets | 33 | 33 | 33 | 2,903 | |||||||||||
Goodwill | 30,980 | 16,862 | 16,862 | 16,862 | |||||||||||
Core deposit intangible | 9,338 | 735 | 899 | 981 | |||||||||||
Other assets | 27,390 | 27,501 | 29,616 | 27,736 | |||||||||||
Total assets | $ | 2,841,440 | $ | 2,572,011 | $ | 2,446,663 | $ | 2,296,527 | |||||||
Liabilities and Stockholders' Equity | |||||||||||||||
Liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing | $ | 546,282 | $ | 416,068 | $ | 437,959 | $ | 418,125 | |||||||
Interest-bearing | 1,874,264 | 1,759,610 | 1,580,230 | 1,498,276 | |||||||||||
Total deposits | 2,420,546 | 2,175,678 | 2,018,189 | 1,916,401 | |||||||||||
Other borrowings | 7,976 | 8,000 | 26,994 | 4,991 | |||||||||||
FHLB advances | 22,000 | 42,000 | 70,000 | 55,000 | |||||||||||
Subordinated notes | 91,107 | 86,873 | 86,679 | 86,582 | |||||||||||
Accrued interest payable | 2,214 | 2,024 | 1,519 | 1,280 | |||||||||||
Other liabilities | 26,227 | 26,855 | 28,318 | 30,349 | |||||||||||
Total liabilities | 2,570,070 | 2,341,430 | 2,231,699 | 2,094,603 | |||||||||||
Stockholders' equity: | |||||||||||||||
Common stock | 49,684 | 44,813 | 44,479 | 44,307 | |||||||||||
Capital surplus | 106,046 | 79,248 | 78,361 | 77,671 | |||||||||||
Retained earnings | 123,783 | 117,233 | 102,523 | 94,429 | |||||||||||
Accumulated other comprehensive loss | (5,866 | ) | (8,333 | ) | (8,379 | ) | (13,126 | ) | |||||||
Unvested restricted stock | (723 | ) | (826 | ) | (466 | ) | (580 | ) | |||||||
Vested restricted stock units | (1,554 | ) | (1,554 | ) | (1,554 | ) | (777 | ) | |||||||
Total stockholders' equity | 271,370 | 230,581 | 214,964 | 201,924 | |||||||||||
Total liabilities and stockholders' equity | $ | 2,841,440 | $ | 2,572,011 | $ | 2,446,663 | $ | 2,296,527 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ | 38,690 | $ | 35,421 | $ | 30,084 | $ | 107,739 | $ | 83,049 | ||||||
Taxable securities | 2,205 | 2,039 | 1,796 | 6,225 | 4,819 | |||||||||||
Nontaxable securities | 243 | 231 | 227 | 704 | 747 | |||||||||||
Other interest and dividends | 3,930 | 3,316 | 3,097 | 10,143 | 7,473 | |||||||||||
Total interest income | 45,068 | 41,007 | 35,204 | 124,811 | 96,088 | |||||||||||
Interest expense: | ||||||||||||||||
Deposits | 18,990 | 17,511 | 12,732 | 52,407 | 31,498 | |||||||||||
Other borrowings | 1,832 | 1,917 | 1,741 | 5,740 | 4,881 | |||||||||||
Total interest expense | 20,822 | 19,428 | 14,473 | 58,147 | 36,379 | |||||||||||
Net interest income | 24,246 | 21,579 | 20,731 | 66,664 | 59,709 | |||||||||||
Provision for credit losses | 2,583 | 1,067 | 773 | 4,885 | 3,511 | |||||||||||
Net interest income after provision for credit losses | 21,663 | 20,512 | 19,958 | 61,779 | 56,198 | |||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 532 | 462 | 442 | 1,458 | 1,348 | |||||||||||
Swap (expenses) fees | (9 | ) | 4 | 453 | 10 | 622 | ||||||||||
SBA/USDA fees | 179 | 58 | 74 | 302 | 274 | |||||||||||
Mortgage origination fees | 112 | 92 | 158 | 300 | 446 | |||||||||||
Net gain (loss) on securities | 75 | 20 | (12 | ) | 83 | 457 | ||||||||||
Employee retention credit and related revenue | — | — | (5,100 | ) | — | — | ||||||||||
Other operating income | 868 | 732 | 1,091 | 2,240 | 2,608 | |||||||||||
Total noninterest income | 1,757 | 1,368 | (2,894 | ) | 4,393 | 5,755 | ||||||||||
Noninterest expenses: | ||||||||||||||||
Salaries and employee benefits | 6,876 | 6,112 | 5,752 | 19,219 | 19,926 | |||||||||||
Equipment and occupancy expenses | 814 | 667 | 718 | 2,170 | 2,095 | |||||||||||
Data processing fees | 781 | 686 | 650 | 2,110 | 1,889 | |||||||||||
Regulatory assessments | 414 | 375 | 322 | 1,149 | 844 | |||||||||||
Professional fees related to ERC | — | — | (1,243 | ) | — | — | ||||||||||
Merger-related expenses | 1,511 | — | — | 1,511 | — | |||||||||||
Other operating expenses | 3,291 | 3,571 | 2,370 | 9,314 | 7,405 | |||||||||||
Total noninterest expenses | 13,687 | 11,411 | 8,569 | 35,473 | 32,159 | |||||||||||
Income before income taxes | 9,733 | 10,469 | 8,495 | 30,699 | 29,794 | |||||||||||
Income tax expense | 2,380 | 2,271 | 1,866 | 7,029 | 6,738 | |||||||||||
Net income | $ | 7,353 | $ | 8,198 | $ | 6,629 | $ | 23,670 | $ | 23,056 | ||||||
Basic earnings per share | $ | 0.76 | $ | 0.91 | $ | 0.75 | $ | 2.58 | $ | 2.62 | ||||||
Diluted earnings per share | $ | 0.76 | $ | 0.90 | $ | 0.73 | $ | 2.54 | $ | 2.56 |
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 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) | $ | 2,134,318 | $ | 38,690 | 7.21 | % | $ | 1,987,533 | $ | 35,421 | 7.17 | % | $ | 1,740,582 | $ | 30,084 | 6.86 | % | |||||||||||
Taxable securities | 177,164 | 2,205 | 4.95 | % | 165,141 | 2,039 | 4.97 | % | 156,364 | 1,796 | 4.56 | % | |||||||||||||||||
Nontaxable securities | 46,586 | 243 | 2.08 | % | 45,537 | 231 | 2.04 | % | 45,466 | 227 | 1.98 | % | |||||||||||||||||
Other interest-earnings assets | 287,320 | 3,930 | 5.44 | % | 242,214 | 3,316 | 5.51 | % | 232,691 | 3,097 | 5.28 | % | |||||||||||||||||
Total interest-earning assets | $ | 2,645,388 | $ | 45,068 | 6.78 | % | $ | 2,440,425 | $ | 41,007 | 6.76 | % | $ | 2,175,103 | $ | 35,204 | 6.42 | % | |||||||||||
Allowance for credit losses | (27,253 | ) | (25,332 | ) | (21,606 | ) | |||||||||||||||||||||||
Noninterest-earning assets | 159,080 | 137,917 | 128,720 | ||||||||||||||||||||||||||
Total Assets | $ | 2,777,215 | $ | 2,553,010 | $ | 2,282,217 | |||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Interest-bearing transaction accounts | 95,040 | 30 | 0.13 | % | 85,976 | 21 | 0.10 | % | 88,668 | 20 | 0.09 | % | |||||||||||||||||
Savings and money market accounts | 1,042,661 | 10,264 | 3.92 | % | 929,930 | 9,229 | 3.99 | % | 867,066 | 7,767 | 3.55 | % | |||||||||||||||||
Time deposits | 737,160 | 8,696 | 4.69 | % | 713,776 | 8,261 | 4.65 | % | 516,290 | 4,945 | 3.80 | % | |||||||||||||||||
FHLB advances | 36,130 | 455 | 5.01 | % | 48,374 | 596 | 4.96 | % | 43,261 | 514 | 4.72 | % | |||||||||||||||||
Other borrowings | 97,905 | 1,377 | 5.59 | % | 94,815 | 1,321 | 5.60 | % | 86,621 | 1,227 | 5.62 | % | |||||||||||||||||
Total interest-bearing liabilities | $ | 2,008,896 | $ | 20,822 | 4.12 | % | $ | 1,872,871 | $ | 19,428 | 4.17 | % | $ | 1,601,906 | $ | 14,473 | 3.58 | % | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 490,450 | $ | 420,885 | $ | 448,616 | |||||||||||||||||||||||
Other liabilities | 31,788 | 32,727 | 28,740 | ||||||||||||||||||||||||||
Total noninterest-bearing liabilities | $ | 522,238 | $ | 453,612 | $ | 477,356 | |||||||||||||||||||||||
Stockholders’ Equity | 246,081 | 226,527 | 202,955 | ||||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,777,215 | $ | 2,553,010 | $ | 2,282,217 | |||||||||||||||||||||||
Net interest income | $ | 24,246 | $ | 21,579 | $ | 20,731 | |||||||||||||||||||||||
Net interest spread(2) | 2.66 | % | 2.59 | % | 2.84 | % | |||||||||||||||||||||||
Net interest margin(3) | 3.65 | % | 3.56 | % | 3.78 | % | |||||||||||||||||||||||
Net interest margin - FTE(4)(5) | 3.66 | % | 3.57 | % | 3.79 | % | |||||||||||||||||||||||
Cost of funds(6) | 3.31 | % | 3.41 | % | 2.80 | % | |||||||||||||||||||||||
Cost of interest-bearing deposits | 4.03 | % | 4.07 | % | 3.43 | % | |||||||||||||||||||||||
Cost of total deposits | 3.19 | % | 3.27 | % | 2.63 | % |
(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
(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) | |||||||||||||||||||
Nine Months Ended | |||||||||||||||||||
September 30, 2024 | September 30, 2023 | ||||||||||||||||||
Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans, net of unearned income(1) | $ | 2,013,157 | $ | 107,739 | 7.15 | % | $ | 1,676,134 | $ | 83,049 | 6.62 | % | |||||||
Taxable securities | 168,661 | 6,225 | 4.93 | % | 149,058 | 4,819 | 4.32 | % | |||||||||||
Nontaxable securities | 45,833 | 704 | 2.05 | % | 47,947 | 747 | 2.08 | % | |||||||||||
Other interest-earnings assets | 247,035 | 10,143 | 5.48 | % | 199,379 | 7,473 | 5.01 | % | |||||||||||
Total interest-earning assets | $ | 2,474,686 | $ | 124,811 | 6.74 | % | $ | 2,072,518 | $ | 96,088 | 6.20 | % | |||||||
Allowance for credit losses | (25,638 | ) | (20,750 | ) | |||||||||||||||
Noninterest-earning assets | 144,127 | 129,083 | |||||||||||||||||
Total Assets | $ | 2,593,175 | $ | 2,180,851 | |||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction accounts | 88,980 | 78 | 0.12 | % | 91,602 | 59 | 0.09 | % | |||||||||||
Savings and money market accounts | 958,625 | 28,296 | 3.94 | % | 839,827 | 19,679 | 3.13 | % | |||||||||||
Time deposits | 698,815 | 24,033 | 4.59 | % | 464,100 | 11,760 | 3.39 | % | |||||||||||
FHLB advances | 45,840 | 1,706 | 4.97 | % | 35,703 | 1,202 | 4.50 | % | |||||||||||
Other borrowings | 96,130 | 4,034 | 5.60 | % | 86,453 | 3,679 | 5.69 | % | |||||||||||
Total interest-bearing liabilities | $ | 1,888,390 | $ | 58,147 | 4.11 | % | $ | 1,517,685 | $ | 36,379 | 3.20 | % | |||||||
Noninterest-bearing liabilities: | |||||||||||||||||||
Noninterest-bearing deposits | $ | 442,667 | $ | 442,149 | |||||||||||||||
Other liabilities | 31,319 | 26,587 | |||||||||||||||||
Total noninterest-bearing liabilities | $ | 473,986 | $ | 468,736 | |||||||||||||||
Stockholders’ Equity | 230,799 | 194,430 | |||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,593,175 | $ | 2,180,851 | |||||||||||||||
Net interest income | $ | 66,664 | $ | 59,709 | |||||||||||||||
Net interest spread(2) | 2.63 | % | 3.00 | % | |||||||||||||||
Net interest margin(3) | 3.60 | % | 3.85 | % | |||||||||||||||
Net interest margin - FTE(4)(5) | 3.61 | % | 3.87 | % | |||||||||||||||
Cost of funds(6) | 3.33 | % | 2.48 | % | |||||||||||||||
Cost of interest-bearing deposits | 4.01 | % | 3.02 | % | |||||||||||||||
Cost of total deposits | 3.20 | % | 2.29 | % |
(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
(5) Refer to “Reconciliation of Non-GAAP Financial Measures”.
(6) Includes total interest-bearing liabilities and noninterest deposits.
LOAN COMPOSITION | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||||||||||
Amount | % of gross | Amount | % of gross | Amount | % of gross | Amount | % of gross | ||||||||||||||||||||
Real estate mortgages: | |||||||||||||||||||||||||||
Construction and development | $ | 245,275 | 11.1 | % | $ | 242,573 | 12.0 | % | $ | 242,960 | 12.9 | % | $ | 229,188 | 12.9 | % | |||||||||||
Residential | 293,150 | 13.3 | % | 249,498 | 12.3 | % | 224,603 | 11.9 | % | 224,499 | 12.6 | % | |||||||||||||||
Commercial | 1,344,554 | 61.0 | % | 1,222,739 | 60.5 | % | 1,144,867 | 60.5 | % | 1,049,545 | 59.0 | % | |||||||||||||||
Commercial and industrial | 310,540 | 14.1 | % | 297,501 | 14.7 | % | 269,961 | 14.3 | % | 268,283 | 15.0 | % | |||||||||||||||
Consumer and other | 12,228 | 0.5 | % | 9,566 | 0.5 | % | 8,286 | 0.4 | % | 8,331 | 0.5 | % | |||||||||||||||
Gross loans | 2,205,747 | 100.0 | % | 2,021,877 | 100.0 | % | 1,890,677 | 100.0 | % | 1,779,846 | 100.0 | % | |||||||||||||||
Unearned income | (6,536 | ) | (6,443 | ) | (6,169 | ) | (5,698 | ) | |||||||||||||||||||
Loans, net of unearned income | 2,199,211 | 2,015,434 | 1,884,508 | 1,774,148 | |||||||||||||||||||||||
Allowance for credit losses | (28,061 | ) | (25,828 | ) | (24,378 | ) | (22,181 | ) | |||||||||||||||||||
Loans, net | $ | 2,171,150 | $ | 1,989,606 | $ | 1,860,130 | $ | 1,751,967 |
DEPOSIT COMPOSITION | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||||||
Amount | % of total | Amount | % of total | Amount | % of total | Amount | % of total | ||||||||||||||||
Noninterest-bearing transaction | $ | 546,282 | 22.5 | % | $ | 416,068 | 19.1 | % | $ | 437,959 | 21.7 | % | $ | 418,125 | 21.8 | % | |||||||
Interest-bearing transaction | 1,124,706 | 46.5 | % | 1,006,687 | 46.3 | % | 946,347 | 46.9 | % | 934,383 | 48.8 | % | |||||||||||
Savings | 53,565 | 2.2 | % | 32,527 | 1.5 | % | 35,412 | 1.7 | % | 38,518 | 2.0 | % | |||||||||||
Time deposits, | 558,600 | 23.1 | % | 612,299 | 28.1 | % | 500,406 | 24.8 | % | 436,613 | 22.8 | % | |||||||||||
Time deposits, over | 137,393 | 5.7 | % | 108,097 | 5.0 | % | 98,065 | 4.9 | % | 88,762 | 4.6 | % | |||||||||||
Total deposits | $ | 2,420,546 | 100.0 | % | $ | 2,175,678 | 100.0 | % | $ | 2,018,189 | 100.0 | % | $ | 1,916,401 | 100.0 | % |
Nonperforming Assets | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||
Nonaccrual loans | $ | 7,803 | $ | 3,784 | $ | 1,017 | $ | 1,082 | |||||||
Past due loans 90 days or more and still accruing interest | 65 | — | 160 | — | |||||||||||
Total nonperforming loans | 7,868 | 3,784 | 1,177 | 1,082 | |||||||||||
OREO | 33 | 33 | 33 | 2,903 | |||||||||||
Total nonperforming assets | $ | 7,901 | $ | 3,817 | $ | 1,210 | $ | 3,985 | |||||||
Financial difficulty modification loans – nonaccrual(1) | 622 | 647 | 907 | 970 | |||||||||||
Financial difficulty modification loans – accruing | 1,071 | 1,093 | 1,095 | 1,052 | |||||||||||
Financial difficulty modification loans | $ | 1,693 | $ | 1,740 | $ | 2,002 | $ | 2,022 | |||||||
Allowance for credit losses | $ | 28,061 | $ | 25,828 | $ | 24,378 | $ | 22,181 | |||||||
Loans, net of unearned income at the end of the period | $ | 2,199,211 | $ | 2,015,434 | $ | 1,884,508 | $ | 1,774,148 | |||||||
Gross loans outstanding at the end of period | $ | 2,205,747 | $ | 2,021,877 | $ | 1,890,677 | $ | 1,779,846 | |||||||
Total assets | $ | 2,841,440 | $ | 2,572,011 | $ | 2,446,663 | $ | 2,296,527 | |||||||
Allowance for credit losses to nonperforming loans | 356.65 | % | 682.56 | % | 2071.20 | % | 2050.00 | % | |||||||
Nonperforming loans to loans, net of unearned income | 0.36 | % | 0.19 | % | 0.06 | % | 0.06 | % | |||||||
Nonperforming loans to gross loans | 0.36 | % | 0.19 | % | 0.06 | % | 0.06 | % | |||||||
Nonperforming assets to gross loans and OREO | 0.36 | % | 0.19 | % | 0.06 | % | 0.22 | % | |||||||
Nonperforming assets to total assets | 0.28 | % | 0.15 | % | 0.05 | % | 0.17 | % | |||||||
Nonaccrual loans by category: | |||||||||||||||
Real estate mortgages: | |||||||||||||||
Construction & Development | $ | — | $ | — | $ | — | $ | — | |||||||
Residential Mortgages | 522 | 393 | 252 | 289 | |||||||||||
Commercial Real Estate Mortgages | 2,155 | 2,182 | 765 | 785 | |||||||||||
Commercial & Industrial | 5,126 | 1,209 | — | 8 | |||||||||||
Consumer and other | — | — | — | — | |||||||||||
Total | $ | 7,803 | $ | 3,784 | $ | 1,017 | $ | 1,082 |
(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 | Nine Months Ended | ||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
Average loans, net of unearned income | $ | 2,134,318 | $ | 1,987,533 | $ | 1,740,582 | $ | 2,013,157 | $ | 1,676,134 | |||||||||
Loans, net of unearned income | 2,199,211 | 2,015,434 | 1,774,148 | 2,199,211 | 1,774,148 | ||||||||||||||
Gross loans | 2,205,747 | 2,021,877 | 1,779,846 | 2,205,747 | 1,779,846 | ||||||||||||||
Allowance for credit losses at beginning of the period | 25,828 | 25,144 | 21,385 | 24,378 | 20,156 | ||||||||||||||
Impact of adoption of ASC 326 | — | — | — | — | (1,285 | ) | |||||||||||||
Charge-offs: | |||||||||||||||||||
Construction and development | — | — | 3 | — | 3 | ||||||||||||||
Residential | — | — | — | 11 | — | ||||||||||||||
Commercial | 119 | 11 | — | 157 | — | ||||||||||||||
Commercial and industrial | 384 | 384 | — | 1,210 | 262 | ||||||||||||||
Consumer and other | — | 10 | — | 25 | 6 | ||||||||||||||
Total charge-offs | 503 | 405 | 3 | 1,403 | 271 | ||||||||||||||
Recoveries: | |||||||||||||||||||
Construction and development | — | — | — | — | — | ||||||||||||||
Residential | 13 | 6 | 10 | 27 | 38 | ||||||||||||||
Commercial | — | — | — | — | — | ||||||||||||||
Commercial and industrial | 139 | 15 | — | 171 | 14 | ||||||||||||||
Consumer and other | 1 | 1 | 16 | 3 | 18 | ||||||||||||||
Total recoveries | 153 | 22 | 26 | 201 | 70 | ||||||||||||||
Net charge-offs (recoveries) | $ | 350 | $ | 383 | $ | (23 | ) | $ | 1,202 | $ | 201 | ||||||||
Provision for credit losses | $ | 2,583 | $ | 1,067 | $ | 773 | $ | 4,885 | $ | 3,511 | |||||||||
Balance at end of the period | $ | 28,061 | $ | 25,828 | $ | 22,181 | $ | 28,061 | $ | 22,181 | |||||||||
Allowance for credit losses on unfunded commitments at beginning of the period | $ | 1,206 | $ | 1,288 | $ | 1,495 | $ | 1,239 | $ | — | |||||||||
Impact of adoption of ASC 326 | — | — | — | — | 1,285 | ||||||||||||||
Day 2 impact from acquisition | 199 | — | — | 199 | — | ||||||||||||||
(Credit) provision for credit losses on unfunded commitments | — | (82 | ) | 29 | (33 | ) | 239 | ||||||||||||
Balance at the end of the period | $ | 1,405 | $ | 1,206 | $ | 1,524 | $ | 1,405 | $ | 1,524 | |||||||||
Allowance to loans, net of unearned income | 1.28 | % | 1.28 | % | 1.25 | % | 1.28 | % | 1.25 | % | |||||||||
Allowance to gross loans | 1.27 | % | 1.28 | % | 1.25 | % | 1.27 | % | 1.25 | % | |||||||||
Net charge-offs (recoveries) to average loans, net of unearned income(1) | 0.07 | % | 0.08 | % | (0.01) % | 0.08 | % | 0.02 | % | ||||||||||
Provision for credit losses to average loans, net of unearned income(1) | 0.48 | % | 0.22 | % | 0.18 | % | 0.32 | % | 0.28 | % |
(1) Ratio is annualized.
Reconciliation of Non-GAAP Financial Measures
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 | Nine Months Ended | ||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
Net income | $ | 7,353 | $ | 8,198 | $ | 6,629 | $ | 23,670 | $ | 23,056 | |||||||||
Add: One-time retirement related expenses | — | — | — | — | 1,571 | ||||||||||||||
Add: Professional fees related to ERC | — | — | (1,243 | ) | — | — | |||||||||||||
Add: Wire fraud loss | — | 1,155 | — | 1,155 | — | ||||||||||||||
Add: Merger-related expenses | 1,511 | — | — | 1,511 | — | ||||||||||||||
Add: Net OREO gain | — | (3 | ) | (9 | ) | (3 | ) | (2 | ) | ||||||||||
Less: Employee retention related revenue | — | — | (5,100 | ) | — | — | |||||||||||||
Less: Net gain (loss) on securities | 75 | 20 | (12 | ) | 83 | 457 | |||||||||||||
Less: Tax effect | 114 | 272 | 926 | 388 | 267 | ||||||||||||||
Core net income | $ | 8,675 | $ | 9,058 | $ | 9,563 | $ | 25,862 | $ | 23,901 | |||||||||
Average assets | $ | 2,777,215 | $ | 2,553,010 | $ | 2,282,217 | $ | 2,593,175 | $ | 2,180,851 | |||||||||
Core return on average assets | 1.24 | % | 1.43 | % | 1.66 | % | 1.33 | % | 1.47 | % | |||||||||
Net income | $ | 7,353 | $ | 8,198 | $ | 6,629 | $ | 23,670 | $ | 23,056 | |||||||||
Add: One-time retirement related expenses | — | — | — | — | 1,571 | ||||||||||||||
Add: Professional fees related to ERC | — | — | (1,243 | ) | — | — | |||||||||||||
Add: Wire fraud loss | — | 1,155 | — | 1,155 | — | ||||||||||||||
Add: Merger-related expenses | 1,511 | — | — | 1,511 | — | ||||||||||||||
Add: Net OREO gain | — | (3 | ) | (9 | ) | (3 | ) | (2 | ) | ||||||||||
Add: Provision | 2,583 | 1,067 | 773 | 4,885 | 3,511 | ||||||||||||||
Less: Employee retention related revenue | — | — | (5,100 | ) | — | — | |||||||||||||
Less: Net gain (loss) on securities | 75 | 20 | (12 | ) | 83 | 457 | |||||||||||||
Add: Income taxes | 2,380 | 2,271 | 1,866 | 7,029 | 6,738 | ||||||||||||||
Pretax pre-provision core net income | $ | 13,752 | $ | 12,668 | $ | 13,128 | $ | 38,164 | $ | 34,417 | |||||||||
Average assets | $ | 2,777,215 | $ | 2,553,010 | $ | 2,282,217 | $ | 2,593,175 | $ | 2,180,851 | |||||||||
Pretax pre-provision core return on average assets | 1.97 | % | 2.00 | % | 2.28 | % | 1.97 | % | 2.11 | % | |||||||||
Net interest income | $ | 24,246 | $ | 21,579 | $ | 20,731 | $ | 66,664 | $ | 59,709 | |||||||||
Add: Fully-taxable equivalent adjustments(1) | 75 | 73 | 70 | 222 | 213 | ||||||||||||||
Net interest income - FTE | $ | 24,321 | $ | 21,652 | $ | 20,801 | $ | 66,886 | $ | 59,922 | |||||||||
Net interest margin | 3.65 | % | 3.56 | % | 3.78 | % | 3.60 | % | 3.85 | % | |||||||||
Effect of fully-taxable equivalent adjustments(1) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | |||||||||
Net interest margin - FTE | 3.66 | % | 3.57 | % | 3.79 | % | 3.61 | % | 3.87 | % | |||||||||
Total stockholders' equity | $ | 271,370 | $ | 230,581 | $ | 201,924 | $ | 271,370 | $ | 201,924 | |||||||||
Less: Intangible assets | 40,318 | 17,597 | 17,843 | 40,318 | 17,843 | ||||||||||||||
Tangible common equity | $ | 231,052 | $ | 212,984 | $ | 184,081 | $ | 231,052 | $ | 184,081 | |||||||||
(1) Assumes a | |||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
(Dollars in thousands, except share and per share amounts) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
Core net income | $ | 8,675 | $ | 9,058 | $ | 9,563 | $ | 25,862 | $ | 23,901 | |||||||||
Diluted weighted average shares outstanding | 9,725,884 | 9,070,568 | 9,040,687 | 9,297,778 | 9,016,603 | ||||||||||||||
Diluted core earnings per share | $ | 0.89 | $ | 1.00 | $ | 1.06 | $ | 2.78 | $ | 2.65 | |||||||||
Common shares outstanding at year or period end | 9,882,350 | 8,908,130 | 8,834,168 | 9,882,350 | 8,834,168 | ||||||||||||||
Tangible book value per share | $ | 23.38 | $ | 23.91 | $ | 20.84 | $ | 23.38 | $ | 20.84 | |||||||||
Total assets at end of period | $ | 2,841,440 | $ | 2,572,011 | $ | 2,296,527 | $ | 2,841,440 | $ | 2,296,527 | |||||||||
Less: Intangible assets | 40,318 | 17,597 | 17,843 | 40,318 | 17,843 | ||||||||||||||
Adjusted assets at end of period | $ | 2,801,122 | $ | 2,554,414 | $ | 2,278,684 | $ | 2,801,122 | $ | 2,278,684 | |||||||||
Tangible common equity to tangible assets | 8.25 | % | 8.34 | % | 8.08 | % | 8.25 | % | 8.08 | % | |||||||||
Total average shareholders equity | $ | 246,081 | $ | 226,527 | $ | 202,955 | $ | 230,799 | $ | 194,430 | |||||||||
Less: Average intangible assets | 26,884 | 17,646 | 17,893 | 20,776 | 17,973 | ||||||||||||||
Average tangible common equity | $ | 219,197 | $ | 208,881 | $ | 185,062 | $ | 210,023 | $ | 176,457 | |||||||||
Net income to common shareholders | $ | 7,353 | $ | 8,198 | $ | 6,629 | $ | 23,670 | $ | 23,056 | |||||||||
Return on average tangible common equity | 13.35 | % | 15.79 | % | 14.21 | % | 15.05 | % | 17.47 | % | |||||||||
Average tangible common equity | $ | 219,197 | $ | 208,881 | $ | 185,062 | $ | 210,023 | $ | 176,457 | |||||||||
Core net income | $ | 8,675 | $ | 9,058 | $ | 9,563 | $ | 25,862 | $ | 23,901 | |||||||||
Core return on average tangible common equity | 15.74 | % | 17.44 | % | 20.50 | % | 16.45 | % | 18.11 | % | |||||||||
Net interest income | $ | 24,246 | $ | 21,579 | $ | 20,731 | $ | 66,664 | $ | 59,709 | |||||||||
Add: Noninterest income | 1,757 | 1,368 | (2,894 | ) | 4,393 | 5,755 | |||||||||||||
Less: Employee retention related revenue | — | — | (5,100 | ) | — | — | |||||||||||||
Less: Net gain (loss) on securities | 75 | 20 | (12 | ) | 83 | 457 | |||||||||||||
Operating revenue | $ | 25,928 | $ | 22,927 | $ | 22,949 | $ | 70,974 | $ | 65,007 | |||||||||
Expenses: | |||||||||||||||||||
Total noninterest expense | $ | 13,687 | $ | 11,411 | $ | 8,569 | $ | 35,473 | $ | 32,159 | |||||||||
Less: One-time retirement related expenses | — | — | — | — | 1,571 | ||||||||||||||
Less: Professional fees related to ERC | — | — | (1,243 | ) | — | — | |||||||||||||
Less: Wire fraud loss | — | 1,155 | — | 1,155 | — | ||||||||||||||
Less: Merger-related expenses | 1,511 | — | — | 1,511 | — | ||||||||||||||
Less: Net OREO gain | — | (3 | ) | (9 | ) | (3 | ) | (2 | ) | ||||||||||
Adjusted noninterest expenses | $ | 12,176 | $ | 10,259 | $ | 9,821 | $ | 32,810 | $ | 30,590 | |||||||||
Core efficiency ratio | 46.96 | % | 44.75 | % | 42.79 | % | 46.23 | % | 47.06 | % |
FAQ
What was Southern States Bancshares' net income for Q3 2024?
How much did Southern States Bancshares' net interest income increase in Q3 2024?
What was the net interest margin for Southern States Bancshares in Q3 2024?
How much did Southern States Bancshares' loans grow in Q3 2024?