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

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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.

Positive
  • 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.
Negative
  • 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 $1.5 million impacted earnings. The bank's credit quality remains solid, with an allowance for credit losses at 1.28% of total loans. Capital ratios remain strong, with CET1 at 9.36%. Overall, SSBK demonstrated robust growth and improved margins, positioning it well for future performance.

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 up 24.0% and deposits up 26.3%
  • 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”) of 11.89%; and return on average tangible common equity (“ROATCE”)(1) of 13.35%
  • Core ROAA(1) of 1.24%; and core ROATCE(1) of 15.74%
  • Efficiency ratio of 52.79%; and core efficiency ratio of 46.96%
  • Linked-quarter loans grew 36.3% annualized; and legacy loans grew 10.3% 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 grew 9.6% 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 $7.4 million, or $0.76 diluted earnings per share, for the third quarter of 2024. This compares to net income of $8.2 million, or $0.90 diluted earnings per share, for the second quarter of 2024, and net income of $6.6 million, or $0.73 diluted earnings per share, for the third quarter of 2023. The Company reported core net income of $8.7 million, or $0.89 diluted core earnings per share, for the third quarter of 2024. This compares to core net income of $9.1 million, or $1.00 diluted core earnings per share, for the second quarter of 2024, and core net income of $9.6 million, or $1.06 diluted core earnings per share, for the third quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures”).

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 12.4% to $24.2 million for the quarter largely reflecting the contribution from Century Bank. Net interest margin also increased 9 basis points to 3.65% from 3.56% quarter-over-quarter, which further reflects Century Bank’s contribution.”
“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 $24.2 million, an increase of 12.4% from $21.6 million in the second quarter of 2024. The increase was substantially due to the acquisition of Century Bank.

Relative to the third quarter of 2023, net interest income increased $3.5 million, or 17.0%. The increase was mainly driven by significant growth, partially as a result of the acquisition of Century Bank, which offset the decline in net interest margin.

Net interest margin for the third quarter of 2024 was 3.65%, compared to 3.56% for the second quarter of 2024. The increase was primarily due to a slight increase in the yield on interest-earning assets, coupled with a decrease in the cost of interest-bearing deposits. The acquisition of Century Bank had a positive impact and helped lift the margin for third quarter of 2024.

Relative to the third quarter of 2023, net interest margin decreased from 3.78%. 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. The acquisition of Century Bank resulted in a positive impact to the net interest margin, effectively helping to reduce the cost of interest-bearing liabilities.

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 $1.8 million, an increase of 28.4% from $1.4 million in the second quarter of 2024. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest income during the third quarter of 2024. Apart from the acquisition, the increase was also due to increased SBA/USDA fees primarily resulting from the sales of loans during the third quarter of 2024, along with a larger realized net gain on securities during the third quarter of 2024 compared to the second quarter of 2023.

Relative to the third quarter of 2023, noninterest income increased 160.7% from a noninterest net expense of $2.9 million. The third quarter of 2023 included a $5.1 million payment to the Internal Revenue Service (“IRS”) for the return of the ERC, which was received during the second quarter of 2023. The IRS revised eligibility guidelines during the third quarter of 2023, and the Company applied for the Voluntary Disclosure Program and removed this from income and recorded a payable. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest income during the third quarter of 2024. The increase was partially offset by a decline in swap fees during the third quarter of 2024, substantially as a result of the Company not participating in any swap transactions.

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 $13.7 million, an increase of 19.9% from $11.4 million in the second quarter of 2024. The acquisition of Century Bank on July 31, 2024 resulted in merger-related expenses of $1.5 million, of which $961,000 was not deductible for taxes. Also there were additional noninterest expenses related to Century Bank during the third quarter of 2024, primarily in salaries and employee benefits. The acquisition also gave rise to a $106,000 increase in amortization expense associated with the core deposit intangible. Also included in the third quarter of 2024 was approximately $250,000 in expenses associated with calling brokered deposits and collection expenses related to a problem loan.

Relative to the third quarter of 2023, noninterest expense increased 59.7% from $8.6 million. The acquisition of Century Bank on July 31, 2024 resulted in merger-related expenses of $1.5 million, along with additional noninterest expense during the third quarter of 2024. Salaries and employee benefits increased as a result of the acquisition and from a legacy standpoint. The third quarter of 2023 included a $1.2 million refund of professional fees related to the aforementioned return of ERC.

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 $2.2 billion at September 30, 2024, up $183.8 million from June 30, 2024 and up $425.1 million from September 30, 2023. The acquisition of Century Bank resulted in additional loans of $131.7 million at September 30, 2024. Apart from the acquired loans, the linked-quarter increase in loans was primarily attributable to new business growth across our footprint.

Nonperforming loans totaled $7.9 million, or 0.36% of gross loans, at September 30, 2024, compared with $3.8 million, or 0.19% of gross loans, at June 30, 2024, and $1.1 million, or 0.06% of gross loans, at September 30, 2023. The $4.1 million net increase in nonperforming loans in the third quarter of 2024 was primarily attributable to a significant commercial and industrial loan that was added to nonaccrual status and partially offset by a commercial and industrial loan that was charged-off. The $6.8 million net increase in nonperforming loans from September 30, 2023, was primarily attributable to one significant commercial and industrial loan, another less significant commercial and industrial loan and one commercial real estate loan that were added to nonaccrual status. Significant collection efforts have been made on the large commercial and industrial loan and no loss is anticipated.

The Company recorded a provision for credit losses of $2.6 million for the third quarter of 2024, compared to $1.1 million for the second quarter of 2024. Provision in the third quarter of 2024 included a “Day 2” $1.7 million provision as a result of the acquisition as well as additional provisions based on growth.

Net charge-offs for the third quarter of 2024 were $350,000, or 0.07% of average loans on an annualized basis, compared to net charge-offs of $383,000, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, and net recoveries of $23,000, or (0.01)% of average loans on an annualized basis, for the third quarter of 2023. The charge-offs recorded during the second and third quarters of 2024 were substantially related to a purchased pool of consumer loans for which the borrower filed for bankruptcy. The loan was fully charged-off as of September 30, 2024.

The Company’s allowance for credit losses was 1.28% of total loans and 356.65% of nonperforming loans at September 30, 2024, compared with 1.28% of total loans and 682.56% of nonperforming loans at June 30, 2024. Allowance for credit losses on unfunded commitments was $1.4 million at September 30, 2024.

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 $2.4 billion at September 30, 2024, up from $2.2 billion at June 30, 2024 and $1.9 billion at September 30, 2023. The $244.9 million increase in total deposits in the third quarter was due to an increase of $130.2 million in noninterest-bearing deposits and a $114.7 million increase in interest-bearing deposits. The acquisition of Century Bank resulted in additional deposits of $304.4 million at September 30, 2024, or $183.4 million in interest-bearing deposits, none of which were brokered deposits, and $121.0 million in noninterest-bearing deposits. Total brokered deposits were $194.2 million at September 30, 2024, compared to $288.3 million at June 30, 2024. The Company used cash from the acquisition of Century Bank to call $52.3 million of brokered deposits, while another $41.9 million matured and were repaid.

Capital     
 September 30,
2024		 June 30,
2024		 September 30,
2023
Company Bank Company Bank Company Bank
           
Tier 1 capital ratio to average assets8.64% 11.48% 8.72% 11.52% 8.70% 11.71%
Risk-based capital ratios:           
Common equity tier 1 (“CET1”) capital ratio9.36% 12.43% 9.54% 12.61% 9.32% 12.55%
Tier 1 capital ratio9.36% 12.43% 9.54% 12.61% 9.32% 12.55%
Total capital ratio14.18% 13.59% 14.50% 13.77% 14.60% 13.67%
            


As of September 30, 2024, total stockholders’ equity was $271.4 million, up from $230.6 million at June 30, 2024. The increase of $40.8 million was substantially due to the issuance of $31.5 million in common stock for the acquisition of Century Bank.

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 $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)
        
 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 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)
            
 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 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)
                
 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, $250,000 and under 558,600 23.1%  612,299 28.1%  500,406 24.8%  436,613 22.8%
Time deposits, over $250,000 137,393 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 24.0% tax rate.
          
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?

Southern States Bancshares reported a net income of $7.4 million, or $0.76 per diluted share, for Q3 2024.

How much did Southern States Bancshares' net interest income increase in Q3 2024?

Net interest income increased by 12.4% to $24.2 million in Q3 2024.

What was the net interest margin for Southern States Bancshares in Q3 2024?

The net interest margin for Southern States Bancshares in Q3 2024 was 3.65%, up 9 basis points from the previous quarter.

How much did Southern States Bancshares' loans grow in Q3 2024?

Southern States Bancshares' loans grew by 36.3% annualized in Q3 2024.

What was the total deposit growth for Southern States Bancshares in Q3 2024?

Total deposits grew by 44.8% annualized in Q3 2024.

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Southern States Bancshares, Inc. Common

NASDAQ:SSBK

SSBK Rankings

#3360 Ranked by Market Cap
#1823 Ranked by Dividends

SSBK Latest News

Oct 16, 2024
Southern States Bancshares, Inc. Announces Quarterly Cash Dividend of $0.09 per Share
Aug 1, 2024
Southern States Bancshares Completes Acquisition of CBB Bancorp
Jul 22, 2024
Southern States Bancshares, Inc. Announces Second Quarter 2024 Financial Results
Jul 17, 2024
Southern States Bancshares, Inc. Announces Quarterly Cash Dividend of $0.09 Per Share
Apr 22, 2024
Southern States Bancshares, Inc. Announces First Quarter 2024 Financial Results

SSBK Stock Data

384.22M
8.33M
15.05%
52.71%
0.46%
Banks - Regional
State Commercial Banks
Link
United States of America
ANNISTON