SSB Bancorp, Inc Reports Unaudited Consolidated Financial Results For the Three Months and Six Months Ended June 30, 2022

Rhea-AI Summary

On August 11, 2022, SSB Bancorp (OTC PINK:SSBP) reported its unaudited financial results for the six months ending June 30, 2022. Total assets grew by $4.7 million to $239.7 million, driven by an $8.9 million increase in deposits. Net loans fell by $1.8 million due to early Paycheck Protection Program repayments. The company reported net earnings of $617,000 ($0.29 per share), up from $378,000 ($0.17 per share) the previous year. Interest income rose by 9.1%, while noninterest income fell by 22.4%, attributed to reduced mortgage loan production.

Positive

• Total assets increased by $4.7 million to $239.7 million.
• Net earnings rose to $617,000, reflecting a 63% year-over-year growth.
• Interest income increased by $387,000, or 9.1%, due to higher average interest-earning assets and yield.

Negative

• Net loans decreased by $1.8 million due to early payoffs of Paycheck Protection Program loans.
• Noninterest income fell by $84,000, or 22.4%, primarily due to decreased mortgage loan production.
• Noninterest expense increased by $106,000 or 3.4%.

PITTSBURGH, PA / ACCESSWIRE / August 11, 2022 / SSB Bancorp, Inc (OTC PINK:SSBP) (the "Company"), the holding company for SSB Bank (the "Bank"), today announced the Company's unaudited, consolidated results of operations for the three months and six months ended June 30, 2022.

Total assets increased $4.7 million to $239.7 million at June 30, 2022, from $234.9 million at December 31, 2021. The increase in assets was due to an increase in deposits of $8.9 million. Net loans decreased over the same period by $1.8 million due to early payoffs of Paycheck Protection Program loans totaling $7.2 million.

Net earnings for the six months ended June 30, 2022, was $617,000 or $0.29 per basic and diluted share, compared to net earnings of $378,000 or $0.17 per basic and diluted share for the comparable six months of the prior year.

Total interest and fee income increased by $387,000, or 9.1%, when comparing the results of the six months ended June 30, 2022, with the six months ended June 30, 2021. This is due to the increase in average interest-earning assets from $217.8 million to $222.7 million as well as the increase in yield from 3.92% to 4.18% when comparing the two periods.

Interest expense decreased $224,000, or 17.2%, to $1.1 million in the six months ended June 30, 2022, from $1.3 million in the six months ended June 30, 2021. The decrease in interest expense is due to the decrease in interest expense on certificates of deposit, a decrease of $233,000. Additionally, the cost of borrowings decreased by $80,000 due to the decrease in average borrowings of $8.8 million when comparing the two periods.

Noninterest income has dropped by $84,000, or 22.4% to $539,000 from $735,000 when comparing the six months ended June 30, 2022, with the six months ended June 30, 2021. With the rise in market interest rates, mortgage loan production has decreased, and has resulted in a decrease in gain on sale of loans of $338,000 when comparing the two periods. Offsetting this decrease is the increase in payment processing sponsorship fees of $124,000 when comparing the two periods.

Noninterest expense increased by $106,000 or 3.4% to $3.2 million. This was mainly due to increases in occupancy, professional fees, and marketing when comparing the six months ended June 20, 2022 with the six months ended June 30, 2021.

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects", "believes", "anticipates", "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expected or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. The Company assumes no obligation to update any forward-looking statements.

SSB Bancorp, Inc. and Subsidiary
Consolidated Financial Highlights
(Dollars in thousands, except per share amounts)

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2022				2021				2022				2021
		(unaudited)								(unaudited)
Operating Data:
Total interest and dividend income		$	2,360			$	2,134			$	4,655			$	4,268
Total interest expense			566				621				1,079				1,304
Net interest income			1,794				1,513				3,576				2,964
Provision for loan losses			27				80				122				132
Adoption of ASU 2016-13			-				-				(7	)			-
Net interest income after provision for			1,767				1,433				3,461				2,832
loan losses
Total noninterest income			291				375				539				735
Total noninterest expense			1,567				1,544				3,194				3,088
Earnings before income taxes			491				264				806				479
Income taxes			106				41				190				101
Net earnings		$	385			$	223			$	616			$	378
Per Share Data:
Earnings per share, basic		$	0.18			$	0.10			$	0.29			$	0.17
Earnings per share, diluted			0.18				0.10				0.29				0.17
Dividends per share			-				-				-				-
Weighted average shares - basic			2,141,653				2,185,315				2,140,640				2,183,888
Weighted average shares - diluted			2,148,014				2,203,039				2,148,869				2,198,298

		At June 30,				At December 31,
		2022				2021
		(unaudited)
Financial Condition Data:
Total assets		$	239,688			$	234,943
Cash and cash equivalents			22,594				15,920
Federal Home Loan Bank Stock, at cost			5,118				4,982
Loans receivable, net			194,831				196,598
Deposits			191,835				182,913
Federal Home Loan Bank advances			19,350				19,250
Paycheck Protection Program Liquidity Facility advances			3,671				8,627
Total stockholders' equity			23,531				23,160

SOURCE: SSB Bancorp, Inc.

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FAQ

What were the total assets of SSB Bancorp as of June 30, 2022?

SSB Bancorp's total assets increased to $239.7 million as of June 30, 2022.

How did SSB Bancorp's net earnings change in the first half of 2022?

Net earnings for SSB Bancorp rose to $617,000, or $0.29 per share, compared to $378,000, or $0.17 per share, in the same period last year.

What factors contributed to the increase in SSB Bancorp's interest income?

The increase in interest income was due to a rise in average interest-earning assets and an increase in yield from 3.92% to 4.18%.

What caused the decline in noninterest income for SSB Bancorp?

Noninterest income decreased primarily due to a reduction in mortgage loan production and a corresponding drop in gain on sale of loans.

What impacts did early payoffs of loans have on SSB Bancorp's financial results?

Early payoffs of Paycheck Protection Program loans led to a $1.8 million decrease in net loans.