STOCK TITAN

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

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

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

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

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

Southern States Bancshares (NASDAQ: SSBK) ha riportato un reddito netto del Q2 2024 di 8,2 milioni di dollari, pari a 0,90 dollari per azione diluita. Il reddito netto core è stato di 9,1 milioni di dollari, ovvero 1,00 dollaro per azione diluita. I punti salienti includono:

- Reddito di interesse netto: 21,6 milioni di dollari, in aumento del 3,6% rispetto al Q1 2024
- Margine di interesse netto: 3,56%, in calo di 3 punti base rispetto al Q1 2024
- ROAA: 1,29%; ROAE: 14,55%; ROATCE: 15,79%
- I prestiti sono aumentati del 10,3% su base annualizzata rispetto al Q1 2024
- I depositi totali sono aumentati del 12,6% su base annualizzata rispetto al Q1 2024
- Rapporto di efficienza: 49,78%; rapporto di efficienza core: 44,75%

L'azienda ha mantenuto metriche di redditività solide ed ha registrato una crescita bilanciata di prestiti e depositi nelle sue principali aree di prestito. Southern States si sta preparando a chiudere l'acquisizione di CBB Bancorp il 1° agosto, il che si prevede rafforzerà la sua piattaforma e amplierà la sua presenza nei mercati della Georgia.

Southern States Bancshares (NASDAQ: SSBK) reportó un ingreso neto de $8.2 millones en el Q2 2024, o $0.90 por acción diluida. El ingreso neto básico fue de $9.1 millones, o $1.00 por acción diluida. Los aspectos destacados incluyen:

- Ingreso por intereses netos: $21.6 millones, un aumento del 3.6% en comparación con el Q1 2024
- Margen de interés neto: 3.56%, disminuyó 3 puntos base desde el Q1 2024
- ROAA: 1.29%; ROAE: 14.55%; ROATCE: 15.79%
- Los préstamos crecieron un 10.3% anualizado desde el Q1 2024
- Los depósitos totales crecieron un 12.6% anualizado desde el Q1 2024
- Relación de eficiencia: 49.78%; relación de eficiencia básica: 44.75%

La empresa mantuvo métricas de rentabilidad sólidas y experimentó un crecimiento equilibrado de préstamos y depósitos en sus principales áreas de préstamo. Southern States se está preparando para cerrar su adquisición de CBB Bancorp el 1 de agosto, lo que se espera fortalecerá su plataforma y ampliará su presencia en los mercados de Georgia.

서던 스테이츠 뱅크쉐어스 (NASDAQ: SSBK)는 2024년 2분기 순이익이 820만 달러, 즉 희석 주당 0.90달러라고 보고했습니다. 핵심 순이익은 910만 달러, 즉 희석 주당 1.00달러였습니다. 주요 하이라이트는 다음과 같습니다:

- 순이자수익: 2160만 달러, 2024년 1분기 대비 3.6% 증가
- 순이자 마진: 3.56%, 2024년 1분기 대비 3bp 감소
- ROAA: 1.29%; ROAE: 14.55%; ROATCE: 15.79%
- 대출은 2024년 1분기 대비 연율로 10.3% 증가했습니다.
- 총 예금은 2024년 1분기 대비 연율로 12.6% 증가했습니다.
- 효율성 비율: 49.78%; 핵심 효율성 비율: 44.75%

회사는 강력한 수익성 지표를 유지했으며 주요 대출 영역 전반에 걸쳐 균형 잡힌 대출 및 예금 성장을 경험했습니다. 서던 스테이츠는 8월 1일 CBB Bancorp 인수 마감 준비를 하고 있으며, 이는 플랫폼을 강화하고 조지아 시장에서의 입지를 확장할 것으로 예상됩니다.

Southern States Bancshares (NASDAQ: SSBK) a annoncé un revenu net de 8,2 millions de dollars au T2 2024, soit 0,90 $ par action diluée. Le revenu net de base s'élevait à 9,1 millions de dollars, soit 1,00 $ par action diluée. Les points saillants comprennent :

- Revenus d'intérêt nets : 21,6 millions de dollars, en hausse de 3,6 % par rapport au T1 2024
- Marge d'intérêt nette : 3,56 %, en baisse de 3 points de base par rapport au T1 2024
- ROAA : 1,29 % ; ROAE : 14,55 % ; ROATCE : 15,79 %
- Les prêts ont augmenté de 10,3 % sur une base annualisée par rapport au T1 2024
- Les dépôts totaux ont augmenté de 12,6 % sur une base annualisée par rapport au T1 2024
- Ratio d'efficacité : 49,78 % ; ratio d'efficacité de base : 44,75 %

L'entreprise a maintenu des indicateurs de rentabilité solides et a connu une croissance équilibrée des prêts et des dépôts dans ses principales zones de prêt. Southern States se prépare à finaliser son acquisition de CBB Bancorp le 1er août, ce qui devrait renforcer sa plateforme et accroître sa présence sur les marchés de la Géorgie.

Southern States Bancshares (NASDAQ: SSBK) hat einen Nettoertrag von 8,2 Millionen US-Dollar im Q2 2024 gemeldet, was 0,90 US-Dollar pro verwässerter Aktie entspricht. Der Kern-Nettoertrag betrug 9,1 Millionen US-Dollar oder 1,00 US-Dollar pro verwässerter Aktie. Wichtige Höhepunkte sind:

- Nettozinsüberschuss: 21,6 Millionen US-Dollar, ein Anstieg um 3,6% im Vergleich zum Q1 2024
- Nettomarge: 3,56%, ein Rückgang um 3 Basispunkte im Vergleich zum Q1 2024
- ROAA: 1,29%; ROAE: 14,55%; ROATCE: 15,79%
- Kredite wuchsen annualisiert um 10,3% im Vergleich zum Q1 2024
- Gesamteinlagen erhöhten sich annualisiert um 12,6% im Vergleich zum Q1 2024
- Effizienzquote: 49,78%; Kern-Effizienzquote: 44,75%

Das Unternehmen wies starke Rentabilitätskennzahlen auf und erlebte ein ausgewogenes Wachstum von Krediten und Einlagen in seinen wichtigsten Kreditbereichen. Southern States bereitet sich darauf vor, die Übernahme von CBB Bancorp am 1. August abzuschließen, was voraussichtlich die Plattform stärken und die Präsenz auf dem Markt in Georgia ausweiten wird.

Positive
  • Net income increased to $8.2 million in Q2 2024, up from $8.1 million in Q1 2024
  • Core net income rose to $9.1 million in Q2 2024, compared to $8.1 million in Q1 2024
  • Net interest income grew 3.6% quarter-over-quarter to $21.6 million
  • Loans grew at an annualized rate of 10.3% from the previous quarter
  • Total deposits increased at an annualized rate of 12.6% from the previous quarter
  • Core efficiency ratio improved to 44.75%, the second-highest for the company
Negative
  • Net interest margin decreased to 3.56%, down 3 basis points from the previous quarter
  • Noninterest expense increased 10% quarter-over-quarter, partly due to a $1.2 million wire fraud loss
  • Nonperforming loans increased to $3.8 million, or 0.19% of gross loans, up from 0.17% in the previous quarter

Insights

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

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

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

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

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

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

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

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

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

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

Second Quarter 2024 Performance and Operational Highlights

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

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

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


Net Interest Income and Net Interest Margin


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

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

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

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

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

Noninterest Income


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

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

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

Noninterest Expense


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

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

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

Loans and Credit Quality


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

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

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

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

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

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

Deposits


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

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

Capital


 June 30,
2024
 March 31,
2024
 June 30,
2023
Company Bank Company Bank Company Bank
           
Tier 1 capital ratio to average assets8.72% 11.52% 8.79% 11.67% 8.70% 11.82%
Risk-based capital ratios:           
Common equity tier 1 (“CET1”) capital ratio9.54% 12.61% 9.39% 12.47% 9.11% 12.37%
Tier 1 capital ratio9.54% 12.61% 9.39% 12.47% 9.11% 12.37%
Total capital ratio14.50% 13.77% 14.42% 13.63% 14.42% 13.47%
            

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

About Southern States Bancshares, Inc.

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

Forward-Looking Statements

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

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

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


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

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

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

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

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


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


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

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

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

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

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


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


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

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

Allowance for Credit Losses
(Dollars in thousands)
          
     



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

(1) Ratio is annualized.

Reconciliation of Non-GAAP Financial Measures

Noninterest Expense

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

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

Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts)
          
 Three Months Ended Six Months Ended
June 30,
2024
 March 31,
2024
 June 30,
2023
 June 30,
2024
 June 30,
2023
         
Net income$8,198  $8,119  $8,756  $16,317  $16,427 
Add: One-time retirement related expenses       1,571      1,571 
Add: Professional fees related to ERC       1,243      1,243 
Add: Wire fraud loss 1,155         1,155    
Add: Net OREO (gain) loss (3)     7   (3)  7 
Less: Employee retention related revenue       5,100      5,100 
Less: Net gain (loss) on securities 20   (12)  (45)  8   469 
Less: Tax effect 272   3   (536)  275   (660)
Core net income$9,058  $8,128  $7,058  $17,186  $14,339 
Average assets$2,553,010  $2,447,278  $2,200,843  $2,500,144  $2,129,328 
Core return on average assets 1.43%  1.34%  1.29%  1.38%  1.36%
          
Net income$8,198  $8,119  $8,756  $16,317  $16,427 
Add: One-time retirement related expenses       1,571      1,571 
Add: Professional fees related to ERC       1,243      1,243 
Add: Wire fraud loss 1,155         1,155    
Add: Net OREO (gain) loss (3)     7   (3)  7 
Add: Provision 1,067   1,236   1,557   2,303   2,738 
Less: Employee retention related revenue       5,100      5,100 
Less: Net gain (loss) on securities 20   (12)  (45)  8   469 
Add: Income taxes 2,271   2,377   2,549   4,648   4,871 
Pretax pre-provision core net income$12,668  $11,744  $10,628  $24,412  $21,288 
Average assets$2,553,010  $2,447,278  $2,200,843  $2,500,144  $2,129,328 
Pretax pre-provision core return on average assets 2.00%  1.93%  1.94%  1.96%  2.02%
          
Net interest income$21,579  $20,839  $19,432  $42,418  $38,978 
Add: Fully-taxable equivalent adjustments(1) 73   73   65   146   143 
Net interest income - FTE$21,652  $20,912  $19,497  $42,564  $39,121 
          
Net interest margin 3.56%  3.59%  3.73%  3.57%  3.89%
Effect of fully-taxable equivalent adjustments(1) 0.01%  0.01%  0.01%  0.01%  0.01%
Net interest margin - FTE 3.57%  3.60%  3.74%  3.58%  3.90%
          
Total stockholders' equity$230,581  $222,881  $197,250  $230,581  $197,250 
Less: Intangible assets 17,597   17,679   17,924   17,597   17,924 
Tangible common equity$212,984  $205,202  $179,326  $212,984  $179,326 
          
(1) Assumes a 24.0% tax rate.
          
Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts)
          
      



Three Months Ended Six Months Ended
June 30,
2024
 March 31,
2024
 June 30,
2023
 June 30,
2024
 June 30,
2023
         
Core net income$9,058  $8,128  $7,058  $17,186  $14,339 
Diluted weighted average shares outstanding 9,070,568   9,043,122   8,950,847   9,062,548   9,001,600 
Diluted core earnings per share$1.00  $0.90  $0.79  $1.90  $1.59 
          
Common shares outstanding at year or period end 8,908,130   8,894,794   8,738,814   8,908,130   8,738,814 
Tangible book value per share$23.91  $23.07  $20.52  $23.91  $20.52 
          
Total assets at end of period$2,572,011  $2,510,975  $2,277,803  $2,572,011  $2,277,803 
Less: Intangible assets 17,597   17,679   17,924   17,597   17,924 
Adjusted assets at end of period$2,554,414  $2,493,296  $2,259,879  $2,554,414  $2,259,879 
Tangible common equity to tangible assets 8.34%  8.23%  7.94%  8.34%  7.94%
          
Total average shareholders equity$226,527  $219,622  $193,516  $223,075  $190,096 
Less: Average intangible assets 17,646   17,730   17,974   17,688   18,014 
Average tangible common equity$208,881  $201,892  $175,542  $205,387  $172,082 
Net income to common shareholders$8,198  $8,119  $8,756  $16,317  $16,427 
Return on average tangible common equity 15.79%  16.17%  20.01%  15.98%  19.25%
Average tangible common equity$208,881  $201,892  $175,542  $205,387  $172,082 
Core net income$9,058  $8,128  $7,058  $17,186  $14,339 
Core return on average tangible common equity 17.44%  16.19%  16.13%  16.83%  16.80%
          
Net interest income$21,579  $20,839  $19,432  $42,418  $38,978 
Add: Noninterest income 1,368   1,268   6,862   2,636   8,648 
Less: Employee retention related revenue       5,100      5,100 
Less: Net gain (loss) on securities 20   (12)  (45)  8   469 
Operating revenue$22,927  $22,119  $21,239  $45,046  $42,057 
          
Expenses:         
Total noninterest expense$11,411  $10,375  $13,432  $21,786  $23,590 
Less: One-time retirement related expenses       1,571      1,571 
Less: Professional fees related to ERC       1,243      1,243 
Less: Wire fraud loss 1,155         1,155    
Less: Net OREO (gain) loss (3)     7   (3)  7 
Adjusted noninterest expenses$10,259  $10,375  $10,611  $20,634  $20,769 
Core efficiency ratio 44.75%  46.90%  49.96%  45.81%  49.38%

FAQ

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

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

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

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

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

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

How did SSBK's deposits change in Q2 2024?

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

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

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

Southern States Bancshares, Inc. Common

NASDAQ:SSBK

SSBK Rankings

SSBK Latest News

SSBK Stock Data

257.24M
8.92M
16.48%
55.67%
0.75%
Banks - Regional
State Commercial Banks
Link
United States of America
ANNISTON