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

January 21, 2025 at 7:01 AM EST

Fourth Quarter 2024 Performance and Operational Highlights

Net income of $11.2 million, or $1.11 per diluted share
Core net income⁽¹⁾ of $10.5 million, or $1.04 per diluted share⁽¹⁾
Pretax pre-provision core net income⁽¹⁾ of $14.0 million
Net interest income of $25.1 million, an increase of $804,000 from the prior quarter
Net interest margin (“NIM”) of 3.66%, up 1 basis point from the prior quarter
Return on average assets (“ROAA”) of 1.55%; return on average stockholders’ equity (“ROAE”) of 16.13%; and return on average tangible common equity (“ROATCE”)⁽¹⁾ of 18.87%
Core ROAA⁽¹⁾ of 1.45%; and core ROATCE⁽¹⁾ of 17.67%
Efficiency ratio of 46.67%; and core efficiency ratio of 47.78%
Linked-quarter loans grew 4.9% annualized
Linked-quarter total deposits, excluding brokered deposits, grew 6.2% annualized
Linked-quarter brokered deposits declined (22.7)%

ANNISTON, Ala., Jan. 21, 2025 (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 $11.2 million, or $1.11 diluted earnings per share, for the fourth quarter of 2024. This compares to net income of $7.4 million, or $0.76 diluted earnings per share, for the third quarter of 2024, and net income of $8.9 million, or $0.99 diluted earnings per share, for the fourth quarter of 2023. The Company reported core net income of $10.5 million, or $1.04 diluted core earnings per share, for the fourth quarter of 2024. This compares to core net income of $8.7 million, or $0.89 diluted core earnings per share, for the third quarter of 2024, and core net income of $7.3 million, or $0.81 diluted core earnings per share, for the fourth quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures”).

CEO Commentary
Mark Chambers, Chief Executive Officer and President of Southern States Bancshares, Inc., said “We are proud to report record net income of $11.2 million for the fourth quarter and $34.9 million for the full year, a testament to our team's diligent execution and superior customer service. Our strong operating results reflect our continued consistent growth supported by a healthy net interest margin of 3.66% for the fourth quarter, coupled with an efficiency ratio of 46.67%.”

“We remain firmly committed to prudently managing our franchise for sustainable growth across our dynamic footprint. That starts with maintaining excellent credit quality and strong capital levels. Disciplined underwriting is critical to our success, and at year end, nonperforming loans accounted for just 0.29% of total loans.’’

“In August 2024, we completed the acquisition of Century Bank and have now seamlessly integrated its customers and team members into our organization. It enhances our presence in Georgia, especially in the high-growth Atlanta metro market, and elevates our position as a premier Southeastern community bank. With 15 full-service branches and two loan production offices across the vibrant economies in Alabama and Georgia, we have substantially expanded and strengthened Southern States Bank’s community banking platform, which we believe sets us up to deliver resilient growth and shareholder returns in 2025.”

Net Interest Income and Net Interest Margin

	Three Months Ended									% Change December 31, 2024 vs.
	December 31, 2024			September 30, 2024			December 31, 2023			September 30, 2024		December 31, 2023
	(Dollars in thousands)

Average interest-earning assets	$	2,722,907		$	2,645,388		$	2,195,381		2.9	%	24.0	%
Net interest income	$	25,050		$	24,246		$	20,404		3.3	%	22.8	%
Net interest margin		3.66	%		3.65	%		3.69	%	1	bps	(3)	bps

Net interest income for the fourth quarter of 2024 was $25.1 million, an increase of 3.3% from $24.2 million for the third quarter of 2024. The increase was substantially due to a decrease in higher-cost brokered deposits as a result of calls and repayments at maturity and replaced with less expensive core deposits.

Relative to the fourth quarter of 2023, net interest income increased $4.6 million, or 22.8%. The increase was mainly driven by significant organic growth, coupled with the acquisition of Century Bank on July 31, 2024.

Net interest margin for the fourth quarter of 2024 was 3.66%, compared to 3.65% for the third quarter of 2024. The slight increase was primarily due to cost savings attributed to calls and repayments at maturity on higher-cost brokered deposits.

Relative to the fourth quarter of 2023, net interest margin decreased slightly from 3.69%. The decrease was primarily the result of the decrease in interest rates. 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 December 31, 2024 vs.
	December 31, 2024		September 30, 2024			December 31, 2023		September 30, 2024		December 31, 2023
	(Dollars in thousands)

Service charges on deposit accounts	$	565	$	532		$	441	6.2	%	28.1	%
Swap fees (expense)		17		(9	)		70	288.9	%	(75.7)	%
SBA/USDA fees		89		179			70	(50.3)	%	27.1	%
Mortgage origination fees		55		112			87	(50.9)	%	(36.8)
Net gain on securities		25		75			98	(66.7)	%	(74.5)	%
Employee retention credit (“ERC”)		1,154		—			—	N/A		N/A
Other operating income		1,085		868			2,352	25.0	%	(53.9)	%
Total noninterest income	$	2,990	$	1,757		$	3,118	70.2	%	(4.1)	%

Noninterest income for the fourth quarter of 2024 was $3.0 million, an increase of 70.2% from $1.8 million for the third quarter of 2024. The Company applied for the Voluntary Disclosure Program (“VDP”) associated with the ERC program during the third quarter of 2023 and received approval during the fourth quarter of 2024. The fourth quarter of 2024 included $1.2 million in ERC as a participant in the program.

Relative to the fourth quarter of 2023, noninterest income decreased 4.1% from $3.1 million. The fourth quarter of 2023 included a $1.9 million fee related to the early payoff of a $12.0 million purchased loan. As this was unusually large and atypical for the Bank, it was recorded as noninterest income instead of interest income, which would have impacted the net interest margin. The fourth quarter of 2024 included the $1.2 million in ERC discussed earlier. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest income during the fourth quarter of 2024.

Noninterest Expense

	Three Months Ended						% Change December 31, 2024 vs.
	December 31, 2024		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
	(Dollars in thousands)

Salaries and employee benefits	$	7,002	$	6,876	$	5,739	1.8	%	22.0	%
Equipment and occupancy expenses		851		814		681	4.5	%	25.0	%
Data processing fees		960		781		639	22.9	%	50.2	%
Regulatory assessments		441		414		355	6.5	%	24.2	%
Professional fees related to ERC		236		—		—	N/A		N/A
Merger-related expenses		—		1,511		—	N/A		N/A
Other operating expenses		3,584		3,291		2,303	8.9	%	55.6	%
Total noninterest expenses	$	13,074	$	13,687	$	9,717	(4.5) %		34.5	%

Noninterest expense for the fourth quarter of 2024 was $13.1 million, a decrease of 4.5% from $13.7 million for the third quarter of 2024. The third quarter of 2024 included merger-related expenses of $1.5 million, of which $961,000 was not deductible for taxes, as a result of the acquisition of Century Bank. The fourth quarter of 2024 included professional fees paid to a third party related to ERC, along with an overall increase in noninterest expense as a result of the full-quarter recognition of the acquisition of Century Bank.

Relative to the fourth quarter of 2023, noninterest expense increased 34.5% from $9.7 million. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest expense during the fourth quarter of 2024.

Loans and Credit Quality

	Three Months Ended									% Change December 31, 2024 vs.
	December 31, 2024			September 30, 2024			December 31, 2023			September 30, 2024		December 31, 2023
	(Dollars in thousands)

Gross loans	$	2,233,244		$	2,205,747		$	1,890,677		1.2	%	18.1	%
Unearned income		(6,675	)		(6,536	)		(6,169	)	2.1	%	8.2	%
Loans, net of unearned income (“Loans”)		2,226,569			2,199,211			1,884,508		1.2	%	18.2	%
Average loans, net of unearned (“Average loans”)	$	2,205,892		$	2,134,318		$	1,814,484		3.4	%	21.6	%

Nonperforming loans (“NPL”)	$	6,533		$	7,868		$	1,177		(17.0)	%	455.1	%
Provision for credit losses	$	72		$	2,583		$	2,579		(97.2)	%	(97.2)	%
Allowance for credit losses (“ACL”)	$	28,338		$	28,061		$	24,378		1.0	%	16.2	%
Net (recoveries) charge-offs	$	(205	)	$	350		$	382		158.6	%	153.7	%
NPL to gross loans		0.29	%		0.36	%		0.06	%
Net (recoveries) charge-offs to average loans⁽¹⁾		(0.04)	%		0.07	%		0.08	%
ACL to loans		1.27	%		1.28	%		1.29	%

(1) Ratio is annualized.

Loans, net of unearned income, were $2.2 billion at December 31, 2024, up $27.4 million from September 30, 2024 and up $342.1 million from December 31, 2023. The linked-quarter increase in loans was primarily attributable to new business growth across our footprint. The year-over-year increase in loans was primarily attributable the new business growth across our footprint, coupled with the acquisition of Century Bank, which resulted in additional loans of $131.7 million at December 31, 2024.

Nonperforming loans totaled $6.5 million, or 0.29% of gross loans, at December 31, 2024, compared with $7.9 million, or 0.36% of gross loans, at September 30, 2024, and $1.2 million, or 0.06% of gross loans, at December 31, 2023. The $1.3 million net decrease in nonperforming loans from September 30, 2024 was primarily attributable to a significant commercial and industrial loan being paid down. The $5.4 million net increase in nonperforming loans from December 31, 2023, was primarily attributable to a significant commercial and industrial loan, which has since been paid down, and a commercial real estate loan being placed on nonaccrual status.

The Company recorded a provision for credit losses of $72,000 for the fourth quarter of 2024, compared to $2.6 million for the third quarter of 2024. Provision in the third quarter of 2024 included a $1.7 million provision as a result of the acquisition of Century Bank as well as additional provisions based on growth.

Net recoveries for the fourth quarter of 2024 were $205,000, or (0.04)% of average loans on an annualized basis, compared to net charge-offs of $350,000, or 0.07% of average loans on an annualized basis, for the third quarter of 2024, and net charge-offs of $382,000, or 0.08% of average loans on an annualized basis, for the fourth quarter of 2023. The net recoveries received in the fourth quarter of 2024 were primarily related to a pool of consumer loans charged-off in the third quarter. The charge-offs recorded during the third quarter 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 1.27% of total loans and 433.77% of nonperforming loans at December 31, 2024, compared with 1.28% of total loans and 356.65% of nonperforming loans at September 30, 2024. Allowance for credit losses on unfunded commitments was $1.4 million at December 31, 2024.

Deposits

	Three Months Ended									% Change December 31, 2024 vs.
	December 31, 2024			September 30, 2024			December 31, 2023			September 30, 2024		December 31, 2023
	(Dollars in thousands)

Noninterest-bearing deposits	$	575,357		$	546,282		$	437,959		5.3	%	31.4	%
Interest-bearing deposits		1,835,940			1,874,264			1,580,230		(2.0)	%	16.2	%
Total deposits	$	2,411,297		$	2,420,546		$	2,018,189		(0.4)	%	19.5	%

Uninsured deposits	$	760,141		$	735,676		$	615,651		3.3	%	23.5	%
Uninsured deposits to total deposits and accrued interest on deposits		31.50	%		30.37	%		30.51	%
Noninterest deposits to total deposits		23.86	%		22.57	%		21.70	%

Total deposits were $2.4 billion at December 31, 2024, down slightly from $2.4 billion at September 30, 2024 and up from $2.0 billion at December 31, 2023. The $9.2 million decrease in total deposits in the fourth quarter from the previous quarter was primarily due to a $44.1 million decrease in brokered deposits due to calls and maturation, partially offset by an increase of $29.1 million in noninterest-bearing deposits. Total brokered deposits were $150.0 million at December 31, 2024, compared to $194.2 million at September 30, 2024. Excluding brokered deposits, total deposits increased $34.9 million in the fourth quarter of 2024.

Capital

	December 31, 2024				September 30, 2024				December 31, 2023
	Company		Bank		Company		Bank		Company		Bank

Tier 1 capital ratio to average assets	8.67	%	11.45	%	8.64	%	11.48	%	8.99	%	12.01	%
Risk-based capital ratios:
Common equity tier 1 (“CET1”) capital ratio	9.84	%	12.99	%	9.36	%	12.43	%	9.20	%	12.30	%
Tier 1 capital ratio	9.84	%	12.99	%	9.36	%	12.43	%	9.20	%	12.30	%
Total capital ratio	14.73	%	14.18	%	14.18	%	13.59	%	14.29	%	13.45	%

As of December 31, 2024, total stockholders’ equity was $279.9 million, up from $271.4 million at September 30, 2024. The increase of $8.5 million was substantially due to strong earnings growth, partially offset by an increase in accumulated other comprehensive losses resulting from changes in the value of available for sale securities.

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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Results of Operations
Interest income	$	44,977		$	45,068		$	36,172		$	169,781		$	132,260
Interest expense		19,927			20,822			15,768			78,074			52,148
Net interest income		25,050			24,246			20,404			91,707			80,112
Provision for credit losses		72			2,583			2,579			4,957			6,090
Net interest income after provision		24,978			21,663			17,825			86,750			74,022
Noninterest income		2,990			1,757			3,118			7,390			8,874
Noninterest expense		13,074			13,687			9,717			48,548			41,876
Income tax expense		3,696			2,380			2,330			10,724			9,068
Net income	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
Core net income⁽¹⁾	$	10,484		$	8,675		$	7,289		$	36,339		$	31,190

Share and Per Share Data
Shares issued and outstanding		9,889,260			9,882,350			8,841,349			9,889,260			8,841,349
Weighted average shares outstanding:
Basic		9,940,221			9,608,868			8,864,734			9,357,336			8,809,590
Diluted		10,061,735			9,725,884			9,021,358			9,503,994			9,038,004
Earnings per share:
Basic	$	1.13		$	0.76		$	1.00		$	3.72		$	3.63
Diluted		1.11			0.76			0.99			3.67			3.53
Core - diluted⁽¹⁾		1.04			0.89			0.81			3.82			3.45
Book value per share		28.30			27.46			24.31			28.30			24.31
Tangible book value per share⁽¹⁾		24.04			23.38			22.30			24.04			22.30
Cash dividends per common share		0.09			0.09			0.09			0.36			0.36

Performance and Financial Ratios
ROAA		1.55	%		1.05	%		1.53	%		1.31	%		1.44	%
ROAE		16.13	%		11.89	%		17.02	%		14.39	%		16.16	%
Core ROAA⁽¹⁾		1.45	%		1.24	%		1.26	%		1.36	%		1.41	%
ROATCE⁽¹⁾		18.87	%		13.35	%		18.62	%		16.10	%		17.78	%
Core ROATCE⁽¹⁾		17.67	%		15.74	%		15.26	%		16.78	%		17.35	%
NIM		3.66	%		3.65	%		3.69	%		3.61	%		3.81	%
NIM - FTE⁽¹⁾		3.67	%		3.66	%		3.71	%		3.63	%		3.82	%
Net interest spread		2.64	%		2.66	%		2.73	%		2.62	%		2.92	%
Yield on loans		7.03	%		7.21	%		6.91	%		7.12	%		6.70	%
Yield on interest-earning assets		6.57	%		6.78	%		6.54	%		6.69	%		6.29	%
Cost of interest-bearing liabilities		3.93	%		4.12	%		3.81	%		4.07	%		3.37	%
Cost of funds⁽²⁾		3.09	%		3.31	%		3.03	%		3.27	%		2.63	%
Cost of interest-bearing deposits		3.83	%		4.03	%		3.66	%		3.96	%		3.19	%
Cost of total deposits		2.96	%		3.19	%		2.86	%		3.13	%		2.44	%
Noninterest deposits to total deposits		23.86	%		22.57	%		21.70	%		23.86	%		21.70	%
Core deposits to total deposits		87.90	%		86.30	%		83.70	%		87.90	%		83.70	%
Uninsured deposits to total deposits and accrued interest on deposits		31.50	%		30.37	%		30.51	%		31.50	%		30.51	%
Total loans to total deposits		92.34	%		90.86	%		93.38	%		92.34	%		93.38	%
Efficiency ratio		46.67	%		52.79	%		41.48	%		49.04	%		47.35	%
Core efficiency ratio⁽¹⁾		47.78	%		46.96	%		45.78	%		46.66	%		46.74	%

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Financial Condition (ending)
Total loans	$	2,226,569		$	2,199,211		$	1,884,508		$	2,226,569		$	1,884,508
Total securities		216,481			217,692			198,632			216,481			198,632
Total assets		2,849,264			2,841,440			2,446,663			2,849,264			2,446,663
Total noninterest bearing deposits		575,357			546,282			437,959			575,357			437,959
Total core deposits⁽¹⁾		2,119,491			2,088,993			1,689,266			2,119,491			1,689,266
Total deposits		2,411,297			2,420,546			2,018,189			2,411,297			2,018,189
Total borrowings		131,224			121,083			183,673			131,224			183,673
Total liabilities		2,569,375			2,570,070			2,231,699			2,569,375			2,231,699
Total shareholders’ equity		279,889			271,370			214,964			279,889			214,964

Financial Condition (average)
Total loans	$	2,205,892		$	2,134,318		$	1,814,484		$	2,061,604		$	1,711,006
Total securities		228,213			223,750			209,074			217,943			200,047
Total other interest-earning assets		288,802			287,320			171,823			257,533			192,433
Total interest-bearing assets		2,722,907			2,645,388			2,195,381			2,537,080			2,103,486
Total assets		2,875,981			2,777,215			2,303,398			2,664,353			2,211,742
Total noninterest-bearing deposits		552,898			490,450			420,019			470,376			436,571
Total interest-bearing deposits		1,893,906			1,874,861			1,502,348			1,783,493			1,422,453
Total deposits		2,446,804			2,365,311			1,922,367			2,253,869			1,859,024
Total borrowings		121,356			134,035			140,790			136,788			126,853
Total interest-bearing liabilities		2,015,262			2,008,896			1,643,138			1,920,281			1,549,306
Total shareholders’ equity		276,250			246,081			207,324			242,224			197,680

Asset Quality
Nonperforming loans	$	6,533		$	7,868		$	1,177		$	6,533		$	1,177
Other real estate owned (“OREO”)	$	—		$	33		$	33		$	—		$	33
Nonperforming assets (“NPA”)	$	6,533		$	7,901		$	1,210		$	6,533		$	1,210
Net (recovery) charge-offs to average loans⁽²⁾	(0.04) %				0.07	%		0.08	%		0.05	%		0.03	%
Provision for credit losses to average loans⁽²⁾		0.01	%		0.48	%		0.56	%		0.24	%		0.36	%
ACL to loans		1.27	%		1.28	%		1.29	%		1.27	%		1.29	%
ACL to gross loans		1.27	%		1.27	%		1.29	%		1.27	%		1.29	%
ACL to NPL		433.77	%		356.65	%		2071.20	%		433.77	%		2071.20	%
NPL to loans		0.29	%		0.36	%		0.06	%		0.29	%		0.06	%
NPL to gross loans		0.29	%		0.36	%		0.06	%		0.29	%		0.06	%
NPA to gross loans and OREO		0.29	%		0.36	%		0.06	%		0.29	%		0.06	%
NPA to total assets		0.23	%		0.28	%		0.05	%		0.23	%		0.05	%

Regulatory and Other Capital Ratios
Total shareholders’ equity to total assets		9.82	%		9.55	%		8.79	%		9.82	%		8.79	%
Tangible common equity to tangible assets⁽³⁾		8.47	%		8.25	%		8.12	%		8.47	%		8.12	%
Tier 1 capital ratio to average assets		8.67	%		8.64	%		8.99	%		8.67	%		8.99	%
Risk-based capital ratios:
CET1 capital ratio		9.84	%		9.36	%		9.20	%		9.84	%		9.20	%
Tier 1 capital ratio		9.84	%		9.36	%		9.20	%		9.84	%		9.20	%
Total capital ratio		14.73	%		14.18	%		14.29	%		14.73	%		14.29	%

(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)

	December 31, 2024			September 30, 2024			December 31, 2023
	(Unaudited)			(Unaudited)			(Audited)

Assets
Cash and due from banks	$	27,321		$	24,225		$	19,710
Interest-bearing deposits in banks		153,833			182,559			134,846
Federal funds sold		79,080			71,072			96,095
Total cash and cash equivalents		260,234			277,856			250,651

Securities available for sale, at fair value		196,870			198,076			179,000
Securities held to maturity, at amortized cost		19,611			19,616			19,632
Other equity securities, at fair value		3,697			3,733			3,649
Restricted equity securities, at cost		4,441			4,418			5,684
Loans held for sale		404			415			450

Loans, net of unearned income		2,226,569			2,199,211			1,884,508
Less allowance for credit losses		28,338			28,061			24,378
Loans, net		2,198,231			2,171,150			1,860,130

Premises and equipment, net		32,048			32,319			26,426
Accrued interest receivable		10,111			10,114			8,711
Bank owned life insurance		39,431			39,159			29,884
Annuities		16,772			16,843			15,036
Foreclosed assets		—			33			33
Goodwill		33,176			30,980			16,862
Core deposit intangible		8,939			9,338			899
Other assets		25,299			27,390			29,616

Total assets	$	2,849,264		$	2,841,440		$	2,446,663

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	575,357		$	546,282		$	437,959
Interest-bearing		1,835,940			1,874,264			1,580,230
Total deposits		2,411,297			2,420,546			2,018,189

Other borrowings		17,979			7,976			26,994
FHLB advances		22,000			22,000			70,000
Subordinated notes		91,245			91,107			86,679
Accrued interest payable		2,172			2,214			1,519
Other liabilities		24,682			26,227			28,318

Total liabilities		2,569,375			2,570,070			2,231,699
Stockholders' equity:
Common stock		49,821			49,684			44,479
Capital surplus		106,637			106,046			78,361
Retained earnings		134,075			123,783			102,523
Accumulated other comprehensive loss		(7,936	)		(5,866	)		(8,379	)
Unvested restricted stock		(567	)		(723	)		(466	)
Vested restricted stock units		(2,141	)		(1,554	)		(1,554	)

Total stockholders' equity		279,889			271,370			214,964

Total liabilities and stockholders' equity	$	2,849,264		$	2,841,440		$	2,446,663

CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)

	Three Months Ended							Twelve Months Ended
	December 31, 2024		September 30, 2024			December 31, 2023		December 31, 2024		December 31, 2023
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)		(Audited)
Interest income:
Loans, including fees	$	38,972	$	38,690		$	31,613	$	146,712	$	114,662
Taxable securities		2,237		2,205			1,986		8,462		6,806
Nontaxable securities		248		243			230		952		977
Other interest and dividends		3,520		3,930			2,343		13,655		9,815
Total interest income		44,977		45,068			36,172		169,781		132,260

Interest expense:
Deposits		18,223		18,990			13,869		70,630		45,368
Other borrowings		1,704		1,832			1,899		7,444		6,780
Total interest expense		19,927		20,822			15,768		78,074		52,148

Net interest income		25,050		24,246			20,404		91,707		80,112
Provision for credit losses		72		2,583			2,579		4,957		6,090
Net interest income after provision for credit losses		24,978		21,663			17,825		86,750		74,022

Noninterest income:
Service charges on deposit accounts		565		532			441		2,022		1,790
Swap fees (expense)		17		(9	)		70		27		691
SBA/USDA fees		89		179			70		391		344
Mortgage origination fees		55		112			87		356		533
Net gain on securities		25		75			98		108		555
Employee retention credit		1,154		—			—		1,162		—
Other operating income		1,085		868			2,352		3,324		4,961
Total noninterest income		2,990		1,757			3,118		7,390		8,874

Noninterest expenses:
Salaries and employee benefits		7,002		6,876			5,739		26,221		25,665
Equipment and occupancy expenses		851		814			681		3,021		2,776
Data processing fees		960		781			639		3,070		2,528
Regulatory assessments		441		414			355		1,590		1,198
Professional fees related to ERC		236		—			—		236		—
Merger-related expenses		—		1,511			—		1,511		—
Other operating expenses		3,584		3,291			2,303		12,899		9,709
Total noninterest expenses		13,074		13,687			9,717		48,548		41,876

Income before income taxes		14,894		9,733			11,226		45,592		41,020

Income tax expense		3,696		2,380			2,330		10,724		9,068

Net income	$	11,198	$	7,353		$	8,896	$	34,868	$	31,952

Basic earnings per share	$	1.13	$	0.76		$	1.00	$	3.72	$	3.63

Diluted earnings per share	$	1.11	$	0.76		$	0.99	$	3.67	$	3.53

AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
(Dollars in thousands)

	Three Months Ended
	December 31, 2024							September 30, 2024							December 31, 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⁾	$	2,205,892		$	38,972	7.03	%	$	2,134,318		$	38,690	7.21	%	$	1,814,484		$	31,613	6.91	%
Taxable securities		181,456			2,237	4.90	%		177,164			2,205	4.95	%		163,537			1,986	4.82	%
Nontaxable securities		46,757			248	2.11	%		46,586			243	2.08	%		45,537			230	2.00	%
Other interest-earnings assets		288,802			3,520	4.85	%		287,320			3,930	5.44	%		171,823			2,343	5.41	%
Total interest-earning assets		2,722,907			44,977	6.57	%		2,645,388			45,068	6.78	%		2,195,381			36,172	6.54	%
Allowance for credit losses		(28,280	)						(27,253	)						(22,666	)
Noninterest-earning assets		181,354							159,080							130,683
Total Assets	$	2,875,981						$	2,777,215						$	2,303,398

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	94,039		$	27	0.12	%	$	95,040		$	30	0.13	%	$	86,163		$	23	0.11	%
Savings and money market accounts		1,112,679			10,279	3.68	%		1,042,661			10,264	3.92	%		885,548			8,445	3.78	%
Time deposits		687,188			7,917	4.58	%		737,160			8,696	4.69	%		530,637			5,401	4.04	%
FHLB advances		22,000			300	5.42	%		36,130			455	5.01	%		52,076			645	4.92	%
Other borrowings		99,356			1,404	5.63	%		97,905			1,377	5.59	%		88,714			1,254	5.61	%
Total interest-bearing liabilities	$	2,015,262		$	19,927	3.93	%	$	2,008,896		$	20,822	4.12	%	$	1,643,138		$	15,768	3.81	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	552,898						$	490,450						$	420,019
Other liabilities		31,571							31,788							32,917
Total noninterest-bearing liabilities		584,469							522,238							452,936
Stockholders’ Equity		276,250							246,081							207,324
Total Liabilities and Stockholders’ Equity	$	2,875,981						$	2,777,215						$	2,303,398

Net interest income				$	25,050						$	24,246						$	20,404
Net interest spread⁽²⁾						2.64	%						2.66	%						2.73	%
Net interest margin⁽³⁾						3.66	%						3.65	%						3.69	%
Net interest margin - FTE⁽⁴⁾⁽⁵⁾						3.67	%						3.66	%						3.71	%
Cost of funds⁽⁶⁾						3.09	%						3.31	%						3.03	%
Cost of interest-bearing deposits						3.83	%						4.03	%						3.66	%
Cost of total deposits						2.96	%						3.19	%						2.86	%

Includes nonaccrual loans.
Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.
Net interest margin is a ratio of net interest income to average interest earning assets for the same period.
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.
Refer to “Reconciliation of Non-GAAP Financial Measures”.
Includes total interest-bearing liabilities and noninterest deposits.

AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
(Dollars in thousands)

	Twelve Months Ended
	December 31, 2024							December 31, 2023
	Average Balance			Interest		Yield/Rate		Average Balance			Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income⁽¹⁾	$	2,061,604		$	146,712	7.12	%	$	1,711,006		$	114,662	6.70	%
Taxable securities		171,878			8,462	4.92	%		152,707			6,806	4.46	%
Nontaxable securities		46,065			952	2.07	%		47,340			977	2.06	%
Other interest-earnings assets		257,533			13,655	5.30	%		192,433			9,815	5.10	%
Total interest-earning assets		2,537,080			169,781	6.69	%		2,103,486			132,260	6.29	%
Allowance for credit losses		(26,302	)						(21,233	)
Noninterest-earning assets		153,575							129,489
Total Assets	$	2,664,353						$	2,211,742

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	90,252		$	105	0.12	%	$	90,231		$	82	0.09	%
Savings and money market accounts		997,349			38,576	3.87	%		851,351			28,124	3.30	%
Time deposits		695,892			31,949	4.59	%		480,871			17,162	3.57	%
FHLB advances		39,847			2,006	5.03	%		39,830			1,848	4.64	%
Other borrowings		96,941			5,438	5.61	%		87,023			4,932	5.67	%
Total interest-bearing liabilities	$	1,920,281		$	78,074	4.07	%	$	1,549,306		$	52,148	3.37	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	470,376						$	436,571
Other liabilities		31,472							28,185
Total noninterest-bearing liabilities		501,848							464,756
Stockholders’ Equity		242,224							197,680
Total Liabilities and Stockholders’ Equity	$	2,664,353						$	2,211,742

Net interest income				$	91,707						$	80,112
Net interest spread⁽²⁾						2.62	%						2.92	%
Net interest margin⁽³⁾						3.61	%						3.81	%
Net interest margin - FTE⁽⁴⁾⁽⁵⁾						3.63	%						3.82	%
Cost of funds⁽⁶⁾						3.27	%						2.63	%
Cost of interest-bearing deposits						3.96	%						3.19	%
Cost of total deposits						3.13	%						2.44	%

Includes nonaccrual loans.
Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.
Net interest margin is a ratio of net interest income to average interest earning assets for the same period.
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.
Refer to “Reconciliation of Non-GAAP Financial Measures”.
Includes total interest-bearing liabilities and noninterest deposits.

LOAN COMPOSITION
(Dollars in thousands)

	December 31, 2024					September 30, 2024					December 31, 2023
	Amount			% of gross		Amount			% of gross		Amount			% of gross

Real estate mortgages:
Construction and development	$	238,634		10.7	%	$	245,275		11.1	%	$	242,960		12.9	%
Residential		315,092		14.1	%		293,150		13.3	%		224,603		11.9	%
Commercial		1,352,084		60.6	%		1,344,554		61.0	%		1,144,867		60.5	%
Commercial and industrial		315,854		14.1	%		310,540		14.1	%		269,961		14.3	%
Consumer and other		11,580		0.5	%		12,228		0.5	%		8,286		0.4	%
Gross loans		2,233,244		100.0	%		2,205,747		100.0	%		1,890,677		100.0	%
Unearned income		(6,675	)				(6,536	)				(6,169	)
Loans, net of unearned income		2,226,569					2,199,211					1,884,508
Allowance for credit losses		(28,338	)				(28,061	)				(24,378	)
Loans, net	$	2,198,231				$	2,171,150				$	1,860,130

DEPOSIT COMPOSITION
(Dollars in thousands)

	December 31, 2024				September 30, 2024				December 31, 2023
	Amount		% of total		Amount		% of total		Amount		% of total


Noninterest-bearing transaction	$	575,357	23.8	%	$	546,282	22.5	%	$	437,959	21.7	%
Interest-bearing transaction		1,128,959	46.8	%		1,124,706	46.5	%		946,347	46.9	%
Savings		52,472	2.2	%		53,565	2.2	%		35,412	1.7	%
Time deposits, $250,000 and under		512,717	21.3	%		558,600	23.1	%		500,406	24.8	%
Time deposits, over $250,000		141,792	5.9	%		137,393	5.7	%		98,065	4.9	%
Total deposits	$	2,411,297	100.0	%	$	2,420,546	100.0	%	$	2,018,189	100.0	%

Nonperfoming Assets
(Dollars in thousands)

	December 31, 2024			September 30, 2024			December 31, 2023


Nonaccrual loans	$	6,434		$	7,803		$	1,017
Past due loans 90 days or more and still accruing interest		99			65			160
Total nonperforming loans		6,533			7,868			1,177
OREO		—			33			33
Total nonperforming assets	$	6,533		$	7,901		$	1,210

Financial difficulty modification loans – nonaccrual⁽¹⁾		600			622			907
Financial difficulty modification loans – accruing		1,055			1,071			1,095
Financial difficulty modification loans	$	1,655		$	1,693		$	2,002

Allowance for credit losses	$	28,338		$	28,061		$	24,378
Loans, net of unearned income at the end of the period	$	2,226,569		$	2,199,211		$	1,884,508
Gross loans outstanding at the end of period	$	2,233,244		$	2,205,747		$	1,890,677
Total assets	$	2,849,264		$	2,841,440		$	2,446,663
Allowance for credit losses to nonperforming loans		433.77	%		356.65	%		2071.20	%
Nonperforming loans to loans, net of unearned income		0.29	%		0.36	%		0.06	%
Nonperforming loans to gross loans		0.29	%		0.36	%		0.06	%
Nonperforming assets to gross loans and OREO		0.29	%		0.36	%		0.06	%
Nonperforming assets to total assets		0.23	%		0.28	%		0.05	%

Nonaccrual loans by category:
Real estate mortgages:
Construction & Development	$	415		$	—		$	—
Residential Mortgages		559			522			252
Commercial Real Estate Mortgages		2,097			2,155			765
Commercial & Industrial		3,363			5,126			—
Consumer and other		—			—			—
Total	$	6,434		$	7,803		$	1,017

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Average loans, net of unearned income	$	2,205,892		$	2,134,318		$	1,814,484		$	2,061,604		$	1,711,006
Loans, net of unearned income		2,226,569			2,199,211			1,884,508			2,226,569			1,884,508
Gross loans		2,233,244			2,205,747			1,890,677			2,233,244			1,890,677
Allowance for credit losses at beginning of the period		28,061			25,828			22,181			24,378			20,156
Impact of adoption of ASC 326		—			—			—			—			(1,285	)
Charge-offs:
Construction and development		—			—			—			—			3
Residential		—			—			—			11			—
Commercial		—			119			—			157			—
Commercial and industrial		—			384			424			1,210			686
Consumer and other		—			—			2			25			8
Total charge-offs		—			503			426			1,403			697
Recoveries:
Construction and development		—			—			—			—			—
Residential		7			13			4			34			41
Commercial		—			—			—			—			—
Commercial and industrial		196			139			39			367			54
Consumer and other		2			1			1			5			19
Total recoveries		205			153			44			406			114
Net (recoveries) charge-offs	$	(205	)	$	350		$	382		$	997		$	583

Provision for credit losses	$	72		$	2,583		$	2,579		$	4,957		$	6,090
Balance at end of the period	$	28,338		$	28,061		$	24,378		$	28,338		$	24,378

Allowance for credit losses on unfunded commitments at beginning of the period	$	1,405		$	1,206		$	1,524		$	1,239		$	—
Impact of adoption of ASC 326		—			—			—			—			1,285
Day 2 impact from acquisition		—			199			—			199			—
Credit for credit losses on unfunded commitments		—			—			(285	)		(33	)		(46	)
Balance at the end of the period	$	1,405		$	1,405		$	1,239		$	1,405		$	1,239

Allowance to loans, net of unearned income		1.27	%		1.28	%		1.29	%		1.27	%		1.29	%
Allowance to gross loans		1.27	%		1.27	%		1.29	%		1.27	%		1.29	%
Net (recoveries) charge-offs to average loans, net of unearned income⁽¹⁾		(0.04)	%		0.07	%		0.08	%		0.05	%		0.03	%
Provision for credit losses to average loans, net of unearned income⁽¹⁾		0.01	%		0.48	%		0.56	%		0.24	%		0.36	%

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Net income	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
Add: One-time retirement related expenses		—			—			—			—			1,571
Add: Professional fees related to ERC		236			—			—			236			—
Add: Wire fraud loss		—			—			—			1,155			—
Add: Merger-related expenses		—			1,511			—			1,511			—
Add: Net OREO loss (gain)		3			—			(154	)		—			(156	)
Less: Employee retention credit		1,154			—			—			1,162			—
Less: Fee received on early loan payoff		—			—			1,863			—			1,863
Less: Net gain on securities		25			75			98			108			555
Less: Tax effect		(226	)		114			(508	)		161			(241	)
*Core net income*	$	*10,484*		$	*8,675*		$	*7,289*		$	*36,339*		$	*31,190*
Average assets	$	2,875,981		$	2,777,215		$	2,303,398		$	2,664,353		$	2,211,742
*Core return on average assets*		*1.45*	%		*1.24*	%		*1.26*	%		*1.36*	%		*1.41*	%

Net income	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
Add: One-time retirement related expenses		—			—			—			—			1,571
Add: Professional fees related to ERC		236			—			—			236			—
Add: Wire fraud loss		—			—			—			1,155			—
Add: Merger-related expenses		—			1,511			—			1,511			—
Add: Net OREO loss (gain)		3			—			(154	)		—			(156	)
Add: Provision		72			2,583			2,579			4,957			6,090
Less: Employee retention credit		1,154			—			—			1,162			—
Less: Fee received on early loan payoff		—			—			1,863			—			1,863
Less: Net gain on securities		25			75			98			108			555
Add: Income taxes		3,696			2,380			2,330			10,724			9,068
*Pretax pre-provision core net income*	$	*14,026*		$	*13,752*		$	*11,690*		$	*52,181*		$	*46,107*
Average assets	$	2,875,981		$	2,777,215		$	2,303,398		$	2,664,353		$	2,211,742
*Pretax pre-provision core return on average assets*		*1.94*	%		*1.97*	%		*2.01*	%		*1.96*	%		*2.08*	%

Net interest income	$	25,050		$	24,246		$	20,404		$	91,707		$	80,112
Add: Fully-taxable equivalent adjustments⁽¹⁾		66			75			99			288			312
*Net interest income - FTE*	$	*25,116*		$	*24,321*		$	*20,503*		$	*91,995*		$	*80,424*

Net interest margin		3.66	%		3.65	%		3.69	%		3.61	%		3.81	%
Effect of fully-taxable equivalent adjustments⁽¹⁾		0.01	%		0.01	%		0.02	%		0.02	%		0.01	%
*Net interest margin - FTE*		*3.67*	%		*3.66*	%		*3.71*	%		*3.63*	%		*3.82*	%

Total stockholders' equity	$	279,889		$	271,370		$	214,964		$	279,889		$	214,964
Less: Intangible assets		42,115			40,318			17,761			42,115			17,761
*Tangible common equity*	$	*237,774*		$	*231,052*		$	*197,203*		$	*237,774*		$	*197,203*

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Core net income	$	10,484		$	8,675		$	7,289		$	36,339		$	31,190
Diluted weighted average shares outstanding		10,061,735			9,725,884			9,021,358			9,503,994			9,038,004
*Diluted core earnings per share*	$	*1.04*		$	*0.89*		$	*0.81*		$	*3.82*		$	*3.45*

Common shares outstanding at year or period end		9,889,260			9,882,350			8,841,349			9,889,260			8,841,349
*Tangible book value per share*	$	*24.04*		$	*23.38*		$	*22.30*		$	*24.04*		$	*22.30*

Total assets at end of period	$	2,849,264		$	2,841,440		$	2,446,663		$	2,849,264		$	2,446,663
Less: Intangible assets		42,115			40,318			17,761			42,115			17,761
Adjusted assets at end of period	$	2,807,149		$	2,801,122		$	2,428,902		$	2,807,149		$	2,428,902
*Tangible common equity to tangible assets*		*8.47*	%		*8.25*	%		*8.12*	%		*8.47*	%		*8.12*	%

Total average shareholders equity	$	276,250		$	246,081		$	207,324		$	242,224		$	197,680
Less: Average intangible assets		40,177			26,884			17,809			25,653			17,932
Average tangible common equity	$	236,073		$	219,197		$	189,515		$	216,571		$	179,748
Net income to common shareholders	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
*Return on average tangible common equity*		*18.87*	%		*13.35*	%		*18.62*	%		*16.10*	%		*17.78*	%
Average tangible common equity	$	236,073		$	219,197		$	189,515		$	216,571		$	179,748
Core net income	$	10,484		$	8,675		$	7,289		$	36,339		$	31,190
*Core return on average tangible common equity*		*17.67*	%		*15.74*	%		*15.26*	%		*16.78*	%		*17.35*	%

Net interest income	$	25,050		$	24,246		$	20,404		$	91,707		$	80,112
Add: Noninterest income		2,990			1,757			3,118			7,390			8,874
Less: Employee retention credit		1,154			—			—			1,162			—
Less: Fee received on early loan payoff		—			—			1,863			—			1,863
Less: Net gain on securities		25			75			98			108			555
Operating revenue	$	26,861		$	25,928		$	21,561		$	97,827		$	86,568

Expenses:
Total noninterest expense	$	13,074		$	13,687		$	9,717		$	48,548		$	41,876
Less: One-time retirement related expenses		—			—			—			—			1,571
Less: Professional fees related to ERC		236			—			—			236			—
Less: Wire fraud loss		—			—			—			1,155			—
Less: Merger-related expenses		—			1,511			—			1,511			—
Less: Net OREO loss (gain)		3			—			(154	)		—			(156	)
Less: Loss on sale of branches		—			—			—			—			—
Adjusted noninterest expenses	$	12,835		$	12,176		$	9,871		$	45,646		$	40,461
*Core efficiency ratio*		*47.78*	%		*46.96*	%		*45.78*	%		*46.66*	%		*46.74*	%

News Release Details

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