Southern States Bancshares, Inc. Announces Third Quarter 2023 Financial Results

October 23, 2023 at 7:31 AM EDT

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Third Quarter 2023 Performance and Operational Highlights

Core net income⁽¹⁾ of $9.6 million, or $1.06 per diluted share⁽¹⁾

Net income of $6.6 million, or $0.73 per diluted share

Net interest income of $20.7 million, an increase of $1.3 million from the prior quarter

Net interest margin (“NIM”) of 3.78%, up 5 basis points from the prior quarter

NIM of 3.79% on a fully-taxable equivalent basis (“NIM - FTE”)⁽¹⁾

Return on average assets (“ROAA”) of 1.15%; return on average stockholders’ equity (“ROAE”) of 12.96%; and return on average tangible common equity (“ROATCE”)⁽¹⁾ of 14.21%

Core ROAA⁽¹⁾ of 1.66%; and core ROATCE⁽¹⁾ of 20.50%

Efficiency ratio of 48.01%; and core efficiency ratio of 42.79%

Linked-quarter loan growth was 13.3% annualized

Linked-quarter total deposits declined 1.5% annualized, primarily due to a reduction in brokered deposits

Linked-quarter total deposits, excluding brokered deposits, increased 4.2% annualized from the prior quarter

^{(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.}

ANNISTON, Ala., Oct. 23, 2023 (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 $6.6 million, or $0.73 diluted earnings per share, for the third quarter of 2023. This compares to net income of $8.8 million, or $0.98 diluted earnings per share, for the second quarter of 2023, and net income of $6.7 million, or $0.75 diluted earnings per share, for the third quarter of 2022. The Company reported core net income of $9.6 million, or $1.06 diluted core earnings per share, for the third quarter of 2023. This compares to core net income of $7.1 million, or $0.79 diluted core earnings per share, for the second quarter of 2023, and core net income of $6.8 million, or $0.77 diluted core earnings per share, for the third quarter of 2022 (see “Reconciliation of Non-GAAP Financial Measures”).

CEO Commentary

Mark Chambers, Chief Executive Officer and President of Southern States, said, “Our business development teams continued to identify compelling opportunities in the third quarter, driving annualized sequential loan growth of 13.3% and maintaining the strong momentum we’ve generated over the past two years as we meet steady loan demand across our economically dynamic footprint.”
“Our growth positioned the bank to capitalize on higher rates, with increased yields on earning assets driving a nearly 7% gain in net interest income from the second quarter and from a year earlier, bolstering our core earnings. As we pursue new business, we remain committed to diligent underwriting and robust credit quality. Our non-performing loans as a percentage of the overall loan portfolio totaled just 0.06%, consistent with the prior quarter.”
“Importantly, we continue to fund our loan growth with a healthy deposit franchise. Our funding costs did increase during the third quarter to remain competitive in terms of price amid higher rates to keep our total deposit levels relatively stable. However, this was more than offset by our loan growth and gains in yields, and our net interest margin expanded by 5 basis points in the quarter as a result.”

During the second quarter of 2023, the Company received a $5.1 million employee retention credit (“ERC”). The second quarter of 2023 included the $5.1 million ERC in noninterest income, and also included $1.2 million in noninterest expense for professional fees paid by the Company in obtaining the ERC. After reviewing the revised IRS guidelines pertaining to ERC issued during the third quarter, the Company determined to return the full $5.1 million ERC to the IRS and has recorded a payable. The Company will also receive a refund of all professional fees totaling $1.2 million related to ERC. Accordingly, the third quarter of 2023 reflects a $5.1 million reduction in noninterest income and a $1.2 million reduction in noninterest expense related to the return of the ERC. This was deemed a change in circumstance between the second and third quarters of 2023. The following table for the three months ended June 30, 2023 and the three months ended September 30, 2023 eliminates the effect of the ERC. There is no impact on the nine months ended September 30, 2023.

Results excluding ERC
	Three Months Ended						Nine Months Ended
	September 30, 2023			June 30, 2023			September 30, 2023

Results of Operations
Interest income	$	35,204		$	32,185		$	96,088
Interest expense		14,473			12,753			36,379
Net interest income		20,731			19,432			59,709
Provision for credit losses		773			1,557			3,511
Net interest income after provision		19,958			17,875			56,198
Noninterest income		2,206			1,762			5,755
Noninterest expense		9,812			12,189			32,159
Income tax expense		2,843			1,572			6,738
Net income	$	9,509		$	5,876		$	23,056

Per Share Data
Earnings per share:
Basic	$	1.07		$	0.67		$	2.62
Diluted	$	1.05		$	0.66		$	2.56

Performance and Financial Ratios
ROAA		1.65	%		1.07	%		1.41	%
ROAE		18.59	%		12.18	%		15.85	%
Efficiency ratio		42.76	%		57.39	%		49.47	%

Net Interest Income and Net Interest Margin
	Three Months Ended									% Change September 30, 2023 vs.
	September 30, 2023			June 30, 2023			September 30, 2022			June 30, 2023		September 30, 2022
	(Dollars in thousands)

Average interest-earning assets	$	2,175,103		$	2,091,998		$	1,859,104		4.0	%	17.0	%
Net interest income	$	20,731		$	19,432		$	19,435		6.7	%	6.7	%
Net interest margin		3.78	%		3.73	%		4.15	%	5	bps	(37	) bps

Net interest income for the third quarter of 2023 was $20.7 million, an increase of 6.7% from $19.4 million for the second quarter of 2023. The increase was primarily driven by the impact of a higher yield on interest-earning assets due to both growth and higher interest rates, which more than offset a higher cost of interest-bearing deposits primarily due to rising interest rates.

Relative to the third quarter of 2022, net interest income increased $1.3 million, or 6.7%. The increase was primarily the result of a sharp improvement in the yield on interest-earning assets due to both year over year growth and higher interest rates, which outpaced the accelerated rise in costs on interest-bearing liabilities due to a rapid rise in interest rates, coupled with growth in interest-bearing liabilities. A portion of the growth in interest-bearing deposits is due to migration from noninterest-bearing into interest-bearing deposits.

Net interest margin for the third quarter of 2023 was 3.78%, compared to 3.73% for the second quarter of 2023. The increase was primarily due to an increase in the average balance and yield on interest-earning assets, which outpaced the combined effect of higher average balances and cost of interest-bearing deposits.

Relative to the third quarter of 2022, net interest margin decreased from 4.15%. The decrease was primarily due to a rapid increase in interest rates, which accelerated the cost on interest-bearing liabilities at a faster 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 September 30, 2023 vs.
	September 30, 2023			June 30, 2023			September 30, 2022			June 30, 2023		September 30, 2022
	(Dollars in thousands)

Service charges on deposit accounts	$	442		$	456		$	508		(3.1	)%	(13.0	)%
Swap fees		453			173			11		161.8	%	4018.2	%
SBA/USDA fees		74			66			95		12.1	%	(22.1	)%
Mortgage origination fees		158			188			218		(16.0	)%	(27.5	)%
Net loss on securities		(12	)		(45	)		(143	)	(73.3	)%	(91.6	)%
Employee retention credit and related revenue		(5,100	)		5,100			—		N/A		N/A
Other operating income		1,091			924			650		18.1	%	67.8	%
Total noninterest income	$	(2,894	)	$	6,862		$	1,339		(142.2	)%	(316.1	)%

Noninterest income for the third quarter of 2023 was reported as a $2.9 million net expense, compared to noninterest income of $6.9 million for the second quarter of 2023. The change in ERC eligibility between the second and third quarters of 2023 is substantially the reason for the significant variation. This decrease was partially offset by a $280,000 increase in swap fees during the third quarter of 2023.

Relative to the third quarter of 2022, noninterest income decreased 316.1% from $1.3 million. The decrease was substantially due to the aforementioned return of ERC. This decrease was partially offset by a $280,000 increase in swap fees during the third quarter of 2023 and $132,000 in dividend income realized on equity securities.

Noninterest Expense
	Three Months Ended							% Change September 30, 2023 vs.
	September 30, 2023			June 30, 2023		September 30, 2022		June 30, 2023		September 30, 2022
	(Dollars in thousands)

Salaries and employee benefits	$	5,752		$	7,863	$	6,152	(26.8	)%	(6.5	)%
Equipment and occupancy expenses		718			694		764	3.5	%	(6.0	)%
Data processing fees		650			646		599	0.6	%	8.5	%
Regulatory assessments		322			180		235	78.9	%	37.0	%
Professional fees related to ERC		(1,243	)		1,243		—	N/A		N/A
Other operating expenses		2,370			2,806		2,487	(15.5	)%	(4.7	)%
Total noninterest expenses	$	8,569		$	13,432	$	10,237	(36.2	)%	(16.3	)%

Noninterest expense for the third quarter of 2023 was $8.6 million, a decrease of 36.2% from $13.4 million for the second quarter of 2023. The decrease was substantially attributable to a decrease in salaries and benefits as a result of significantly less retirement expenses during the third quarter of 2023, in addition to several open positions. Additionally, the change in ERC eligibility resulted in a $1.2 million refund of professional fees related to the ERC. Provision for unfunded loan commitments decreased $181,000 during the third quarter of 2023.

Relative to the third quarter of 2022, noninterest expense decreased 16.3% from $10.2 million. The decrease was substantially due to the aforementioned refund of professional fees related to the ERC, a decrease in salaries and benefits as a result of a reduction in employees and a net reduction in forgery/fraud losses during the third quarter of 2023.

Loans and Credit Quality
	Three Months Ended									% Change September 30, 2023 vs.
	September 30, 2023			June 30, 2023			September 30, 2022			June 30, 2023		September 30, 2022
	(Dollars in thousands)

Gross loans		1,779,846			1,722,278			1,530,129		3.3	%	16.3	%
Unearned income		(5,698	)		(5,766	)		(5,139	)	(1.2	)%	10.9	%
Loans, net of unearned income (“Loans”)	$	1,774,148		$	1,716,512		$	1,524,990		3.4	%	16.3	%
Average loans, net of unearned (“Average loans”)	$	1,740,582		$	1,676,816		$	1,480,735		3.8	%	17.5	%

Nonperforming loans (“NPL”)	$	1,082		$	1,010		$	3,950		7.1	%	(72.6	)%
Provision for credit losses	$	773		$	1,557		$	1,663		(50.4	)%	(53.5	)%
Allowance for credit losses (“ACL”)	$	22,181		$	21,385		$	18,423		3.7	%	20.4	%
Net charge-offs (recoveries)	$	(23	)	$	27		$	47		(185.2	)%	(148.9	)%
NPL to gross loans		0.06	%		0.06	%		0.26	%
Net charge-offs (recoveries) to average loans⁽¹⁾	(0.01		)%		0.01	%		0.01	%
ACL to loans		1.25	%		1.25	%		1.21	%

(1) Ratio is annualized.

Loans, net of unearned income, were $1.8 billion at September 30, 2023, up $57.6 million from June 30, 2023 and up $249.2 million from September 30, 2022. The linked-quarter and year-over-year increases in loans were primarily attributable to new business growth across our footprint.

Nonperforming loans totaled $1.1 million, or 0.06% of gross loans, at September 30, 2023, compared with $1.0 million, or 0.06% of gross loans, at June 30, 2023, and $4.0 million, or 0.26% of gross loans, at September 30, 2022. The $72,000 net increase in nonperforming loans in the third quarter of 2023 was primarily attributable to a commercial real estate loan that was added to nonaccrual status and partially offset by a commercial real estate loan that moved back to accruing status. The $2.9 million net decrease in nonperforming loans from September 30, 2022, was primarily attributable to a significant commercial real estate loan being moved back to accruing status, two loans that were paid-off and one loan that was charged-off.

The Company recorded a provision for credit losses of $773,000 for the third quarter of 2023, compared to $1.6 million for the second quarter of 2023. Provision in the second quarter of 2023 was based on increases for qualitative economic factors as well as loan growth, whereas provision in the third quarter of 2023 was based solely on loan growth. The Company expects future provisions to be based on loan growth, unless credit issues arise.

Net recoveries for the third quarter of 2023 were $23,000, or (0.01)% of average loans on an annualized basis, compared to net charge-offs of $27,000, or 0.01% of average loans on an annualized basis, for the second quarter of 2023, and net charge-offs of $47,000, or 0.01% of average loans on an annualized basis, for the third quarter of 2022.

The Company’s allowance for credit losses was 1.25% of total loans and 2050.00% of nonperforming loans at September 30, 2023, compared with 1.25% of total loans and 2117.33% of nonperforming loans at June 30, 2023. Allowance for credit losses on unfunded commitments was $1.5 million at September 30, 2023.

Deposits
	Three Months Ended									% Change September 30, 2023 vs.
	September 30, 2023			June 30, 2023			September 30, 2022			June 30, 2023		September 30, 2022
	(Dollars in thousands)

Noninterest-bearing deposits	$	418,125		$	449,433		$	499,613		(7.0	)%	(16.3	)%
Interest-bearing deposits		1,498,276			1,474,478			1,267,479		1.6	%	18.2	%
Total deposits	$	1,916,401		$	1,923,911		$	1,767,092		(0.4	)%	8.4	%

Uninsured deposits	$	568,323		$	553,084		$	707,371		2.8	%	(19.7	)%
Uninsured deposits to total deposits		29.66	%		28.75	%		40.03	%
Noninterest deposits to total deposits		21.82	%		23.36	%		28.27	%

Total deposits were $1.9 billion at September 30, 2023, down slightly from June 30, 2023 and up from $1.8 billion at September 30, 2022. The $7.5 million decrease in total deposits in the third quarter was primarily related to a reduction in brokered deposits of $25.9 million, partially offset by an $18.4 million increase in customer deposits. Total brokered deposits were $168.3 million at September 30, 2023.

Capital
	September 30, 2023				June 30, 2023				September 30, 2022
	Company		Bank		Company		Bank		Company		Bank

Tier 1 capital ratio to average assets	8.70	%	11.71	%	8.70	%	11.82	%	8.44	%	11.49	%
Risk-based capital ratios:
Common equity tier 1 (“CET1”) capital ratio	9.32	%	12.55	%	9.11	%	12.37	%	8.73	%	11.89	%
Tier 1 capital ratio	9.32	%	12.55	%	9.11	%	12.37	%	8.73	%	11.89	%
Total capital ratio	14.60	%	13.67	%	14.42	%	13.47	%	12.26	%	12.87	%

As of September 30, 2023, total stockholders’ equity was $201.9 million, up from $197.3 million at June 30, 2023. The increase of $4.7 million was substantially due to earnings growth, partially offset by an increase in accumulated other comprehensive loss resulting from changes in the value of the available for sale securities portfolio.

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, 2022 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 business strategy and prospects for growth, operations, ability to pay dividends, competition, regulation and general economic conditions.

Contact Information

Lynn Joyce	Kevin Dobbs
(205) 820-8065	(310) 622-8245
ljoyce@ssbank.bank	ssbankir@finprofiles.com

SELECT FINANCIAL DATA
(Dollars in thousands, except share and per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022

Results of Operations
Interest income	$	35,204		$	32,185		$	22,520		$	96,088		$	56,144
Interest expense		14,473			12,753			3,085			36,379			5,690
Net interest income		20,731			19,432			19,435			59,709			50,454
Provision for credit losses		773			1,557			1,663			3,511			3,667
Net interest income after provision		19,958			17,875			17,772			56,198			46,787
Noninterest income		(2,894	)		6,862			1,339			5,755			4,074
Noninterest expense		8,569			13,432			10,237			32,159			29,178
Income tax expense		1,866			2,549			2,174			6,738			5,204
Net income	$	6,629		$	8,756		$	6,700		$	23,056		$	16,479
Core net income⁽¹⁾	$	9,563		$	7,058		$	6,806		$	23,901		$	16,883

Share and Per Share Data
Shares issued and outstanding		8,834,168			8,738,814			8,705,920			8,834,168			8,705,920
Weighted average shares outstanding:
Basic		8,846,018			8,763,635			8,693,745			8,791,007			8,797,720
Diluted		9,040,687			8,950,847			8,871,116			9,016,603			8,952,600
Earnings per share:
Basic	$	0.75		$	1.00		$	0.77		$	2.62		$	1.87
Diluted	$	0.73		$	0.98		$	0.75		$	2.56		$	1.84
Core - diluted⁽¹⁾	$	1.06		$	0.79		$	0.77		$	2.65		$	1.89
Book value per share	$	22.86		$	22.57		$	19.56		$	22.86		$	19.56
Tangible book value per share⁽¹⁾	$	20.84		$	20.52		$	17.48		$	20.84		$	17.48
Cash dividends per common share	$	0.09		$	0.09		$	0.09		$	0.27		$	0.27

Performance and Financial Ratios
ROAA		1.15	%		1.60	%		1.35	%		1.41	%		1.19	%
ROAE		12.96	%		18.15	%		15.42	%		15.85	%		12.72	%
Core ROAA⁽¹⁾		1.66	%		1.29	%		1.37	%		1.47	%		1.21	%
ROATCE⁽¹⁾		14.21	%		20.01	%		17.24	%		17.47	%		14.22	%
Core ROATCE⁽¹⁾		20.50	%		16.13	%		17.51	%		18.11	%		14.57	%
NIM		3.78	%		3.73	%		4.15	%		3.85	%		3.85	%
NIM - FTE⁽²⁾		3.79	%		3.74	%		4.17	%		3.87	%		3.87	%
Net interest spread		2.84	%		2.86	%		3.86	%		3.00	%		3.64	%
Yield on loans		6.86	%		6.61	%		5.37	%		6.62	%		4.97	%
Yield on interest-earning assets		6.42	%		6.17	%		4.81	%		6.20	%		4.29	%
Cost of interest-bearing liabilities		3.58	%		3.31	%		0.95	%		3.20	%		0.65	%
Cost of funds⁽²⁾		2.80	%		2.58	%		0.69	%		2.48	%		0.46	%
Cost of interest-bearing deposits		3.43	%		3.12	%		0.82	%		3.02	%		0.52	%
Cost of total deposits		2.63	%		2.38	%		0.58	%		2.29	%		0.36	%
Noninterest deposits to total deposits		21.82	%		23.36	%		28.27	%		21.82	%		28.27	%
Core deposits to total deposits		86.58	%		86.18	%		92.17	%		86.58	%		92.17	%
Uninsured deposits to total deposits		29.66	%		28.75	%		40.03	%		29.66	%		40.03	%
Total loans to total deposits		92.58	%		89.22	%		86.30	%		92.58	%		86.30	%
Efficiency ratio		48.01	%		51.00	%		48.94	%		49.47	%		52.98	%
Core efficiency ratio⁽¹⁾		42.79	%		49.96	%		48.94	%		47.06	%		52.98	%

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


SELECT FINANCIAL DATA
(Dollars in thousands)

	Three Months Ended									Nine Months Ended
	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022

Financial Condition (ending)
Total loans	$	1,774,148		$	1,716,512		$	1,524,990		$	1,774,148		$	1,524,990
Total securities		189,496			182,717			170,375			189,496			170,375
Total assets		2,296,527			2,277,803			2,052,725			2,296,527			2,052,725
Total noninterest bearing deposits		418,125			449,433			499,613			418,125			499,613
Total core deposits⁽¹⁾		1,659,291			1,657,961			1,628,660			1,659,291			1,628,660
Total deposits		1,916,401			1,923,911			1,767,092			1,916,401			1,767,092
Total borrowings		146,573			131,472			93,020			146,573			93,020
Total liabilities		2,094,603			2,080,553			1,882,400			2,094,603			1,882,400
Total shareholders’ equity		201,924			197,250			170,325			201,924			170,325

Financial Condition (average)
Total loans	$	1,740,582		$	1,676,816		$	1,480,735		$	1,676,134		$	1,373,564
Total securities		201,830			196,731			185,670			197,005			175,381
Total other interest-earning assets		232,691			218,451			192,699			199,379			202,837
Total interest-bearing assets		2,175,103			2,091,998			1,859,104			2,072,518			1,751,782
Total assets		2,282,217			2,200,843			1,966,556			2,180,851			1,858,993
Total noninterest-bearing deposits		448,616			438,987			491,917			442,149			502,951
Total interest-bearing deposits		1,472,024			1,412,047			1,207,797			1,395,529			1,097,693
Total deposits		1,920,640			1,851,034			1,699,714			1,837,678			1,600,644
Total borrowings		129,882			131,411			75,039			122,156			68,719
Total interest-bearing liabilities		1,601,906			1,543,458			1,282,836			1,517,685			1,166,412
Total shareholders’ equity		202,955			193,516			172,402			194,430			173,210

Asset Quality
Nonperforming loans	$	1,082		$	1,010		$	3,950		$	1,082		$	3,950
Other real estate owned (“OREO”)	$	2,903		$	2,870		$	2,930		$	2,903		$	2,930
Nonperforming assets (“NPA”)	$	3,985		$	3,880		$	6,880		$	3,985		$	6,880
Net charge-offs (recovery) to average loans⁽²⁾	(0.01) %				0.01	%		0.01	%		0.02	%		0.01	%
Provision for credit losses to average loans⁽²⁾		0.18	%		0.37	%		0.45	%		0.28	%		0.36	%
ACL to loans		1.25	%		1.25	%		1.21	%		1.25	%		1.21	%
ACL to gross loans		1.25	%		1.24	%		1.20	%		1.25	%		1.20	%
ACL to NPL		2050.00	%		2117.33	%		466.41	%		2050.00	%		466.41	%
NPL to loans		0.06	%		0.06	%		0.26	%		0.06	%		0.26	%
NPL to gross loans		0.06	%		0.06	%		0.26	%		0.06	%		0.26	%
NPA to gross loans and OREO		0.22	%		0.22	%		0.45	%		0.22	%		0.45	%
NPA to total assets		0.17	%		0.17	%		0.34	%		0.17	%		0.34	%

Regulatory and Other Capital Ratios
Total shareholders’ equity to total assets		8.79	%		8.66	%		8.30	%		8.79	%		8.30	%
Tangible common equity to tangible assets⁽³⁾		8.08	%		7.94	%		7.48	%		8.08	%		7.48	%
Tier 1 capital ratio to average assets		8.70	%		8.70	%		8.44	%		8.70	%		8.44	%
Risk-based capital ratios:
CET1 capital ratio		9.32	%		9.11	%		8.73	%		9.32	%		8.73	%
Tier 1 capital ratio		9.32	%		9.11	%		8.73	%		9.32	%		8.73	%
Total capital ratio		14.60	%		14.42	%		12.26	%		14.60	%		12.26	%

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


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)

	September 30, 2023			June 30, 2023			December 31, 2022			September 30, 2022
	(Unaudited)			(Unaudited)			(Audited)			(Unaudited)

Assets
Cash and due from banks	$	31,047		$	21,299		$	15,260		$	17,394
Interest-bearing deposits in banks		103,646			159,818			90,198			165,637
Federal funds sold		81,487			84,812			63,041			63,031
Total cash and cash equivalents		216,180			265,929			168,499			246,062

Securities available for sale, at fair value		169,859			163,075			155,544			150,718
Securities held to maturity, at amortized cost		19,637			19,642			19,652			19,657
Other equity securities, at fair value		3,654			3,762			4,444			5,694
Restricted equity securities, at cost		4,971			3,862			3,134			2,791
Loans held for sale		1,799			1,589			1,047			1,643

Loans, net of unearned income		1,774,148			1,716,512			1,587,164			1,524,990
Less allowance for credit losses		22,181			21,385			20,156			18,423
Loans, net		1,751,967			1,695,127			1,567,008			1,506,567

Premises and equipment, net		26,694			26,957			27,345			28,585
Accrued interest receivable		8,321			7,372			6,963			5,699
Bank owned life insurance		29,697			29,521			29,186			29,677
Annuities		15,266			15,359			15,478			15,564
Foreclosed assets		2,903			2,870			2,930			2,930
Goodwill		16,862			16,862			16,862			16,862
Core deposit intangible		981			1,062			1,226			1,302
Other assets		27,736			24,814			25,886			18,974

Total assets	$	2,296,527		$	2,277,803		$	2,045,204		$	2,052,725

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	418,125		$	449,433		$	460,977		$	499,613
Interest-bearing		1,498,276			1,474,478			1,259,766			1,267,479
Total deposits		1,916,401			1,923,911			1,720,743			1,767,092

Other borrowings		4,991			(13	)		(19	)		19,978
FHLB advances		55,000			45,000			31,000			26,000
Subordinated notes		86,582			86,485			86,314			47,042
Accrued interest payable		1,280			1,063			584			359
Other liabilities		30,349			24,107			24,863			21,929

Total liabilities		2,094,603			2,080,553			1,863,485			1,882,400
Stockholders’ equity:
Common stock		44,307			43,831			43,714			43,529
Capital surplus		77,671			77,101			76,785			75,835
Retained earnings		94,429			88,603			73,764			63,956
Accumulated other comprehensive loss		(13,126	)		(10,799	)		(11,048	)		(12,403	)
Unvested restricted stock		(580	)		(709	)		(477	)		(592	)
Vested restricted stock units		(777	)		(777	)		(1,019	)		—

Total stockholders’ equity		201,924			197,250			181,719			170,325

Total liabilities and stockholders’ equity	$	2,296,527		$	2,277,803		$	2,045,204		$	2,052,725

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

	Three Months Ended									Nine Months Ended
	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023		September 30, 2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)		(Unaudited)
Interest income:
Loans, including fees	$	30,084		$	27,630		$	20,052		$	83,049	$	51,083
Taxable securities		1,796			1,641			1,010			4,819		2,417
Nontaxable securities		227			228			323			747		931
Other interest and dividends		3,097			2,686			1,135			7,473		1,713
Total interest income		35,204			32,185			22,520			96,088		56,144

Interest expense:
Deposits		12,732			10,998			2,489			31,498		4,251
Other borrowings		1,741			1,755			596			4,881		1,439
Total interest expense		14,473			12,753			3,085			36,379		5,690

Net interest income		20,731			19,432			19,435			59,709		50,454
Provision for credit losses		773			1,557			1,663			3,511		3,667
Net interest income after provision for credit losses		19,958			17,875			17,772			56,198		46,787

Noninterest income:
Service charges on deposit accounts		442			456			508			1,348		1,433
Swap fees		453			173			11			622		48
SBA/USDA fees		74			66			95			274		575
Mortgage origination fees		158			188			218			446		717
Net (loss) gain on securities		(12	)		(45	)		(143	)		457		(546	)
Employee retention credit and related revenue		(5,100	)		5,100			—			—		—
Other operating income		1,091			924			650			2,608		1,847
Total noninterest income		(2,894	)		6,862			1,339			5,755		4,074

Noninterest expenses:
Salaries and employee benefits		5,752			7,863			6,152			19,926		17,859
Equipment and occupancy expenses		718			694			764			2,095		2,188
Data processing fees		650			646			599			1,889		1,733
Regulatory assessments		322			180			235			844		760
Professional fees related to ERC		(1,243	)		1,243			—			—		—
Other operating expenses		2,370			2,806			2,487			7,405		6,638
Total noninterest expenses		8,569			13,432			10,237			32,159		29,178

Income before income taxes		8,495			11,305			8,874			29,794		21,683

Income tax expense		1,866			2,549			2,174			6,738		5,204

Net income	$	6,629		$	8,756		$	6,700		$	23,056	$	16,479

Basic earnings per share	$	0.75		$	1.00		$	0.77		$	2.62	$	1.87

Diluted earnings per share	$	0.73		$	0.98		$	0.75		$	2.56	$	1.84

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

	Three Months Ended
	September 30, 2023							June 30, 2023							September 30, 2022
	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⁾	$	1,740,582		$	30,084	6.86	%	$	1,676,816		$	27,630	6.61	%	$	1,480,735		$	20,052	5.37	%
Taxable securities		156,364			1,796	4.56	%		151,107			1,641	4.36	%		128,932			1,010	3.11	%
Nontaxable securities		45,466			227	1.98	%		45,624			228	2.00	%		56,738			323	2.26	%
Other interest-earnings assets		232,691			3,097	5.28	%		218,451			2,686	4.93	%		192,699			1,135	2.34	%
Total interest-earning assets	$	2,175,103		$	35,204	6.42	%	$	2,091,998		$	32,185	6.17	%	$	1,859,104		$	22,520	4.81	%
Allowance for credit losses		(21,606	)						(20,154	)						(17,250	)
Noninterest-earning assets		128,720							128,999							124,702
Total Assets	$	2,282,217						$	2,200,843						$	1,966,556

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts		88,668			20	0.09	%		92,245			20	0.09	%		114,517			26	0.09	%
Savings and money market accounts		867,066			7,767	3.55	%		845,742			6,872	3.26	%		811,349			1,644	0.80	%
Time deposits		516,290			4,945	3.80	%		474,060			4,106	3.47	%		281,931			819	1.15	%
FHLB advances		43,261			514	4.72	%		45,000			529	4.72	%		27,380			102	1.47	%
Other borrowings		86,621			1,227	5.62	%		86,411			1,226	5.69	%		47,659			494	4.12	%
Total interest-bearing liabilities	$	1,601,906		$	14,473	3.58	%	$	1,543,458		$	12,753	3.31	%	$	1,282,836		$	3,085	0.95	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	448,616						$	438,987						$	491,917
Other liabilities		28,740							24,882							19,401
Total noninterest-bearing liabilities		477,356							463,869							511,318
Stockholders’ Equity		202,955							193,516							172,402
Total Liabilities and Stockholders’ Equity	$	2,282,217						$	2,200,843						$	1,966,556

Net interest income				$	20,731						$	19,432						$	19,435
Net interest spread⁽²⁾						2.84	%						2.86	%						3.86	%
Net interest margin⁽³⁾						3.78	%						3.73	%						4.15	%
Net interest margin - FTE⁽⁴⁾⁽⁵⁾						3.79	%						3.74	%						4.17	%
Cost of funds⁽⁶⁾						2.80	%						2.58	%						0.69	%
Cost of interest-bearing deposits						3.43	%						3.12	%						0.82	%
Cost of total deposits						2.63	%						2.38	%						0.58	%

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


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

	Nine Months Ended
	September 30, 2023							September 30, 2022
	Average Balance			Interest		Yield/Rate		Average Balance			Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income⁽¹⁾	$	1,676,134		$	83,049	6.62	%	$	1,373,564		$	51,083	4.97	%
Taxable securities		149,058			4,819	4.32	%		119,224			2,417	2.71	%
Nontaxable securities		47,947			747	2.08	%		56,157			931	2.22	%
Other interest-earnings assets		199,379			7,473	5.01	%		202,837			1,713	1.13	%
Total interest-earning assets	$	2,072,518		$	96,088	6.20	%	$	1,751,782		$	56,144	4.29	%
Allowance for credit losses		(20,750	)						(16,044	)
Noninterest-earning assets		129,083							123,255
Total Assets	$	2,180,851						$	1,858,993

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts		91,602			59	0.09	%		113,427			78	0.09	%
Savings and money market accounts		839,827			19,679	3.13	%		741,397			2,862	0.52	%
Time deposits		464,100			11,760	3.39	%		242,869			1,311	0.72	%
FHLB advances		35,703			1,202	4.50	%		26,115			144	0.74	%
Other borrowings		86,453			3,679	5.69	%		42,604			1,295	4.06	%
Total interest-bearing liabilities	$	1,517,685		$	36,379	3.20	%	$	1,166,412		$	5,690	0.65	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	442,149						$	502,951
Other liabilities		26,587							16,420
Total noninterest-bearing liabilities	$	468,736						$	519,371
Stockholders’ Equity		194,430							173,210
Total Liabilities and Stockholders’ Equity	$	2,180,851						$	1,858,993

Net interest income				$	59,709						$	50,454
Net interest spread⁽²⁾						3.00	%						3.64	%
Net interest margin⁽³⁾						3.85	%						3.85	%
Net interest margin - FTE⁽⁴⁾⁽⁵⁾						3.87	%						3.87	%
Cost of funds⁽⁶⁾						2.48	%						0.46	%
Cost of interest-bearing deposits						3.02	%						0.52	%
Cost of total deposits						2.29	%						0.36	%


LOAN COMPOSITION
(Dollars in thousands)

	September 30, 2023					June 30, 2023					December 31, 2022					September 30, 2022
	Amount			% of gross		Amount			% of gross		Amount			% of gross		Amount			% of gross

Real estate mortgages:
Construction and development	$	229,188		12.9	%	$	228,236		13.3	%	$	255,736		16.1	%	$	222,159		14.5	%
Residential		224,499		12.6	%		214,897		12.5	%		167,891		10.5	%		164,296		10.7	%
Commercial		1,049,545		59.0	%		1,011,815		58.7	%		904,872		56.8	%		889,942		58.2	%
Commercial and industrial		268,283		15.0	%		259,195		15.0	%		256,553		16.1	%		243,577		15.9	%
Consumer and other		8,331		0.5	%		8,135		0.5	%		7,655		0.5	%		10,155		0.7	%
Gross loans		1,779,846		100.0	%		1,722,278		100.0	%		1,592,707		100.0	%		1,530,129		100.0	%
Unearned income		(5,698	)				(5,766	)				(5,543	)				(5,139	)
Loans, net of unearned income		1,774,148					1,716,512					1,587,164					1,524,990
Allowance for credit losses		(22,181	)				(21,385	)				(20,156	)				(18,423	)
Loans, net	$	1,751,967				$	1,695,127				$	1,567,008				$	1,506,567

DEPOSIT COMPOSITION
(Dollars in thousands)

	September 30, 2023				June 30, 2023				December 31, 2022				September 30, 2022
	Amount		% of total		Amount		% of total		Amount		% of total		Amount		% of total


Noninterest-bearing transaction	$	418,125	21.8	%	$	449,433	23.3	%	$	460,977	26.8	%	$	499,613	28.3	%
Interest-bearing transaction		934,383	48.8	%		922,835	48.0	%		837,127	48.6	%		855,350	48.4	%
Savings		38,518	2.0	%		41,574	2.2	%		49,235	2.9	%		78,687	4.5	%
Time deposits, $250,000 and under		436,613	22.8	%		438,228	22.8	%		307,145	17.8	%		266,491	15.0	%
Time deposits, over $250,000		88,762	4.6	%		71,841	3.7	%		66,259	3.9	%		66,951	3.8	%
Total deposits	$	1,916,401	100.0	%	$	1,923,911	100.0	%	$	1,720,743	100.0	%	$	1,767,092	100.0	%

Nonperforming Assets
(Dollars in thousands)

	September 30, 2023			June 30, 2023			December 31, 2022			September 30, 2022


Nonaccrual loans	$	1,082		$	1,010		$	2,245		$	3,950
Past due loans 90 days or more and still accruing interest		—			—			—			—
Total nonperforming loans		1,082			1,010			2,245			3,950
OREO		2,903			2,870			2,930			2,930
Total nonperforming assets	$	3,985		$	3,880		$	5,175		$	6,880

Troubled debt restructured loans – nonaccrual⁽¹⁾		970			724			832			1,011
Troubled debt restructured loans – accruing		1,052			1,328			1,292			1,307
Total troubled debt restructured loans	$	2,022		$	2,052		$	2,124		$	2,318

Allowance for credit losses	$	22,181		$	21,385		$	20,156		$	18,423
Loans, net of unearned income at the end of the period	$	1,774,148		$	1,716,512		$	1,587,164		$	1,524,990
Gross loans outstanding at the end of period	$	1,779,846		$	1,722,278		$	1,592,707		$	1,530,129
Total assets	$	2,296,527		$	2,277,803		$	2,045,204		$	2,052,725
Allowance for credit losses to nonperforming loans		2050.00	%		2117.33	%		897.82	%		466.41	%
Nonperforming loans to loans, net of unearned income		0.06	%		0.06	%		0.14	%		0.26	%
Nonperforming loans to gross loans		0.06	%		0.06	%		0.14	%		0.26	%
Nonperforming assets to gross loans and OREO		0.22	%		0.22	%		0.32	%		0.45	%
Nonperforming assets to total assets		0.17	%		0.17	%		0.25	%		0.34	%

Nonaccrual loans by category:
Real estate mortgages:
Construction & Development	$	—		$	33		$	67		$	70
Residential Mortgages		289			297			565			550
Commercial Real Estate Mortgages		785			671			1,278			2,888
Commercial & Industrial		8			9			312			434
Consumer and other		—			—			23			8
Total	$	1,082		$	1,010		$	2,245		$	3,950

^{(1) Troubled debt restructured loans are excluded from nonperforming loans unless they otherwise meet the definition of nonaccrual loans or are more than 90 days past due.}


Allowance for Credit Losses
(Dollars in thousands)

	Three Months Ended									Nine Months Ended
	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022

Average loans, net of unearned income	$	1,740,582		$	1,676,816		$	1,480,735		$	1,676,134		$	1,373,564
Loans, net of unearned income	$	1,774,148		$	1,716,512		$	1,524,990		$	1,774,148		$	1,524,990
Gross loans	$	1,779,846		$	1,722,278		$	1,530,129		$	1,779,846		$	1,530,129
Allowance for credit losses at beginning of the period	$	21,385		$	19,855		$	16,807		$	20,156		$	14,844
Impact of adoption of ASC 326	$	—		$	—		$	—		$	(1,285	)	$	—
Charge-offs:
Construction and development		3			—			—			3			66
Residential		—			—			—			—			7
Commercial		—			—			—			—			—
Commercial and industrial		—			44			269			262			269
Consumer and other		—			—			1			6			8
Total charge-offs		3			44			270			271			350
Recoveries:
Construction and development		—			—			—			—			—
Residential		10			17			11			38			46
Commercial		—			—			—			—			—
Commercial and industrial		—			—			204			14			204
Consumer and other		16			—			8			18			12
Total recoveries		26			17			223			70			262
Net charge-offs (recoveries)	$	(23	)	$	27		$	47		$	201		$	88

Provision for credit losses	$	773		$	1,557		$	1,663		$	3,511		$	3,667
Balance at end of the period	$	22,181		$	21,385		$	18,423		$	22,181		$	18,423

Allowance for credit losses on unfunded commitments at beginning of the period	$	1,495		$	1,285		$	—		$	—		$	—
Impact of adoption of ASC 326		—			—			—			1,285			—
Provision for credit losses on unfunded commitments		29			210			—			239			—
Balance at the end of the period	$	1,524		$	1,495		$	—		$	1,524		$	—

Allowance to loans, net of unearned income		1.25	%		1.25	%		1.21	%		1.25	%		1.21	%
Allowance to gross loans		1.25	%		1.24	%		1.20	%		1.25	%		1.20	%
Net charge-offs (recoveries) to average loans, net of unearned income⁽¹⁾	(0.01		)%		0.01	%		0.01	%		0.02	%		0.01	%
Provision for credit losses to average loans, net of unearned income⁽¹⁾		0.18	%		0.37	%		0.45	%		0.28	%		0.36	%

^{(1) Ratio is annualized.}

Reconciliation of Non-GAAP Financial Measures

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

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

Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022

Net income	$	6,629		$	8,756		$	6,700		$	23,056		$	16,479
Add: One-time retirement related expenses		—			1,571			—			1,571			—
Add: Professional fees related to ERC		(1,243	)		1,243			—			—			—
Add: Net OREO (losses) gains		(9	)		7			—			(2	)		—
Less: Employee retention related revenue		(5,100	)		5,100			—			—			—
Less: (Loss) gain on securities		(12	)		(45	)		(143	)		457			(546	)
Less: Tax effect		926			(536	)		37			267			142
*Core net income*	$	*9,563*		$	*7,058*		$	*6,806*		$	*23,901*		$	*16,883*
Average assets	$	2,282,217		$	2,200,843		$	1,966,556		$	2,180,851		$	1,858,993
*Core return on average assets*		*1.66*	%		*1.29*	%		*1.37*	%		*1.47*	%		*1.21*	%

Net income	$	6,629		$	8,756		$	6,700		$	23,056		$	16,479
Add: One-time retirement related expenses		—			1,571			—			1,571			—
Add: Professional fees related to ERC		(1,243	)		1,243			—			—			—
Add: Net OREO (losses) gains		(9	)		7			—			(2	)		—
Add: Provision		773			1,557			1,663			3,511			3,667
Less: Employee retention related revenue		(5,100	)		5,100			—			—			—
Less: (Loss) gain on securities		(12	)		(45	)		(143	)		457			(546	)
Add: Income taxes		1,866			2,549			2,174			6,738			5,204
*Pretax pre-provision core net income*	$	*13,128*		$	*10,628*		$	*10,680*		$	*34,417*		$	*25,896*
Average assets	$	2,282,217		$	2,200,843		$	1,966,556		$	2,180,851		$	1,858,993
*Pretax pre-provision core return on average assets*		*2.28*	%		*1.94*	%		*2.15*	%		*2.11*	%		*1.86*	%

Net interest income	$	20,731		$	19,432		$	19,435		$	59,709		$	50,454
Add: Fully-taxable equivalent adjustments⁽¹⁾		70			65			86			213			251
*Net interest income - FTE*	$	*20,801*		$	*19,497*		$	*19,521*		$	*59,922*		$	*50,705*

Net interest margin		3.78	%		3.73	%		4.15	%		3.85	%		3.85	%
Effect of fully-taxable equivalent adjustments⁽¹⁾		0.01	%		0.01	%		0.02	%		0.02	%		0.02	%
*Net interest margin - FTE*		*3.79*	%		*3.74*	%		*4.17*	%		*3.87*	%		*3.87*	%

Total stockholders’ equity	$	201,924		$	197,250		$	170,325		$	201,924		$	170,325
Less: Intangible assets		17,843			17,924			18,164			17,843			18,164
*Tangible common equity*	$	*184,081*		$	*179,326*		$	*152,161*		$	*184,081*		$	*152,161*

^{(1) Assumes a 24.0% tax rate.}


Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022

Core net income	$	9,563		$	7,058		$	6,806		$	23,901		$	16,883
Diluted weighted average shares outstanding		9,040,687			8,950,847			8,871,116			9,016,603			8,952,600
*Diluted core earnings per share*	$	*1.06*		$	*0.79*		$	*0.77*		$	*2.65*		$	*1.89*

Common shares outstanding at year or period end		8,834,168			8,738,814			8,705,920			8,834,168			8,705,920
*Tangible book value per share*	$	*20.84*		$	*20.52*		$	*17.48*		$	*20.84*		$	*17.48*

Total assets at end of period	$	2,296,527		$	2,277,803		$	2,052,725		$	2,296,527		$	2,052,725
Less: Intangible assets		17,843			17,924			18,164			17,843			18,164
Adjusted assets at end of period	$	2,278,684		$	2,259,879		$	2,034,561		$	2,278,684		$	2,034,561
*Tangible common equity to tangible assets*		*8.08*	%		*7.94*	%		*7.48*	%		*8.08*	%		*7.48*	%

Total average shareholders equity	$	202,955		$	193,516		$	172,402		$	194,430		$	173,210
Less: Average intangible assets		17,893			17,974			18,203			17,973			18,270
Average tangible common equity	$	185,062		$	175,542		$	154,199		$	176,457		$	154,940
Net income to common shareholders	$	6,629		$	8,756		$	6,700		$	23,056		$	16,479
*Return on average tangible common equity*		*14.21*	%		*20.01*	%		*17.24*	%		*17.47*	%		*14.22*	%
Average tangible common equity	$	185,062		$	175,542		$	154,199		$	176,457		$	154,940
Core net income	$	9,563		$	7,058		$	6,806		$	23,901		$	16,883
*Core return on average tangible common equity*		*20.50*	%		*16.13*	%		*17.51*	%		*18.11*	%		*14.57*	%

Net interest income	$	20,731		$	19,432		$	19,435		$	59,709		$	50,454
Add: Noninterest income		(2,894	)		6,862			1,339			5,755			4,074
Less: Employee retention related revenue		(5,100	)		5,100			—			—			—
Less: (Loss) gain on securities		(12	)		(45	)		(143	)		457			(546	)
Operating revenue	$	22,949		$	21,239		$	20,917		$	65,007		$	55,074

Expenses:
Total noninterest expense	$	8,569		$	13,432		$	10,237		$	32,159		$	29,178
Less: One-time retirement related expenses		—			1,571			—			1,571			—
Less: Professional fees related to ERC		(1,243	)		1,243			—			—			—
Less: Net OREO (losses) gains		(9	)		7			—			(2	)		—
Adjusted noninterest expenses	$	9,821		$	10,611		$	10,237		$	30,590		$	29,178
*Core efficiency ratio*		*42.79*	%		*49.96*	%		*48.94*	%		*47.06*	%		*52.98*	%

News Release Details

Southern States Bancshares, Inc. Announces Third Quarter 2023 Financial Results