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ssbk-20211026
0001689731FALSE00016897312021-10-262021-10-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________
FORM 8-K
___________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 26, 2021
___________________________


https://cdn.kscope.io/99e19cf287cedf5c8a39ad16f3562d33-ssbk-20211026_g1.jpg

Southern States Bancshares, Inc.

(Exact Name of Registrant as Specified in its Charter)
___________________________

Alabama
001-40727
26-2518085
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
 Identification No.)
615 Quintard Ave.
Anniston, AL
36201
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (256) 241-1092
Securities registered pursuant to Section 12(b) of the Act:
___________________________
Title of each class
Trading
Symbols(s)
Name of exchange
on which registered
CommonStock, $5.00 par valueSSBK
The NASDAQ Stock Market LLC
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 8.01 Other Events.

On October 26, 2021, Southern States Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended and nine months ended September 30, 2021 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

The information set forth under Item 7.01 is also furnished pursuant to this Item 2.02

Item 7.01 Regulation FD Disclosure.

The Company has prepared a presentation of its results for the third quarter ended September 30, 2021 (the “Presentation”) to be used from time to time during meetings with members of the investment community. A copy of the Presentation is furnished as Exhibit 99.2 to this Report. The Presentation will also be made available on the Company’s investor relations website at ir.southernstatesbank.net under the Presentations section.

The information contained in Items 2.02 and 7.01, including Exhibits 99.1 and 99.2 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended, or into any filing or other document pursuant to the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.

(d)Exhibits

Exhibit
No.		Description
99.1
99.2

•Certain schedules, exhibits and appendices have been omitted pursuant to Item 601(b)(5). We will furnish the omitted schedules exhibits and appendices to the Securities and Exchange Commission upon request by the Commission.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Dated: October 26, 2021SOUTHERN STATES BANCSHARES, INC.
By:/s/ Lynn Joyce
Name:Lynn Joyce
Title:
Senior Executive Vice President and Chief Financial Officer
Document






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Southern States Bancshares, Inc. Announces
Third Quarter 2021 Financial Results

Third Quarter 2021 Highlights

•Linked quarter loan growth was 17.3% annualized, or 24.5% annualized, excluding the impact of Paycheck Protection Program (“PPP”) loans

•Net income of $4.9 million, or $0.58 per diluted share; return on average assets (“ROAA”) of 1.26%; return on average stockholders’ equity (“ROAE”) of 12.03%; and return on average tangible common equity (“ROATCE”)(1) of 13.57%

•Core net income(1) of $4.0 million, or $0.48 per diluted share; core ROAA(1) of 1.04%; and core ROATCE(1) of 11.15%

•Initial public offering completed on August 16, 2021


(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., October 26, 2021 – 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 $4.9 million, or $0.58 diluted earnings per share, for the third quarter of 2021. This compares to net income of $3.9 million, or $0.50 diluted earnings per share, for the second quarter of 2021, and net income of $3.2 million, or $0.41 diluted earnings per share, for the third quarter of 2020. The Company reported core net income of $4.0 million, or $0.48 diluted core earnings per share, for the third quarter of 2021. This compares to core net income of $3.9 million, or $0.50 diluted core earnings per share, for the second quarter of 2021, and core net income of $2.7 million, or $0.35 diluted core earnings per share, for the third quarter of 2020 (see “Reconciliation of Non-GAAP Financial Measures”).

Stephen Whatley, Chairman and Chief Executive Officer of Southern States, said, “Our third quarter results demonstrated exceptionally strong loan growth, healthy profitability, and impressive credit quality. By continuing to execute on our strategic plan that focuses on organic growth in our attractive markets, we are well positioned to continue growing our franchise while leveraging our recent investments in people, infrastructure, and technology.”

“We are very pleased to have completed our initial public offering in August. Becoming a public company is an important next chapter in our history, but our focus remains squarely on understanding and valuing the needs of our clients. By remaining consistent with our core values and continuing to deliver high levels of personalized service, we believe that we will continue to enhance the value of our franchise over the long term,” said Mr. Whatley.

















Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2021 was $13.6 million, an increase of 5.8% from $12.9 million for the second quarter of 2021. The increase was primarily attributable to an increase in interest-earning assets.

Relative to the third quarter of 2020, net interest income increased $2.7 million, or 24.2%. The increase was substantially the result of an increase in interest-earning assets.

Net interest margin for the third quarter of 2021 was 3.77%, compared to 3.75% for the second quarter of 2021. The increase was primarily the result of a decline in the cost of funds that more than offset a decline in the yield on interest-earning assets.

Relative to the third quarter of 2020, net interest margin increased from 3.71%. The increase was primarily due to a decline in the cost of funds that more than offset a decline in the yield on interest-earning assets.

Noninterest Income

Noninterest income for the third quarter of 2021 was $2.5 million, an increase of 22.7% from $2.0 million for the second quarter of 2021. Third quarter 2021 results included a bank owned life insurance ("BOLI") death benefit claim of $742,000 and $189,000 net gain on securities.

Relative to the third quarter of 2020, noninterest income increased 2.5% from $2.4 million. In comparing the quarters, there was a decline in swap fees from the third quarter of 2020 that was more than offset by a net gain on securities and a larger BOLI claim in the third quarter of 2021 compared to the claim in the second quarter of 2020.

Noninterest Expense

Noninterest expense for the third quarter of 2021 was $9.2 million, up from $9.1 million for the second quarter of 2021. The increase was primarily attributable to increased public company expenses in the third quarter.

Relative to the third quarter of 2020, noninterest expense increased 13.5% from $8.1 million. The increase was primarily attributable to higher salaries and employee benefits expense as production personnel were added in the Georgia market. These hires contributed to the growth in loans and profitability.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $1.1 billion at September 30, 2021, compared with $1.1 billion at June 30, 2021 and $1.0 billion at September 30, 2020. The $47.9 million increase in loans from June 30, 2021 was primarily attributable to an increases in construction and development loans that more than offset a decrease in PPP loans.

PPP loans outstanding were $20.3 million at September 30, 2021, compared to $37.8 million and $71.7 million at June 30, 2021 and September 30, 2020, respectively. Excluding the impact of PPP loans forgiven by the SBA, total gross loans increased during the third quarter by $65.2 million, or 24.5% annualized, to $1.1 billion.

Deposits

Total deposits were $1.3 billion at September 30, 2021, compared with $1.3 billion at June 30, 2021 and $1.1 billion at September 30, 2020. The $23.7 million increase in total deposits from June 30, 2021 was due to increases of $10.6 million in noninterest-bearing and $13.1 million in interest-bearing accounts.

Asset Quality

Nonperforming loans totaled $3.3 million, or 0.29% of gross loans, at September 30, 2021, compared with $2.2 million, or 0.20% of gross loans, at June 30, 2021, and $10.9 million, or 1.09% of gross loans, at September 30, 2020. The $1.2 million increase in nonperforming loans from June 30, 2021 was primarily attributable to construction and development loans associated with one borrower. The $7.6 million reduction in nonperforming










loans from September 30, 2020 was primarily attributable to two properties that were foreclosed and moved to other real estate owned (“OREO”).

The Company recorded a provision for loan losses of $750,000 for the third quarter of 2021, unchanged from the second quarter of 2021. The provision was primarily due to loan growth.

Net recoveries for the third quarter of 2021 were $8,000, or 0.00% of average loans on an annualized basis, compared to net charge-offs of $16,000, or 0.00% of average loans on an annualized basis, for the second quarter of 2021, and net recoveries of $14,000, or 0.00% of average loans on an annualized basis, for the third quarter of 2020.

The Company’s allowance for loan losses was 1.23% of total loans and 426.15% of nonperforming loans at September 30, 2021, compared with 1.22% of total loans and 619.27% of nonperforming loans at June 30, 2021.

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 a loan production office 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 the current COVID-19 pandemic and uncertainty about its continuation. 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 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 earnings 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
(205) 820-8065
ljoyce@ssbank.bank

Matthew Keating
(310) 622-8230
ssbankir@finprofiles.com










    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
     (In thousands, except share amounts)
September 30, 2021 (Unaudited)June 30, 2021 (Unaudited)December 31, 2020 (Audited)September 30, 2020 (Unaudited)
Assets
Cash and due from banks$19,000 $17,953 $23,229 $16,718 
Interest-bearing deposits in banks114,800 131,169 51,503 24,121 
Federal funds sold44,022 39,021 10,175 66,389 
Total cash and cash equivalents177,822 188,143 84,907 107,228 
Securities available for sale, at fair value113,317 105,617 114,001 98,155 
Securities held to maturity, at amortized cost19,678 19,683 — — 
Other equity securities, at fair value9,227 8,985 5,017 — 
Restricted equity securities, at cost2,600 2,788 3,224 3,137 
Loans held for sale2,097 2,767 5,696 3,575 
Loans, net of unearned income1,145,447 1,097,559 1,030,115 1,001,853 
Less allowance for loan losses14,097 13,339 11,859 12,116 
Loans, net1,131,350 1,084,220 1,018,256 989,737 
Premises and equipment, net25,916 25,011 24,426 24,890 
Accrued interest receivable3,933 3,725 4,243 4,471 
Bank owned life insurance22,081 22,710 22,458 22,328 
Annuities12,968 12,941 12,903 12,976 
Foreclosed assets10,146 10,146 10,224 7,582 
Goodwill16,862 16,862 16,862 16,862 
Core deposit intangible1,566 1,632 1,764 1,830 
Other assets9,499 9,206 8,525 7,269 
Total assets$1,559,062 $1,514,436 $1,332,506 $1,300,040 
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing$380,111 $369,479 $290,867 $285,467 
Interest-bearing956,211 943,131 848,794 828,143 
Total deposits1,336,322 1,312,610 1,139,661 1,113,610 
Other borrowings12,498 12,490 7,975 8,000 
FHLB advances26,900 31,900 30,900 28,850 
Subordinated notes— — 4,493 4,490 
Accrued interest payable125 175 278 406 
Other liabilities8,996 8,358 8,543 7,318 
Total liabilities1,384,841 1,365,533 1,191,850 1,162,674 










   CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share amounts)
September 30, 2021 (Unaudited)June 30, 2021 (Unaudited)December 31, 2020 (Audited)September 30, 2020 (Unaudited)
Stockholders' equity:
Common stock45,064 38,582 38,391 38,374 
Capital surplus80,547 65,978 65,327 65,197 
Retained earnings46,611 42,385 34,183 31,482 
Accumulated other comprehensive income2,600 2,683 3,194 2,805 
Unvested restricted stock(601)(725)(439)(492)
Total stockholders' equity174,221 148,903 140,656 137,366 
Total liabilities and stockholders' equity$1,559,062 $1,514,436 $1,332,506 $1,300,040 
Shares issued and outstanding9,012,857 7,716,428 7,678,195 7,674,756 


























                           CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amounts)
For the Three Months EndedFor the Nine Months Ended
September 30,
2021		June 30,
2021		September 30,
2020		September 30,
2021		September 30,
2020
Interest income:
Loans, including fees $13,923 $13,484 $12,308 $40,429 $35,577 
Taxable securities402 332 346 1,134 940 
Nontaxable securities266 255 178 729 454 
Other interest and dividends143 124 67 315 489 
Total interest income14,734 14,195 12,899 42,607 37,460 
Interest expense:
Deposits 1,034 1,131 1,694 3,355 6,491 
Other borrowings60 171 220 435 642 
Total interest expense1,094 1,302 1,914 3,790 7,133 
Net interest income 13,640 12,893 10,985 38,817 30,327 
Provision for loan losses750 750 1,600 2,250 2,700 
Net interest income after provision for loan losses12,890 12,143 9,385 36,567 27,627 
Noninterest income:
Service charges on deposit accounts403 337 356 1,101 1,089 
Swap fees101 279 419 938 1,063 
SBA/USDA fees130 439 124 3,434 709 
Mortgage origination fees393 396 410 1,196 1,220 
Net gain (loss) on securities189 27 — (17)742 
Other operating income1,293 567 1,139 2,399 2,093 
Total noninterest income2,509 2,045 2,448 9,051 6,916 
Noninterest expenses:
Salaries and employee benefits5,517 5,530 4,629 16,104 13,801 
Equipment and occupancy expenses908 909 949 2,697 2,760 
Data processing fees524 527 468 1,565 1,340 
Regulatory assessments248 221 210 689 523 
      Other operating expenses1,988 1,919 1,834 5,768 5,315 
Total noninterest expenses9,185 9,106 8,090 26,823 23,739 
Income before income taxes6,214 5,082 3,743 18,795 10,804 
Income tax expense1,293 1,176 549 4,287 2,012 
Net income$4,921 $3,906 $3,194 $14,508 $8,792 
Basic earnings per share$0.59 $0.51 $0.42 $1.84 $1.15 
Diluted earnings per share$0.58 $0.50 $0.41 $1.82 $1.13 













The following table provides an analysis of the allowance for loan losses as of the dates indicated.

Three Months EndedNine Months Ended
September 30,
2021		June 30, 2021September 30,
2020		September 30,
2021		September 30,
2020
(Dollars in thousands)
Average loans, net of unearned income$1,122,741 $1,091,139 $994,066 $1,093,684 $936,500 
Loans, net of unearned income$1,145,447 $1,097,559 $1,001,853 $1,145,447 $1,001,853 
Allowance for loan losses at beginning of the period$13,339 $12,605 $10,502 $11,859 $9,265 
Charge-offs:
Construction and development— — — — — 
Residential— 28 1 44 48 
Commercial— — — — — 
Commercial and industrial— — — — — 
Consumer and other— — 4 2 15 
Total charge-offs— 28 5 46 63 
Recoveries:
Construction and development— — — — — 
Residential7 3 7 12 9 
Commercial— — — — — 
Commercial and industrial1 2 10 14 122 
Consumer and other— 7 2 8 83 
Total recoveries8 12 19 34 214 
Net charge-offs (recovery)$(8)$16 $(14)$12 $(151)
Provision for loan losses$750 $750 $1,600 $2,250 $2,700 
Balance at end of period$14,097 $13,339 $12,116 $14,097 $12,116 
Ratio of allowance to end of period loans1.23 %1.22 %1.21 %1.23 %1.21 %
Ratio of net charge-offs (recovery) to average loans0.00 %0.00 %0.00 %0.00 %(0.02)%
























The following table sets forth the allocation of the Company’s nonperforming assets among different asset categories as of the dates indicated. Nonperforming assets consist of nonperforming loans plus OREO and repossessed property. Nonperforming loans include nonaccrual loans and loans past due 90 days or more.

September 30,June 30,December 31,September 30,
2021202120202020
(Dollars in thousands)
Nonaccrual loans$3,308 $2,010 $3,418 $10,905 
Past due loans 90 days or more and still accruing interest— 144 91 21 
Total nonperforming loans3,308 2,154 3,509 10,926 
OREO10,146 10,146 10,224 6,582 
Repossessed equipment(1)
— — — 1,000 
Total nonperforming assets$13,454 $12,300 $13,733 $18,508 
Troubled debt restructured loans – nonaccrual(2)
1,041 695 479 593 
Troubled debt restructured loans - accruing1,085 1,096 1,275 1,270 
Total troubled debt restructured loans$2,126 $1,791 $1,754 $1,863 
Allowance for loan losses$14,097 $13,339 $11,859 $12,116 
Gross loans outstanding at the end of period$1,149,340 $1,101,677 $1,033,733 $1,005,980 
Allowance for loan losses to gross loans1.23 %1.21 %1.15 %1.20 %
Allowance for loan losses to nonperforming loans426.15 %619.27 %337.96 %110.89 %
Nonperforming loans to gross loans0.29 %0.20 %0.34 %1.09 %
Nonperforming assets to gross loans and OREO1.16 %1.11 %1.32 %1.83 %
Nonaccrual loans by category:
Real Estate:
Construction & Development$1,972 $84 $977 $1,144 
Residential Mortgages339 250 857 913 
Commercial Real Estate Mortgages690 1,347 1,478 8,751 
Commercial & Industrial300 316 84 91 
Consumer and other7 13 22 6 
$3,308 $2,010 $3,418 $10,905 

(1) Repossessed equipment was sold in October 2020.
(2) 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.









The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and average costs of our liabilities for the periods indicated. Yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

Three Months Ended
September 30, 2021June 30, 2021September 30, 2020
Average
Balance		InterestYield/RateAverage
Balance		InterestYield/RateAverage
Balance		InterestYield/Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
Gross loans, net of unearned income(1)$1,122,741 $13,923 4.92 %$1,091,139 $13,484 4.96 %$994,066 $12,308 4.93 %
Taxable securities76,612 $402 2.08 %67,785 332 1.96 %66,903 $346 2.07 %
Nontaxable securities48,162 $266 2.20 %44,991 255 2.28 %25,577 $178 2.76 %
Other interest-earnings assets189,131 $143 0.30 %176,542 124 0.28 %91,757 $67 0.29 %
Total interest-earning assets$1,436,646 $14,734 4.07 %$1,380,457 $14,195 4.12 %$1,178,303 $12,899 4.36 %
Allowance for loan losses(13,645)(12,869)(10,755)
Noninterest-earning assets125,870 123,784 116,122 
Total Assets$1,548,871 $1,491,372 $1,283,670 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts98,203 24 0.10 %97,202 24 0.10 %85,482 49 0.23 %
Savings and money market accounts565,861 665 0.47 %501,155 713 0.57 %381,431 677 0.71 %
Time deposits290,460 345 0.47 %317,522 394 0.50 %351,278 968 1.10 %
FHLB advances31,520 34 0.43 %31,900 35 0.44 %29,207 57 0.77 %
Other borrowings6,652 26 1.57 %12,535 136 4.36 %12,488 163 5.20 %
Total interest-bearing liabilities$992,696 $1,094 0.44 %$960,314 $1,302 0.54 %$859,886 $1,914 0.89 %
Noninterest-bearing liabilities:
Noninterest-bearing deposits$384,207 $374,166 $279,164 
Other liabilities9,663 9,409 8,295 
Total noninterest-bearing liabilities$393,870 $383,575 $287,459 
Stockholders’ Equity162,305 147,483 136,325 
Total Liabilities and Stockholders’ Equity$1,548,871 $1,491,372 $1,283,670 
Net interest income$13,640 $12,893 $10,985 
Net interest spread(2)3.63 %3.58 %3.47 %
Net interest margin(3)3.77 %3.75 %3.71 %
(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.









Nine Months Ended
September 30, 2021September 30, 2020
Average
Balance		InterestYield/RateAverage
Balance		InterestYield/Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
Gross loans, net of unearned income(1)$1,093,684 $40,429 4.94 %$936,500 $35,577 5.07 %
Taxable securities74,244 1,134 2.04 %57,733 940 2.17 %
Nontaxable securities42,191 729 2.31 %19,665 454 3.08 %
Other interest-earnings assets148,349 315 0.28 %107,271 489 0.61 %
Total interest-earning assets$1,358,468 $42,607 4.19 %$1,121,169 $37,460 4.46 %
Allowance for loan losses(12,890)(10,173)
Noninterest-earning assets124,539 109,346 
Total Assets$1,470,117 $1,220,342 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts94,696 66 0.09 %81,168 131 0.22 %
Savings and money market accounts503,064 2,056 0.55 %360,736 2,288 0.85 %
Time deposits310,758 1,233 0.53 %359,069 4,072 1.52 %
FHLB advances32,215 120 0.50 %20,522 126 0.82 %
Other borrowings10,625 315 3.96 %12,478 516 5.52 %
Total interest-bearing liabilities$951,358 $3,790 0.53 %$833,973 $7,133 1.14 %
Noninterest-bearing liabilities:
Noninterest-bearing deposits$358,556 $247,192 
Other liabilities9,207 6,951 
Total noninterest-bearing liabilities$367,763 $254,143 
Stockholders’ Equity150,996 132,226 
Total Liabilities and Stockholders’ Equity$1,470,117 $1,220,342 
Net interest income$38,817 $30,327 
Net interest spread(2)3.66 %3.32 %
Net interest margin(3)3.82 %3.61 %
(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.











Per Share InformationThree Months EndedNine Months Ended
September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
(Dollars in thousands, except share and per share amounts)
Net income$4,921 $3,906 $3,194 $14,508 $8,792 
Earnings per share - basic$0.59 $0.51 $0.42 $1.84 $1.15 
Earnings per share - diluted$0.58 $0.50 $0.41 $1.82 $1.13 
Weighted average shares outstanding8,354,860 7,691,084 7,666,336 7,861,780 7,666,336 
Diluted weighted average shares outstanding8,467,460 7,810,952 7,767,976 7,980,159 7,761,695 
Shares issued and outstanding9,012,857 7,716,428 7,674,756 9,012,857 7,674,756 
Total stockholders' equity$174,221 $148,903 $137,366 $174,221 $137,366 
Book value per share$19.33 $19.30 $17.90 $19.33 $17.90 
Performance RatiosThree Months EndedNine Months Ended
September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net interest margin3.77 %3.75 %3.71 %3.82 %3.61 %
Net interest spread3.63 %3.58 %3.47 %3.66 %3.32 %
Efficiency ratio57.55 %61.07 %60.23 %56.02 %65.04 %
Return on average assets1.26 %1.05 %0.99 %1.32 %0.96 %
Return on average stockholders’ equity12.03 %10.62 %9.32 %12.85 %9.22 %



Core and PPP LoansSeptember 30, 2021June 30, 2021December 31, 2020September 30, 2020
(Dollars in thousands)
Core loans$1,129,075 $1,063,913 $967,177 934,286 
PPP loans20,265 37,76466,556 71,694 
Unearned income(3,893)(4,118)(3,618)(4,127)
   Loans, net of unearned income1,145,447 1,097,559 1,030,115 1,001,853 
Allowance for loan losses(14,097)(13,339)(11,859)(12,116)
      Loans, net$1,131,350 $1,084,220 $1,018,256 989,737 











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
Three Months EndedNine Months Ended
September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
(Dollars in thousands, except share and per share amounts)
Net income$4,921 $3,906 $3,194 $14,508 $8,792 
Add: Net OREO write-downs (gains)— (8)219 (8)793 
Less: Gain on sale of USDA loan— — — 2,806 — 
Less: BOLI death benefits742 — 615 742 615 
Less: Gain (loss) on securities189 27 — (17)742 
Less: Tax effect(52)(9)56 (730)12 
Core net income$4,042 $3,880 $2,742 $11,699 $8,216 
Average assets$1,548,871 $1,491,372 $1,283,670 $1,470,117 $1,220,342 
Core return on average assets1.04 %1.04 %0.85 %1.06 %0.90 %
Net income$4,921 $3,906 $3,194 $14,508 $8,792 
Add: Net OREO write-downs (gains)— (8)219 (8)793 
Add: Provision750 750 1,600 2,250 2,700 
Less: Gain on sale of USDA loan— — — 2,806 — 
Less: BOLI death benefits742 — 615 742 615 
Less: Gain (loss) on securities189 27 — (17)742 
Add: Income taxes1,293 1,176 549 4,287 2,012 
Pretax pre-provision core net income$6,033 $5,797 $4,947 $17,506 $12,940 
Average assets$1,548,871 $1,491,372 $1,283,670 $1,470,117 $1,220,342 
Pretax pre-provision core return on average assets1.55 %1.56 %1.53 %1.59 %1.42 %
Total stockholders' equity$174,221 $148,903 $137,366 $174,221 $137,366 
Less: Intangible assets18,428 18,494 18,692 18,428 18,692 
Tangible common equity$155,793 $130,409 $118,674 $155,793 $118,674 
Core net income$4,042 $3,880 $2,742 $11,699 $8,216 
Diluted weighted average shares outstanding8,467,460 7,810,952 7,767,976 7,980,159 7,761,695 
Diluted core earnings per share$0.48 $0.50 $0.35 $1.47 $1.06 
Common shares outstanding at year or period end9,012,857 7,716,428 7,674,756 9,012,857 7,674,756 
Tangible book value per share$17.29 $16.90 $15.46 $17.29 $15.46 








Reconciliation of Non-GAAP Financial Measures
Three Months EndedNine Months Ended
September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
(Dollars in thousands, except share and per share amounts)
Total assets at end of period$1,559,062 $1,514,436 $1,300,040 $1,559,062 $1,300,040 
Less: Intangible assets18,428 18,494 18,692 18,428 18,692 
Adjusted assets at end of period$1,540,634 $1,495,942 $1,281,348 $1,540,634 $1,281,348 
Tangible common equity to tangible assets10.11 %8.72 %9.26 %10.11 %9.26 %
Total average stockholders’ equity$162,305 147,483 $136,325 $150,996 $132,226 
Less: Average intangible assets18,470 18,535 18,732 18,535 18,797 
Average tangible common equity$143,835 $128,948 $117,593 $132,461 $113,429 
Net income to common shareholders$4,921 $3,906 $3,194 $14,508 $8,792 
Return on average tangible common equity13.57 %12.15 %10.81 %14.64 %10.35 %
Average tangible common equity$143,835 $128,948 $117,593 $132,461 $113,429 
Core net income$4,042 $3,880 $2,742 $11,699 $8,216 
Core return on average tangible common equity11.15 %12.07 %9.28 %11.81 %9.68 %
Net interest income$13,640 $12,893 10,985 38,817 30,327 
Add: Noninterest income2,509 2,045 2,448 9,051 6,916 
Less: Gain on sale of USDA loan— — — 2,806 — 
Less: BOLI death benefits742 — 615 742 615 
Less: Gain (loss) on securities189 27 — (17)742 
Operating revenue$15,218 $14,911 $12,818 $44,337 $35,886 
Expenses:
Total noninterest expense$9,185 $9,106 $8,090 $26,823 $23,739 
Less: Net OREO write-down (gains)— (8)219 (8)793 
Adjusted noninterest expenses$9,185 $9,114 $7,871 $26,831 $22,946 
Core efficiency ratio60.36 %61.12 %61.41 %60.52 %63.94 %















ssbk3q21investorpresenta
Q3 2021 Investor Presentation October 26, 2021

 
2 Important Notices and Disclaimers Forward-Looking Statements This presentation 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 the current COVID-19 pandemic and uncertainty about its continuation. 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 from those in the forward-looking statements are set forth in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 under the sections 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 presentation and may include statements about business strategy and prospects for growth, operations, ability to pay dividends, competition, regulation and general economic conditions. Non-GAAP Financial Measures In addition to reporting GAAP results, the Company reports non-GAAP financial measures of (i) core net income, (ii) core return on average assets, (iii) return on average tangible common equity, and (iv) core return on average common tangible equity. 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. For a reconciliation of the non-GAAP measures we use to the most comparable GAAP measures, see the Appendix to this presentation.

 
3 Q3 2021 Results Highlights (1) Please refer to non-U.S. GAAP reconciliation in the appendix Operating Results Loans Deposits Capital Asset Quality • Net income of $4.9 million, or $0.58 per diluted share and core net income of $4.0 million (1), or $0.48 per diluted share (1) • ROA of 1.26% and ROAE of 12.03%; Core ROAA of 1.04% (1) and Core ROATCE of 11.15% (1) • Net interest margin of 3.77% • Core efficiency ratio of 60.36% (1) • Loan growth of 6.2% excluding Paycheck Protection Program (PPP) loans from Q2 2021 • Loan portfolio of $1.1 billion, an increase of 4.4% from Q2 2021 • Average yield on loans of 4.92%, compared to 4.96% in Q2 2021 • Loans (excluding PPP loans) / deposits ratio of 84.2%, compared to 80.7% in Q2 2021 • Deposits of $1.3 billion, an increase of 1.8% from Q2 2021 • Average cost of total deposits decreased to 0.31% from 0.35% in Q2 2021 • Noninterest-bearing deposits comprised 28.4% of total deposits • Nonperforming loans to gross loans of 0.29% • Net recoveries of $8,000 or 0.00% of average loans • Allowance for loan losses to gross loans of 1.23% • Announced quarterly dividend of $0.09 per share • Tangible common equity to tangible assets of 10.11% (1) • Tangible book value per share of $17.29 (1) increased from $16.90 (1) in Q2 2021

 
4 Branches (15) Legend Huntsville Birmingham Montgomery Columbus Atlanta Alabama Georgia 65 85 75 Anniston Auburn 20 85 75 85 65 65 59 Tuscaloosa LPO (1) YoY Core Deposit Growth: 21.0%Loans / Deposits(2): 84.2% Overview of Southern States Bancshares, Inc. Q3 ‘21 Financial Highlights YoY Asset Growth: 19.9%Assets ($B): $1.6 NPLs / Loans: 0.29% YoY Loan Growth: 14.3%Gross Loans ($B): $1.1 LLR / Loans: 1.23% YoY Deposit Growth: 20.0%Deposits ($B): $1.3 YTD NCOs / Avg. Loans: 0.00% TCE / TA(1): 10.11% Core Net Income(1)($M): $4.0 Core ROAA(1): 1.04% NIM: 3.77% Core Efficiency Ratio(1): 60.36% Mobile Savannah Macon Valdosta Augusta Southern States Bancshares (Nasdaq: SSBK) was founded in August 2007 by current CEO and Chairman, Steve Whatley, and a group of organizing directors and priced its IPO on August 11, 2021 Management team with 200 years of collective experience in the banking industry and deep ties to local markets History of solid growth, top-tier profitability and a strong credit culture Bifurcated growth strategy through organic growth and disciplined M&A Focused on being a dominant bank in our smaller markets and a competitive player in the larger metropolitan areas Diversified loan portfolio complemented by low-cost, core funding base Source: S&P Global Market Intelligence; Company Documents Financial data as of the three months ended 9/30/21 unless otherwise noted Note: Core Deposits defined as total deposits less jumbo time deposits; jumbo time deposits classified as deposits larger than $250,000 (1) Please refer to non-U.S. GAAP reconciliation in the appendix (2) Excludes PPP loans

 
5 2007 Our History and Growth Source: S&P Global Market Intelligence; Company Documents Dollars in billions H is to ri ca l H ig hl ig ht s August 2007 Established Anniston, AL headquarters and Opelika, AL Office with $31 million in capital at $10.00 per share May 2012 Acquired Alabama Trust Bank in Sylacauga, AL 2015 Opened offices in Huntsville, AL, Carrollton, GA, and an LPO in Atlanta, GA Acquired Columbus Community Bank in Columbus, GA and opened a second location in Columbus February 2017 Completed $3.4 million local capital raise at $14 per share 2018 Established a full-service banking office in Newnan, GA 2020 through 2021 Hired 4 commercial bankers in Georgia franchise Priced initial public offering Anniston Opelika Anniston Mobile Huntsville Tuscaloosa Dothan Savannah Columbus Birmingham Huntsville Montgomery Mobile Athens Tuscaloosa Albany Dothan Valdosta Montgomery Birmingham 16 20 75 65 65 59 65 65 59 Opelika Anniston Atlanta Total Assets ($B) September 2019 Closed acquisition of Small Town Bank in Wedowee, AL 2016 Opened Auburn, AL office Issued $4.5 million of 10-year subordinated notes Completed $41.2 million capital raise at $14 per share 2021 2 Branches 15 Branches and an LPO Branch LPO 2008 Established a full-service banking office in Birmingham, AL $0.1 $0.2 $0.2 $0.2 $0.3 $0.3 $0.3 $0.5 $0.6 $0.7 $0.9 $1.1 $1.3 $1.6 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 '21

 
6 Columbus, GA $56.4 $56.7 $69.8 $73.1 $85.7 $67.8 Columbus MSA Auburn- Opelika MSA Birmingham MSA Huntsville MSA Atlanta MSA National Average 1.4% 2.5% 4.6% 4.6% 5.7% 2.9% Birmingham MSA Columbus MSA Auburn- Opelika MSA Huntsville MSA Atlanta MSA National Average Major Employers Market Highlights Robust Market Dynamics Creates Growth Opportunities Source: U.S. Bureau of Labor Statistics; S&P Global Market Intelligence; Forbes; Money.com; Business Facilities; USA Today; Smartasset Financial Technology; US News; Auburn.edu - 9th largest Metro Area in the USA - Voted 3rd metro area for corporate headquarters - Ranked 13th Best Places for Business and Careers - 16 Fortune 500 companies headquartered in Atlanta - Largest market in Alabama - One of the lowest costs of living in America - A top 10 moving destination for new college graduates - University of Alabama Birmingham serves as an international leader in healthcare - Voted 3rd best place to live in the country by US News - Highest concentration of engineers in the US - A Top 10 best city for jobs in STEM - Home of the Redstone Arsenal which includes the U.S. Space and Rocket Center, NASA’s Marshall Space Flight Center, and the U.S. Army Aviation and Missile Command - One of the fastest growing MSAs in the Southeast - Auburn University contributes $5.6 billion annually and 27,000 jobs to the Alabama economy - A U.S. city with most job growth per USA Today - Ranked 4th MSA for migration growth - Fort Benning Military Base • U.S. Army Infantry and Armor Training Post • Columbus Chamber of Commerce estimates annual economic impact of $4.8 billion - Major companies headquartered include Aflac and Total Systems Services, Inc. Huntsville, AL Birmingham, AL Atlanta, GA ‘21 – ‘26 Projected Median HHI ($M) ‘21 – ‘26 Projected Population Growth (%) Auburn / Opelika, AL

 
7 Loans / Deposits(1)Total Deposits ($M) Total Loans ($M)Total Assets ($M) Balance Sheet Growth Source: S&P Global Market Intelligence; Company Documents (1) Excludes PPP loans PPP Loans PPP Loans $629 $736 $888 $1,095 $1,266 $1,539 $67 $20 2016 2017 2018 2019 2020 Q3 '21 $1,559 $1,333 $520 $622 $776 $951 $1,140 $1,336 2016 2017 2018 2019 2020 Q3 '21 $503 $567 $704 $840 $964 $1,125$67 $20 2016 2017 2018 2019 2020 Q3 '21 $1,145 $1,030 95.5% 90.2% 90.0% 88.1% 85.0% 84.2% 2016 2017 2018 2019 2020 Q3 '21

 
8 Nonperforming Assets by Type Asset Quality Source: S&P Global Market Intelligence; Company Documents Dollars in millions (1) Excludes PPP loans (2) TDRs reflect COVID-19 relief under the CARES Act and bank regulatory COVID-19 relief in 2020 and 2021 Reserves / Loans(1) NCOs / Avg. Loans $4.8 $3.1 $6.3 $15.4 (0.05%) 0.10% 0.02% 0.57% 0.07% $15.5 0.00% Comprehensive and conservative underwriting process Highly experienced bankers incentivized with equity ownership Commitment to a diverse loan portfolio while maintaining strong asset quality metrics Proactively manage loan concentrations with all collateral types capped at 50% of risk-based capital Hospitality capped in January 2020 Multifamily capped in September 2020 Proactive approach to managing problem credits Legacy Credit Issues: OREO: Shopping Center with three outparcels in Oxford, AL on balance sheet for $7.1 million and an appraised value of $7.6 million OREO: Two-story multi-use facility in Birmingham, AL on balance sheet for $2.9 million and an appraised value of $3.9 million (2) $1.8 $0.5 $3.9 $13.4 $3.4 $3.3 $2.9 $2.1 $1.8 $3.0 $1.8 $2.1 $0.1 $0.5 $0.6 $4.2 $10.2 $10.1 0.4% 0.2% 0.6% 2.5% 1.3% 1.2% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2016 2017 2018 2019 2020 Q3 '21 Nonaccruals ($mm) TDRs ($mm) OREO ($mm) NPAs / Loans + OREO $20.6 0.99% 1.02% 1.11% 1.11% 1.22% 1.25% 2016 2017 2018 2019 2020 3Q '21

 
9 Building Shareholder Value Our Strategic Focus Maintain focus on strong, profitable organic growth without compromising our credit quality Expand into new markets by hiring commercial bankers Focus on high growth markets and further scaling our Atlanta franchise Evaluate strategic acquisition opportunities Further grow our core deposit franchise Continue implementing technology to optimize customer service and provide efficient opportunities to scale the business Prudently manage capital between balance sheet growth and return to shareholders

 
10 Near-Term Outlook Loan balances (excluding the impact of PPP loans) are expected to continue to grow supported by a robust pipeline  As of September 30, 2021, $20.3 million of PPP loans remained outstanding  Loan growth is aided by recent opportunistic commercial banker hirings driven by talent dislocation from bank consolidation in our markets Net interest income is expected to increase incrementally from growth  Net interest margin (excluding the impact of PPP loans) is expected to decrease modestly  Deferred origination fees on PPP loans are expected to continue through 2021 Core noninterest income is expected to remain relatively stable  3Q ’21 reported noninterest income benefited from BOLI death benefits of $742 thousand Quarterly adjusted noninterest expense is expected to increase modestly to reflect ongoing costs associated with public listing Continued strong credit metrics are expected to allow for only modest provision levels Balanced approach to capital deployment with flexibility to support strong organic loan growth trajectory and cash dividend Well-positioned to capitalize on additional accretive acquisition opportunities

 
Appendix

 
12 Non-GAAP Financial Measures Reconciliations ($000) September 30, June 30, 2021 2021 Net income $4,921 $3,906 Add: Net OREO write-downs -- -8 Less: BOLI death benefits 742 -- Less: Gain (loss) on securities 189 27 Less: Tax effect (52) (9) Core net income $4,042 $3,880 Average assets $1,548,871 $1,149,372 Core return on average assets 1.04% 1.04% Total stockholders’ equity $174,221 $148,903 Less: Intangible assets 18,428 18,494 Tangible common equity $155,793 $130,409 Core net income $4,042 $3,880 Diluted weighted average shares outstanding 8,467,460 7,810,952 Diluted core earnings per share $0.48 $0.50 Common shares outstanding at period end 9,012,857 7,716,428 Tangible book value per share $17.29 $16.90

 
13 Non-GAAP Financial Measures Reconciliations ($000) September 30, June 30, 2021 2021 Total assets at end of period $1,559,062 $1,514,436 Less: Intangible assets 18,428 18,494 Adjusted assets at end of period $1,540,634 $1,495,942 Tangible common equity to tangible assets 10.11% 8.72% Total average stockholders’ equity $162,305 $147,483 Less: Average intangible assets 18,470 18,535 Average tangible common equity $143,835 $128,948 Net income to common shareholders $4,921 $3,906 Return on average tangible common equity 13.57% 12.15% Core net income $4,042 $3,880 Core return on average tangible common equity 11.15% 12.07% Net interest income $13,640 $12,893 Add: Noninterest income 2,509 2,045 Less: BOLI death benefits 742 -- Less: Gain (loss) on securities 189 27 Operating revenue $15,218 $14,911 Expenses: Total noninterest expense $9,185 $9,106 Less: Net OREO write-down (gains) -- (8) Adjusted noninterest expenses $9,185 $9,114 Core efficiency ratio 60.36% 61.12%