ssbk-20210930
000168973112-31false2021Q3http://fasb.org/us-gaap/2021-01-31#DepositAccountMemberhttp://fasb.org/us-gaap/2021-01-31#DepositAccountMemberhttp://fasb.org/us-gaap/2021-01-31#DepositAccountMemberhttp://fasb.org/us-gaap/2021-01-31#DepositAccountMember00016897312021-01-012021-09-30xbrli:shares00016897312021-11-12iso4217:USD00016897312021-09-3000016897312020-12-31iso4217:USDxbrli:shares00016897312021-07-012021-09-3000016897312020-07-012020-09-3000016897312020-01-012020-09-300001689731us-gaap:PreferredStockMember2020-12-310001689731us-gaap:CommonStockMember2020-12-310001689731us-gaap:AdditionalPaidInCapitalMember2020-12-310001689731us-gaap:RetainedEarningsMember2020-12-310001689731us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001689731ssbk:UnvestedRestrictedStockMember2020-12-310001689731us-gaap:RetainedEarningsMember2021-01-012021-09-300001689731us-gaap:CommonStockMemberus-gaap:IPOMember2021-01-012021-09-300001689731us-gaap:AdditionalPaidInCapitalMemberus-gaap:IPOMember2021-01-012021-09-300001689731us-gaap:IPOMember2021-01-012021-09-300001689731us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001689731us-gaap:CommonStockMember2021-01-012021-09-300001689731ssbk:UnvestedRestrictedStockMember2021-01-012021-09-300001689731us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001689731us-gaap:PreferredStockMember2021-09-300001689731us-gaap:CommonStockMember2021-09-300001689731us-gaap:AdditionalPaidInCapitalMember2021-09-300001689731us-gaap:RetainedEarningsMember2021-09-300001689731us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001689731ssbk:UnvestedRestrictedStockMember2021-09-3000016897312019-12-3100016897312020-09-300001689731us-gaap:BuildingMembersrt:MinimumMember2021-01-012021-09-300001689731srt:MaximumMemberus-gaap:BuildingMember2021-01-012021-09-300001689731ssbk:FurnitureAndEquipmentMembersrt:MinimumMember2021-01-012021-09-300001689731ssbk:FurnitureAndEquipmentMembersrt:MaximumMember2021-01-012021-09-300001689731us-gaap:CoreDepositsMember2021-01-012021-09-300001689731us-gaap:IPOMember2021-08-122021-08-120001689731us-gaap:IPOMember2021-08-120001689731us-gaap:OverAllotmentOptionMember2021-08-192021-08-190001689731us-gaap:USTreasurySecuritiesMember2021-09-300001689731us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-09-300001689731us-gaap:USStatesAndPoliticalSubdivisionsMember2021-09-300001689731us-gaap:CorporateDebtSecuritiesMember2021-09-300001689731us-gaap:AssetBackedSecuritiesMember2021-09-300001689731ssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMember2021-09-300001689731us-gaap:USTreasurySecuritiesMember2020-12-310001689731us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2020-12-310001689731us-gaap:USStatesAndPoliticalSubdivisionsMember2020-12-310001689731us-gaap:CorporateDebtSecuritiesMember2020-12-310001689731us-gaap:AssetBackedSecuritiesMember2020-12-310001689731ssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMember2020-12-310001689731ssbk:FederalHomeLoanBankStockMember2021-09-300001689731ssbk:FederalHomeLoanBankStockMember2020-12-310001689731ssbk:FirstNationalBankersBanksharesIncStockMember2021-09-300001689731ssbk:FirstNationalBankersBanksharesIncStockMember2020-12-310001689731ssbk:PacificCoastBankersBankStockMember2021-09-300001689731ssbk:PacificCoastBankersBankStockMember2020-12-31ssbk:security0001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2021-09-30xbrli:pure0001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMember2020-12-310001689731us-gaap:CommercialPortfolioSegmentMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMember2020-12-310001689731us-gaap:ConsumerPortfolioSegmentMember2021-09-300001689731us-gaap:ConsumerPortfolioSegmentMember2020-12-31ssbk:loanPortfolioSegmentssbk:loan0001689731ssbk:PaycheckProtectionPlanMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001689731ssbk:PaycheckProtectionPlanMemberus-gaap:CommercialPortfolioSegmentMember2021-07-012021-09-300001689731ssbk:PaycheckProtectionPlanMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:DoubtfulMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:PassMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:SpecialMentionMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:SubstandardMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:DoubtfulMemberus-gaap:ResidentialMortgageMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:PassMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:SubstandardMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:DoubtfulMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2021-09-300001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2021-09-300001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2021-09-300001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2021-09-300001689731us-gaap:DoubtfulMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001689731us-gaap:PassMember2021-09-300001689731us-gaap:SpecialMentionMember2021-09-300001689731us-gaap:SubstandardMember2021-09-300001689731us-gaap:DoubtfulMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:DoubtfulMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:PassMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:SpecialMentionMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:SubstandardMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:DoubtfulMemberus-gaap:ResidentialMortgageMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:PassMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:SubstandardMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:DoubtfulMember2020-12-310001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2020-12-310001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-12-310001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2020-12-310001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2020-12-310001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2020-12-310001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-12-310001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2020-12-310001689731us-gaap:DoubtfulMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001689731us-gaap:PassMember2020-12-310001689731us-gaap:SpecialMentionMember2020-12-310001689731us-gaap:SubstandardMember2020-12-310001689731us-gaap:DoubtfulMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:ConstructionLoansMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConstructionLoansMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConstructionLoansMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConstructionLoansMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialMortgageMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialMortgageMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialMortgageMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialMortgageMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetPastDueMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:FinancialAssetNotPastDueMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialLoanMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialLoanMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialLoanMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:FinancialAssetPastDueMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2021-09-300001689731us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001689731us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001689731us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2021-09-300001689731us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001689731us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001689731us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001689731us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2021-09-300001689731us-gaap:FinancialAssetNotPastDueMember2021-09-300001689731us-gaap:FinancingReceivables30To59DaysPastDueMember2021-09-300001689731us-gaap:FinancingReceivables60To89DaysPastDueMember2021-09-300001689731us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-09-300001689731us-gaap:FinancialAssetPastDueMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:ConstructionLoansMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConstructionLoansMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConstructionLoansMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConstructionLoansMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialMortgageMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialMortgageMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialMortgageMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialMortgageMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetPastDueMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:FinancialAssetNotPastDueMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialLoanMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialLoanMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialLoanMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMemberus-gaap:FinancialAssetPastDueMember2020-12-310001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2020-12-310001689731us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001689731us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001689731us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2020-12-310001689731us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001689731us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001689731us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001689731us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2020-12-310001689731us-gaap:FinancialAssetNotPastDueMember2020-12-310001689731us-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-310001689731us-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-310001689731us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310001689731us-gaap:FinancialAssetPastDueMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMember2020-12-310001689731ssbk:RealEstatePortfolioSegmentMember2021-01-012021-09-300001689731us-gaap:CommercialPortfolioSegmentMember2021-01-012021-09-300001689731us-gaap:ConsumerPortfolioSegmentMember2021-01-012021-09-300001689731ssbk:RealEstatePortfolioSegmentMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2021-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2021-09-300001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2021-09-300001689731us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2021-09-300001689731ssbk:RealEstatePortfolioSegmentMember2019-12-310001689731us-gaap:CommercialPortfolioSegmentMember2019-12-310001689731us-gaap:ConsumerPortfolioSegmentMember2019-12-310001689731ssbk:RealEstatePortfolioSegmentMember2020-01-012020-09-300001689731us-gaap:CommercialPortfolioSegmentMember2020-01-012020-09-300001689731us-gaap:ConsumerPortfolioSegmentMember2020-01-012020-09-300001689731ssbk:RealEstatePortfolioSegmentMember2020-09-300001689731us-gaap:CommercialPortfolioSegmentMember2020-09-300001689731us-gaap:ConsumerPortfolioSegmentMember2020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2020-09-300001689731us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2020-09-300001689731us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2020-09-300001689731us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2021-01-012021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2021-01-012021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMember2021-01-012021-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2020-01-012020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2020-01-012020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMember2020-01-012020-12-310001689731us-gaap:CommercialPortfolioSegmentMember2020-01-012020-12-310001689731us-gaap:ConsumerPortfolioSegmentMember2020-01-012020-12-3100016897312020-01-012020-12-310001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2020-01-012020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2020-01-012020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMember2020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:CommercialLoanMember2020-01-012020-09-300001689731us-gaap:SubordinatedDebtMemberssbk:SubordinatedNotesDueJuly2026Member2016-06-230001689731us-gaap:SubordinatedDebtMemberssbk:SubordinatedNotesDueJuly2026Memberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001689731us-gaap:SubordinatedDebtMemberssbk:SubordinatedNotesDueJuly2026Member2021-09-300001689731us-gaap:SubordinatedDebtMemberssbk:SubordinatedNotesDueJuly2026Member2020-12-310001689731us-gaap:SubordinatedDebtMemberssbk:SubordinatedNotesDueJuly2026Member2021-01-012021-09-300001689731us-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2021-09-300001689731us-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2020-12-310001689731us-gaap:CommitmentsToExtendCreditMember2021-09-300001689731us-gaap:CommitmentsToExtendCreditMember2020-12-310001689731us-gaap:FinancialStandbyLetterOfCreditMember2021-09-300001689731us-gaap:FinancialStandbyLetterOfCreditMember2020-12-310001689731us-gaap:FinancialStandbyLetterOfCreditMember2021-01-012021-09-300001689731us-gaap:FinancialStandbyLetterOfCreditMember2020-01-012020-09-300001689731ssbk:RealEstatePortfolioSegmentMemberus-gaap:FinanceReceivablesMemberssbk:LoanPortfolioConcentrationRiskMember2021-01-012021-09-300001689731us-gaap:NonvotingCommonStockMember2020-12-310001689731srt:SubsidiariesMember2021-09-300001689731srt:ParentCompanyMember2021-09-300001689731srt:ParentCompanyMember2020-12-310001689731srt:SubsidiariesMember2020-12-310001689731us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001689731us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001689731us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001689731us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001689731us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberssbk:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesResidentialAndMultifamilyMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001689731us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731ssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001689731ssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001689731ssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731ssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001689731ssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001689731ssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001689731us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001689731us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001689731ssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001689731ssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001689731ssbk:ImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731ssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001689731ssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001689731ssbk:ForeclosedAssetsMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731us-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001689731us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001689731us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001689731us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001689731us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001689731us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2021-09-300001689731us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2020-12-310001689731us-gaap:MeasurementInputDiscountRateMemberssbk:ImpairedLoansMembersrt:MinimumMember2021-09-300001689731us-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberssbk:ImpairedLoansMember2021-09-300001689731us-gaap:MeasurementInputDiscountRateMemberssbk:ForeclosedAssetsMembersrt:MinimumMember2021-09-300001689731us-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberssbk:ForeclosedAssetsMember2021-09-300001689731us-gaap:MeasurementInputDiscountRateMemberssbk:ImpairedLoansMembersrt:MinimumMember2020-12-310001689731us-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberssbk:ImpairedLoansMember2020-12-310001689731us-gaap:MeasurementInputDiscountRateMemberssbk:ForeclosedAssetsMembersrt:MinimumMember2020-12-310001689731us-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberssbk:ForeclosedAssetsMember2020-12-310001689731us-gaap:FairValueInputsLevel1Member2021-09-300001689731us-gaap:FairValueInputsLevel2Member2021-09-300001689731us-gaap:FairValueInputsLevel3Member2021-09-300001689731us-gaap:FairValueInputsLevel1Member2020-12-310001689731us-gaap:FairValueInputsLevel2Member2020-12-310001689731us-gaap:FairValueInputsLevel3Member2020-12-31
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 10-Q
_____________________________
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended: September 30, 2021
or
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                      to                     
Commission File Number: 001-40727
_____________________________
https://cdn.kscope.io/e2b5ada6d36acb2c5e259430f610efe2-ssbk-20210930_g1.jpg
Southern States Bancshares, Inc.
(Exact name of registrant as specified in its charter)
_____________________________
Alabama
26-2518085
(State or Other Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification Number)
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $5.00 par value per shareSSBKThe Nasdaq Stock Market, LLC
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No  o
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x   No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer oAccelerated filero
Non-accelerated filer Smaller reporting company
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.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  x
As of November 12, 2021, the registrant had 9,012,857 shares of common stock, $5 par value per share, issued and outstanding. 
{N4407029.2}

Table of Contents
 
TABLE OF CONTENTS
Page
{N4407029.2}
1

Table of Contents
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q of Southern States Bancshares, Inc. (“Southern States” or the “Company”) 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. 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 Quarterly Report on Form 10-Q and may include statements about business strategy and prospects for growth, operations, ability to pay dividends, competition, regulation and general economic conditions.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:
potential risks and uncertainties relating to the effects of COVID-19, including the duration of the COVID-19 outbreak, actions that have been and will be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact, and the potential negative impacts of COVID-19 on the global economy and financial markets, including U.S. GDP decreases and increases in unemployment;
our ability to execute and prudently manage our growth and execute our strategy, including expansion activities;
our ability to adequately measure and limit our credit risk;
business, market and economic conditions generally and in the financial services industry, nationally and within our local markets;
factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our markets and the financial health of our commercial borrowers;
the failure of assumptions and estimates, as well as differences in, and changes to, economic, market, and credit conditions, including changes in borrowers’ credit risks and payment behaviors;
compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with mortgage origination, sale and servicing operations;
compliance with the Bank Secrecy Act, OFAC rules and anti-money laundering laws and regulations;
governmental monetary and fiscal policies;
the effectiveness of our risk management framework, including internal controls;
the composition of and changes in our management team and our ability to attract and retain key personnel;
geographic concentration of our business in certain Alabama and Georgia markets;
our ability to attract and retain customers;
the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest-sensitive assets and liabilities, and the risks and uncertainty of the amounts realizable;
changes in the availability and cost of credit and capital in the financial markets, and the types of instruments that may be included as capital for regulatory purposes;
changes in the prices, values and sales volumes of residential and commercial real estate;
{N4407029.2}
2

Table of Contents
the effects of competition from a wide variety of local, regional, national and other providers of financial, investment, trust and other wealth management services and insurance services, including the disruption effects of financial technology and other competitors who are not subject to the same regulations as the Company and Southern States Bank (“the Bank”);
the failure of assumptions and estimates underlying the establishment of allowances for possible loan losses and other asset impairments, losses, valuations of assets and liabilities and other estimates;
the risks of mergers, acquisitions and divestitures, including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions;
changes in technology or products that may be more difficult, costly, or less effective than anticipated;
systems failures or interruptions involving our risk management framework, our information technology and telecommunications systems or third-party servicers;
unauthorized data access, cyber-crime and other threats to data security and customer privacy;
our ability to maintain our historical rate of growth;
our ability to identify potential candidates for, consummate, and achieve synergies resulting from, potential future acquisitions;
deterioration of our asset quality or the value of collateral securing loans;
changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters and appropriate compliance with applicable law and regulation;
operational risks associated with our business;
volatility and direction of market interest rates and the shape of the yield curve;
our ability to maintain important deposit customer relationships, maintain our reputation or otherwise avoid liquidity risks;
the obligations associated with being a public company;
the commencement and outcome of litigation and other legal proceedings against us or to which we may become subject;
natural disasters and adverse weather, acts of terrorism, an outbreak of hostilities or other international or domestic calamities as well as national and international economic conditions and health issues, such as COVID-19, and other matters beyond our control; and
other factors that are discussed in the sections titled “Risk Factors” in this Quarterly Report on Form 10-Q and in our Prospectus filed pursuant to Rule 424(b) on August 12, 2021 (the “Final Prospectus”) and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements and the “Risk Factors” included in this Quarterly Report on Form 10-Q and the Final Prospectus. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
{N4407029.2}
3

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share amounts)
September 30, 2021
(Unaudited)
December 31, 2020 (Audited)
Assets
Cash and due from banks$19,000 $23,229 
Interest-bearing deposits in banks114,800 51,503 
Federal funds sold44,022 10,175 
Total cash and cash equivalents177,822 84,907 
Securities available for sale, at fair value113,317 114,001 
Securities held to maturity, at amortized cost19,678  
Other equity securities, at fair value9,227 5,017 
Restricted equity securities, at cost2,600 3,224 
Loans held for sale2,097 5,696 
Loans, net of unearned income1,145,447 1,030,115 
Less allowance for loan losses 14,097 11,859 
Loans, net1,131,350 1,018,256 
Premises and equipment, net25,916 24,426 
Accrued interest receivable3,933 4,243 
Bank owned life insurance22,081 22,458 
Annuities12,968 12,903 
Foreclosed assets10,146 10,224 
Goodwill16,862 16,862 
Core deposit intangible1,566 1,764 
Other assets9,499 8,525 
Total assets$1,559,062 $1,332,506 
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing$380,111 $290,867 
Interest-bearing956,211 848,794 
Total deposits1,336,322 1,139,661 
Other borrowings12,498 7,975 
FHLB advances26,900 30,900 
Subordinated notes 4,493 
Accrued interest payable125 278 
Other liabilities8,996 8,543 
Total liabilities1,384,841 1,191,850 
{N4407029.2}
4

Table of Contents
Stockholders' equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2021 and December 31, 2020
  
Common stock, $5 par value, 30,000,000 shares authorized; 9,012,857 and 7,678,195 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
45,064 38,391 
Capital surplus80,547 65,327 
Retained earnings46,611 34,183 
Accumulated other comprehensive income2,600 3,194 
Unvested restricted stock(601)(439)
Total stockholders' equity174,221 140,656 
Total liabilities and stockholders' equity$1,559,062 $1,332,506 
See Notes to Consolidated Financial Statements.
{N4407029.2}
5

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amounts)
For the Three Months Ended
For the Nine Months Ended
September 30,
2021
September 30,
2020
September 30,
2021
September 30,
2020
Interest income:
Loans, including fees $13,923 $12,308 $40,429 $35,577 
Taxable securities402 346 1,134 940 
Nontaxable securities266 178 729 454 
Other interest and dividends143 67 315 489 
Total interest income14,734 12,899 42,607 37,460 
Interest expense:
Deposits 1,034 1,694 3,355 6,491 
Other borrowings60 220 435 642 
Total interest expense1,094 1,914 3,790 7,133 
Net interest income 13,640 10,985 38,817 30,327 
Provision for loan losses750 1,600 2,250 2,700 
Net interest income after provision for loan losses12,890 9,385 36,567 27,627 
Noninterest income:
Service charges on deposit accounts403 356 1,101 1,089 
Swap fees101 419 938 1,063 
SBA/USDA fees130 124 3,434 709 
Mortgage origination fees393 410 1,196 1,220 
Net gain (loss) on securities189  (17)742 
Other operating income1,293 1,139 2,399 2,093 
Total noninterest income2,509 2,448 9,051 6,916 
Noninterest expenses:
Salaries and employee benefits5,517 4,629 16,104 13,801 
Equipment and occupancy expenses908 949 2,697 2,760 
Data processing fees524 468 1,565 1,340 
Regulatory assessments248 210 689 523 
     Other operating expenses1,988 1,834 5,768 5,315 
Total noninterest expenses9,185 8,090 26,823 23,739 
Income before income taxes6,214 3,743 18,795 10,804 
Income tax expense1,293 549 4,287 2,012 
Net income$4,921 $3,194 $14,508 $8,792 
Basic earnings per share$0.59 $0.42 $1.84 $1.15 
Diluted earnings per share$0.58 $0.41 $1.82 $1.13 
See Notes to Consolidated Financial Statements.
{N4407029.2}
6

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(In thousands)
For the Three Months Ended
September 30,
2021
September 30,
2020
Net income$4,921 $3,194 
Other comprehensive income (loss):
Unrealized holding gains on securities available for sale arising during the period, net of tax of $20 and $211, respectively
56 601 
Reclassification adjustment for gains on securities available for sale realized in net income, net of tax of $49 and $0, respectively
(140) 
Other comprehensive income (loss)(84)601 
Comprehensive income$4,837 $3,795 
For the Nine Months Ended
September 30,
2021
September 30,
2020
Net income$14,508 $8,792 
Other comprehensive income (loss):
Unrealized holding (losses) gains on securities available for sale arising during the period, net of benefit (tax) of $213 and ($1,086), respectively
(606)3,090 
Reclassification adjustment for losses (gains) on securities available for sale realized in net income, net of benefit (tax) of $4 and ($193), respectively
12 (549)
Other comprehensive income (loss)(594)2,541 
Comprehensive income$13,914 $11,333 
See Notes to Consolidated Financial Statements.
{N4407029.2}
7

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
(In thousands, except share amounts)
Preferred StockCommon StockCapital
Surplus
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Unvested
Restricted
Stock
Total
Stockholders'
Equity
SharesPar ValueSharesPar Value
Balance, December 31, 2020
 $ 7,678,195 $38,391 $65,327 $34,183 $3,194 $(439)$140,656 
Net income— — — — 14,508 — — 14,508 
Issuance of common stock - IPO raise— — 1,296,429 6,482 18,150 — — — 24,632 
Issuance of common stock - IPO cost— — — — (3,674)— — — (3,674)
Issuance of common stock— — 8,240 41 124 — — — 165 
Exercise of common stock options— — 5,008 25 (25)— — —  
Issuance of restricted stock— — 24,985 125 376 — — (500)1 
Stock-based compensation— — — — 269 — — 338 607 
Common stock dividends paid— — — — — (2,080)— — (2,080)
Other comprehensive loss— — — — (594)— (594)
Balance, September 30, 2021
 $ 9,012,857 $45,064 $80,547 $46,611 $2,600 $(601)$174,221 
{N4407029.2}
8

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
For the Nine Months Ended
September 30,
20212020
OPERATING ACTIVITIES
Net income$14,508 $8,792 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and software amortization1,422 1,475 
Net loss (gain) on securities 17 (742)
Net amortization of securities696 421 
Amortization of core deposit intangible198 198 
Provision for loan losses2,250 2,700 
Gain on sale of foreclosed assets(10)(126)
Write-down of foreclosed assets 920 
Loss on sale of premises, equipment and software 16 
Stock-based compensation607 540 
Net decrease (increase) in loans held for sale3,599 (997)
Income from bank owned life insurance(378)(398)
Decrease (increase) in interest receivable310 (1,484)
Decrease in interest payable(153)(67)
Net other operating activities (376)(2,861)
Net cash provided by operating activities22,690 8,387 
INVESTING ACTIVITIES
Purchase of securities available for sale(44,479)(62,336)
Purchase of other equity securities(9,000)(5,000)
Proceeds from sale of securities available for sale15,759 26,185 
Proceeds from sale of other equity securities4,995  
Proceeds from maturities, calls, and paydowns of securities available for sale8,005 6,697 
Net redemption (purchase) of restricted equity securities624 (1,116)
Net increase in loans (115,444)(166,383)
Proceeds from sale of foreclosed assets188 834 
Proceeds from bank owned life insurance755 149 
Proceeds from sale of premises, equipment and software 376 
Purchase of premises, equipment and software(2,912)(6,632)
Net cash used in investing activities(141,509)(207,226)
FINANCING ACTIVITIES
Net increase in deposits196,661 163,097 
Net proceeds from issuance of common stock in connection with IPO20,959  
Proceeds from issuance of common stock165 85 
Net (repayment) proceeds of other borrowings(3,971)28,878 
Net proceeds of note payable4,500  
Repayment of subordinated notes(4,500) 
Common stock dividends paid(2,080)(1,228)
Net cash provided by financing activities211,734 190,832 
Net increase (decrease) in cash and cash equivalents92,915 (8,007)
Cash and cash equivalents at beginning of year84,907 115,235 
Cash and cash equivalents at end of year$177,822 $107,228 
SUPPLEMENTAL DISCLOSURE
Cash paid during the year for:
Interest$3,943 $7,200 
Income taxes$5,367 $2,739 
NONCASH TRANSACTIONS
Transfers of loans to foreclosed assets$100 $3,090 
Internally financed sales of foreclosed assets$ $923 
See Notes to Consolidated Financial Statements.
{N4407029.2}
9

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)

NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business
Southern States Bancshares, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, Southern States Bank (the “Bank”). The Bank is a commercial bank headquartered in Anniston, Calhoun County, Alabama. The Bank also operates branch offices in Birmingham, Opelika, Auburn, Huntsville, Sylacauga, Wedowee, Ranburne, Roanoke, Heflin, Alabama as well as Columbus, Carrollton, Dallas, and Newnan, Georgia. The Bank also has an LPO office located in Atlanta, Georgia. The Bank provides a full range of banking services in its primary market areas and the surrounding areas.
Basis of Presentation and Accounting Estimates
The unaudited consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany transactions and balances have been eliminated in consolidation.
In preparing the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed assets, financial instruments, deferred taxes, and other-than-temporary impairment of securities. In connection with the determination of the estimated losses on loans and the valuation of foreclosed assets, management obtains independent appraisals for significant collateral.
The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.
The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its borrowers’ ability to honor their contracts is dependent on local economic conditions.
While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions.
In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.
Cash, Cash Equivalents and Cash Flows
For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in banks and federal funds sold. Cash flows from loans held for sale, loans, restricted equity securities, and deposits are reported net.

{N4407029.2}
10

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Cash, Cash Equivalents and Cash Flows (Continued)

The Company maintains amounts due from banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts.
The Bank is required to maintain reserve balances in cash or on deposit with a correspondent bank for the Federal Reserve Bank, based on a percentage of deposits. The total of those reserve balances was $0 at September 30, 2021 and December 31, 2020.
Securities
The Company classifies its securities into one of two categories based upon management’s intent and ability to hold the securities: (i) securities held to maturity or (ii) securities available for sale. Securities classified as held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The Company has the ability, and it is management’s intention, to hold such securities to maturity. Securities classified as available for sale are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities available for sale are recorded on the trade date and are determined using the specific identification method.
The Company evaluates investment securities for other-than-temporary impairment (OTTI) using relevant accounting guidance on a regular basis. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer including an evaluation of credit ratings, (3) the impact of changes in market interest rates, (4) the intent of the Company to sell a security, and (5) whether it is more likely than not the Company will have to sell the security before recovery of its cost basis. If the Company intends to sell an impaired security, or if it is more likely than not the Company will have to sell the security before recovery of its cost basis, the Company records an other-than-temporary loss in an amount equal to the entire difference between fair value and amortized cost. Otherwise, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss is recognized in other comprehensive income (loss).
Other Equity Securities
The mutual fund owned by the Bank is classified as an equity security, it is carried at fair value with any periodic changes in value recorded through the income statement.
Restricted Equity Securities
Restricted equity securities are investments that are restricted in marketability. The Company, as a member of the Federal Home Loan Bank (FHLB) system, is required to maintain an investment in capital stock of the FHLB based upon its assets or outstanding advances. The Company has also purchased stock in First National Banker’s Bankshares, Inc. (FNBB), and Pacific Coast Banker’s Bank (PCBB), both correspondent banks.






{N4407029.2}
11

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Loans Held For Sale
Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value (LOCOM). For loans carried at LOCOM, gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. The estimated fair value of loans held for sale is based on independent third party quoted prices.
Loans
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances less deferred fees and costs on originated loans and the allowance for loan losses. Interest income is accrued on the outstanding principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield over the life of the loan, using the straight line method without anticipating prepayments.
The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due, or at the time the loan is 90 days past due, unless the loan is well-secured and in the process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income or charged to the allowance; unless management believes that the accrual of interest is recoverable through the liquidation of collateral. Interest income on nonaccrual loans is recognized on the cash basis, until the loans are returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and the loan has been performing according to the contractual terms generally for a period of not less than six months.
Certain Purchased Loans
Purchased loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased impaired or purchased non-impaired. Purchased impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The purchased impaired loans acquired are subject to the Company’s internal and external credit review and monitoring. If credit deterioration is experienced subsequent to the initial acquisition fair value amount, such deterioration will be measured, and a provision for credit losses will be charged to earnings.
Such purchased loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows will continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Purchased impaired loans at the time of acquisition are accounted for under ASC 310-30.
Purchased non-impaired loans are accounted for under ASC 310-20, with the difference between the fair value and unpaid principal balance of the loan at the acquisition date amortized or accreted to interest income over the estimated life of the loans.
{N4407029.2}
12

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Allowance for Loan Losses
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Confirmed losses are charged off immediately. Subsequent recoveries, if any, are credited to the allowance.

The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of loans in light of historical experience, the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, current economic conditions that may affect the borrower’s ability to pay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions.
The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.
A loan is considered impaired when it is probable, based on current information and events, the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Loans, for which the terms have been modified at the borrower’s request, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired.
Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. Loans that experience insignificant payment delays and payment shortfalls are not generally classified as impaired. Impaired loans are measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.
The Company’s allowance is allocated among commercial real estate loans, real estate construction and development loans, residential real estate loans, commercial and industrial loans, and consumer loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality and foreclosure rates; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the experience and ability of lending personnel and management; (7) effectiveness of the Company’s loan policies, procedures and internal controls; (8) current conditions in the real estate and construction markets; (9) the effect of entrance into new markets or the offering of a new product; (10) the loan review system and oversight of the Board of Directors. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for internal and external factors and the total dollar amount of the loans in the pool.
{N4407029.2}
13

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Troubled Debt Restructurings
A loan is considered a troubled debt restructuring (TDR) based on individual facts and circumstances. The Company designates loan modifications as TDRs when for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses.
In determining whether a borrower is experiencing financial difficulties, the Company considers if the borrower is in payment default or would be in payment default in the foreseeable future without the modification, the borrower declared or is in the process of declaring bankruptcy, the borrower’s projected cash flows will not be sufficient to service any of its debt, or the borrower cannot obtain funds from sources other than the Company at a market rate for debt with similar risk characteristics.
In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the borrower will serve as adequate compensation for other terms of the restructuring, and whether the borrower otherwise has access to funds at a market rate for debt with similar risk characteristics.
Premises and Equipment
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are reflected in income. The estimated useful lives are as follows:
Years
Buildings
10-39
Furniture and equipment
3-7
Transfers of Financial Assets
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company - put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.
Foreclosed Assets
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Costs of improvements are capitalized, whereas costs related to holding foreclosed assets and subsequent write-downs to the value are expensed. Any gains and losses realized at the time of disposal are reflected in income.
{N4407029.2}
14

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Goodwill
Goodwill represents the excess of the amount paid over the fair value of the net assets at the date of acquisition. Goodwill is subject to an annual evaluation of impairment. If desired, the Company can assess qualitative factors to determine if comparing the carrying value of the reporting unit to its fair value is necessary. Should the fair value be less than the carrying value, an impairment write-down would be taken. Based on its assessment of qualitative factors, the Company determined that no impairment exists at September 30, 2021.
Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever an event occurs or circumstances change to indicate that it is more likely than not that an impairment loss has been incurred (i.e., a triggering event). The Company performed a goodwill impairment test in September 2021. The qualitative factors considered in determining if fair value of the unit was less than the carrying amount were economic conditions related to the COVID-19 virus and the change in the interest rate environment. A quantitative assessment of goodwill impairment included determining the estimated fair value of Company using a market-based approach. The market approach was based on a comparison of certain financial metrics of the Company to public company peers. It was determined there was no impairment.
Core Deposit Intangible
A core deposit intangible is initially recognized based on a valuation, of acquired deposits, performed as of the acquisition date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, or approximately 7 years. The intangible asset is reviewed annually for events or circumstances that could negatively impact the recoverability of the intangible. These events could include loss of core deposits, increased competition, or adverse changes in the economy. To the extent this intangible asset is deemed unrecoverable, an impairment charge would be recorded. The Company maintains steady deposit growth across our markets and continues to attract new customer deposits. The intangible asset was evaluated for impairment as of September 30, 2021 and based on that evaluation there was no impairment.
Accounting Policy for Derivative Instruments and Hedging Activities
FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.










{N4407029.2}
15

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Accounting Policy for Derivative Instruments and Hedging Activities (Continued)
As required by ASC 815, the Company records all derivatives on the balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Income Taxes
Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets may be reduced by deferred tax liabilities and a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Management believes that the Company will generate sufficient operating earnings to realize the deferred tax benefits.

Stock Compensation Plans
Stock compensation accounting guidance requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options and warrants, restricted stock plans, performance-based awards, share appreciation rights, and employee share purchase plans.
{N4407029.2}
16

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Stock Compensation Plans (Continued)
The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the estimated market price of the Company’s common stock at the date of grant is used for restricted stock awards and stock grants.
Comprehensive Income
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.
Fair Value of Financial Instruments
Fair values of financial instruments are estimates using relevant market information and other assumptions, as more fully disclosed in Note 12. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.
Revenue Recognition
On January 1, 2018, the Company adopted ASC 606 and all subsequent amendments (collectively ASC 606) which (1) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (2) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as foreclosed assets. The majority of the Company’s revenues come from interest income and other sources, including loans and securities that are outside the scope of ASC 606. With the exception of gains/losses on sale of foreclosed assets, the Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligations to the customer. Services within the scope of ASC 606 reported in noninterest income include service charges on deposit accounts, bank card services and interchange fees, and ATM fees.
Recent Accounting Pronouncements
In February 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “Leases (Topic 842)” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 requires organizations that lease assets (lessees) to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the lease for all operating leases under current U.S. GAAP with a term of more than 12 months. The ASU is effective for non public business entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The ASU should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-02 on June 30, 2021 and there was no material impact on the Company’s consolidated financial statements.




{N4407029.2}
17

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recent Accounting Pronouncements (Continued)
In July 2018 the FASB issued ASU 2018-11, “Leases –Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2022 for the Company). The Company adopted ASU 2018-11 on June 30, 2021 and there was no material impact on the Company’s consolidated financial statements.
In June 2016 the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance will apply to most financial assets measured at amortized cost and certain other instruments including loans, debt securities held to maturity, net investments in leases and off-balance sheet credit exposures. The guidance will replace the current incurred loss accounting model that delays recognition of a loss until it is probable a loss has been incurred with an expected loss model that reflects expected credit losses based upon a broader range of estimates including consideration of past events, current conditions and supportable forecasts. The guidance also eliminates the current accounting model for purchased credit impaired loans and debt securities, which will require re-measurement of the related allowance at each reporting period. The guidance includes enhanced disclosure requirements intended to help financial statement users better understand estimates and judgement used in estimating credit losses. As originally issued, ASU 2016-13 was effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2020, with institutions required to apply the changes through a cumulative-effect adjustment to their retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2016-13 by two years for non pubic business entities and SEC filers that qualify as smaller reporting companies, including the Company. Management has been in the process of developing a revised model to calculate the allowance for loan and leases losses upon implementation of ASU 2016-13 in order to determine the impact on the Company’s consolidated financial statements and, at this time, expects to recognize a one-time cumulative effect adjustment to the allowance for loan and lease losses as of the beginning of the first reporting period in which the new standard is effective. The magnitude of any such one-time adjustments is not yet known but is not anticipated to be material.
Recent Events
On August 12, 2021, the Company completed the sale of 996,429 new shares of the Company’s common stock at a public offering price of $19.00 per share in the Company’s initial public offering (the “IPO”), and on August 19, 2021, the Company completed the sale of an additional 300,000 shares at the same price pursuant to the exercise of the underwriters’ option to purchase additional shares in the offering.
NOTE 2.    EARNINGS PER SHARE
Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share reflect additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options.


{N4407029.2}
18

Table of Contents
SOUTHERN STATES BANCSHARES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)

NOTE 2.    EARNINGS PER SHARE (Continued)







For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2021202020212020
Basic Earnings Per Share:
Net Income$4,921 $3,194 $14,508 $8,792 
Weighted average common shares outstanding8,354,860 7,666,336 7,861,780 7,666,336 
Basic earnings per share$0.59 $0.42 $1.84 $1.15 
Diluted Earnings Per Share:
Net income allocated to common shareholders$4,914 $3,187 $14,487 $8,779 
Weighted average common shares outstanding8,354,860 7,666,336 7,861,780 7,666,336 
Net dilutive effect of:
Assumed exercises of stock options112,600 101,640 118,379 95,359 
Average shares and dilutive potential common shares8,467,460 7,767,976 7,980,159 7,761,695 
Dilutive earnings per share$0.58 $0.41 $1.82 $1.13 
NOTE 3.    SECURITIES
The amortized cost and fair value of securities at September 30, 2021 and December 31, 2020 are summarized as follows:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
September 30, 2021
Securities Available for Sale
U.S. Treasury securities$7,832 $123 $ $7,955 
U.S. Government Sponsored Enterprises (GSEs)9,477 170 (75)9,572 
State and municipal securities49,181 2,603 (32)51,752 
Corporate debt securities10,282 363 (19)10,626 
Asset based securities10,635 123 (12)10,746 
Mortgage-backed GSE residential/multifamily22,397 297 (28)22,666 
Total securities available for sale$109,804 $3,679 $(166)$113,317 
Securities Held to Maturity
U.S. Treasury securities$ $ $ $ 
U.S. Government Sponsored Enterprises (GSEs)    
State and municipal securities19,678 539 (18)20,199 
Corporate debt securities    
Asset based securities    
Mortgage-backed GSE residential/multifamily    
Total securities held to maturity$19,678 $539 $(18)$20,199 
Total securities$129,482 $4,218 $(184)$133,516 
{N4407029.2}
19

Table of Contents
SOUTHERN STATES BANCSHARES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share amounts)
NOTE 3.    SECURITIES (Continued)
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
December 31, 2020
Securities Available for Sale
U.S. Treasury securities$ $ $ $ 
U.S. Government Sponsored Enterprises (GSEs)9,154 246 (34)9,366 
State and municipal securities64,468 3,531 (58)67,941 
Corporate debt securities8,286 188 (5)8,469 
Asset based securities9,035 76  9,111 
Mortgage-backed GSE residential/multifamily18,753 394 (33)19,114 
Total securities available for sale$109,696 $4,435 $(130)$114,001 
Securities Held to Maturity
U.S. Treasury securities$$$$ 
U.S. Government Sponsored Enterprises (GSEs) 
State and municipal securities 
Corporate debt securities 
Asset based securities 
Mortgage-backed GSE residential/multifamily 
Total securities held to maturity$$$$ 
Total securities$109,696$4,435$