SEC Filing | Southern States Bancshares, Inc

View:

ssbk-20220124

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): January 24, 2022

___________________________

https://cdn.kscope.io/df59f0b7786ec58c8d9ee13d66dd5356-ssbk-20220124_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 value	SSBK	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 January 24, 2022, Southern States Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended and twelve months ended December 31, 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 fourth quarter ended December 31, 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						Earnings Release issued January 24, 2022 for the Fourth Quarter Ended and Twelve Months Ended December 31, 2021
99.2						Southern States Bancshares, Inc. Presentation of Results for the Fourth Quarter Ended December 31, 2021.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

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: January 26, 2022	SOUTHERN STATES BANCSHARES, INC.

	By:	/s/ Lynn Joyce
	Name:	Lynn Joyce
	Title:	Senior Executive Vice President and Chief Financial Officer

Document

Southern States Bancshares, Inc. Announces

Fourth Quarter 2021 Financial Results

Fourth Quarter 2021 Highlights

•Linked quarter loan growth was 36.3% annualized, or 40.9% annualized, excluding the impact of Paycheck Protection Program (PPP) loans

•Net income of $4.1 million, or $0.44 per diluted share; return on average assets (ROAA) of 0.99%; return on average stockholders’ equity (ROAE) of 9.15%; and return on average tangible common equity (ROATCE)(1) of 10.22%

•Core net income(1) of $4.3 million, or $0.47 per diluted share; core ROAA(1) of 1.04%; and core ROATCE(1) of 10.72%

(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., January 24, 2022 – 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 $4.1 million, or $0.44 diluted earnings per share, for the fourth quarter of 2021. This compares to net income of $4.9 million, or $0.58 diluted earnings per share, for the third quarter of 2021, and net income of $3.3 million, or $0.43 diluted earnings per share, for the fourth quarter of 2020. The Company reported core net income of $4.3 million, or $0.47 diluted core earnings per share, for the fourth quarter of 2021. This compares to core net income of $4.0 million, or $0.48 diluted core earnings per share, for the third quarter of 2021, and core net income of $3.4 million, or $0.43 diluted core earnings per share, for the fourth quarter of 2020 (see “Reconciliation of Non-GAAP Financial Measures”).

Stephen Whatley, Chairman and Chief Executive Officer of Southern States, said, "Our execution on the strategies that have made Southern States a consistently high performing growth bank drove our strong 2021 performance. Our experienced bankers with deep ties to their attractive markets produced loan growth, excluding PPP loans, of 28.8% for the year, punctuated by annualized growth of 40.9% in the fourth quarter. Importantly, our asset quality metrics improved in 2021, reflecting our disciplined growth philosophy. Our nonperforming loans were down from the prior year to just 0.16% of gross loans. We successfully completed our initial public offering while building a healthy loan pipeline to begin 2022, and we are well-positioned to further enhance our franchise and create long-term value for our shareholders.”

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2021 was $14.1 million, an increase of 3.3% from $13.6 million for the third quarter of 2021. The increase was primarily attributable to an increase in interest-earning assets.

Relative to the fourth quarter of 2020, net interest income increased $2.8 million, or 25.3%. The increase was substantially the result of an increase in interest-earning assets.

Net interest margin for the fourth quarter of 2021 was 3.68%, compared to 3.77% for the third quarter of 2021. The decrease was primarily the result of a decline in the yield on interest-earning assets.

Relative to the fourth quarter of 2020, net interest margin decreased from 3.73%. The decrease was primarily the result of a decline in the yield on interest-earning assets that more than offset a decline in the cost of funds.

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $1.8 million, a decrease of 30.2% from $2.5 million for the third quarter of 2021. The third quarter 2021 results included a bank owned life insurance ("BOLI") death benefit claim of $742,000 and a $189,000 net gain on securities.

Relative to the fourth quarter of 2020, noninterest income increased 7.7% from $1.6 million. In comparing the quarters, there was a decline in swap fees from the fourth quarter of 2020 that was more than offset by gains on the sales of SBA loans.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $9.6 million, an increase of 4.6% from $9.2 million for the third quarter of 2021. The increase was primarily attributable to legal fees and net losses related to OREO properties.

Relative to the fourth quarter of 2020, noninterest expense increased 13.8% from $8.4 million. The increase was primarily attributable to higher salaries and employee benefits expense as production personnel were added in the Georgia market, an increase in public company expenses, an increase in legal fees and the net OREO losses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $1.3 billion at December 31, 2021, compared with $1.1 billion at September 30, 2021 and $1.0 billion at December 31, 2020. The $104.9 million increase in loans from September 30, 2021 was primarily attributable to an increase in commercial real estate loans.

PPP loans outstanding were $9.2 million at December 31, 2021, compared with $20.3 million and $66.6 million at September 30, 2021 and December 31, 2020, respectively. Excluding the impact of PPP loans forgiven by the SBA, total gross loans increased during the fourth quarter by $115.9 million, or 40.9% annualized, to $1.2 billion.

Deposits

Total deposits were $1.6 billion at December 31, 2021, compared with $1.3 billion at September 30, 2021 and $1.1 billion at December 31, 2020. The $220.1 million increase in total deposits from September 30, 2021 was due to increases of $161.4 million in noninterest-bearing and $58.7 million in interest-bearing accounts. The increase in non-interest checking was enhanced by approximately $100.0 million received from two customers that will likely be on deposit short-term.

Asset Quality

Nonperforming loans totaled $2.0 million, or 0.16% of gross loans, at December 31, 2021, compared with $3.3 million, or 0.29% of gross loans, at September 30, 2021, and $3.5 million, or 0.34% of gross loans, at December 31, 2020. The $1.3 million decrease in nonperforming loans from September 30, 2021 was primarily attributable to the sale of construction and development loans from one borrower. The $1.5 million reduction in

nonperforming loans from December 31, 2020 was primarily attributable to one construction and development loan and one residential mortgage loan that were both paid off and one commercial real estate loan that was moved back to accrual status.

Net recoveries for the fourth quarter of 2021 were $15,000, or 0.00% of average loans on an annualized basis, compared to net recoveries of $8,000, or 0.00% of average loans on an annualized basis, for the third quarter of 2021, and net charge-offs of $857,000, or 0.34% of average loans on an annualized basis, for the fourth quarter of 2020.

The Company’s allowance for loan losses was 1.19% of total loans and 752.74% of nonperforming loans at December 31, 2021, compared with 1.23% of total loans and 426.15% of nonperforming loans at September 30, 2021.

OREO totaled $2.9 million at December 31, 2021, compared to $10.1 million at September 30, 2021 and $10.2 million at December 31, 2020. The decrease was substantially due to the sale of a large commercial parcel during December 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 September 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)

	December 31, 2021 (Unaudited)		September 30, 2021 (Unaudited)		December 31, 2020 (Audited)
Assets
Cash and due from banks	$	6,397	$	19,000	$	23,229
Interest-bearing deposits in banks	203,537		114,800		51,503
Federal funds sold	74,022		44,022		10,175
Total cash and cash equivalents	283,956		177,822		84,907

Securities available for sale, at fair value	132,172		113,317		114,001
Securities held to maturity, at amortized cost	19,672		19,678		—
Other equity securities, at fair value	9,232		9,227		5,017
Restricted equity securities, at cost	2,600		2,600		3,224
Loans held for sale	2,400		2,097		5,696

Loans, net of unearned income	1,250,300		1,145,447		1,030,115
Less allowance for loan losses	14,844		14,097		11,859
Loans, net	1,235,456		1,131,350		1,018,256

Premises and equipment, net	27,044		25,916		24,426
Accrued interest receivable	4,170		3,933		4,243
Bank owned life insurance	22,201		22,081		22,458
Annuities	12,888		12,968		12,903
Foreclosed assets	2,930		10,146		10,224
Goodwill	16,862		16,862		16,862
Core deposit intangible	1,500		1,566		1,764
Other assets	9,887		9,499		8,525

Total assets	$	1,782,970	$	1,559,062	$	1,332,506

Liabilities and Stockholders' Equity

Liabilities:
Deposits:
Noninterest-bearing	$	541,546	$	380,111	$	290,867
Interest-bearing	1,014,905		956,211		848,794
Total deposits	1,556,451		1,336,322		1,139,661

Other borrowings	12,498		12,498		7,975
FHLB advances	25,950		26,900		30,900
Subordinated notes	—		—		4,493
Accrued interest payable	132		125		278
Other liabilities	10,741		8,996		8,543
Total liabilities	1,605,772		1,384,841		1,191,850


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share amounts)

	December 31, 2021 (Unaudited)		September 30, 2021 (Unaudited)		December 31, 2020 (Audited)
Stockholders' equity:

Common stock	45,064		45,064		38,391
Capital surplus	80,640		80,547		65,327
Retained earnings	49,858		46,611		34,183
Accumulated other comprehensive income	2,113		2,600		3,194
Unvested restricted stock	(477)		(601)		(439)

Total stockholders' equity	177,198		174,221		140,656

Total liabilities and stockholders' equity	$	1,782,970	$	1,559,062	$	1,332,506

Shares issued and outstanding	9,012,857		9,012,857		7,678,195


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

	Three Months Ended						Year Ended December 31,
	December 31, 2021		September 30, 2021		December 31, 2020		2021		2020
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
Interest income:
Loans, including fees	$	14,280	$	13,923	$	12,209	$	54,709	$	47,786
Taxable securities	459		402		377		1,593		1,317
Nontaxable securities	294		266		190		1,023		643
Other interest and dividends	138		143		49		452		539
Total interest income	15,171		14,734		12,825		57,777		50,285

Interest expense:
Deposits	955		1,034		1,363		4,310		7,854
Other borrowings	120		60		212		554		854
Total interest expense	1,075		1,094		1,575		4,864		8,708

Net interest income	14,096		13,640		11,250		52,913		41,577
Provision for loan losses	732		750		600		2,982		3,300
Net interest income after provision for loan losses	13,364		12,890		10,650		49,931		38,277

Noninterest income:
Service charges on deposit accounts	428		403		369		1,528		1,458
Swap fees	(6)		101		342		931		1,405
SBA/USDA fees	533		130		47		3,968		756
Mortgage origination fees	269		393		309		1,465		1,529
Net gain (loss) on securities	(40)		189		—		(57)		742
Other operating income	567		1,293		559		2,968		2,651
Total noninterest income	1,751		2,509		1,626		10,803		8,541

Noninterest expenses:
Salaries and employee benefits	5,563		5,517		4,964		21,667		18,765
Equipment and occupancy expenses	943		908		922		3,640		3,682
Data processing fees	563		524		496		2,128		1,836
Regulatory assessments	263		248		252		952		775
Other operating expenses	2,280		1,988		1,813		8,048		7,127
Total noninterest expenses	9,612		9,185		8,447		36,435		32,185

Income before income taxes	5,503		6,214		3,829		24,299		14,633

Income tax expense	1,445		1,293		514		5,732		2,526

Net income	$	4,058	$	4,921	$	3,315	$	18,567	$	12,107

Basic earnings per share	$	0.45	$	0.59	$	0.43	$	2.26	$	1.58

Diluted earnings per share	$	0.44	$	0.58	$	0.43	$	2.23	$	1.56

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


	Three Months Ended									Year Ended December 31,
	December 31, 2021			September 30, 2021			December 31, 2020			2021			2020
	(Dollars in thousands)

Average loans, net of unearned income	$	1,191,688		$	1,122,741		$	1,008,501		$	1,118,386		$	954,598
Loans, net of unearned income	$	1,250,300		$	1,145,447		$	1,030,115		$	1,250,300		$	1,030,115
Allowance for loan losses at beginning of the period	$	14,097		$	13,339		$	12,116		$	11,859		$	9,265
Charge-offs:
Construction and development	—			—			23			—			23
Residential	—			—			42			44			90
Commercial	—			—			794			—			794
Commercial and industrial	—			—			—			—			—
Consumer and other	—			—			4			2			19
Total charge-offs	—			—			863			46			926
Recoveries:
Construction and development	—			—			—			—			—
Residential	13			7			2			25			11
Commercial	—			—			—			—			—
Commercial and industrial	1			1			2			15			124
Consumer and other	1			—			2			9			85
Total recoveries	15			8			6			49			220
Net charge-offs (recovery)	$	(15)		$	(8)		$	857		$	(3)		$	706

Provision for loan losses	$	732		$	750		$	600		$	2,982		$	3,300
Balance at end of period	$	14,844		$	14,097		$	11,859		$	14,844		$	11,859
Ratio of allowance to end of period loans	1.19		%	1.23		%	1.15		%	1.19		%	1.15		%
Ratio of net charge-offs (recovery) to average loans	0.00		%	0.00		%	0.08		%	0.00		%	0.07		%

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.


	December 31, 2021			September 30, 2021			December 31, 2020
	(Dollars in thousands)

Nonaccrual loans	$	1,972		$	3,308		$	3,418
Past due loans 90 days or more and still accruing interest	—			—			91
Total nonperforming loans	1,972			3,308			3,509
OREO	2,930			10,146			10,224

Total nonperforming assets	$	4,902		$	13,454		$	13,733

Troubled debt restructured loans – nonaccrual(1)	940			1,041			479
Troubled debt restructured loans - accruing	1,072			1,085			1,275
Total troubled debt restructured loans	$	2,012		$	2,126		$	1,754

Allowance for loan losses	$	14,844		$	14,097		$	11,859
Gross loans outstanding at the end of period	$	1,254,117		$	1,149,340		$	1,033,733
Allowance for loan losses to gross loans	1.18		%	1.23		%	1.15		%
Allowance for loan losses to nonperforming loans	752.74		%	426.15		%	337.96		%
Nonperforming loans to gross loans	0.16		%	0.29		%	0.34		%
Nonperforming assets to gross loans and OREO	0.39		%	1.16		%	1.32		%

Nonaccrual loans by category:
Real Estate:
Construction & Development	$	645		$	1,972		$	977
Residential Mortgages	362			339			857
Commercial Real Estate Mortgages	674			690			1,478
Commercial & Industrial	285			300			84
Consumer and other	6			7			22
	$	1,972		$	3,308		$	3,418

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

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
	December 31, 2021						September 30, 2021						December 31, 2020
	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
	(Dollars in thousands)
Assets:
Interest-earning assets:
Gross loans, net of unearned income(1)	$	1,191,688	$	14,280	4.75	%	$	1,122,741	$	13,923	4.92	%	$	1,008,501	$	12,209	4.82	%
Taxable securities	86,292		$	459	2.11	%	76,612		402		2.08	%	75,128		377		2.00	%
Nontaxable securities	53,909		$	294	2.16	%	48,162		266		2.20	%	28,483		190		2.65	%
Other interest-earnings assets	187,601		$	138	0.29	%	189,131		143		0.30	%	87,151		49		0.23	%
Total interest-earning assets	$	1,519,490	$	15,171	3.96	%	$	1,436,646	$	14,734	4.07	%	$	1,199,263	$	12,825	4.25	%
Allowance for loan losses	(14,421)						(13,645)						(12,018)
Noninterest-earning assets	123,735						125,870						117,031
Total Assets	$	1,628,804					$	1,548,871					$	1,304,276

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	101,863		25		0.10	%	98,203		24		0.10	%	86,098		53		0.25	%
Savings and money market accounts	599,948		625		0.41	%	565,861		665		0.47	%	396,928		613		0.61	%
Time deposits	263,646		305		0.46	%	290,460		345		0.47	%	339,397		697		0.82	%
FHLB advances	25,950		22		0.34	%	31,520		34		0.43	%	24,204		52		0.86	%
Other borrowings	12,498		98		3.11	%	6,652		26		1.57	%	12,657		160		5.02	%
Total interest-bearing liabilities	$	1,003,905	$	1,075	0.42	%	$	992,696	$	1,094	0.44	%	$	859,284	$	1,575	0.73	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	439,142					$	384,207					$	297,995
Other liabilities	9,844						9,663						7,948
Total noninterest-bearing liabilities	$	448,986					$	393,870					$	305,943
Stockholders’ Equity	175,913						162,305						139,049
Total Liabilities and Stockholders’ Equity	$	1,628,804					$	1,548,871					$	1,304,276

Net interest income			$	14,096					$	13,640					$	11,250
Net interest spread(2)					3.54	%					3.63	%					3.52	%
Net interest margin(3)					3.68	%					3.77	%					3.73	%

(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.


	Year Ended
	December 31, 2021						December 31, 2020
	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
	(Dollars in thousands)
Assets:
Interest-earning assets:
Gross loans, net of unearned income(1)	$	1,118,386	$	54,709	4.89	%	$	954,598	$	47,786	5.01	%
Taxable securities	77,281		1,593		2.06	%	62,105		1,317		2.12	%
Nontaxable securities	45,144		1,023		2.27	%	21,881		643		2.94	%
Other interest-earnings assets	158,243		452		0.29	%	102,214		539		0.53	%
Total interest-earning assets	$	1,399,054	$	57,777	4.13	%	$	1,140,798	$	50,285	4.41	%
Allowance for loan losses	(13,276)						(10,636)
Noninterest-earning assets	124,336						111,278
Total Assets	$	1,510,114					$	1,241,440

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	96,503		91		0.09	%	82,407		184		0.22	%
Savings and money market accounts	527,484		2,680		0.51	%	369,833		2,901		0.78	%
Time deposits	298,883		1,539		0.51	%	354,124		4,769		1.35	%
FHLB advances	30,636		143		0.47	%	21,448		179		0.83	%
Other borrowings	11,097		411		3.72	%	12,523		675		5.39	%
Total interest-bearing liabilities	$	964,603	$	4,864	0.50	%	$	840,335	$	8,708	1.04	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	378,868					$	259,962
Other liabilities	9,366						7,202
Total noninterest-bearing liabilities	$	388,234					$	267,164
Stockholders’ Equity	157,277						133,941
Total Liabilities and Stockholders’ Equity	$	1,510,114					$	1,241,440

Net interest income			52,913						$	41,577
Net interest spread(2)					3.63	%					3.37	%
Net interest margin(3)					3.78	%					3.64	%

(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 Information	Three Months Ended									Year Ended December 31,
	December 31, 2021			September 30, 2021			December 31, 2020			2021			2020
	(Dollars in thousands, except share and per share amounts)

Net income	$	4,058		$	4,921		$	3,315		$	18,567		$	12,107
Earnings per share - basic	$	0.45		$	0.59		$	0.43		$	2.26		$	1.58
Earnings per share - diluted	$	0.44		$	0.58		$	0.43		$	2.23		$	1.56

Weighted average shares outstanding	9,012,857			8,354,860			7,674,756			8,198,188			7,673,085
Diluted weighted average shares outstanding	9,125,872			8,467,460			7,770,142			8,316,536			7,765,863
Shares issued and outstanding	9,012,857			9,012,857			7,678,195			9,012,857			7,678,195

Total stockholders' equity	$	177,198		174,221			$	140,656		$	177,198		$	140,656
Book value per share	$	19.66		$	19.33		$	18.32		$	19.66		$	18.32


Performance Ratios	Three Months Ended									Year Ended December 31,
	December 31, 2021			September 30, 2021			December 31, 2020			2021			2020

Net interest margin	3.68		%	3.77		%	3.73		%	3.78		%	3.64		%
Net interest spread	3.54		%	3.63		%	3.52		%	3.63		%	3.37		%
Efficiency ratio	60.50		%	57.55		%	65.61		%	57.13		%	65.18		%
Return on average assets	0.99		%	1.26		%	1.01		%	1.23		%	0.98		%
Return on average stockholders’ equity	9.15		%	12.03		%	9.48		%	11.80		%	9.49		%


Core and PPP Loans	December 31, 2021	September 30, 2021		December 31, 2020
	(Dollars in thousands)

Core loans	1,244,914	$	1,129,075	$	967,177
PPP loans	9,203	20,265		66,556
Unearned income	(3,817)	(3,893)		(3,618)
Loans, net of unearned income	1,250,300	1,145,447		1,030,115
Allowance for loan losses	(14,844)	(14,097)		(11,859)
Loans, net	1,235,456	$	1,131,350	$	1,018,256

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 Ended									Year Ended December 31,
	December 31, 2021			September 30, 2021			December 31, 2020			2021			2020
	(Dollars in thousands, except share and per share amounts)

Net income	$	4,058		$	4,921		$	3,315		$	18,567		$	12,107
Add: Merger expenses	—			—			—			—			—
Add: Net OREO write-downs (gains)	227			—			51			219			844
Less: Gain on sale of USDA loan	—			—			—			2,806			—
Less: BOLI death benefits	—			742			—			742			615
Less: Gain (loss) on securities	(40)			189			—			(57)			742
Less: Tax effect	69			(52)			12			(661)			25
Core net income	$	4,256		$	4,042		$	3,354		$	15,956		$	11,569
Average assets	$	1,628,804		$	1,548,871		$	1,304,276		$	1,510,114		$	1,241,440
Core return on average assets	1.04		%	1.04		%	1.02		%	1.06		%	0.93		%

Net income	$	4,058		$	4,921		$3,315			$18,567			$12,107
Add: Merger expenses	—			—			—			—			—
Add: Net OREO write-downs (gains)	227			—			51			219			844
Add: Provision	732			750			600			2,982			3,300
Less: Gain on sale of USDA loan	—			—			—			2,806			—
Less: BOLI death benefits	—			742			—			742			615
Less: Gain (loss) on securities	(40)			189			—			(57)			742
Add: Income taxes	1,445			1,293			514			5,732			2,526
Pretax pre-provision core net income	$	6,502		$	6,033		$	4,480		$	24,009		$	17,420
Average assets	$	1,628,804		$	1,548,871		$	1,304,276		$	1,510,114		$	1,241,440
Pretax pre-provision core return on average assets	1.58		%	1.55		%	1.37		%	1.59		%	1.40		%

Total stockholders' equity	$	177,198		$	174,221		$	140,656		$	177,198		$	140,656
Less: Intangible assets	18,362			18,428			18,626			18,362			18,626
Tangible common equity	$	158,836		$	155,793		$	122,030		$	158,836		$	122,030

Core net income	$	4,256		$	4,042		$	3,354		$	15,956		$	11,569
Diluted weighted average shares outstanding	9,125,872			8,467,460			7,770,142			8,316,536			7,765,863
Diluted core earnings per share	$	0.47		$	0.48		$	0.43		$	1.92		$	1.49

Common shares outstanding at year or period end	9,012,857			9,012,857			7,678,195			9,012,857			7,678,195
Tangible book value per share	$	17.62		$	17.29		$	15.89		$	17.62		$	15.89




Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Year Ended December 31,
	December 31, 2021			September 30, 2021			December 31, 2020			2021			2020
	(Dollars in thousands, except share and per share amounts)

Total assets at end of period	$	1,782,970		$	1,559,062		$	1,332,506		$	1,782,970		$	1,332,506
Less: Intangible assets	18,362			18,428			18,626			18,362			18,626
Adjusted assets at end of period	$	1,764,608		$	1,540,634		$	1,313,880		$	1,764,608		$	1,313,880
Tangible common equity to tangible assets	9.00		%	10.11		%	9.29		%	9.00		%	9.29		%

Total average stockholders’ equity	$	175,913		$	162,305		$	139,049		157,277			133,941
Less: Average intangible assets	18,402			18,470			18,664			18,501			18,764
Average tangible common equity	$	157,511		$	143,835		$	120,385		$	138,776		$	115,177
Net income to common shareholders	$	4,058		$	4,921		$	3,315		$	18,567		$	12,107
Return on average tangible common equity	10.22		%	13.57		%	10.95		%	13.38		%	10.51		%
Average tangible common equity	$	157,511		$	143,835		$	120,385		$	138,776		$	115,177
Core net income	$	4,256		$	4,042		$	3,354		$	15,956		$	11,569
Core return on average tangible common equity	10.72		%	11.15		%	11.08		%	11.50		%	10.04		%

Net interest income	$	14,096		$	13,640		11,250			52,913			41,577
Add: Noninterest income	1,751			2,509			1,626			10,803			8,541
Less: Gain on sale of USDA loan	—			—			—			2,806			—
Less: BOLI death benefits	—			742			—			742			615
Less: Gain (loss) on securities	(40)			189			—			(57)			742
Operating revenue	$	15,887		$	15,218		$	12,876		$	60,225		$	48,761

Expenses:
Total noninterest expense	$	9,612		$	9,185		$	8,447		36,435			32,185
Less: Merger expenses	—			—			—			—			—
Less: Net OREO write-down (gains)	227			—			51			219			844
Adjusted noninterest expenses	$	9,385		$	9,185		$	8,396		$	36,216		$	31,341
Core efficiency ratio	59.07		%	60.36		%	65.21		%	60.13		%	64.27		%

ssbk4q21investorpresenta

Q4 2021 Investor Presentation January 24, 2022

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 September 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 in this presentation 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. For a reconciliation of the non-GAAP measures we use to the most comparable GAAP measures, see the Appendix to this presentation.

3 Q4 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 $4.1 million, or $0.44 per diluted share and core net income of $4.3 million (1), or $0.47 per diluted share (1) • ROAA of 0.99% and ROATCE of 10.22%; Core ROAA of 1.04% (1) and Core ROATCE of 10.72% (1) • Net interest margin of 3.68% • Core efficiency ratio of 59.07% (1) • Loan growth of 10.3%, excluding Paycheck Protection Program (PPP) loans, from Q3 2021 • Loan portfolio of $1.3 billion increased 9.2% from Q3 2021 • Average yield on loans of 4.75% declined from 4.92% for Q3 2021 • Loans (excluding PPP loans) / deposits ratio of 79.7% compared to 84.2% for Q3 2021 • Deposits of $1.6 billion increased $220.1 million, or 16.5%, from Q3 2021 driven in part by $100.0 million of noninterest-bearing deposits from two customers expected to be on deposit short-term • Average cost of total deposits decreased to 0.27% from 0.31% for Q3 2021 • Noninterest-bearing deposits comprised 34.8% of total deposits compared to 28.4% at Q3 2021 • Nonperforming loans to gross loans decreased to 0.16% from 0.29% at Q3 2021 • Net recoveries of $15,000 or 0.00% of average loans • Allowance for loan losses to gross loans of 1.18% • OREO balance decreased to $2.9 million from $10.1 million at Q3 2021 • Announced and paid quarterly dividend of $0.09 per share • Tangible common equity to tangible assets of 9.00% (1) • Tangible book value per share of $17.62 (1) increased from $17.29 (1) in Q3 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: 38.4%Loans / Deposits(2): 79.7% Overview of Southern States Bancshares, Inc. Q4 ‘21 Financial Highlights YoY Asset Growth: 33.8%Assets ($B): $1.8 NPLs / Loans: 0.16% YoY Loan Growth: 21.4%Gross Loans ($B): $1.3 LLR / Loans: 1.19% YoY Deposit Growth: 36.6%Deposits ($B): $1.6 YTD NCOs / Avg. Loans: 0.00% TCE / TA(1): 9.00% Core Net Income(1)($M): $4.3 Core ROAA(1): 1.04% NIM: 3.68% Core Efficiency Ratio(1): 59.07% 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 12/31/21 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 $1.8 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

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 $1,774 $67 $9 2016 2017 2018 2019 2020 2021 $1,783 $1,333 $520 $622 $776 $951 $1,140 $1,556 2016 2017 2018 2019 2020 2021 $503 $567 $704 $840 $964 $1,241 $67 $9 2016 2017 2018 2019 2020 2021 $1,250 $1,030 95.5% 90.2% 90.0% 88.1% 85.0% 79.7% 2016 2017 2018 2019 2020 2021

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% $6.9 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: 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 $2.0 $2.9 $2.1 $1.8 $3.0 $1.8 $2.0 $0.1 $0.5 $0.6 $4.2 $10.2 $2.9 0.4% 0.2% 0.6% 2.5% 1.3% 0.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2016 2017 2018 2019 2020 2021 Nonaccruals ($mm) TDRs ($mm) OREO ($mm) NPAs / Loans + OREO $20.6 0.99% 1.02% 1.11% 1.11% 1.22% 1.19% 2016 2017 2018 2019 2020 2021

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) expected to continue growing at a healthy pace supported by a robust pipeline  As of December 31, 2021, $9.2 million of PPP loans remained outstanding  Loan growth aided by recent opportunistic commercial banker hires driven by talent dislocation from bank consolidation in our markets Deposit balances expected to decline as $100.0 million of noninterest-bearing deposits received from two customers during Q4 2021 will likely be on deposit only temporarily Net interest income expected to increase incrementally from loan growth  Net interest margin (excluding the impact of PPP loans) expected to decrease modestly Core noninterest income expected to remain relatively stable Quarterly adjusted noninterest expense expected to be relatively stable 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) December 31, September 30, 2021 2021 Net income $4,058 $4,921 Add: Net OREO write-downs 227 -- Less: BOLI death benefits -- 742 Less: Gain (loss) on securities (40) 189 Less: Tax effect 69 (52) Core net income $4,256 $4,042 Average assets $1,628,804 $1,548,871 Core return on average assets 1.04% 1.04% Total stockholders’ equity $177,198 $174,221 Less: Intangible assets 18,362 18,428 Tangible common equity $158,836 $155,793 Core net income $4,256 $4,042 Diluted weighted average shares outstanding 9,125,872 8,467,460 Diluted core earnings per share $0.47 $0.48 Common shares outstanding at period end 9,012,857 9,012,857 Tangible book value per share $17.62 $17.29

13 Non-GAAP Financial Measures Reconciliations ($000) December 31, September 30, 2021 2021 Total assets at end of period $1,782,970 $1,559,062 Less: Intangible assets 18,362 18,428 Adjusted assets at end of period $1,764,608 $1,540,634 Tangible common equity to tangible assets 9.00% 10.11% Total average stockholders’ equity $175,913 $162,305 Less: Average intangible assets 18,402 18,470 Average tangible common equity $157,511 $143,835 Net income to common shareholders $4,058 $4,921 Return on average tangible common equity 10.22% 13.57% Core net income $4,256 $4,042 Core return on average tangible common equity 10.72% 11.15% Net interest income $14,096 $13,640 Add: Noninterest income 1,751 2,509 Less: BOLI death benefits -- 742 Less: Gain (loss) on securities (40) 189 Operating revenue $15,887 $15,218 Expenses: Total noninterest expense $9,612 $9,185 Less: Net OREO write-down (gains) 227 -- Adjusted noninterest expenses $9,385 $9,185 Core efficiency ratio 59.07% 60.36%