SEC Filing | Southern States Bancshares, Inc

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ssbk-20220425

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): April 25, 2022

___________________________

https://cdn.kscope.io/4881d557511cd9dfee4fe45d028f231b-ssbk-20220425_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. 2.02 Results of Operations and Financial Condition.

On April 25, 2022, Southern States Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2022 (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 first quarter ended March 31, 2022 (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 April 25 , 202 2 for the First Quarter Ended March 3 1 , 202 2.
99.2						Southern States Bancshares, Inc. Presentation of Results for the First Quarter Ended March 3 1 , 202 2 .
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: April 25, 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

First Quarter 2022 Financial Results

First Quarter 2022 Highlights

•Linked-quarter loan growth was 19.4% annualized

•Net income of $4.6 million, or $0.50 per diluted share

•Core net income(1) of $4.8 million, or $0.53 per diluted share(1)

•Return on average assets (“ROAA”) of 1.03%; return on average stockholders’ equity (“ROAE”) of 10.43%; and return on average tangible common equity (“ROATCE”)(1) of 11.63%

•Core ROAA(1) of 1.09%; and core ROATCE(1) of 12.31%

•Implemented a stock repurchase program that authorized the purchase of up to $10.0 million of our common stock, of which approximately 287,000 shares were purchased at a weighted average price of $21.35

•Completed a $48.0 million subordinated debt offering at a five-year annual fixed rate of 3.5% per annum, payable quarterly in arrears, with a maturity date of February 7, 2032

(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., April 25, 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 $4.6 million, or $0.50 diluted earnings per share, for the first quarter of 2022. This compares to net income of $4.1 million, or $0.44 diluted earnings per share, for the fourth quarter of 2021, and net income of $5.7 million, or $0.73 diluted earnings per share, for the first quarter of 2021. The Company reported core net income of $4.8 million, or $0.53 diluted core earnings per share, for the first quarter of 2022. This compares to core net income of $4.3 million, or $0.47 diluted core earnings per share, for the fourth quarter of 2021, and core net income of $3.8 million, or $0.49 diluted core earnings per share, for the first quarter of 2021 (see “Reconciliation of Non-GAAP Financial Measures”).

Stephen Whatley, Chairman and Chief Executive Officer of Southern States, said, “We generated robust lending activity again in the first quarter, building on the momentum we established in 2021 with linked-quarter loan growth of 19.4%. Our investment in talent, combined with an economically vibrant footprint that presents ongoing organic expansion opportunities, positions us well for the year ahead.”

“Our focus on disciplined growth enabled us to bolster net interest income while holding the line on expenses and improving our core efficiency ratio. As always, we are committed to strong credit quality and our loan portfolio bears this out as nonperforming loans totaled just 0.25% of total loans. Our commitment to excellent customer service, sound underwriting and responsible growth continually strengthens the franchise and serves our shareholders well through all credit cycles,” said Mr. Whatley.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2022 was $14.7 million, an increase of 4.0% from $14.1 million for the fourth quarter of 2021. The increase was primarily attributable to an increase in interest-earning assets.

Relative to the first quarter of 2021, net interest income increased $2.4 million, or 19.3%. The increase was substantially the result of an increase in interest-earning assets.

Net interest margin for the first quarter of 2022 was 3.53%, compared to 3.68% for the fourth quarter of 2021. The decrease was primarily the result of a decline in the yield on interest-earning assets and, to a lesser degree, an increase in the cost of funds.

Relative to the first quarter of 2021, net interest margin decreased from 3.97%. The decrease was primarily due to a decline in the yield on interest-earning assets that more than offset a decrease in the cost of funds.

Noninterest Income

Noninterest income for the first quarter of 2022 was $1.3 million, a decrease of 23.9% from $1.8 million for the fourth quarter of 2021. The decrease was substantially the result of a decline in gains on the sale of SBA/USDA loans and a $361,000 net loss on securities during the first quarter of 2022.

Relative to the first quarter of 2021, noninterest income decreased 70.4% from $4.5 million. First quarter 2021 results included a gain of $2.8 million on the sale of a USDA loan and additional income from interest rate swaps resulting from elevated transaction volume.

Noninterest Expense

Noninterest expense for the first quarter of 2022 was $9.3 million, down from $9.6 million for the fourth quarter of 2021. The decrease was primarily attributable to a reduction in occupancy expense during the first quarter of 2022 and a net loss related to OREO properties during the fourth quarter of 2021.

Relative to the first quarter of 2021, noninterest expense increased 8.9% from $8.5 million. The increase was primarily attributable to higher salaries and employee benefits expense as production personnel were added in the Georgia market, and higher insurance and professional fees as a result of going public, net of elevated SBA expense during the first quarter of 2021.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $1.3 billion at March 31, 2022, up $59.8 million from December 31, 2021 and up from $1.1 billion at March 31, 2021. The linked-quarter increase in loans was primarily attributable to an increase in commercial real estate loans.

Deposits

Total deposits were $1.5 billion at March 31, 2022, compared with $1.6 billion at December 31, 2021 and $1.3 billion at March 31, 2021. The $14.6 million net decrease in total deposits from December 31, 2021 was due to a decrease of $26.4 million in noninterest-bearing deposits that more than offset an increase of $11.8 million in interest-bearing account balances.

Asset Quality

Nonperforming loans totaled $3.2 million, or 0.25% of gross loans, at March 31, 2022, compared with $2.0 million, or 0.16% of gross loans, at December 31, 2021, and $3.9 million, or 0.35% of gross loans, at March 31, 2021. The $1.3 million increase in nonperforming loans from December 31, 2021 was primarily attributable to a commercial real estate loan associated with one borrower that was placed on nonaccrual. The $611,000 reduction in nonperforming loans from March 31, 2021 was primarily attributable to one commercial real estate loan that was moved back to accruing status, one construction and development loan that was paid off, one residential mortgage loan that was paid off, and partially offset by commercial real estate loan associated with one borrower.

The Company recorded a provision for loan losses of $700,000 for the first quarter of 2022, compared to $732,000 for the fourth quarter of 2021. The provision was primarily due to loan growth.

Net charge-offs for the first quarter of 2022 were $52,000, or 0.02% of average loans on an annualized basis, compared to net recoveries of $15,000, or 0.00% of average loans on an annualized basis, for the fourth quarter of 2021, and net charge-offs of $4,000, or 0.00% of average loans on an annualized basis, for the first quarter of 2021.

The Company’s allowance for loan losses was 1.18% of total loans and 477.26% of nonperforming loans at March 31, 2022, compared with 1.19% of total loans and 752.74% of nonperforming loans at December 31, 2021.

Capital

As of March 31, 2022, total stockholders’ equity was $169.2 million, compared with $177.2 million at December 31, 2021. The decrease of $8.0 million was primarily due to a decrease in accumulated other comprehensive income resulting from changes in the value of the available for sale securities portfolio due to rapid increases in interest rates during the quarter.

In connection with its recently announced stock repurchase program, the Company repurchased 287,244 shares of its common stock during the first quarter of 2022 at an average price of $21.35 per share.

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 Annual Report on Form 10-K for the year ended December 31, 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

Kevin Dobbs

(310) 622-8245

ssbankir@finprofiles.com


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

	March 31, 2022 (Unaudited)		December 31, 2021 (Audited)		March 31, 2021 (Audited)
Assets
Cash and due from banks	$	22,851	$	6,397	$	17,536
Interest-bearing deposits in banks	111,951		203,537		129,071
Federal funds sold	74,022		74,022		24,121
Total cash and cash equivalents	208,824		283,956		170,728

Securities available for sale, at fair value	151,027		132,172		106,217
Securities held to maturity, at amortized cost	19,667		19,672		—
Other equity securities, at fair value	8,937		9,232		4,995
Restricted equity securities, at cost	2,825		2,600		2,788
Loans held for sale	2,509		2,400		2,268

Loans, net of unearned income	1,310,070		1,250,300		1,083,274
Less allowance for loan losses	15,492		14,844		12,605
Loans, net	1,294,578		1,235,456		1,070,669

Premises and equipment, net	28,065		27,044		24,900
Accrued interest receivable	4,427		4,170		4,088
Bank owned life insurance	29,343		22,201		22,583
Annuities	15,523		12,888		12,920
Foreclosed assets	2,930		2,930		10,230
Goodwill	16,862		16,862		16,862
Core deposit intangible	1,434		1,500		1,698
Other assets	11,883		9,509		8,290

Total assets	$	1,798,834	$	1,782,592	$	1,459,236

Liabilities and Stockholders' Equity

Liabilities:
Deposits:
Noninterest-bearing	$	515,110	$	541,546	$	365,114
Interest-bearing	1,026,729		1,014,905		894,930
Total deposits	1,541,839		1,556,451		1,260,044

Other borrowings	—		12,498		7,982
FHLB advances	25,950		25,950		31,900
Subordinated notes	47,154		—		4,497
Accrued interest payable	107		132		274
Other liabilities	14,595		10,363		9,939
Total liabilities	1,629,645		1,605,394		1,314,636


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

	March 31, 2022 (Unaudited)		December 31, 2021 (Audited)		March 31, 2021 (Audited)
Stockholders' equity:

Common stock	43,749		45,064		38,582
Capital surplus	76,426		80,640		65,886
Retained earnings	53,604		49,858		39,173
Accumulated other comprehensive income (loss)	(3,755)		2,113		1,808
Unvested restricted stock	(835)		(477)		(849)

Total stockholders' equity	169,189		177,198		144,600

Total liabilities and stockholders' equity	$	1,798,834	$	1,782,592	$	1,459,236

Shares issued and outstanding	8,749,878		9,012,857		7,716,428


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

	For the Three Months Ended
	March 31, 2022		December 31, 2021		March 31, 2021
Interest income:
Loans, including fees	$	14,766	$	14,280	$	13,021
Taxable securities	619		459		401
Nontaxable securities	299		294		207
Other interest and dividends	188		138		48
Total interest income	15,872		15,171		13,677

Interest expense:
Deposits	873		955		1,190
Other borrowings	345		120		203
Total interest expense	1,218		1,075		1,393

Net interest income	14,654		14,096		12,284
Provision for loan losses	700		732		750
Net interest income after provision for loan losses	13,954		13,364		11,534

Noninterest income:
Service charges on deposit accounts	445		428		360
Swap fees	15		(6)		558
SBA/USDA fees	388		533		2,865
Mortgage origination fees	286		269		407
Net gain (loss) on securities	(361)		(40)		(232)
Other operating income	560		567		538
Total noninterest income	1,333		1,751		4,496

Noninterest expenses:
Salaries and employee benefits	5,725		5,563		5,057
Equipment and occupancy expenses	705		943		879
Data processing fees	564		563		514
Regulatory assessments	263		263		221
Other operating expenses	2,033		2,280		1,861
Total noninterest expenses	9,290		9,612		8,532

Income before income taxes	5,997		5,503		7,498

Income tax expense	1,440		1,445		1,817

Net income	$	4,557	$	4,058	$	5,681

Basic earnings per share	$	0.51	$	0.45	$	0.74

Diluted earnings per share	$	0.50	$	0.44	$	0.73

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


	Three Months Ended
	March 31, 2022			December 31, 2021			March 31, 2021
	(Dollars in thousands)

Average loans, net of unearned income	$	1,278,413		$	1,191,688		$	1,066,556
Loans, net of unearned income	$	1,310,070		$	1,250,300		$	1,083,274
Allowance for loan losses at beginning of the period	$	14,844		$	14,097		$	11,859
Charge-offs:
Construction and development	66			—			—
Residential	—			—			16
Commercial	—			—			—
Commercial and industrial	—			—			—
Consumer and other	6			—			2
Total charge-offs	72			—			18
Recoveries:
Construction and development	—			—			—
Residential	17			13			2
Commercial	—			—			—
Commercial and industrial	—			1			11
Consumer and other	3			1			1
Total recoveries	20			15			14
Net charge-offs (recovery)	$	52		$	(15)		$	4

Provision for loan losses	$	700		$	732		$	750
Balance at end of period	$	15,492		$	14,844		$	12,605
Ratio of allowance to end of period loans	1.18		%	1.19		%	1.16		%
Ratio of net charge-offs (recovery) to average loans	0.00		%	0.00		%	0.00		%

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.


	March 31, 2022			December 31, 2021			March 31, 2021
	(Dollars in thousands)

Nonaccrual loans	$	3,246		$	1,478		$	3,857
Past due loans 90 days or more and still accruing interest	—			494			—
Total nonperforming loans	3,246			1,972			3,857
OREO	2,930			2,930			10,229

Total nonperforming assets	$	6,176		$	4,902		$	14,086

Troubled debt restructured loans – nonaccrual(1)	904			940			731
Troubled debt restructured loans - accruing	1,058			1,072			1,005
Total troubled debt restructured loans	$	1,962		$	2,012		$	1,736

Allowance for loan losses	$	15,492		$	14,844		$	12,605
Gross loans outstanding at the end of period	$	1,314,066		$	1,254,117		$	1,087,461
Allowance for loan losses to gross loans	1.18		%	1.18		%	1.16		%
Allowance for loan losses to nonperforming loans	477.26		%	752.74		%	326.81		%
Nonperforming loans to gross loans	0.25		%	0.16		%	0.35		%
Nonperforming assets to gross loans and OREO	0.47		%	0.39		%	1.28		%

Nonaccrual loans by category:
Real Estate:
Construction & Development	$	76		$	346		$	1,062
Residential Mortgages	510			167			825
Commercial Real Estate Mortgages	2,388			674			1,572
Commercial & Industrial	269			285			383
Consumer and other	3			6			15
	$	3,246		$	1,478		$	3,857

(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
	March 31, 2022						December 31, 2021						March 31, 2021
	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)	$	1,278,413	$	14,766	4.68	%	$	1,191,688	$	14,280	4.75	%	$	1,066,556	$	13,021	4.95	%
Taxable securities	106,820		$	619	2.35	%	86,292		459		2.11	%	78,354		$	401	2.08	%
Nontaxable securities	54,863		$	299	2.21	%	53,909		294		2.16	%	33,255		$	207	2.52	%
Other interest-earnings assets	244,202		$	188	0.31	%	187,601		138		0.29	%	78,154		$	48	0.25	%
Total interest-earning assets	$	1,684,298	$	15,872	3.82	%	$	1,519,490	$	15,171	3.96	%	$	1,256,319	$	13,677	4.42	%
Allowance for loan losses	(15,041)						(14,421)						(12,138)
Noninterest-earning assets	117,758						123,735						123,941
Total Assets	$	1,787,015					$	1,628,804					$	1,368,122

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	110,983		26		0.09	%	101,863		25		0.10	%	88,578		18		0.08	%
Savings and money market accounts	675,504		591		0.36	%	599,948		625		0.41	%	440,803		677		0.62	%
Time deposits	237,411		256		0.44	%	263,646		305		0.46	%	324,668		495		0.62	%
FHLB advances	25,950		22		0.34	%	25,950		22		0.34	%	33,244		51		0.62	%
Other borrowings	32,924		323		3.98	%	12,498		98		3.11	%	12,755		152		4.82	%
Total interest-bearing liabilities	$	1,082,772	$	1,218	0.46	%	$	1,003,905	$	1,075	0.42	%	$	900,048	$	1,393	0.63	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	514,456					$	439,142					$	316,553
Other liabilities	12,543						9,844						8,532
Total noninterest-bearing liabilities	$	526,999					$	448,986					$	325,085
Stockholders’ Equity	177,244						175,913						142,989
Total Liabilities and Stockholders’ Equity	$	1,787,015					$	1,628,804					$	1,368,122

Net interest income			$	14,654					$	14,096					$	12,284
Net interest spread(2)					3.36	%					3.54	%					3.79	%
Net interest margin(3)					3.53	%					3.68	%					3.97	%

(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
	March 31, 2022			December 31, 2021			March 31, 2021
	(Dollars in thousands, except share and per share amounts)

Net income	$	4,557		$	4,058		$	5,681
Earnings per share - basic	$	0.51		$	0.45		$	0.74
Earnings per share - diluted	$	0.50		$	0.44		$	0.73

Weighted average shares outstanding	8,935,384			9,012,857			7,681,578
Diluted weighted average shares outstanding	9,065,364			9,125,872			7,794,859
Shares issued and outstanding	8,749,878			9,012,857			7,716,428

Total stockholders' equity	$	169,189		$	177,198		$	144,600
Book value per share	$	19.34		$	19.66		$	18.74


Performance Ratios	Three Months Ended
	March 31, 2022			December 31, 2021			March 31, 2021

Net interest margin	3.53		%	3.68		%	3.97		%
Net interest spread	3.36		%	3.54		%	3.79		%
Efficiency ratio	56.83		%	60.50		%	50.15		%
Return on average assets	1.03		%	0.99		%	1.68		%
Return on average stockholders’ equity	10.43		%	9.15		%	16.11		%


Core and PPP Loans	March 31, 2022		December 31, 2021		March 31, 2021
	(Dollars in thousands)

Core loans	$	1,313,173	$	1,244,914	$	1,026,615
PPP loans	893		9,203		60,846
Unearned income	(3,996)		(3,817)		(4,187)
Loans, net of unearned income	1,310,070		1,250,300		1,083,274
Allowance for loan losses	(15,492)		(14,844)		(12,605)
Loans, net	$	1,294,578	$	1,235,456	$	1,070,669

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
	March 31, 2022			December 31, 2021			March 31, 2021
	(Dollars in thousands, except share and per share amounts)

Net income	$	4,557		$	4,058		$	5,681
Add: Merger expenses	—			—			—
Add: Net OREO write-downs	—			227			—
Less: Gain on sale of USDA loan	—			—			2,800
Less: Loss on securities	(361)			(40)			(232)
Less: Tax effect	94			69			(668)
Core net income	$	4,824		$	4,256		$	3,781
Average assets	$	1,787,015		$	1,628,804		$	1,368,122
Core return on average assets	1.09		%	1.04		%	1.12		%

Net income	$	4,557		$	4,058		$	5,681
Add: Merger expenses	—			—			—
Add: Net OREO write-downs	—			227			—
Add: Provision	700			732			750
Less: Gain on sale of USDA loan	—			—			2,800
Less: Loss on securities	(361)			(40)			(232)
Add: Income taxes	1,440			1,445			1,817

Pretax pre-provision core net income	$	7,058		$	6,502		$	5,680
Average assets	$	1,787,015		$	1,628,804		$	1,368,122
Pretax pre-provision core return on average assets	1.60		%	1.58		%	1.68		%

Total stockholders' equity	$	169,189		$	177,198		$	144,600
Less: Intangible assets	18,296			18,362			18,560
Less: Monitory interest not included in tangible assets	$	—		$	—		$	—
Tangible common equity	$	150,893		$	158,836		$	126,040

Core net income	$	4,824		$	4,256		$	3,781
Diluted weighted average shares outstanding	9,065,364			9,125,872			7,794,859
Diluted core earnings per share	$	0.53		$	0.47		$	0.49

Common shares outstanding at year or period end	8,749,878			9,012,857			7,716,428
Tangible book value per share	$	17.25		$	17.62		$	16.33



Reconciliation of Non-GAAP Financial Measures

	Three Months Ended
	March 31, 2022			December 31, 2021			March 31, 2021
	(Dollars in thousands, except share and per share amounts)

Total assets at end of period	$	1,798,834		$	1,782,592		$	1,459,236
Less: Intangible assets	18,296			18,362			18,560
Adjusted assets at end of period	$	1,780,538		$	1,764,230		$	1,440,676
Tangible common equity to tangible assets	8.47		%	9.00		%	8.75		%

Total average shareholders equity	$	177,244		175,913			$	142,989
Less: Average intangible assets	18,337			18,402			18,601
Less: Average monitory interest not included in tangible assets	$	—		$	—		$	—
Average tangible common equity	$	158,907		$	157,511		$	124,388
Net income to common shareholders	$	4,557		$	4,058		$	5,681
Return on average tangible common equity	11.63		%	10.22		%	18.52		%
Average tangible common equity	$	158,907		$	157,511		$	124,388
Core net income	$	4,824		$	4,256		$	3,781
Core return on average tangible common equity	12.31		%	10.72		%	12.33		%

Net interest income	$	14,654		$	14,096		12,284
Add: Noninterest income	1,333			1,751			4,496
Less: Gain on sale of USDA loan	—			—			2,800
Less: Loss on securites	(361)			(40)			(232)
Operating revenue	$	16,348		$	15,887		$	14,212

Expenses:
Total noninterest expense	$	9,290		$	9,612		$	8,532
Less: Merger expenses	—			—			—
Less: Net OREO write-down (gains)	—			227			—
Adjusted noninterest expenses	$	9,290		$	9,385		$	8,532
Core efficiency ratio	56.83		%	59.07		%	60.03		%

ssbk1q22investorpresenta

Q1 2022 Investor Presentation April 25, 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 Annual Report Form 10K for the year ended December 31, 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 Q1 2022 Results Highlights (1) Please refer to non-U.S. GAAP reconciliation in the appendix Operating Results Loans Deposits Capital Asset Quality • Net income of $4.6 million, or $0.50 per diluted share and core net income of $4.8 million (1), or $0.53 per diluted share (1) • ROAA of 1.03% and ROATCE of 11.63%; Core ROAA of 1.09% (1) and Core ROATCE of 12.31% (1) • Net interest margin of 3.53% • Core efficiency ratio of 56.83% (1) • Annualized Loan growth of 22.2%, excluding Paycheck Protection Program (PPP) loans, from Q4 2021 • Loan portfolio of $1.3 billion increased 4.8% from Q4 2021 • Average yield on loans of 4.68% declined from 4.75% for Q4 2021 • Loans (excluding PPP loans) / deposits ratio of 84.9% compared to 79.7% for Q4 2021 • Deposits of $1.5 billion decreased $14.6 million, or 0.9%, from Q4 2021 • Average cost of total deposits decreased to 0.23% from 0.28% for Q4 2021 • Noninterest-bearing deposits comprised 33.4% of total deposits compared to 34.8% at Q4 2021 • Nonperforming loans to gross loans of 0.25% at Q1 2022 • Net charge-offs remain negligible at $52,000 • Allowance for loan losses to gross loans of 1.18% • OREO balance remained at $2.9 million from Q4 2021 • Announced and paid quarterly dividend of $0.09 per share • Tangible common equity to tangible assets of 8.47% (1) • Tangible book value per share of $17.25 (1) • Completed $48.0 million 10-year subordinated debt offering at a fixed rate of 3.5% for 5 years • Implemented a $10.0 million stock repurchase program and bought approximately 287,000 shares at a weighted average price $21.35

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: 23.5%Loans / Deposits(2): 84.9% Overview of Southern States Bancshares, Inc. Q1 ‘22 Financial Highlights YoY Asset Growth: 23.3%Assets ($B): $1.8 NPLs / Loans: 0.25% YoY Loan Growth: 20.9%Gross Loans ($B): $1.3 LLR / Loans: 1.18% YoY Deposit Growth: 22.4%Deposits ($B): $1.5 YTD NCOs / Avg. Loans: 0.02% TCE / TA(1): 8.47% Core Net Income(1)($M): $4.8 Core ROAA(1): 1.09% NIM: 3.53% Core Efficiency Ratio(1): 56.83% 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 3/31/22 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 Q12022 Hired 4 commercial bankers in Georgia franchise Completed $48.0 million subordinated debt offering Anniston Opelika Anniston Mobile Huntsville Tuscaloosa Dothan Savannah Columbus Birmingham Huntsville Montgomery Mobile Athens Tuscaloosa Albany Dothan Valdosta Montgomery Birmingham 16 20 75 65 65 59 65 65 59 Opelika Anniston Atlanta Total Assets ($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 $1.8 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22

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 $1,799 $67 $9 $1 2016 2017 2018 2019 2020 2021 1Q22 $1,783 $1,798 $1,333 $520 $622 $776 $951 $1,140 $1,556 $1,542 2016 2017 2018 2019 2020 2021 1Q22 $503 $567 $704 $840 $964 $1,241 $1,310 $67 $9 $1 2016 2017 2018 2019 2020 2021 1Q22 $1,250 $1,030 $1,309 95.5% 90.2% 90.0% 88.1% 85.0% 79.7% 85.1% 2016 2017 2018 2019 2020 2021 1Q22

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 approximately 50% of risk-based capital Caps periodically utilized when needed 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 - $3.2 $2.9 $2.1 $1.8 $3.0 $1.8 $2.0 - $2.0 $0.1 $0.5 $0.6 $4.2 $10.2 $2.9 $2.9 0.4% 0.2% 0.6% 2.5% 1.3% 0.4% 0.5% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2016 2017 2018 2019 2020 2021 1Q22 Nonaccruals ($mm) TDRs ($mm) OREO ($mm) NPAs / Loans + OREO $20.6 0.99% 1.02% 1.11% 1.11% 1.22% 1.19% 1.18% 2016 2017 2018 2019 2020 2021 1Q22 0.02% $8.1

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 expected to continue growing at a healthy pace supported by a robust pipeline  Loan growth aided by prior year opportunistic commercial banker hires driven by talent dislocation from bank consolidation in our markets Deposit balances expected to increase modestly Net interest income expected to increase incrementally from loan growth and rate increases  Net interest margin expected to increase modestly as rates rise Core noninterest income expected to be fairly consistent with Q1 2022 as swaps decline and mortgage income moderates Quarterly adjusted noninterest expense is expected to increase modestly from Q1 2022 based on salary increases, effective April 1, plus new compliance and support personnel additions Continued strong credit metrics are expected to allow for modest provision levels, but we are monitoring for credit issues as rates rise 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 March 31, 2022 December 31, 2021 March 31, 2021 Net income $ 4,557 $ 4,058 $ 5,681 Add: Merger expenses — — — Add: Net OREO write-downs — 227 — Less: Gain on sale of USDA loan — — 2,800 Less: Loss on securities (361) (40) (232) Less: Tax effect 94 69 (668) Core net income $ 4,824 $ 4,256 $ 3,781 Average assets $ 1,787,015 $ 1,628,804 $ 1,368,122 Core return on average assets 1.09 % 1.04 % 1.12 % Total stockholders' equity $ 169,189 $ 177,198 $ 144,600 Less: Intangible assets 18,296 18,362 18,560 Less: Monitory interest not included in tangible $ — $ — $ — Tangible common equity $ 150,893 $ 158,836 $ 126,040 Core net income $ 4,824 $ 4,256 $ 3,781 Diluted weighted average shares outstanding 9,065,364 9,125,872 7,794,859 Diluted core earnings per share $ 0.53 $ 0.47 $ 0.49 Common shares outstanding at year or period 8,749,878 9,012,857 7,716,428 Tangible book value per share $ 17.25 $ 17.62 $ 16.33 ($000)

13 Non-GAAP Financial Measures Reconciliations March 31, 2022 December 31, 2021 March 31, 2021 Total assets at end of period $ 1,798,834 $ 1,782,592 $ 1,459,236 Less: Intangible assets 18,296 18,362 18,560 Adjusted assets at end of period $ 1,780,538 $ 1,764,230 $ 1,440,676 Tangible common equity to tangible assets 8.47 % 9.00 % 8.75 % Total average shareholders’ equity $ 177,244 175,913 $ 142,989 Less: Average intangible assets 18,337 18,402 18,601 Less: Average monitory interest not included in tangible assets $ — $ — $ — Average tangible common equity $ 158,907 $ 157,511 $ 124,388 Net income to common shareholders $ 4,557 $ 4,058 $ 5,681 Return on average tangible common equity 11.63 % 10.22 % 18.52 % Core net income $ 4,824 $ 4,256 $ 3,781 Core return on average tangible common equity 12.31 % 10.72 % 12.33 % Net interest income $ 14,654 $ 14,096 12,284 Add: Noninterest income 1,333 1,751 4,496 Less: Gain on sale of USDA loan — — 2,800 Less: Loss on securities (361) (40) (232) Operating revenue $ 16,348 $ 15,887 $ 14,212 Expenses: Total noninterest expense $ 9,290 $ 9,612 $ 8,532 Less: Merger expenses — — — Less: Net OREO write-down (gains) — 227 — Adjusted noninterest expenses $ 9,290 $ 9,385 $ 8,532 Core efficiency ratio 56.83 % 59.07 % 60.03 % ($000)