SEC Filing | Southern States Bancshares, Inc

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ssbk-20230123

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 23, 2023

___________________________

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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
Common Stock, $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 January 23, 2023, Southern States Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 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 fourth quarter ended December 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 January 2 3 , 202 3 for the Fourth Quarter Ended December 31, 202 2 .
99.2						Southern States Bancshares, Inc. Presentation of Results for the Fourth Quarter Ended December 31, 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: January 24, 2023	SOUTHERN STATES BANCSHARES, INC.

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

Document

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615 Quintard Avenue / Anniston, AL 36201 / (256) 241-1092

Southern States Bancshares, Inc. Announces Fourth Quarter 2022 Financial Results

Fourth Quarter 2022 Performance and Operational Highlights

•Net income of $10.6 million, or $1.18 per diluted share

•Core net income(1) of $8.1 million, or $0.90 per diluted share(1)

•Net interest income of $20.9 million, an increase of $1.4 million from the prior quarter

•Net interest margin (“NIM”) of 4.38%, up 23 basis points from the prior quarter

•NIM of 4.39% on a fully-taxable equivalent basis (“NIM - FTE”)(1)

•Return on average assets (“ROAA”) of 2.11%; return on average stockholders’ equity (“ROAE”) of 23.77%; and return on average tangible common equity (“ROATCE”)(1) of 26.49%

•Core ROAA(1) of 1.61%; and core ROATCE(1) of 20.21%

•Efficiency ratio of 40.81%, an improvement from 48.94% for the prior quarter

•Linked-quarter loan growth was 18.1% annualized(2)

•Linked-quarter deposit growth was 4.6% annualized(2)

•Completed the sale of two branches resulting in a $2.4 million net gain

(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

(2) The sale of two branches on October 1, 2022 resulted in a $7.3 million reduction in loans and a $66.0 million reduction in deposits. The growth percentages are net of the accounts sold.

ANNISTON, Ala., January 23, 2023 – 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 $10.6 million, or $1.18 diluted earnings per share, for the fourth quarter of 2022. This compares to net income of $6.7 million, or $0.75 diluted earnings per share, for the third quarter of 2022, and net income of $4.1 million, or $0.44 diluted earnings per share, for the fourth quarter of 2021. The Company reported core net income of $8.1 million, or $0.90 diluted core earnings per share, for the fourth quarter of 2022. This compares to core net income of $6.8 million, or $0.77 diluted core earnings per share, for the third quarter of 2022, and core net income of $4.3 million, or $0.47 diluted core earnings per share, for the fourth quarter of 2021 (see “Reconciliation of Non-GAAP Financial Measures”).

CEO Commentary

Stephen Whatley, Chairman and Chief Executive Officer of Southern States, said, “We are very pleased with our fourth-quarter and full-year results. Our talented bankers identified compelling opportunities throughout 2022, driving strong new business development. At the same time, we maintained underwriting discipline and excellent credit quality.”

“We grew loans by 18.1% annualized in the fourth quarter and 27.7% for the full year, culminating a year of robust production across our economically dynamic markets. This growth, combined with an increased net interest margin, fueled the expansion of our fourth-quarter net interest income, which increased by 7.5% from the prior quarter and by 48.2% from the fourth quarter of 2021.”

Mr. Whatley continued. “While our markets are healthy and our clients are cautiously optimistic, we are mindful of the slowing economic environment heading into 2023 and the lagging impact of rising interest rates on deposit costs. Our long-term commitment to prudent, selective lending and proactive expense management give us confidence in our ability to navigate the changing landscape and continue to drive strong risk-adjusted returns for our shareholders.”

“To that end, during the fourth quarter, we completed the sale of two branches as part of an ongoing effort to optimize our physical footprint. The branch sales resulted in a net gain of $2.4 million.”

Net Interest Income and Net Interest Margin


	Three Months Ended									% Change December 31, 2022 vs.
	December 31, 2022			September 30, 2022			December 31, 2021			September 30, 2022		December 31, 2021
	(Dollars in thousands)

Average interest-earning assets	$	1,893,069		$	1,859,104		$	1,519,490		1.8	%	24.6	%
Net interest income	$	20,884		$	19,435		$	14,096		7.5	%	48.2	%
Net interest margin	4.38		%	4.15		%	3.68		%	23	bps	70	bps

Net interest income for the fourth quarter of 2022 was $20.9 million, an increase of 7.5% from $19.4 million for the third quarter of 2022. The increase was primarily attributable to growth, accompanied by an increase in net interest margin.

Relative to the fourth quarter of 2021, net interest income increased $6.8 million, or 48.2%. The increase was substantially the result of growth, accompanied by an increase in net interest margin.

Net interest margin for the fourth quarter of 2022 was 4.38%, compared to 4.15% for the third quarter of 2022. The increase was primarily due to the Company’s asset sensitive balance sheet as rates increased.

Relative to the fourth quarter of 2021, net interest margin increased from 3.68%. The increase was primarily due to the Company’s asset sensitive balance sheet as rates increased, coupled with the deployment of excess liquidity.

Noninterest Income


	Three Months Ended						% Change December 31, 2022 vs.
	December 31, 2022		September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
	(Dollars in thousands)

Service charges on deposit accounts	$	431	$	508	$	428	(15.2)	%	0.7	%
Swap fees	2		11		(6)		(81.8)	%	(133.3)	%
SBA/USDA fees	70		95		533		(26.3)	%	(86.9)	%
Mortgage origination fees	98		218		269		(55.0)	%	(63.6)	%
Net gain (loss) on securities	(86)		(143)		(40)		(39.9)	%	115.0	%
Other operating income	4,088		650		567		528.9	%	621.0	%
Total noninterest income	$	4,603	$	1,339	$	1,751	243.8	%	162.9	%

Noninterest income for the fourth quarter of 2022 was $4.6 million, an increase of 243.8% from $1.3 million for the third quarter of 2022. The fourth quarter 2022 results included a $2.6 million gain on the sale of two branches and a bank owned life insurance ("BOLI") benefit claim of $774,000. This decrease was partially offset by a decrease in mortgage fees.

Relative to the fourth quarter of 2021, noninterest income increased 162.9% from $1.8 million. The fourth quarter 2022 results included a $2.6 million gain on the sale of two branches and a BOLI benefit claim of $774,000. This increase was partially offset by a decrease in SBA/USDA fees and mortgage fees during the fourth quarter of 2022.

Noninterest Expense


	Three Months Ended						% Change December 31, 2022 vs.
	December 31, 2022		September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
	(Dollars in thousands)

Salaries and employee benefits	$	6,738	$	6,152	$	5,563	9.5	%	21.1	%
Equipment and occupancy expenses	730		764		943		(4.5)	%	(22.6)	%
Data processing fees	711		599		563		18.7	%	26.3	%
Regulatory assessments	165		235		263		(29.8)	%	(37.3)	%
Other operating expenses	2,092		2,487		2,280		(15.9)	%	(8.2)	%
Total noninterest expenses	$	10,436	$	10,237	$	9,612	1.9	%	8.6	%

Noninterest expense for the fourth quarter of 2022 was $10.4 million, an increase of 1.9% from $10.2 million for the third quarter of 2022. The increase was primarily attributable to an increase in salaries and benefits as a result of expense related to the issuance of restricted stock units in a deferred compensation plan. Also included in the fourth quarter of 2022 was $200,000 in expenses associated with the sale of the branches. The increase was partially offset by a decrease in fraud losses as a portion was recovered in the fourth quarter of 2022.

Relative to the fourth quarter of 2021, noninterest expense increased 8.6% from $9.6 million. The increase was primarily attributable to an increase in salaries and benefits as a result of additional incentive accruals based on operating results along with expense related to the issuance of restricted stock units in a deferred compensation plan.

Loans and Credit Quality


	Three Months Ended									% Change December 31, 2022 vs.
	December 31, 2022			September 30, 2022			December 31, 2021			September 30, 2022		December 31, 2021
	(Dollars in thousands)

Core loans	$	1,592,707		$	1,530,129		$	1,244,914		4.1	%	27.9	%
PPP loans	—			—			9,203			—	%	NM
Gross loans	1,592,707			1,530,129			1,254,117			4.1	%	27.0	%
Unearned income	(5,543)			(5,139)			(3,817)			7.9	%	45.2	%
Loans, net of unearned income (“Loans”)	$	1,587,164		$	1,524,990		$	1,250,300		4.1	%	26.9	%
Average loans, net of unearned (“Average loans”)	$	1,563,255		$	1,480,735		$	1,191,688		5.6	%	31.2	%

Nonperforming loans (“NPL”)	$	2,245		$	3,950		$	1,972		(43.2)	%	13.8	%
Provision for loan losses	$	1,938		$	1,663		$	732		16.5	%	164.8	%
Allowance for loan losses (“ALLL”)	$	20,156		$	18,423		$	14,844		9.4	%	35.8	%
Net charge-offs (recoveries)	$	205		$	47		$	(15)		336.2	%	(1466.7)	%
NPL to gross loans	0.14		%	0.26		%	0.16		%
Net charge-offs (recoveries) to average loans(1)	0.05		%	—		%	—		%
ALLL to loans	1.27		%	1.21		%	1.19		%

(1) Ratio is annualized.
NM = Not meaningful

Loans, net of unearned income were $1.6 billion at December 31, 2022, up $62.2 million from September 30, 2022 and up $336.9 million from December 31, 2021. The linked-quarter increase in loans was primarily attributable to growth across our footprint.

Nonperforming loans totaled $2.2 million, or 0.14% of gross loans, at December 31, 2022, compared with $4.0 million, or 0.26% of gross loans, at September 30, 2022, and $2.0 million, or 0.16% of gross loans, at December 31, 2021. The $1.7 million net decrease in nonperforming loans in the fourth quarter was primarily attributable to one commercial real estate loan that was moved back to accruing status. The $273,000 net increase in nonperforming loans from December 31, 2021 was primarily attributable to loans being added and removed from nonaccrual status, none of which were significant.

The Company recorded a provision for loan losses of $1.9 million for the fourth quarter of 2022, compared to $1.7 million for the third quarter of 2022. The provision was primarily due to changes in our qualitative economic factors.

Net charge-offs for the fourth quarter of 2022 were $205,000, or 0.05% of average loans, compared to net charge-offs of $47,000, or 0.00% of average loans, for the third quarter of 2022, and net recoveries of $15,000, or 0.00% of average loans, for the fourth quarter of 2021.

The Company’s allowance for loan losses was 1.27% of total loans and 897.82% of nonperforming loans at December 31, 2022, compared with 1.21% of total loans and 466.41% of nonperforming loans at September 30, 2022.

Deposits


	Three Months Ended						% Change December 31, 2022 vs.
	December 31, 2022		September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
	(Dollars in thousands)

Noninterest-bearing deposits	$	460,977	$	499,613	$	541,546	(7.7)	%	(14.9)	%
Interest-bearing deposits	1,259,766		1,267,479		1,014,905		(0.6)	%	24.1	%
Total deposits	$	1,720,743	$	1,767,092	$	1,556,451	(2.6)	%	10.6	%

Total deposits were $1.7 billion at December 31, 2022, compared with $1.8 billion at September 30, 2022 and $1.6 billion at December 31, 2021. The $46.3 million decrease in total deposits in the fourth quarter was substantially due to the sale of two branches in October, which resulted in a $66.0 million reduction in total deposits. Excluding the sale, total deposits had a net increase of $19.7 million due to a $43.7 million increase in interest-bearing account balances that more than offset a decrease of $24.0 million in noninterest-bearing deposits.

Capital


	December 31, 2022				September 30, 2022				December 31, 2021
	Company		Bank		Company		Bank		Company		Bank

Tier 1 capital ratio to average assets	8.82	%	12.17	%	8.44	%	11.49	%	9.74	%	10.44	%
Risk-based capital ratios:
Common equity tier 1 (“CET1”) capital ratio	8.82	%	12.17	%	8.73	%	11.89	%	10.35	%	11.09	%
Tier 1 capital ratio	8.82	%	12.17	%	8.73	%	11.89	%	10.35	%	11.09	%
Total capital ratio	14.29	%	13.18	%	12.26	%	12.87	%	11.33	%	12.07	%

As of December 31, 2022, total stockholders’ equity was $181.7 million, compared with $170.3 million at September 30, 2022. The increase of $11.4 million was substantially due to strong earnings growth.

About Southern States Bancshares, Inc.

Headquartered in Anniston, Alabama, Southern States Bancshares, Inc. is a bank holding company that operates primarily through its wholly-owned subsidiary, Southern States Bank. The Bank is a full service community banking institution, which offers an array of deposit, loan and other banking-related products and services to businesses and individuals in its communities. The Bank operates 13 branches in Alabama and Georgia and two loan production offices in Atlanta.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which reflect our current expectations and beliefs with respect to, among other things, future events and our financial performance. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. This may be especially true given the inflationary environment, the COVID-19 pandemic and governmental responses. 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, 2022 and in other SEC filings under the section entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict.

These statements are often, but not always, made through the use of words or phrases such as “may,” “can,” “should,” “could,” “to be,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “likely,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would” and “outlook,” or the negative version of those words or other similar words or phrases of a future or forward-looking nature. Forward-looking statements appear in a number of places in this press release and may include statements about business strategy and prospects for growth, operations, ability to pay dividends, competition, regulation and general economic conditions.

Contact Information

Lynn Joyce

Kevin Dobbs

(205) 820-8065

(310) 622-8245

ljoyce@ssbank.bank

ssbankir@finprofiles.com


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

	Three Months Ended									Year Ended December 31,
	December 31, 2022			September 30, 2022			December 31, 2021			2022			2021

Results of Operations
Interest income	$	26,706		$	22,520		$	15,171		$	82,850		$	57,777
Interest expense	5,822			3,085			1,075			11,512			4,864
Net interest income	20,884			19,435			14,096			71,338			52,913
Provision for loan losses	1,938			1,663			732			5,605			2,982
Net interest income after provision	18,946			17,772			13,364			65,733			49,931
Noninterest income	4,603			1,339			1,751			8,677			10,803
Noninterest expense	10,436			10,237			9,612			39,614			36,435
Income tax expense(1)	2,521			2,174			1,445			7,725			5,732
Net income	$	10,592		$	6,700		$	4,058		$	27,071		$	18,567
Core net income(2)	$	8,081		$	6,806		$	4,256		$	24,975		$	15,956

Share and Per Share Data
Shares issued and outstanding	8,706,920			8,705,920			9,012,857			8,706,920			9,012,857
Weighted average shares outstanding:
Basic	8,707,026			8,693,745			9,012,857			8,774,860			8,198,188
Diluted	8,932,585			8,871,116			9,125,872			8,949,669			8,316,536
Earnings per share:
Basic	$	1.22		$	0.77		$	0.45		$	3.08		$	2.26
Diluted	$	1.18		$	0.75		$	0.44		$	3.02		$	2.23
Core - diluted(2)	$	0.90		$	0.77		$	0.47		$	2.79		$	1.92
Book value per share	$	20.87		$	19.56		$	19.66		$	20.87		$	19.66
Tangible book value per share(2)	$	18.79		$	17.48		$	17.62		$	18.79		$	17.62
Cash dividends declared	$	0.09		$	0.09		$	0.09		$	0.36		$	0.36

Performance and Financial Ratios
ROAA	2.11		%	1.35		%	0.99		%	1.43		%	1.23		%
ROAE	23.77		%	15.42		%	9.15		%	15.55		%	11.80		%
Core ROAA(2)	1.61		%	1.37		%	1.04		%	1.32		%	1.06		%
ROATCE(2)	26.49		%	17.24		%	10.22		%	17.37		%	13.38		%
Core ROATCE(2)	20.21		%	17.51		%	10.72		%	16.02		%	11.50		%
NIM	4.38		%	4.15		%	3.68		%	3.99		%	3.78		%
NIM - FTE(2)	4.39		%	4.17		%	3.70		%	4.01		%	3.80		%
Net interest spread	3.84		%	3.86		%	3.54		%	3.68		%	3.63		%
Yield on loans	6.05		%	5.37		%	4.75		%	5.27		%	4.89		%
Yield on interest-bearing assets	5.60		%	4.81		%	3.96		%	4.64		%	4.13		%
Cost of interest-bearing liabilities	1.76		%	0.95		%	0.42		%	0.96		%	0.50		%
Cost of funds(3)	1.29		%	0.69		%	0.30		%	0.68		%	0.36		%
Cost of interest-bearing deposits	1.52		%	0.82		%	0.39		%	0.79		%	0.47		%
Cost of total deposits	1.09		%	0.58		%	0.27		%	0.55		%	0.33		%
Noninterest deposits to total deposits	26.79		%	28.27		%	34.79		%	26.79		%	34.79		%
Total loans to total deposits	92.24		%	86.30		%	80.33		%	92.24		%	80.33		%
Efficiency ratio	40.81		%	48.94		%	60.50		%	49.12		%	57.13		%
Core efficiency ratio(2)	45.98		%	48.94		%	59.07		%	50.97		%	60.13		%

(1) Three months ended and year ended December 31, 2022 include a $540,000 investment tax credit.

(2) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

(3) Includes total interest-bearing liabilities and noninterest deposits.


SELECT FINANCIAL DATA
(In thousands)

	Three Months Ended									Year Ended December 31,
	December 31, 2022			September 30, 2022			December 31, 2021			2022			2021

Financial Condition (ending)
Total loans	$	1,587,164		$	1,524,990		$	1,250,300		$	1,587,164		$	1,250,300
Total securities	175,196			170,375			151,844			175,196			151,844
Total assets	2,044,866			2,052,725			1,782,592			2,044,866			1,782,592
Total noninterest bearing deposits	460,977			499,613			541,546			460,977			541,546
Total deposits	1,720,743			1,767,092			1,556,451			1,720,743			1,556,451
Total borrowings	117,295			93,020			38,448			117,295			38,448
Total liabilities	1,863,147			1,882,400			1,605,394			1,863,147			1,605,394
Total shareholders’ equity	$	181,719		$	170,325		$	177,198		$	181,719		$	177,198

Financial Condition (average)
Total loans	$	1,563,255		$	1,480,735		$	1,191,688		$	1,421,376		$	1,118,386
Total securities	188,765			185,670			140,201			178,755			122,425
Other interest-earning assets	141,049			192,699			187,601			187,263			158,243
Total interest-bearing assets	1,893,069			1,859,104			1,519,490			1,787,394			1,399,054
Total assets	1,994,087			1,966,556			1,628,804			1,893,044			1,510,114
Noninterest-bearing deposits	477,301			491,917			439,142			496,486			378,868
Interest-bearing deposits	1,216,492			1,207,797			965,457			1,127,637			922,870
Total deposits	1,693,793			1,699,714			1,404,599			1,624,123			1,301,738
Total borrowings	99,111			75,039			38,448			76,379			41,733
Total interest-bearing liabilities	1,315,603			1,282,836			1,003,905			1,204,016			964,603
Total shareholders’ equity	$	176,769		$	172,402		$	175,913		$	174,107		$	157,277

Asset Quality
Nonperforming loans	$	2,245		$	3,950		$	1,972		$	2,245		$	1,972
Other real estate owned (“OREO”)	$	2,930		$	2,930		$	2,930		$	2,930		$	2,930
Nonperforming assets (“NPA”)	$	5,175		$	6,880		$	4,902		$	5,175		$	4,902
Net charge-offs (recovery) to average loans(1)	0.05		%	—		%	—		%	0.02		%	—		%
Provision for loan losses to average loans(1)	0.49		%	0.45		%	0.24		%	0.39		%	0.27		%
ALLL to loans	1.27		%	1.21		%	1.19		%	1.27		%	1.19		%
ALLL to gross loans	1.27		%	1.20		%	1.18		%	1.27		%	1.18		%
ALLL to NPL	897.82		%	466.41		%	752.74		%	897.82		%	752.74		%
NPL to loans	0.14		%	0.26		%	0.16		%	0.14		%	0.16		%
NPL to gross loans	0.14		%	0.26		%	0.16		%	0.14		%	0.16		%
NPA to gross loans and OREO	0.32		%	0.45		%	0.39		%	0.32		%	0.39		%
NPA to total assets	0.25		%	0.34		%	0.27		%	0.25		%	0.27		%

Regulatory and Other Capital Ratios
Total shareholders’ equity to total assets	8.89		%	8.30		%	9.94		%	8.89		%	9.94		%
Tangible common equity to tangible assets(2)	8.07		%	7.48		%	9.00		%	8.07		%	9.00		%
Tier 1 capital ratio to average assets	8.82		%	8.44		%	9.74		%	8.82		%	9.74		%
Risk-based capital ratios:
CET1 capital ratio	8.82		%	8.73		%	10.35		%	8.82		%	10.35		%
Tier 1 capital ratio	8.82		%	8.73		%	10.35		%	8.82		%	10.35		%
Total capital ratio	14.29		%	12.26		%	11.33		%	14.29		%	11.33		%

(1) Ratio is annualized.

(2) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)

	December 31, 2022 (Unaudited)		September 30, 2022 (Unaudited)		December 31, 2021 (Audited)


Assets
Cash and due from banks	$	15,260	$	17,394	$	6,397
Interest-bearing deposits in banks	90,198		165,637		203,537
Federal funds sold	63,041		63,031		74,022
Total cash and cash equivalents	168,499		246,062		283,956

Securities available for sale, at fair value	155,544		150,718		132,172
Securities held to maturity, at amortized cost	19,652		19,657		19,672
Other equity securities, at fair value	5,243		5,694		9,232
Restricted equity securities, at cost	3,134		2,791		2,600
Loans held for sale	1,047		1,643		2,400

Loans, net of unearned income	1,587,164		1,524,990		1,250,300
Less allowance for loan losses	20,156		18,423		14,844
Loans, net	1,567,008		1,506,567		1,235,456

Premises and equipment, net	27,345		28,585		27,044
Accrued interest receivable	6,963		5,699		4,170
Bank owned life insurance	29,186		29,677		22,201
Annuities	15,478		15,564		12,888
Foreclosed assets	2,930		2,930		2,930
Goodwill	16,862		16,862		16,862
Core deposit intangible	1,226		1,302		1,500
Other assets	24,749		18,974		9,509

Total assets	$	2,044,866	$	2,052,725	$	1,782,592

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	460,977	$	499,613	$	541,546
Interest-bearing	1,259,766		1,267,479		1,014,905
Total deposits	1,720,743		1,767,092		1,556,451

Other borrowings	(19)		19,978		12,498
FHLB advances	31,000		26,000		25,950
Subordinated notes	86,314		47,042		—
Accrued interest payable	584		359		132
Other liabilities	24,525		21,929		10,363

Total liabilities	1,863,147		1,882,400		1,605,394

Stockholders' equity:
Common stock	43,714		43,529		45,064
Capital surplus	76,785		75,835		80,640
Retained earnings	73,764		63,956		49,858
Accumulated other comprehensive income (loss)	(11,048)		(12,403)		2,113
Unvested restricted stock	(477)		(592)		(477)
Vested restricted stock units	(1,019)		—		—

Total stockholders' equity	181,719		170,325		177,198

Total liabilities and stockholders' equity	$	2,044,866	$	2,052,725	$	1,782,592


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

	Three Months Ended						Year Ended December 31,
	December 31, 2022		September 30, 2022		December 31, 2021		2022		2021
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
Interest income:
Loans, including fees	$	23,853	$	20,052	$	14,280	$	74,936	$	54,709
Taxable securities	1,206		1,010		459		3,622		1,593
Nontaxable securities	322		323		294		1,253		1,023
Other interest and dividends	1,325		1,135		138		3,039		452
Total interest income	26,706		22,520		15,171		82,850		57,777

Interest expense:
Deposits	4,655		2,489		955		8,906		4,310
Other borrowings	1,167		596		120		2,606		554
Total interest expense	5,822		3,085		1,075		11,512		4,864

Net interest income	20,884		19,435		14,096		71,338		52,913
Provision for loan losses	1,938		1,663		732		5,605		2,982
Net interest income after provision for loan losses	18,946		17,772		13,364		65,733		49,931

Noninterest income:
Service charges on deposit accounts	431		508		428		1,863		1,528
Swap fees	2		11		(6)		49		931
SBA/USDA fees	70		95		533		646		3,968
Mortgage origination fees	98		218		269		815		1,465
Net gain (loss) on securities	(86)		(143)		(40)		(632)		(57)
Other operating income	4,088		650		567		5,936		2,968
Total noninterest income	4,603		1,339		1,751		8,677		10,803

Noninterest expenses:
Salaries and employee benefits	6,738		6,152		5,563		24,597		21,667
Equipment and occupancy expenses	730		764		943		2,918		3,640
Data processing fees	711		599		563		2,444		2,128
Regulatory assessments	165		235		263		925		952
Other operating expenses	2,092		2,487		2,280		8,730		8,048
Total noninterest expenses	10,436		10,237		9,612		39,614		36,435

Income before income taxes	13,113		8,874		5,503		34,796		24,299

Income tax expense	2,521		2,174		1,445		7,725		5,732

Net income	$	10,592	$	6,700	$	4,058	$	27,071	$	18,567

Basic earnings per share	$	1.22	$	0.77	$	0.45	$	3.08	$	2.26

Diluted earnings per share	$	1.18	$	0.75	$	0.44	$	3.02	$	2.23


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

	Three Months Ended
	December 31, 2022						September 30, 2022						December 31, 2021
	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income(1)	$	1,563,255	$	23,853	6.05	%	$	1,480,735	$	20,052	5.37	%	$	1,191,688	$	14,280	4.75	%
Taxable securities	132,222		1,206		3.62	%	128,932		1,010		3.11	%	86,292		459		2.11	%
Nontaxable securities	56,543		322		2.26	%	56,738		323		2.26	%	53,909		294		2.16	%
Other interest-earnings assets	141,049		1,325		3.73	%	192,699		1,135		2.34	%	187,601		138		0.29	%
Total interest-earning assets	$	1,893,069	$	26,706	5.60	%	$	1,859,104	$	22,520	4.81	%	$	1,519,490	$	15,171	3.96	%
Allowance for loan losses	(19,374)						(17,250)						(14,421)
Noninterest-earning assets	120,392						124,702						123,735
Total Assets	$	1,994,087					$	1,966,556					$	1,628,804

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	98,978		22		0.09	%	114,517		26		0.09	%	101,863		25		0.10	%
Savings and money market accounts	794,692		3,126		1.56	%	811,349		1,644		0.80	%	599,948		625		0.41	%
Time deposits	322,822		1,507		1.85	%	281,931		819		1.15	%	263,646		305		0.46	%
FHLB advances	22,739		147		2.56	%	27,380		102		1.47	%	25,950		22		0.34	%
Other borrowings	76,372		1,020		5.30	%	47,659		494		4.12	%	12,498		98		3.11	%
Total interest-bearing liabilities	$	1,315,603	$	5,822	1.76	%	$	1,282,836	$	3,085	0.95	%	$	1,003,905	$	1,075	0.42	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	477,301					$	491,917					$	439,142
Other liabilities	24,414						19,401						9,844
Total noninterest-bearing liabilities	$	501,715					$	511,318					$	448,986
Stockholders’ Equity	176,769						172,402						175,913
Total Liabilities and Stockholders’ Equity	$	1,994,087					$	1,966,556					$	1,628,804

Net interest income			$	20,884					$	19,435					$	14,096
Net interest spread(2)					3.84	%					3.86	%					3.54	%
Net interest margin(3)					4.38	%					4.15	%					3.68	%
Net interest margin - FTE(4)(5)					4.39	%					4.17	%					3.70	%
Cost of funds(6)					1.29	%					0.69	%					0.30	%
Cost of interest-bearing deposits					1.52	%					0.82	%					0.39	%
Cost of total deposits					1.09	%					0.58	%					0.27	%

(1)Includes nonaccrual loans.

(2)Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.

(3)Net interest margin is a ratio of net interest income to average interest earning assets for the same period.

(4)Net interest margin - FTE is a ratio of fully-taxable equivalent net interest income to average interest earning assets for the same period. It assumes a 24.0% tax rate for the three months ended December 31, 2022 and September 30, 2022 and a 23.5% tax rate for the three months ended December 31, 2021.

(5)Refer to “Reconciliation of Non-GAAP Financial Measures”.

(6)Includes total interest-bearing liabilities and noninterest deposits.


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

	Year Ended December 31,
	2022						2021
	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income(1)	$	1,421,376	$	74,936	5.27	%	$	1,118,386	$	54,709	4.89	%
Taxable securities	122,500		3,622		2.96	%	77,281		1,593		2.06	%
Nontaxable securities	56,255		1,253		2.23	%	45,144		1,023		2.27	%
Other interest-earnings assets	187,263		3,039		1.62	%	158,243		452		0.29	%
Total interest-earning assets	$	1,787,394	$	82,850	4.64	%	$	1,399,054	$	57,777	4.13	%
Allowance for loan losses	(16,883)						(13,276)
Noninterest-earning assets	122,533						124,336
Total Assets	$	1,893,044					$	1,510,114

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	109,786		100		0.09	%	96,503		91		0.09	%
Savings and money market accounts	754,830		5,988		0.79	%	527,484		2,680		0.51	%
Time deposits	263,021		2,818		1.07	%	298,883		1,539		0.51	%
FHLB advances	25,264		291		1.15	%	30,636		143		0.47	%
Other borrowings	51,115		2,315		4.53	%	11,097		411		3.72	%
Total interest-bearing liabilities	$	1,204,016	$	11,512	0.96	%	$	964,603	$	4,864	0.50	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	496,486					$	378,868
Other liabilities	18,435						9,366
Total noninterest-bearing liabilities	$	514,921					$	388,234
Stockholders’ Equity	174,107						157,277
Total Liabilities and Stockholders’ Equity	$	1,893,044					$	1,510,114

Net interest income			$	71,338					$	52,913
Net interest spread(2)					3.68	%					3.63	%
Net interest margin(3)					3.99	%					3.78	%
Net interest margin - FTE(4)(5)					4.01	%					3.80	%
Cost of funds(6)					0.68	%					0.36	%
Cost of interest-bearing deposits					0.79	%					0.47	%
Cost of total deposits					0.55	%					0.33	%

(1)Includes nonaccrual loans.

(2)Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.

(3)Net interest margin is a ratio of net interest income to average interest earning assets for the same period.

(4)Net interest margin - FTE is a ratio of fully-taxable equivalent net interest income to average interest earning assets for the same period. It assumes a 24.0% tax rate for the year ended ended December 31, 2022 and a 23.5% tax rate for the year ended December 31, 2021.

(5)Refer to “Reconciliation of Non-GAAP Financial Measures”.

(6)Includes total interest-bearing liabilities and noninterest deposits.


LOAN COMPOSITION
(Dollars in thousands)

	December 31, 2022				September 30, 2022				December 31, 2021
	Amount		% of gross		Amount		% of gross		Amount		% of gross

Real estate mortgages:
Construction and development	$	255,736	16.1	%	$	222,159	14.5	%	$	174,480	13.9	%
Residential	167,891		10.5	%	164,296		10.7	%	147,490		11.8	%
Commercial	904,872		56.8	%	889,942		58.2	%	716,541		57.1	%
Commercial and industrial	256,553		16.1	%	243,577		15.9	%	197,694		15.8	%
PPP loans	—		—	%	—		—	%	9,203		0.7	%
Consumer and other	7,655		0.5	%	10,155		0.7	%	8,709		0.7	%
Gross loans	1,592,707		100.0	%	1,530,129		100.0	%	1,254,117		100.0	%
Unearned income	(5,543)				(5,139)				(3,817)
Loans, net of unearned income	1,587,164				1,524,990				1,250,300
Allowance for loan losses	(20,156)				(18,423)				(14,844)
Loans, net	$	1,567,008			$	1,506,567			$	1,235,456


DEPOSIT COMPOSITION
(Dollars in thousands)

	December 31, 2022				September 30, 2022				December 31, 2021
	Amount		% of total		Amount		% of total		Amount		% of total


Noninterest-bearing transaction	$	460,977	26.8	%	$	499,613	28.3	%	$	541,546	34.8	%
Interest-bearing transaction	837,127		48.6	%	855,350		48.4	%	704,326		45.3	%
Savings	49,235		2.9	%	78,687		4.5	%	56,715		3.6	%
Time deposits, $250,000 and under	307,145		17.8	%	266,491		15.0	%	224,556		14.4	%
Time deposits, over $250,000	66,259		3.9	%	66,951		3.8	%	29,308		1.9	%
Total deposits	$	1,720,743	100.0	%	$	1,767,092	100.0	%	$	1,556,451	100.0	%


Nonperfoming Assets
(Dollars in thousands)

	December 31, 2022			September 30, 2022			December 31, 2021


Nonaccrual loans	$	2,245		$	3,950		$	1,478
Past due loans 90 days or more and still accruing interest	—			—			494
Total nonperforming loans	2,245			3,950			1,972
OREO	2,930			2,930			2,930

Total nonperforming assets	$	5,175		$	6,880		$	4,902

Troubled debt restructured loans – nonaccrual(1)	832			1,011			940
Troubled debt restructured loans - accruing	1,292			1,307			1,072
Total troubled debt restructured loans	$	2,124		$	2,318		$	2,012

Allowance for loan losses	$	20,156		$	18,423		$	14,844
Loans, net of unearned income at the end of the period	$	1,587,164		$	1,524,990		$	1,250,300
Gross loans outstanding at the end of period	$	1,592,707		$	1,530,129		$	1,254,117
Total assets	$	2,044,866		$	2,052,725		$	1,782,592
Allowance for loan losses to nonperforming loans	897.82		%	466.41		%	752.74		%
Nonperforming loans to loans, net of unearned income	0.14		%	0.26		%	0.16		%
Nonperforming loans to gross loans	0.14		%	0.26		%	0.16		%
Nonperforming assets to gross loans and OREO	0.32		%	0.45		%	0.39		%
Nonperforming assets to total assets	0.25		%	0.34		%	0.27		%

Nonaccrual loans by category:
Real estate mortgages:
Construction & Development	$	67		$	70		$	346
Residential Mortgages	565			550			167
Commercial Real Estate Mortgages	1,278			2,888			674
Commercial & Industrial	312			434			285
Consumer and other	23			8			6
Total	$	2,245		$	3,950		$	1,478

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


Allowance for Loan Losses
(Dollars in thousands)

	Three Months Ended									Year Ended December 31,
	December 31, 2022			September 30, 2022			December 31, 2021			2022			2021

Average loans, net of unearned income	$	1,563,255		$	1,480,735		$	1,191,688		$	1,421,376		$	1,118,386
Loans, net of unearned income	$	1,587,164		$	1,524,990		$	1,250,300		$	1,587,164		$	1,250,300
Gross loans	$	1,592,707		$	1,530,129		$	1,254,117		$	1,592,707		$	1,254,117
Allowance for loan losses at beginning of the period	$	18,423		$	16,807		$	14,097		$	14,844		$	11,859
Charge-offs:
Construction and development	—			—			—			66			—
Residential	—			—			—			7			44
Commercial	—			—			—			—			—
Commercial and industrial	210			269			—			479			—
Consumer and other	18			1			—			26			2
Total charge-offs	228			270			—			578			46
Recoveries:
Construction and development	—			—			—			—			—
Residential	4			11			13			50			25
Commercial	—			—			—			—			—
Commercial and industrial	1			204			1			205			15
Consumer and other	18			8			1			30			9
Total recoveries	23			223			15			285			49
Net charge-offs (recoveries)	$	205		$	47		$	(15)		$	293		$	(3)

Provision for loan losses	$	1,938		$	1,663		$	732		$	5,605		$	2,982
Balance at end of period	$	20,156		$	18,423		$	14,844		$	20,156		$	14,844
Allowance to loans, net of unearned income	1.27		%	1.21		%	1.19		%	1.27		%	1.19		%
Allowance to gross loans	1.27		%	1.20		%	1.18		%	1.27		%	1.18		%
Net charge-offs (recoveries) to average loans, net of unearned income(1)	0.05		%	—		%	—		%	0.02		%	—		%
Provision for loan losses to average loans, net of unearned income(1)	0.49		%	0.45		%	0.24		%	0.39		%	0.27		%

(1) Ratio is annualized.

Reconciliation of Non-GAAP Financial Measures

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

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


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

	Three Months Ended									Year Ended December 31,
	December 31, 2022			September 30, 2022			December 31, 2021			2022			2021

Net income	$	10,592		$	6,700		$	4,058		$	27,071		$	18,567

Add: Net OREO gains	—			—			227			—			219
Less: Gain on sale of USDA loan	—			—			—			—			2,806
Less: Net gain on sale of branches	2,372			—			—			2,372			—
Less: BOLI benefit claim	774			—			—			774			742
Less: Loss on securities	(86)			(143)			(40)			(632)			(57)
Less: Tax effect	(549)			37			69			(418)			(661)
Core net income	$	8,081		$	6,806		$	4,256		$	24,975		$	15,956
Average assets	$	1,994,087		$	1,966,556		$	1,628,804		$	1,893,044		$	1,510,114
Core return on average assets	1.61		%	1.37		%	1.04		%	1.32		%	1.06		%

Net income	$	10,592		$	6,700		$	4,058		$	27,071		$	18,567

Add: Net OREO gains	—			—			227			—			219
Add: Provision	1,938			1,663			732			5,605			2,982
Less: Gain on sale of USDA loan	—			—			—			—			2,806
Less: Net gain on sale of branches	2,372			—			—			2,372			—
Less: BOLI benefit claim	774			—			—			774			742
Less: Loss on securities	(86)			(143)			(40)			(632)			(57)
Add: Income taxes	2,521			2,174			1,445			7,725			5,732
Pretax pre-provision core net income	$	11,991		$	10,680		$	6,502		$	37,887		$	24,009
Average assets	$	1,994,087		$	1,966,556		$	1,628,804		$	1,893,044		$	1,510,114
Pretax pre-provision core return on average assets	2.39		%	2.15		%	1.58		%	2.00		%	1.59		%

Net interest income	$	20,884		$	19,435		$	14,096		$	71,338		$	52,913
Add: Fully-taxable equivalent adjustments(1)	84			86			77			335			276
Net interest income - FTE	$	20,968		$	19,521		$	14,173		$	71,673		$	53,189

Net interest margin	4.38		%	4.15		%	3.68		%	3.99		%	3.78		%
Effect of fully-taxable equivalent adjustments(1)	0.01		%	0.02		%	0.02		%	0.02		%	0.02		%
Net interest margin - FTE	4.39		%	4.17		%	3.70		%	4.01		%	3.80		%

Total stockholders' equity	$	181,719		$	170,325		$	177,198		$	181,719		$	177,198
Less: Intangible assets	18,088			18,164			18,362			18,088			18,362

Tangible common equity	$	163,631		$	152,161		$	158,836		$	163,631		$	158,836

1) Assumes a 24.0% tax rate for the three months ended December 31, 2022 and September 30, 2022 and a 23.5% tax rate for the three months ended December 31, 2021. Assumes a 24.0% tax rate for the year ended December 31, 2022 and a 23.5% tax rate for the year ended December 31, 2021.


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

	Three Months Ended									Year Ended December 31,
	December 31, 2022			September 30, 2022			December 31, 2021			2022			2021

Core net income	$	8,081		$	6,806		$	4,256		$	24,975		$	15,956
Diluted weighted average shares outstanding	8,932,585			8,871,116			9,125,872			8,949,669			8,316,536
Diluted core earnings per share	$	0.90		$	0.77		$	0.47		$	2.79		$	1.92

Common shares outstanding at year or period end	8,706,920			8,705,920			9,012,857			8,706,920			9,012,857
Tangible book value per share	$	18.79		$	17.48		$	17.62		$	18.79		$	17.62

Total assets at end of period	$	2,044,866		$	2,052,725		$	1,782,592		$	2,044,866		$	1,782,592
Less: Intangible assets	18,088			18,164			18,362			18,088			18,362
Adjusted assets at end of period	$	2,026,778		$	2,034,561		$	1,764,230		$	2,026,778		$	1,764,230
Tangible common equity to tangible assets	8.07		%	7.48		%	9.00		%	8.07		%	9.00		%

Total average shareholders equity	$	176,769		$	172,402		$	175,913		$	174,107		$	157,277
Less: Average intangible assets	18,134			18,203			18,402			18,236			18,501
Average tangible common equity	$	158,635		$	154,199		$	157,511		$	155,871		$	138,776
Net income to common shareholders	$	10,592		$	6,700		$	4,058		$	27,071		$	18,567
Return on average tangible common equity	26.49		%	17.24		%	10.22		%	17.37		%	13.38		%
Average tangible common equity	$	158,635		$	154,199		$	157,511		$	155,871		$	138,776
Core net income	$	8,081		$	6,806		$	4,256		$	24,975		$	15,956
Core return on average tangible common equity	20.21		%	17.51		%	10.72		%	16.02		%	11.50		%

Net interest income	$	20,884		$	19,435		$	14,096		$	71,338		$	52,913
Add: Noninterest income	4,603			1,339			1,751			8,677			10,803
Less: Gain on sale of USDA loan	—			—			—			—			2,806
Less: Gain on sale of branches	2,600			—			—			2,600			—
Less: BOLI benefit claim	774			—			—			774			742
Less: Loss on securities	(86)			(143)			(40)			(632)			(57)
Operating revenue	$	22,199		$	20,917		$	15,887		$	77,273		$	60,225

Expenses:
Total noninterest expense	$	10,436		$	10,237		$	9,612		$	39,614		$	36,435

Less: Net OREO gains	—			—			227			—			219
Less: Loss on sale of branches	228			—			—			228			—
Adjusted noninterest expenses	$	10,208		$	10,237		$	9,385		$	39,386		$	36,216
Core efficiency ratio	45.98		%	48.94		%	59.07		%	50.97		%	60.13		%

ssbk-x4q22investorpresen

Q4 2022 Investor Presentation January 2023

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 inflationary environment, the COVID-19 pandemic and governmental responses. 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 and in other SEC filings 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 press release 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 2022 Results Highlights (1) Please refer to non-U.S. GAAP reconciliation in the appendix (2) The sale of two branches on October 1, 2022 resulted in a $7.3 million reduction in loans; the growth percentage is net of the accounts sold (3) The sale of two branches on October 1, 2022 resulted in a $66.0 million reduction in deposits; the growth represented is net of the accounts sold Operating Results Loans Deposits Capital Asset Quality • Net income of $10.6 million, or $1.18 per diluted share, and core net income (1) of $8.1 million, or $0.90 per diluted share (1) • ROAA of 2.11% and ROATCE of 26.49%; Core ROAA (1) of 1.61% and Core ROATCE (1) of 20.21% • Completed sale of two branches resulting in a $2.4 million net gain • Net interest margin of 4.39% • Core efficiency ratio (1) of 45.98% • Annualized loan growth of 18.1% from Q3 2022 (2) • Loan portfolio of $1.6 billion increased 4.1% from Q3 2022 • Average yield on loans of 6.05% improved from 5.37% for Q3 2022 • Loans / deposits ratio of 92.24% compared to 86.30% for Q3 2022 • Deposits of $1.7 billion increased $19.7 million, or 1.2%, from Q3 2022 (3) • Average cost of total deposits increased to 1.09% from 0.58% in Q3 2022 • Noninterest-bearing deposits comprised 26.79% of total deposits compared to 28.27% at Q3 2022 • Nonperforming loans to gross loans of 0.14% improved from 0.26% at Q3 2022 • Net charge-offs at $205,000 • Allowance for loan losses to gross loans of 1.27% compared to 1.20% at Q3 2022 • OREO balance remained flat from Q3 at $2.9 million • Announced and paid quarterly dividend of $0.09 per share • Tangible common equity to tangible assets (1) of 8.07%, up from 7.48% at Q3 2022 • Tangible book value per share (1) of $18.79, up 7.5% from Q3 2022

4 Branches (13) Legend Huntsville Birmingham Montgomery Columbus Atlanta Alabama Georgia 65 85 75 Anniston Auburn 20 85 75 85 65 65 59 Tuscaloosa LPOs (2) YoY Core Deposit Growth: 8.3%Loans / Deposits: 92.24% Overview of Southern States Bancshares, Inc. Q4 ‘22 Financial Highlights YoY Asset Growth: 14.7%Assets ($B): $2.0 NPLs / Loans: 0.14% YoY Loan Growth: 26.9%Gross Loans ($B): $1.6 LLR / Loans: 1.27% YoY Deposit Growth: 10.6%Deposits ($B): $1.7 YTD NCOs / Avg. Loans: 0.05% TCE / TA(1): 8.07% Core Net Income(1)($M): $8.1 Core ROAA(1): 1.61% NIM: 4.39% Core Efficiency Ratio(1): 45.98% 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 12/31/22 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

5 Experienced Management Team (1) Refers to management and directors, excludes institutional owners or direct representatives of an institutional owner Steve Whatley Founder, Chairman & CEO Lynn Joyce SEVP & Chief Financial Officer Greg Smith SEVP & Chief Risk and Credit Officer Jack Swift SEVP & Chief Operating Officer Our senior management team has an average of over 30 years of experience in the banking industry Mark Chambers President Company insiders own 15.9% of the common shares and equivalents(1) • 1982-2006 Market President Colonial Bank • 1980-1982 Vice President Commercial Lender AmSouth Bank • 1978-1980 Vice President Trust Company Bank • 1973-1978 Loan Officer/Mgt. Trainee Security Pacific Bank • 2007-2019 SEVP & President Southeast Region Southern States Bank • 2004-2007 Market President Wachovia Bank • 1998-2004 Commercial Lender Aliant Bank • 1992-2013 EVP & CFO First Financial Bank, a NASDAQ listed Financial Institution • 1986-1992 Arthur Andersen & Co • 2006-2019 SEVP & CCO Southern States Bank • 1986-2006 Credit Admin, Commercial Loan Officer and Market President Regions Bank • 2006-2019 SEVP & President Central Region Southern States Bank • 1996-2006 Senior Vice President Colonial Bank • 1992-1996 Vice President SouthTrust Bank

6 $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 $2.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 Q4 2022 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 2022 2 Branches 13 Branches and two LPOs Branch LPO 2008 Established a full-service banking office in Birmingham, AL

7 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

8 $520 $622 $776 $951 $1,140 $1,556 $1,721 2016 2017 2018 2019 2020 2021 2022 $629 $736 $888 $1,095 $1,266 $1,774 $2,045 $67 $9 2016 2017 2018 2019 2020 2021 2022 $1,783 Loans / DepositsTotal Deposits ($M) Total Assets ($M) Total Loans ($M) Balance Sheet Growth Source: S&P Global Market Intelligence; Company Documents PPP Loans PPP Loans $1,333 $503 $567 $704 $840 $964 $1,241 $1,587 $67 $9 2016 2017 2018 2019 2020 2021 2022 $1,250 $1,030 95.5% 90.2% 90.0% 88.1% 90.4% 80.3% 92.2% 2016 2017 2018 2019 2020 2021 2022

9 Nonperforming Assets by Type Asset Quality Source: S&P Global Market Intelligence; Company Documents Dollars in millions (1) TDRs reflect COVID-19 relief under the CARES Act and bank regulatory COVID-19 relief in 2020 and 2021 Reserves / Loans 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 resolving problem credits $1.8 $0.5 $3.9 $13.4 $3.4 $2.0 - $2.2 $2.9 $2.1 $1.8 $3.0 $1.8 $2.0 - $2.1 $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% 0.3%$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2016 2017 2018 2019 2020 2021 2022 Nonaccruals ($mm) TDRs ($mm) OREO ($mm) NPAs / Loans + OREO $20.6 0.99% 1.02% 1.11% 1.11% 1.22% 1.19% 1.27% 2016 2017 2018 2019 2020 2021 2022 0.02% $7.2 (1)

10 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 expanding 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

11 Near-Term Outlook Loan balances expected to continue to grow at a modest pace compared to 2022 Deposit balances expected to increase slightly Net interest income expected to increase modestly as loans grow, though this will be somewhat offset by net interest margin declines  NIM expected to decrease as deposit betas increase Core noninterest income expected to be fairly consistent with Q4 2022 Quarterly adjusted noninterest expense is expected to increase slightly Credit metrics are currently strong and future provision levels are expected to consider both current and evolving economic conditions, as well as changes in credit Balanced approach to capital deployment with flexibility to support organic loan growth trajectory and cash dividend while evaluating stock repurchases Well-positioned to capitalize on additional accretive acquisition opportunities

Appendix

13 Non-GAAP Financial Measures Reconciliations (Three Months Ended) ($000) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 Net Income $10,592 $6,700 $4,058 $27,071 $18,567 Add: Net OREO gains — — 227 — 219 Less: Gain on sale of USDA loan — — — — 2,806 Less: Net gain on sale of branches 2,372 — — 2,372 — Less: BOLI benefit claim 774 — — 774 742 Less: Loss on securities (86) (143) (40) (632) (57) Less: Tax effect (549) 37 69 (418) (661) Core net income $8,081 $6,806 $4,256 $24,975 $15,956 Average assets $1,994,087 $1,966,556 $1,628,804 $1,893,044 $1,510,114 Core return on average assets 1.61% 1.37% 1.04% 1.32% 1.06% Net Income $10,592 $6,700 $4,058 $27,071 $18,567 Add: Net OREO gains — — 227 — 219 Add: Provision 1,938 1,663 732 5,605 2,982 Less: Gain on sale of USDA loan — — — — 2,806 Less: Net gain on sale of branches 2,372 — — 2,372 — Less: BOLI death benefits 774 — — 774 742 Less: Loss on securities (86) (143) (40) (632) (57) Add: Income Taxes 2,521 2,174 1,445 7,725 5,732 Pretax pre-provision core net income $11,991 $10,680 $6,502 $37,887 $24,009 Average assets $1,994,087 $1,966,556 $1,628,804 $1,893,044 $1,510,114 Pretax pre-provision core return on average assets 2.39% 2.15% 1.58% 2.00% 1.59% Net interest income $20,884 $19,435 $14,096 $71,338 $52,913 Add: Fully-taxable equivalent adjustments1 84 86 77 335 276 Net interest income - FTE $20,968 $19,521 $14,173 $71,673 $53,189 Net interest margin 4.38% 4.15% 3.68% 3.99% 3.78% Effect of fully-taxable equivalent adjustments1 0.01% 0.02% 0.02% 0.02% 0.02% Net interest margin - FTE 4.39% 4.17% 3.70% 4.01% 3.80% Total stockholders' equity $181,719 $170,325 $177,198 $181,719 $177,198 Less: Intangible assets 18,088 18,164 18,362 18,088 18,362 Tangible common equity $163,631 $152,161 $158,836 $163,631 $158,836 (Year Ended December 31)

14 Non-GAAP Financial Measures Reconciliations ($000) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 Core net income $8,081 $6,806 $4,256 $24,975 $15,956 Diluted weighted average shares outstanding 8,932,585 8,871,116 9,125,872 8,949,669 8,316,536 Diluted core earnings per share $0.90 $0.77 $0.47 $2.79 $1.92 Common shares outstanding at year or period end 8,706,920 8,705,920 9,012,857 8,706,920 9,012,857 Tangible book value per share $18.79 $17.48 $17.62 $18.79 $17.62 Total assets at end of period $2,044,866 $2,052,725 $1,782,592 $2,044,866 $1,782,592 Less: Intangible assets 18,088 18,164 18,362 18,088 18,362 Adjusted assets at end of period $2,026,778 $2,034,561 $1,764,230 $2,026,778 $1,764,230 Tangible common equity to tangible assets 8.07% 7.48% 9.00% 8.07% 9.00% Total average shareholders equity $176,769 $172,402 $175,913 $174,107 $157,277 Less: Average intangible assets 18,134 18,203 18,402 18,236 18,501 Average tangible common equity $158,635 $154,199 $157,511 $155,871 $138,776 Net income to common shareholders $10,592 $6,700 $4,058 $27,071 $18,567 Return on average tangible common equity 26.49% 17.24% 10.22% 17.37% 13.38% Average tangible common equity $158,635 $154,199 $157,511 $155,871 $138,776 Core net income $8,081 $6,806 $4,256 $24,975 $15,956 Core return on average tangible common equity 20.21% 17.51% 10.72% 16.02% 11.50% Net interest income $20,884 $19,435 $14,096 $71,338 $52,913 Add: Noninterest income 4,603 1,339 1,751 8,677 10,803 Less: Gain on sale of USDA loan — — — — 2,806 Less: Gain on sale of branches 2,600 — — 2,600 — Less: BOLI benefit claim 774 — — 774 742 Less: Loss on securities (86) (143) (40) (632) (57) Operating revenue $22,199 $20,917 $15,887 $77,273 $60,225 Expenses: Total noninterest expense $10,436 $10,237 $9,612 $39,614 $36,435 Less: Net OREO gains — — 227 — 219 Less: Loss on sale of branches 228 — — 228 — Adjusted noninterest expenses $10,208 $10,237 $9,385 $39,386 $36,216 Core efficiency ratio 45.98% 48.94% 59.07% 50.97% 60.13% 1 Assumes a 24.0% tax rate for the three and nine months ended September 30, 2022 and 2021; and a 23.5% tax rate for the three months ended June 30, 2022 (Year Ended December 31)(Three Months Ended)