SEC Filing | Southern States Bancshares, Inc

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ssbk-20240722

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): July 22, 2024

___________________________

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 July 22, 2024, Southern States Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2024 (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 second quarter ended June 30, 2024 (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 July 22, 2024 for the Second Quarter Ended June 30, 2024.
99.2						Southern States Bancshares, Inc. Presentation of Results for the Second Quarter Ended June 30, 2024.
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: July 23, 2024	SOUTHERN STATES BANCSHARES, INC.

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

Document

https://cdn.kscope.io/181f985c3128edaaae39541d8ac96076-ssb_symbol1.jpg


SOUTHERN STATES BANCSHARES, INC.			615 Quintard Avenue / Anniston, AL 36201 / (256) 241-1092

Southern States Bancshares, Inc. Announces Second Quarter 2024 Financial Results

Second Quarter 2024 Performance and Operational Highlights

•Net income of $8.2 million, or $0.90 per diluted share

•Core net income(1) of $9.1 million, or $1.00 per diluted share(1)

•Net interest income of $21.6 million, an increase of $740,000 from the prior quarter

•Net interest margin (“NIM”) of 3.56%, down 3 basis points from the prior quarter

•NIM of 3.57% on a fully-taxable equivalent basis (“NIM - FTE”)(1)

•Return on average assets (“ROAA”) of 1.29%; return on average stockholders’ equity (“ROAE”) of 14.55%; and return on average tangible common equity (“ROATCE”)(1) of 15.79%

•Core ROAA(1) of 1.43%; and core ROATCE(1) of 17.44%

•Efficiency ratio of 49.78%; and core efficiency ratio of 44.75%

•Linked-quarter loans grew 10.3% annualized

•Linked-quarter total deposits grew 12.6% annualized

•Linked-quarter total deposits, excluding brokered deposits, grew 15.2% annualized

(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., July 22, 2024 – 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 $8.2 million, or $0.90 diluted earnings per share, for the second quarter of 2024. This compares to net income of $8.1 million, or $0.90 diluted earnings per share, for the first quarter of 2024, and net income of $8.8 million, or $0.98 diluted earnings per share, for the second quarter of 2023. The Company reported core net income of $9.1 million, or $1.00 diluted core earnings per share, for the second quarter of 2024. This compares to core net income of $8.1 million, or $0.90 diluted core earnings per share, for the first quarter of 2024, and core net income of $7.1 million, or $0.79 diluted core earnings per share, for the second quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures”).

CEO Commentary

Mark Chambers, Chief Executive Officer and President of Southern States said, “We generated consistent growth in the second quarter with continued progress in business development adding high-quality loans and core deposits. We are seeing well-balanced loan growth across all our major areas of lending. Our total loan growth of 10.3% (annualized from the prior quarter) and total deposit growth of 12.6% reflected our ability to perform well through economic cycles.”

“We continue to be a high-performing bank with strong profitability metrics including ROATCE of 15.79%. Effective expense management resulted in our second highest core efficiency ratio of 44.75%.”

“Consistent with our prudent approach to risk management, we have a strong and durable foundation with high levels of capital reserves and strong credit quality. The addition of CBB Bancorp, which we expect to close on August 1, will strengthen our platform, drive loan and deposit growth, and expand our franchise in growing and attractive Georgia markets. Our two organizations are culturally aligned with a ‘Customer First’ mindset and we are excited to realize all the synergies that will benefit our customers, employees, shareholders, and the communities we serve.”

Net Interest Income and Net Interest Margin


	Three Months Ended									% Change June 30, 2024 vs.
	June 30, 2024			March 31, 2024			June 30, 2023			March 31, 2024		June 30, 2023
	(Dollars in thousands)

Average interest-earning assets	$	2,440,425		$	2,336,369		$	2,091,998		4.5	%	16.7	%
Net interest income	$	21,579		$	20,839		$	19,432		3.6	%	11.0	%
Net interest margin	3.56		%	3.59		%	3.73		%	(3)	bps	(17)	bps

Net interest income for the second quarter of 2024 was $21.6 million, an increase of 3.6% from $20.8 million in the first quarter of 2024. The increase was primarily driven by a higher yield on interest-earning assets resulting from growth at higher interest rates, which more than offset a higher cost of interest-bearing deposits due to both higher interest rates and competition.

Relative to the second quarter of 2023, net interest income increased $2.1 million, or 11.0%. The increase was mainly driven by growth, which offset the slight decline in net interest margin.

Net interest margin for the second quarter of 2024 was 3.56%, compared to 3.59% for the first quarter of 2024. The decrease was primarily due to an increase in the cost of interest-bearing deposits, which was greater than the increase in the yield on interest-earning assets.

Relative to the second quarter of 2023, net interest margin decreased from 3.73%. The decrease was primarily the result of the increase in interest rates, which accelerated the cost of interest-bearing liabilities at a greater pace than the yield received on interest-earning assets. A shift from noninterest-bearing deposits into interest-bearing deposits also had a negative impact on net interest margin.

Noninterest Income


	Three Months Ended						% Change June 30, 2024 vs.
	June 30, 2024		March 31, 2024		June 30, 2023		March 31, 2024		June 30, 2023
	(Dollars in thousands)

Service charges on deposit accounts	$	462	$	463	$	456	(0.2)	%	1.3	%
Swap fees	4		15		173		(73.3)	%	(97.7)	%
SBA/USDA fees	58		64		66		(9.4)	%	(12.1)	%
Mortgage origination fees	92		96		188		(4.2)	%	(51.1)	%
Net gain (loss) on securities	20		(12)		(45)		(266.7)	%	(144.4)	%
Employee retention credit and related revenue (“ERC”)	—		—		5,100		N/A		N/A
Other operating income	732		642		924		14.0	%	(20.8)	%
Total noninterest income	$	1,368	$	1,268	$	6,862	7.9	%	(80.1)	%

Noninterest income for the second quarter of 2024 was $1.4 million, an increase of 7.9% from $1.3 million in the first quarter of 2024. The increase primarily reflected the purchase of additional bank owned life insurance (“BOLI”) that resulted in increased BOLI income, a realized net gain on securities during the second quarter of 2024 compared to a net loss on securities during the first quarter of 2024, and an increase in interchange fees.

Relative to the second quarter of 2023, noninterest income decreased 80.1% from $6.9 million. In the second quarter of 2023, the Company received $5.1 million in ERC from the Internal Revenue Service (“IRS”), which was subsequently returned in the third quarter of 2023 as a result of revised IRS eligibility guidelines. Other operating income decreased as a result of the Company receiving less nonrecurring income from a third party during the second quarter of 2024. In addition, there was a decline in swap fees during the second quarter of 2024, substantially as a result of the Company not participating in any swap transactions.

Noninterest Expense


	Three Months Ended						% Change June 30, 2024 vs.
	June 30, 2024		March 31, 2024		June 30, 2023		March 31, 2024		June 30, 2023
	(Dollars in thousands)

Salaries and employee benefits	$	6,112	$	6,231	$	7,863	(1.9)	%	(22.3)	%
Equipment and occupancy expenses	667		689		694		(3.2)	%	(3.9)	%
Data processing fees	686		643		646		6.7	%	6.2	%
Regulatory assessments	375		360		180		4.2	%	108.3	%
Professional fees related to ERC	—		—		1,243		N/A		N/A
Other operating expenses	3,571		2,452		2,806		45.6	%	27.3	%
Total noninterest expenses	$	11,411	$	10,375	$	13,432	10.0	%	(15.0)	%

Noninterest expense for the second quarter of 2024 was $11.4 million, an increase of 10.0% from $10.4 million in the first quarter of 2024. The second quarter of 2024 included a $1.2 million wire fraud loss. This was not a systematic issue with systems, only a procedural incident. The increase was partially offset by a reduction in salaries and benefits during the second quarter of 2024, substantially due to higher payroll taxes and 401k matching brought about by incentive expense paid during the first quarter of 2024.

Relative to the second quarter of 2023, noninterest expense decreased 15.0% from $13.4 million. The decrease was primarily attributable to a decrease in salaries and benefits, substantially as a result of one-time retirement-related expenses of $1.6 million paid to our former CEO in May 2023 and professional fees paid to a third party during the second quarter of 2023 related to ERC, which were subsequently refunded during the third quarter of 2023. These decreases were significantly offset by the wire fraud loss the Company incurred during the second quarter of 2024. As previously mentioned, this was not a systematic issue with systems, only a procedural incident.

Loans and Credit Quality


	Three Months Ended									% Change June 30, 2024 vs.
	June 30, 2024			March 31, 2024			June 30, 2023			March 31, 2024		June 30, 2023
	(Dollars in thousands)

Gross loans	$	2,021,877		$	1,971,396		$	1,722,278		2.6	%	17.4	%
Unearned income	(6,443)			(6,247)			(5,766)			3.1	%	11.7	%
Loans, net of unearned income (“Loans”)	2,015,434			1,965,149			1,716,512			2.6	%	17.4	%
Average loans, net of unearned (“Average loans”)	$	1,987,533		$	1,916,288		$	1,676,816		3.7	%	18.5	%

Nonperforming loans (“NPL”)	$	3,784		$	3,446		$	1,010		9.8	%	274.7	%
Provision for credit losses	$	1,067		$	1,236		$	1,557		(13.7)	%	(31.5)	%
Allowance for credit losses (“ACL”)	$	25,828		$	25,144		$	21,385		2.7	%	20.8	%
Net charge-offs	$	383		$	470		$	27		(18.5)	%	1318.5	%
NPL to gross loans	0.19		%	0.17		%	0.06		%
Net charge-offs to average loans(1)	0.08		%	0.10		%	0.01		%
ACL to loans	1.28		%	1.28		%	1.25		%

(1) Ratio is annualized.

Loans, net of unearned income, were $2.0 billion at June 30, 2024, up $50.3 million from March 31, 2024 and up $298.9 million from June 30, 2023. The linked-quarter and year-over-year increases in loans were primarily attributable to new business growth across our footprint.

Nonperforming loans totaled $3.8 million, or 0.19% of gross loans, at June 30, 2024, compared with $3.4 million, or 0.17% of gross loans, at March 31, 2024, and $1.0 million, or 0.06% of gross loans, at June 30, 2023. The $338,000 net increase in nonperforming loans in the second quarter of 2024 was primarily attributable to a commercial and industrial loan that was added to nonaccrual status and partially offset by a commercial and industrial loan that was charged-off. The $2.8 million net increase in nonperforming loans from June 30, 2023, was primarily attributable to a significant commercial real estate loan and two commercial and industrial loans that were added to nonaccrual status.

The Company recorded a provision for credit losses of $1.1 million for the second quarter of 2024, compared to $1.2 million for the first quarter of 2024. Provision in the second quarter of 2024 was based primarily on loan growth along with qualitative economic factors and individually analyzed loans.

Net charge-offs for the second quarter of 2024 were $383,000, or 0.08% of average loans on an annualized basis, compared to net charge-offs of $470,000, or 0.10% of average loans on an annualized basis, for the first quarter of 2024, and net charge-offs of $27,000, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. The charge-offs recorded during the the first and second quarters of 2024 were substantially related to the charge-off of approximately 70% of a purchased pool of consumer loans, as the borrower has filed for bankruptcy. This was a conservative approach based on uncertainty.

The Company’s allowance for credit losses was 1.28% of total loans and 682.56% of nonperforming loans at June 30, 2024, compared with 1.28% of total loans and 729.66% of nonperforming loans at March 31, 2024. Allowance for credit losses on unfunded commitments was $1.2 million at June 30, 2024.

Deposits


	Three Months Ended									% Change June 30, 2024 vs.
	June 30, 2024			March 31, 2024			June 30, 2023			March 31, 2024		June 30, 2023
	(Dollars in thousands)

Noninterest-bearing deposits	$	416,068		$	416,704		$	449,433		(0.2)	%	(7.4)	%
Interest-bearing deposits	1,759,610			1,693,094			1,474,478			3.9	%	19.3	%
Total deposits	$	2,175,678		$	2,109,798		$	1,923,911		3.1	%	13.1	%

Uninsured deposits	$	645,283		$	610,122		$	553,084		5.8	%	16.7	%
Uninsured deposits to total deposits	29.66		%	28.92		%	28.75		%
Noninterest deposits to total deposits	19.12		%	19.75		%	23.36		%

Total deposits were $2.2 billion at June 30, 2024, up from $2.1 billion at March 31, 2024 and $1.9 billion at June 30, 2023. The $65.9 million increase in total deposits in the second quarter was primarily due to an increase of $66.5 million in interest-bearing deposits, which included a $2.7 million decrease in brokered deposits, partially offset by a $636,000 decrease in noninterest-bearing deposits. Total brokered deposits were $288.3 million at June 30, 2024, compared to 291.0 million at March 31, 2024.

Capital


	June 30, 2024				March 31, 2024				June 30, 2023
	Company		Bank		Company		Bank		Company		Bank

Tier 1 capital ratio to average assets	8.72	%	11.52	%	8.79	%	11.67	%	8.70	%	11.82	%
Risk-based capital ratios:
Common equity tier 1 (“CET1”) capital ratio	9.54	%	12.61	%	9.39	%	12.47	%	9.11	%	12.37	%
Tier 1 capital ratio	9.54	%	12.61	%	9.39	%	12.47	%	9.11	%	12.37	%
Total capital ratio	14.50	%	13.77	%	14.42	%	13.63	%	14.42	%	13.47	%

As of June 30, 2024, total stockholders’ equity was $230.6 million, up from $222.9 million at March 31, 2024. The increase of $7.7 million was substantially due to 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 recent events and trends in the banking industry and the inflationary environment. 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, 2023 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 our acquisition of Century Bank of Georgia, business strategy and prospects for growth, operations, ability to pay dividends, competition, regulation and general economic conditions.

Contact Information

Lynn Joyce

Margaret Boyce

(205) 820-8065

(310) 622-8247

ljoyce@ssbank.bank

ssbankir@finprofiles.com


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

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Results of Operations
Interest income	$	41,007		$	38,736		$	32,185		$	79,743		$	60,884
Interest expense	19,428			17,897			12,753			37,325			21,906
Net interest income	21,579			20,839			19,432			42,418			38,978
Provision for credit losses	1,067			1,236			1,557			2,303			2,738
Net interest income after provision	20,512			19,603			17,875			40,115			36,240
Noninterest income	1,368			1,268			6,862			2,636			8,648
Noninterest expense	11,411			10,375			13,432			21,786			23,590
Income tax expense	2,271			2,377			2,549			4,648			4,871
Net income	$	8,198		$	8,119		$	8,756		$	16,317		$	16,427
Core net income(1)	$	9,058		$	8,128		$	7,058		$	17,186		$	14,339

Share and Per Share Data
Shares issued and outstanding	8,908,130			8,894,794			8,738,814			8,908,130			8,738,814
Weighted average shares outstanding:
Basic	8,957,608			8,913,477			8,763,635			8,935,542			8,763,046
Diluted	9,070,568			9,043,122			8,950,847			9,062,548			9,001,600
Earnings per share:
Basic	$	0.91		$	0.91		$	1.00		$	1.82		$	1.87
Diluted	0.90			0.90			0.98			1.80			1.82
Core - diluted(1)	1.00			0.90			0.79			1.90			1.59
Book value per share	25.88			25.06			22.57			25.88			22.57
Tangible book value per share(1)	23.91			23.07			20.52			23.91			20.52
Cash dividends per common share	0.09			0.09			0.09			0.18			0.18

Performance and Financial Ratios
ROAA	1.29		%	1.33		%	1.60		%	1.31		%	1.56		%
ROAE	14.55		%	14.87		%	18.15		%	14.71		%	17.43		%
Core ROAA(1)	1.43		%	1.34		%	1.29		%	1.38		%	1.36		%
ROATCE(1)	15.79		%	16.17		%	20.01		%	15.98		%	19.25		%
Core ROATCE(1)	17.44		%	16.19		%	16.13		%	16.83		%	16.80		%
NIM	3.56		%	3.59		%	3.73		%	3.57		%	3.89		%
NIM - FTE(1)	3.57		%	3.60		%	3.74		%	3.58		%	3.90		%
Net interest spread	2.59		%	2.63		%	2.86		%	2.60		%	3.08		%
Yield on loans	7.17		%	7.06		%	6.61		%	7.11		%	6.50		%
Yield on interest-earning assets	6.76		%	6.67		%	6.17		%	6.71		%	6.08		%
Cost of interest-bearing liabilities	4.17		%	4.04		%	3.31		%	4.11		%	3.00		%
Cost of funds(2)	3.41		%	3.27		%	2.58		%	3.34		%	2.31		%
Cost of interest-bearing deposits	4.07		%	3.92		%	3.12		%	4.00		%	2.79		%
Cost of total deposits	3.27		%	3.12		%	2.38		%	3.20		%	2.11		%
Noninterest deposits to total deposits	19.12		%	19.75		%	23.36		%	19.12		%	23.36		%
Core deposits to total deposits	81.78		%	81.45		%	86.43		%	81.78		%	86.43		%
Uninsured deposits to total deposits	29.66		%	28.92		%	28.75		%	29.66		%	28.75		%
Total loans to total deposits	92.63		%	93.14		%	89.22		%	92.63		%	89.22		%
Efficiency ratio	49.78		%	46.90		%	51.00		%	48.36		%	50.02		%
Core efficiency ratio(1)	44.75		%	46.90		%	49.96		%	45.81		%	49.38		%

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


SELECT FINANCIAL DATA
(Dollars in thousands)

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Financial Condition (ending)
Total loans	$	2,015,434		$	1,965,149		$	1,716,512		$	2,015,434		$	1,716,512
Total securities	204,131			197,006			182,717			204,131			182,717
Total assets	2,572,011			2,510,975			2,277,803			2,572,011			2,277,803
Total noninterest-bearing deposits	416,068			416,704			449,433			416,068			449,433
Total core deposits(1)	1,779,253			1,718,333			1,662,855			1,779,253			1,662,855
Total deposits	2,175,678			2,109,798			1,923,911			2,175,678			1,923,911
Total borrowings	136,873			146,773			131,472			136,873			131,472
Total liabilities	2,341,430			2,288,094			2,080,553			2,341,430			2,080,553
Total shareholders’ equity	230,581			222,881			197,250			230,581			197,250

Financial Condition (average)
Total loans	$	1,987,533		$	1,916,288		$	1,676,816		$	1,951,910		$	1,643,376
Total securities	210,678			208,954			196,731			209,816			194,552
Total other interest-earning assets	242,214			211,127			218,451			226,671			182,447
Total interest-earning assets	2,440,425			2,336,369			2,091,998			2,388,397			2,020,375
Total assets	2,553,010			2,447,278			2,200,843			2,500,144			2,129,328
Total noninterest-bearing deposits	420,885			416,141			438,987			418,513			438,862
Total interest-bearing deposits	1,729,682			1,633,307			1,412,047			1,681,494			1,356,648
Total deposits	2,150,567			2,049,448			1,851,034			2,100,007			1,795,510
Total borrowings	143,189			148,771			131,411			145,980			118,229
Total interest-bearing liabilities	1,872,871			1,782,078			1,543,458			1,827,474			1,474,877
Total shareholders’ equity	226,527			219,622			193,516			223,075			190,096

Asset Quality
Nonperforming loans	$	3,784		$	3,446		$	1,010		$	3,784		$	1,010
Other real estate owned (“OREO”)	$	33		$	33		$	2,870		$	33		$	2,870
Nonperforming assets (“NPA”)	$	3,817		$	3,479		$	3,880		$	3,817		$	3,880
Net charge-offs to average loans(2)	0.08		%	0.10		%	0.01		%	0.09		%	0.03		%
Provision for credit losses to average loans(2)	0.22		%	0.26		%	0.37		%	0.24		%	0.34		%
ACL to loans	1.28		%	1.28		%	1.25		%	1.28		%	1.25		%
ACL to gross loans	1.28		%	1.28		%	1.24		%	1.28		%	1.24		%
ACL to NPL	682.56		%	729.66		%	2117.33		%	682.56		%	2117.33		%
NPL to loans	0.19		%	0.18		%	0.06		%	0.19		%	0.06		%
NPL to gross loans	0.19		%	0.17		%	0.06		%	0.19		%	0.06		%
NPA to gross loans and OREO	0.19		%	0.18		%	0.22		%	0.19		%	0.22		%
NPA to total assets	0.15		%	0.14		%	0.17		%	0.15		%	0.17		%

Regulatory and Other Capital Ratios
Total shareholders’ equity to total assets	8.97		%	8.88		%	8.66		%	8.97		%	8.66		%
Tangible common equity to tangible assets(3)	8.34		%	8.23		%	7.94		%	8.34		%	7.94		%
Tier 1 capital ratio to average assets	8.72		%	8.79		%	8.70		%	8.72		%	8.70		%
Risk-based capital ratios:
CET1 capital ratio	9.54		%	9.39		%	9.11		%	9.54		%	9.11		%
Tier 1 capital ratio	9.54		%	9.39		%	9.11		%	9.54		%	9.11		%
Total capital ratio	14.50		%	14.42		%	14.42		%	14.50		%	14.42		%

(1) We define core deposits as total deposits excluding brokered deposits and time deposits greater than $250,000.

(2) Ratio is annualized.

(3) 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
(Dollars in thousands)

	June 30, 2024		March 31, 2024		December 31, 2023		June 30, 2023
	(Unaudited)		(Unaudited)		(Audited)		(Unaudited)

Assets
Cash and due from banks	$	21,598	$	20,470	$	19,710	$	21,299
Interest-bearing deposits in banks	140,440		129,917		134,846		159,818
Federal funds sold	76,334		86,736		96,095		84,812
Total cash and cash equivalents	238,372		237,123		250,651		265,929

Securities available for sale, at fair value	184,510		177,379		179,000		163,075
Securities held to maturity, at amortized cost	19,621		19,627		19,632		19,642
Other equity securities, at fair value	3,658		3,638		3,649		3,762
Restricted equity securities, at cost	4,633		5,108		5,684		3,862
Loans held for sale	1,716		425		450		1,589

Loans, net of unearned income	2,015,434		1,965,149		1,884,508		1,716,512
Less allowance for credit losses	25,828		25,144		24,378		21,385
Loans, net	1,989,606		1,940,005		1,860,130		1,695,127

Premises and equipment, net	26,192		26,262		26,426		26,957
Accrued interest receivable	9,654		9,561		8,711		7,372
Bank owned life insurance	33,000		30,075		29,884		29,521
Annuities	15,918		15,939		15,036		15,359
Foreclosed assets	33		33		33		2,870
Goodwill	16,862		16,862		16,862		16,862
Core deposit intangible	735		817		899		1,062
Other assets	27,501		28,121		29,616		24,814

Total assets	$	2,572,011	$	2,510,975	$	2,446,663	$	2,277,803

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	416,068	$	416,704	$	437,959	$	449,433
Interest-bearing	1,759,610		1,693,094		1,580,230		1,474,478
Total deposits	2,175,678		2,109,798		2,018,189		1,923,911

Other borrowings	8,000		7,997		26,994		(13)
FHLB advances	42,000		52,000		70,000		45,000
Subordinated notes	86,873		86,776		86,679		86,485
Accrued interest payable	2,024		1,805		1,519		1,063
Other liabilities	26,855		29,718		28,318		24,107

Total liabilities	2,341,430		2,288,094		2,231,699		2,080,553

Stockholders' equity:
Common stock	44,813		44,746		44,479		43,831
Capital surplus	79,248		79,282		78,361		77,101
Retained earnings	117,233		109,838		102,523		88,603
Accumulated other comprehensive loss	(8,333)		(8,401)		(8,379)		(10,799)
Unvested restricted stock	(826)		(1,030)		(466)		(709)
Vested restricted stock units	(1,554)		(1,554)		(1,554)		(777)

Total stockholders' equity	230,581		222,881		214,964		197,250

Total liabilities and stockholders' equity	$	2,572,011	$	2,510,975	$	2,446,663	$	2,277,803


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

	Three Months Ended						Six Months Ended
	June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Interest income:
Loans, including fees	$	35,421	$	33,628	$	27,630	$	69,049	$	52,965
Taxable securities	2,039		1,981		1,641		4,020		3,024
Nontaxable securities	231		229		228		460		519
Other interest and dividends	3,316		2,898		2,686		6,214		4,376
Total interest income	41,007		38,736		32,185		79,743		60,884

Interest expense:
Deposits	17,511		15,906		10,998		33,417		18,766
Other borrowings	1,917		1,991		1,755		3,908		3,140
Total interest expense	19,428		17,897		12,753		37,325		21,906

Net interest income	21,579		20,839		19,432		42,418		38,978
Provision for credit losses	1,067		1,236		1,557		2,303		2,738
Net interest income after provision for credit losses	20,512		19,603		17,875		40,115		36,240

Noninterest income:
Service charges on deposit accounts	462		463		456		925		906
Swap fees	4		15		173		19		169
SBA/USDA fees	58		64		66		122		200
Mortgage origination fees	92		96		188		188		288
Net gain (loss) on securities	20		(12)		(45)		8		469
Employee retention credit and related revenue	—		—		5,100		—		5,100
Other operating income	732		642		924		1,374		1,516
Total noninterest income	1,368		1,268		6,862		2,636		8,648

Noninterest expenses:
Salaries and employee benefits	6,112		6,231		7,863		12,343		14,174
Equipment and occupancy expenses	667		689		694		1,356		1,377
Data processing fees	686		643		646		1,329		1,239
Regulatory assessments	375		360		180		735		522
Professional fees related to ERC	—		—		1,243		—		1,243
Other operating expenses	3,571		2,452		2,806		6,023		5,035
Total noninterest expenses	11,411		10,375		13,432		21,786		23,590

Income before income taxes	10,469		10,496		11,305		20,965		21,298

Income tax expense	2,271		2,377		2,549		4,648		4,871

Net income	$	8,198	$	8,119	$	8,756	$	16,317	$	16,427

Basic earnings per share	$	0.91	$	0.91	$	1.00	$	1.82	$	1.87

Diluted earnings per share	$	0.90	$	0.90	$	0.98	$	1.80	$	1.82


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

	Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 2023
	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)	$	1,987,533	$	35,421	7.17	%	$	1,916,288	$	33,628	7.06	%	$	1,676,816	$	27,630	6.61	%
Taxable securities	165,141		2,039		4.97	%	163,586		1,981		4.87	%	151,107		1,641		4.36	%
Nontaxable securities	45,537		231		2.04	%	45,368		229		2.03	%	45,624		228		2.00	%
Other interest-earnings assets	242,214		3,316		5.51	%	211,127		2,898		5.52	%	218,451		2,686		4.93	%
Total interest-earning assets	$	2,440,425	$	41,007	6.76	%	$	2,336,369	$	38,736	6.67	%	$	2,091,998	$	32,185	6.17	%
Allowance for credit losses	(25,332)						(24,313)						(20,154)
Noninterest-earning assets	137,917						135,222						128,999
Total Assets	$	2,553,010					$	2,447,278					$	2,200,843

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	85,976		21		0.10	%	85,858		26		0.12	%	92,245		20		0.09	%
Savings and money market accounts	929,930		9,229		3.99	%	902,361		8,804		3.92	%	845,742		6,872		3.26	%
Time deposits	713,776		8,261		4.65	%	645,088		7,076		4.41	%	474,060		4,106		3.47	%
FHLB advances	48,374		596		4.96	%	53,121		655		4.96	%	45,000		529		4.72	%
Other borrowings	94,815		1,321		5.60	%	95,650		1,336		5.62	%	86,411		1,226		5.69	%
Total interest-bearing liabilities	$	1,872,871	$	19,428	4.17	%	$	1,782,078	$	17,897	4.04	%	$	1,543,458	$	12,753	3.31	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	420,885					$	416,141					$	438,987
Other liabilities	32,727						29,437						24,882
Total noninterest-bearing liabilities	$	453,612					$	445,578					$	463,869
Stockholders’ Equity	226,527						219,622						193,516
Total Liabilities and Stockholders’ Equity	$	2,553,010					$	2,447,278					$	2,200,843

Net interest income			$	21,579					$	20,839					$	19,432
Net interest spread(2)					2.59	%					2.63	%					2.86	%
Net interest margin(3)					3.56	%					3.59	%					3.73	%
Net interest margin - FTE(4)(5)					3.57	%					3.60	%					3.74	%
Cost of funds(6)					3.41	%					3.27	%					2.58	%
Cost of interest-bearing deposits					4.07	%					3.92	%					3.12	%
Cost of total deposits					3.27	%					3.12	%					2.38	%

(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.

(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)

	Six Months Ended
	June 30, 2024						June 30, 2023
	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income(1)	$	1,951,910	$	69,049	7.11	%	$	1,643,376	$	52,965	6.50	%
Taxable securities	164,363		4,020		4.92	%	145,344		3,024		4.20	%
Nontaxable securities	45,453		460		2.04	%	49,208		519		2.13	%
Other interest-earnings assets	226,671		6,214		5.51	%	182,447		4,376		4.84	%
Total interest-earning assets	$	2,388,397	$	79,743	6.71	%	$	2,020,375	$	60,884	6.08	%
Allowance for credit losses	(24,822)						(20,315)
Noninterest-earning assets	136,569						129,268
Total Assets	$	2,500,144					$	2,129,328

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	85,917		48		0.11	%	93,093		40		0.09	%
Savings and money market accounts	916,145		18,032		3.96	%	825,982		11,911		2.91	%
Time deposits	679,432		15,337		4.54	%	437,573		6,815		3.14	%
FHLB advances	50,747		1,251		4.96	%	31,862		688		4.35	%
Other borrowings	95,233		2,657		5.61	%	86,367		2,452		5.73	%
Total interest-bearing liabilities	$	1,827,474	$	37,325	4.11	%	$	1,474,877	$	21,906	3.00	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	418,513					$	438,862
Other liabilities	31,082						25,493
Total noninterest-bearing liabilities	$	449,595					$	464,355
Stockholders’ Equity	223,075						190,096
Total Liabilities and Stockholders’ Equity	$	2,500,144					$	2,129,328

Net interest income			$	42,418					$	38,978
Net interest spread(2)					2.60	%					3.08	%
Net interest margin(3)					3.57	%					3.89	%
Net interest margin - FTE(4)(5)					3.58	%					3.90	%
Cost of funds(6)					3.34	%					2.31	%
Cost of interest-bearing deposits					4.00	%					2.79	%
Cost of total deposits					3.20	%					2.11	%

(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.

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

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


LOAN COMPOSITION
(Dollars in thousands)

	June 30, 2024				March 31, 2024				December 31, 2023				June 30, 2023
	Amount		% of gross		Amount		% of gross		Amount		% of gross		Amount		% of gross

Real estate mortgages:
Construction and development	$	242,573	12.0	%	$	252,934	12.8	%	$	242,960	12.9	%	$	228,236	13.3	%
Residential	249,498		12.3	%	238,702		12.1	%	224,603		11.9	%	214,897		12.5	%
Commercial	1,222,739		60.5	%	1,182,634		60.0	%	1,144,867		60.5	%	1,011,815		58.7	%
Commercial and industrial	297,501		14.7	%	288,701		14.7	%	269,961		14.3	%	259,195		15.0	%
Consumer and other	9,566		0.5	%	8,425		0.4	%	8,286		0.4	%	8,135		0.5	%
Gross loans	2,021,877		100.0	%	1,971,396		100.0	%	1,890,677		100.0	%	1,722,278		100.0	%
Unearned income	(6,443)				(6,247)				(6,169)				(5,766)
Loans, net of unearned income	2,015,434				1,965,149				1,884,508				1,716,512
Allowance for credit losses	(25,828)				(25,144)				(24,378)				(21,385)
Loans, net	$	1,989,606			$	1,940,005			$	1,860,130			$	1,695,127


DEPOSIT COMPOSITION
(Dollars in thousands)

	June 30, 2024				March 31, 2024				December 31, 2023				June 30, 2023
	Amount		% of total		Amount		% of total		Amount		% of total		Amount		% of total


Noninterest-bearing transaction	$	416,068	19.1	%	$	416,704	19.7	%	$	437,959	21.7	%	$	449,433	23.3	%
Interest-bearing transaction	1,006,687		46.3	%	974,079		46.2	%	946,347		46.9	%	922,835		48.0	%
Savings	32,527		1.5	%	33,909		1.6	%	35,412		1.7	%	41,574		2.2	%
Time deposits, $250,000 and under	612,299		28.1	%	584,658		27.7	%	500,406		24.8	%	438,228		22.8	%
Time deposits, over $250,000	108,097		5.0	%	100,448		4.8	%	98,065		4.9	%	71,841		3.7	%
Total deposits	$	2,175,678	100.0	%	$	2,109,798	100.0	%	$	2,018,189	100.0	%	$	1,923,911	100.0	%


Nonperforming Assets
(Dollars in thousands)

	June 30, 2024			March 31, 2024			December 31, 2023			June 30, 2023


Nonaccrual loans	$	3,784		$	3,446		$	1,017		$	1,010
Past due loans 90 days or more and still accruing interest	—			—			160			—
Total nonperforming loans	3,784			3,446			1,177			1,010
OREO	33			33			33			2,870

Total nonperforming assets	$	3,817		$	3,479		$	1,210		$	3,880

Financial difficulty modification loans – nonaccrual(1)	647			675			907			724
Financial difficulty modification loans – accruing	1,093			1,283			1,095			1,328
Financial difficulty modification loans	$	1,740		$	1,958		$	2,002		$	2,052

Allowance for credit losses	$	25,828		$	25,144		$	24,378		$	21,385
Loans, net of unearned income at the end of the period	$	2,015,434		$	1,965,149		$	1,884,508		$	1,716,512
Gross loans outstanding at the end of period	$	2,021,877		$	1,971,396		$	1,890,677		$	1,722,278
Total assets	$	2,572,011		$	2,510,975		$	2,446,663		$	2,277,803
Allowance for credit losses to nonperforming loans	682.56		%	729.66		%	2071.20		%	2117.33		%
Nonperforming loans to loans, net of unearned income	0.19		%	0.18		%	0.06		%	0.06		%
Nonperforming loans to gross loans	0.19		%	0.17		%	0.06		%	0.06		%
Nonperforming assets to gross loans and OREO	0.19		%	0.18		%	0.06		%	0.22		%
Nonperforming assets to total assets	0.15		%	0.14		%	0.05		%	0.17		%

Nonaccrual loans by category:
Real estate mortgages:
Construction & Development	$	—		$	—		$	—		$	33
Residential Mortgages	393			246			252			297
Commercial Real Estate Mortgages	2,182			2,422			765			671
Commercial & Industrial	1,209			778			—			9
Consumer and other	—			—			—			—
Total	$	3,784		$	3,446		$	1,017		$	1,010

(1) Financial difficulty modifications 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 Credit Losses
(Dollars in thousands)

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Average loans, net of unearned income	$	1,987,533		$	1,916,288		$	1,676,816		$	1,951,910		$	1,643,376
Loans, net of unearned income	2,015,434			1,965,149			1,716,512			2,015,434			1,716,512
Gross loans	2,021,877			1,971,396			1,722,278			2,021,877			1,722,278
Allowance for credit losses at beginning of the period	25,144			24,378			19,855			24,378			20,156
Impact of adoption of ASC 326	—			—			—			—			(1,285)
Charge-offs:
Construction and development	—			—			—			—			—
Residential	—			11			—			11			—
Commercial	11			27			—			38			—
Commercial and industrial	384			442			44			826			262
Consumer and other	10			15			—			25			6
Total charge-offs	405			495			44			900			268
Recoveries:
Construction and development	—			—			—			—			—
Residential	6			8			17			14			28
Commercial	—			—			—			—			—
Commercial and industrial	15			16			—			31			14
Consumer and other	1			1			—			2			2
Total recoveries	22			25			17			47			44
Net charge-offs	$	383		$	470		$	27		$	853		$	224

Provision for credit losses	$	1,067		$	1,236		$	1,557		$	2,303		$	2,738
Balance at end of the period	$	25,828		$	25,144		$	21,385		$	25,828		$	21,385

Allowance for credit losses on unfunded commitments at beginning of the period	$	1,288		$	1,239		$	1,285		$	1,239		$	—
Impact of adoption of ASC 326	—			—			—			—			1,285
(Credit) provision for credit losses on unfunded commitments	(82)			49			210			(33)			210
Balance at the end of the period	$	1,206		$	1,288		$	1,495		$	1,206		$	1,495

Allowance to loans, net of unearned income	1.28		%	1.28		%	1.25		%	1.28		%	1.25		%
Allowance to gross loans	1.28		%	1.28		%	1.24		%	1.28		%	1.24		%
Net charge-offs to average loans, net of unearned income(1)	0.08		%	0.10		%	0.01		%	0.09		%	0.03		%
Provision for credit losses to average loans, net of unearned income(1)	0.22		%	0.26		%	0.37		%	0.24		%	0.34		%

(1) Ratio is annualized.

Reconciliation of Non-GAAP Financial Measures

Noninterest Expense

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									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Net income	$	8,198		$	8,119		$	8,756		$	16,317		$	16,427
Add: One-time retirement related expenses	—			—			1,571			—			1,571
Add: Professional fees related to ERC	—			—			1,243			—			1,243
Add: Wire fraud loss	1,155			—			—			1,155			—
Add: Net OREO (gain) loss	(3)			—			7			(3)			7

Less: Employee retention related revenue	—			—			5,100			—			5,100



Less: Net gain (loss) on securities	20			(12)			(45)			8			469
Less: Tax effect	272			3			(536)			275			(660)
Core net income	$	9,058		$	8,128		$	7,058		$	17,186		$	14,339
Average assets	$	2,553,010		$	2,447,278		$	2,200,843		$	2,500,144		$	2,129,328
Core return on average assets	1.43		%	1.34		%	1.29		%	1.38		%	1.36		%

Net income	$	8,198		$	8,119		$	8,756		$	16,317		$	16,427
Add: One-time retirement related expenses	—			—			1,571			—			1,571
Add: Professional fees related to ERC	—			—			1,243			—			1,243
Add: Wire fraud loss	1,155			—			—			1,155			—
Add: Net OREO (gain) loss	(3)			—			7			(3)			7
Add: Provision	1,067			1,236			1,557			2,303			2,738

Less: Employee retention related revenue	—			—			5,100			—			5,100



Less: Net gain (loss) on securities	20			(12)			(45)			8			469
Add: Income taxes	2,271			2,377			2,549			4,648			4,871
Pretax pre-provision core net income	$	12,668		$	11,744		$	10,628		$	24,412		$	21,288
Average assets	$	2,553,010		$	2,447,278		$	2,200,843		$	2,500,144		$	2,129,328
Pretax pre-provision core return on average assets	2.00		%	1.93		%	1.94		%	1.96		%	2.02		%

Net interest income	$	21,579		$	20,839		$	19,432		$	42,418		$	38,978
Add: Fully-taxable equivalent adjustments(1)	73			73			65			146			143
Net interest income - FTE	$	21,652		$	20,912		$	19,497		$	42,564		$	39,121

Net interest margin	3.56		%	3.59		%	3.73		%	3.57		%	3.89		%
Effect of fully-taxable equivalent adjustments(1)	0.01		%	0.01		%	0.01		%	0.01		%	0.01		%
Net interest margin - FTE	3.57		%	3.60		%	3.74		%	3.58		%	3.90		%

Total stockholders' equity	$	230,581		$	222,881		$	197,250		$	230,581		$	197,250
Less: Intangible assets	17,597			17,679			17,924			17,597			17,924

Tangible common equity	$	212,984		$	205,202		$	179,326		$	212,984		$	179,326

(1) Assumes a 24.0% tax rate.


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

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Core net income	$	9,058		$	8,128		$	7,058		$	17,186		$	14,339
Diluted weighted average shares outstanding	9,070,568			9,043,122			8,950,847			9,062,548			9,001,600
Diluted core earnings per share	$	1.00		$	0.90		$	0.79		$	1.90		$	1.59

Common shares outstanding at year or period end	8,908,130			8,894,794			8,738,814			8,908,130			8,738,814
Tangible book value per share	$	23.91		$	23.07		$	20.52		$	23.91		$	20.52

Total assets at end of period	$	2,572,011		$	2,510,975		$	2,277,803		$	2,572,011		$	2,277,803
Less: Intangible assets	17,597			17,679			17,924			17,597			17,924
Adjusted assets at end of period	$	2,554,414		$	2,493,296		$	2,259,879		$	2,554,414		$	2,259,879
Tangible common equity to tangible assets	8.34		%	8.23		%	7.94		%	8.34		%	7.94		%

Total average shareholders equity	$	226,527		$	219,622		$	193,516		$	223,075		$	190,096
Less: Average intangible assets	17,646			17,730			17,974			17,688			18,014
Average tangible common equity	$	208,881		$	201,892		$	175,542		$	205,387		$	172,082
Net income to common shareholders	$	8,198		$	8,119		$	8,756		$	16,317		$	16,427
Return on average tangible common equity	15.79		%	16.17		%	20.01		%	15.98		%	19.25		%
Average tangible common equity	$	208,881		$	201,892		$	175,542		$	205,387		$	172,082
Core net income	$	9,058		$	8,128		$	7,058		$	17,186		$	14,339
Core return on average tangible common equity	17.44		%	16.19		%	16.13		%	16.83		%	16.80		%

Net interest income	$	21,579		$	20,839		$	19,432		$	42,418		$	38,978
Add: Noninterest income	1,368			1,268			6,862			2,636			8,648

Less: Employee retention related revenue	—			—			5,100			—			5,100



Less: Net gain (loss) on securities	20			(12)			(45)			8			469
Operating revenue	$	22,927		$	22,119		$	21,239		$	45,046		$	42,057

Expenses:
Total noninterest expense	$	11,411		$	10,375		$	13,432		$	21,786		$	23,590
Less: One-time retirement related expenses	—			—			1,571			—			1,571
Less: Professional fees related to ERC	—			—			1,243			—			1,243
Less: Wire fraud loss	1,155			—			—			1,155			—
Less: Net OREO (gain) loss	(3)			—			7			(3)			7

Adjusted noninterest expenses	$	10,259		$	10,375		$	10,611		$	20,634		$	20,769
Core efficiency ratio	44.75		%	46.90		%	49.96		%	45.81		%	49.38		%

ssbk2q24investorpresenta

Q2 2024 Investor Presentation July 22, 2024

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 recent events and trends in the banking industry and the inflationary environment. 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, 2023, 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 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 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) Quarterly Deposit ExcludingLoans / Deposits: 92.63% Overview of Southern States Bancshares, Inc. Q2 ‘24 Financial Highlights Quarterly Asset Growth(2): 9.8%Assets ($B): $2.6 NPLs / Loans: 0.19% Quarterly Loan Growth(2): 10.3%Gross Loans ($B): $2.0 ACL / Loans: 1.28% Quarterly Deposit Growth(3): 12.6%Deposits ($B): $2.2 NCOs / Avg. Loans: 0.08% TCE / TA(1): 8.34% Core Net Income(1) ($M): $9.1 Core ROAA(1): 1.43% NIM: 3.56% Core Efficiency Ratio(1): 44.75% Mobile Savannah Macon Valdosta Augusta Southern States Bancshares (Nasdaq: SSBK) was founded in August 2007 and priced its IPO on August 11, 2021 History of solid growth, top-tier profitability and a strong credit culture Bifurcated expansion 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 lower-cost, core funding base Source: Company Documents; financial data as of the three months ended 6/30/24 unless otherwise noted (1) Please refer to non-U.S. GAAP reconciliation in the appendix (2) Annualized (3) Annualized; includes a $2.7 million decrease in brokered deposits in 2Q24 15.2% Brokered Growth(2):

4 $62.3 $69.2 $72.8 $88.1 $93.1 $70.7 $83.3 Columbus MSA Auburn- Opelika MSA Birmingham MSA Huntsville MSA Atlanta MSA Southeast Average National Average 1.6% 1.9% 4.7% 5.9% 6.6% 3.2% 2.1% Birmingham MSA Columbus MSA Atlanta MSA Huntsville MSA Auburn- Opelika MSA Southeast Average National Average Columbus, GA Major Employers Market Highlights Robust Market Dynamics Source: U.S. Bureau of Labor Statistics; S&P Global Market Intelligence; Fortune; Forbes; Money.com; moneygeek.com; Business Facilities; USA Today; Livability,com; US News; Auburn.edu; Columbus, Georgia Economic Development Note: Southeast defined as AL, AR, FL. GA, KY, LA, MS, NC. SC, TN, VA, and WV - 8th largest Metro Area in the USA - Ranked 10th largest economy in the country - Ranked 13th Best Places for Business and Careers by Forbes - 17 Fortune 500 companies headquartered in Atlanta - Largest market in Alabama, supported by strong steel, biotechnology, and banking industries - Ranked 2nd best US city for job seekers by MoneyGeek - University of Alabama Birmingham serves as an international leader in medicine and dentistry - Voted best place to live in the country by US News - Highest concentration of engineers in the US - Ranked #1 best city for STEM workers by Livability - 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 - Auburn University contributes $5.6 billion annually and 27,000 jobs to the Alabama economy - Named top-five growth city in America by U-Haul - High-tech manufacturing and industrial hub for companies like Kia Motors, Hanwha Cimarron, and Niagara Bottling - Fort Benning Military Base • U.S. Army Infantry and Armor Training Post • Columbus Chamber of Commerce estimates annual economic impact of $4.8 billion - Major companies headquartered include Aflac and Total Systems Services, Inc. - Contains seven colleges and universities, with 83,000 students pursuing degrees in higher education Huntsville, AL Birmingham, AL Atlanta, GA ‘28 Projected Median HHI ($M) ‘23 – ‘28 Projected Population Growth (%) Auburn / Opelika, AL

5 Proven, Veteran Management Team Lynn Joyce SEVP & Chief Financial Officer Greg Smith SEVP & Chief Risk and Credit Officer Our senior management team, on average, has more than 30 years of banking experience Mark Chambers CEO and President • 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

6 Q2 2024 Results Highlights (1) Please refer to non-U.S. GAAP reconciliation in the appendix (2) Uninsured deposits are 29.66% of total deposits Operating Results Deposits/Liquidity Loans Capital Asset Quality • Net income of $8.2 million, or $0.90 per diluted share, and core net income (1) of $9.1 million, or $1.00 per diluted share (1) • ROAA of 1.29% and ROATCE of 15.79%; Core ROAA (1) of 1.43% and Core ROATCE (1) of 17.44% • Net interest margin of 3.56% • Efficiency ratio (1) of 49.78% and core efficiency ratio (1) of 44.75% • Monthly margin trends – April 3.58%, May 3.58%, and June 3.52% • Loan portfolio of $2.0 billion increased $50.3 million, or 2.6%, from Q1 2024 • Annualized loan growth of 10.3% from Q1 2024 • Average yield on loans of 7.17% improved 11 bps from 7.06% for Q1 2024 • Loans / deposits ratio of 92.63% compared to 93.14% for Q1 2024 • Deposits of $2.2 billion increased by $65.9 million, or 3.1%, from Q1 2024 (2) • Deposits, excluding brokered deposits, increased by $68.6 million, or 15.2% annualized, from Q1 2024 • Average cost of total deposits increased to 3.27% from 3.12% in Q1 2024 • Noninterest-bearing deposits comprised 19.12% of total deposits compared to 19.75% at Q1 2024 • Nonperforming loans to gross loans of 0.19% increased 2 bps from Q1 2024 • Net charge-offs at $383,000, or 0.08% of average loans, annualized • Allowance for credit losses to gross loans of 1.28% compared to 1.28% at Q1 2024 • Nonperforming loans increased to $3.8 million from $3.4 million at Q1 2024 • Announced and paid quarterly dividend of $0.09 per share • Tangible common equity to tangible assets (1) of 8.34%, compared to 8.23% at Q1 2024 • Tangible book value per share (1) of $23.91, up 3.6% from Q1 2024

7 $19.4 $20.7 $20.4 $20.8 $21.6 3.73% 3.78% 3.69% 3.59% 3.56% $16.0 $17.0 $18.0 $19.0 $20.0 $21.0 $22.0 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Income Net Interest Margin Net Interest Income and Net Interest Margin Net Interest Margin Source: Company Documents; data as of 6/30/24 (Dollars in millions)

8 Time Deposits $432.1 Brokered Deposits $288.3 Noninterest-bearing Checking $416.1 Interest-bearing Checking $82.8 Money Market $923.9 Savings $32.5 Deposits by Type – $2.18B Deposit Portfolio Source: Company Documents; data as of 6/30/24 (1) Excludes brokered deposits; dollars in thousands Deposit Type Composition % Average Balance Commercial 64% $168.9 Retail 36% $44.4 Account Composition (1) (Dollars in millions)

9 OO-CRE 31.1% NOO-CRE 29.4% C&I 14.7% C & D 12.0% Residential 12.3% Consumer & Other 0.5% Loans by Type $2.02B Loan Portfolio Source: Company Documents; data as of 6/30/24 Loan Type Composition % Fixed 51.4% Variable 48.6% Loan Composition Loan Type Total Office Buildings $204.7 Industrial Warehouse / Heavy Manufacturing $178.0 Convenience Stores $162.2 Hotels / Motels $145.2 Multi-Family (5+) $135.1 Retail Warehouse / Light Manufacturing $126.0 Commercial Retail Building $97.7 Concentration Highlights(Dollars in millions)

10 <$1M 176 $1-5M 38 $5-10M 9 >$10M 2 Office Building Loans $204.7M Loan Portfolio – Office Building Source: Company Documents; data as of 6/30/24 Location Composition % Georgia 72% Alabama 24% Other 4% Loan Composition # of Stories Total Six Stories 3 Five stories 1 Four stories 7 Three stories 6 One & two stories 208 Office Building Type

11 $3.9 $13.4 $3.4 $2.0 $2.2 $1.2 $3.8 $0.6 $4.2 $10.2 $2.9 $2.90.6% 2.5% 1.3% 0.4% 0.3% 0.1% 0.2% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2018 2019 2020 2021 2022 2023 2Q24 Nonaccruals ($mm) OREO ($mm) NPAs / Loans + OREO $17.6 Nonperforming Assets by Type Asset Quality Source: Company Documents; data as of 6/30/24 Dollars in millions Reserves / Loans NCOs / Avg. Loans $1.2 $3.8 $4.5 $13.6 0.02% 0.57% 0.07% 0.00% $4.9 0.02% 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 Proactive approach to resolving problem credits 1.11% 1.11% 1.22% 1.19% 1.27% 1.29% 1.28% 2018 2019 2020 2021 2022 2023 2Q24 0.08% $5.1 0.08%

12 $704 $840 $1,030 $1,250 $1,587 $1,885 $2,015 2018 2019 2020 2021 2022 2023 2Q24 $776 $951 $1,140 $1,556 $1,721 $2,018 $2,176 2018 2019 2020 2021 2022 2023 2Q24 $888 $1,095 $1,333 $1,783 $2,045 $2,447 $2,572 2018 2019 2020 2021 2022 2023 2Q24 Net Income ($M)Total Assets ($M) Total Deposits ($M) Total Loans ($M) Growth History Source: Company Documents; data as of 6/30/24 $7.7 $5.6 $12.1 $18.6 $27.1 $32.0 $16.3 $0.81 $1.18 $1.56 $2.23 $3.02 $3.53 $1.80 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2018 2019 2020 2021 2022 2023 YTD Net Income Diluted EPS

13 Building Shareholder Value Our Strategic Focus Maintain focus on strong, profitable organic growth without compromising our credit quality Further develop and grow our core deposit franchise Expand into new markets by hiring commercial bankers Focus on high growth markets and further expand our Atlanta franchise Evaluate strategic acquisition opportunities Prudently manage capital between balance sheet growth and return to shareholders

14 Near-Term Outlook Century Bank closing on August 1, 2024, and conversion will be August 23, 2024 Loan balances will grow with the addition of Century Bank loans on top of modest organic loan growth Deposit balances will grow with the addition of Century Bank deposits on top of slight organic deposit growth Net interest income is expected to increase modestly Core noninterest income expected to increase slightly from Q1 2024 Core noninterest expense is expected to increase with the addition of Century Bank; cost savings will start being realized in Q4 2024 Credit metrics are currently strong. Future provision levels are expected to consider both current and evolving economic conditions and changes in credit Balanced approach to capital deployment with flexibility to support organic loan growth trajectory and cash dividend while evaluating stock repurchases

Appendix

16 Non-GAAP Financial Measures Reconciliations Three Months Ended Six Months Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income $ 8,198 $ 8,119 $ 8,756 $ 16,317 $ 16,427 Add: One-time retirement related expenses — — 1,571 — 1,571 Add: Professional fees related to ERC — — 1,243 — 1,243 Add: Wire fraud loss 1,155 — — 1,155 — Add: Net OREO (gain) loss (3) — 7 (3) 7 Less: Employee retention related revenue — — 5,100 — 5,100 Less: Net gain (loss) on securities 20 (12) (45) 8 469 Less: Tax effect 272 3 (536) 275 (660) Core net income $ 9,058 $ 8,128 $ 7,058 $ 17,186 $ 14,339 Average assets $ 2,553,010 $ 2,447,278 $ 2,200,843 $ 2,500,144 $ 2,129,328 Core return on average assets 1.43 % 1.34 % 1.29 % 1.38 % 1.36 % Net income $ 8,198 $ 8,119 $ 8,756 $ 16,317 $ 16,427 Add: One-time retirement related expenses — — 1,571 — 1,571 Add: Professional fees related to ERC — — 1,243 — 1,243 Add: Wire fraud loss 1,155 — — 1,155 — Add: Net OREO (gain) loss (3) — 7 (3) 7 Add: Provision 1,067 1,236 1,557 2,303 2,738 Less: Employee retention related revenue — — 5,100 — 5,100 Less: Net gain (loss) on securities 20 (12) (45) 8 469 Add: Income taxes 2,271 2,377 2,549 4,648 4,871 Pretax pre-provision core net income $ 12,668 $ 11,744 $ 10,628 $ 24,412 $ 21,288 Average assets $ 2,553,010 $ 2,447,278 $ 2,200,843 $ 2,500,144 $ 2,129,328 Pretax pre-provision core return on average assets 2.00 % 1.93 % 1.94 % 1.96 % 2.02 % Net interest income $ 21,579 $ 20,839 $ 19,432 $ 42,418 $ 38,978 Add: Fully-taxable equivalent adjustments(1) 73 73 65 146 143 Net interest income - FTE $ 21,652 $ 20,912 $ 19,497 $ 42,564 $ 39,121 Net interest margin 3.56 % 3.59 % 3.73 % 3.57 % 3.89 % Effect of fully-taxable equivalent adjustments(1) 0.01 % 0.01 % 0.01 % 0.01 % 0.01 % Net interest margin - FTE 3.57 % 3.60 % 3.74 % 3.58 % 3.90 % Total stockholders' equity $ 230,581 $ 222,881 $ 197,250 $ 230,581 $ 197,250 Less: Intangible assets 17,597 17,679 17,924 17,597 17,924 Tangible common equity $ 212,984 $ 205,202 $ 179,326 $ 212,984 $ 179,326 (1) Assumes a 24.0% tax rate.

17 Non-GAAP Financial Measures Reconciliations Three Months Ended Six Months Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Core net income $ 9,058 $ 8,128 $ 7,058 $ 17,186 $ 14,339 Diluted weighted average shares outstanding 9,070,568 9,043,122 8,950,847 9,062,548 9,001,600 Diluted core earnings per share $ 1.00 $ 0.90 $ 0.79 $ 1.90 $ 1.59 Common shares outstanding at year or period end 8,908,130 8,894,794 8,738,814 8,908,130 8,738,814 Tangible book value per share $ 23.91 $ 23.07 $ 20.52 $ 23.91 $ 20.52 Total assets at end of period $ 2,572,011 $ 2,510,975 $ 2,277,803 $ 2,572,011 $ 2,277,803 Less: Intangible assets 17,597 17,679 17,924 17,597 17,924 Adjusted assets at end of period $ 2,554,414 $ 2,493,296 $ 2,259,879 $ 2,554,414 $ 2,259,879 Tangible common equity to tangible assets 8.34 % 8.23 % 7.94 % 8.34 % 7.94 % Total average shareholders equity $ 226,527 $ 219,622 $ 193,516 $ 223,075 $ 190,096 Less: Average intangible assets 17,646 17,730 17,974 17,688 18,014 Average tangible common equity $ 208,881 $ 201,892 $ 175,542 $ 205,387 $ 172,082 Net income to common shareholders $ 8,198 $ 8,119 $ 8,756 $ 16,317 $ 16,427 Return on average tangible common equity 15.79 % 16.17 % 20.01 % 15.98 % 19.25 % Average tangible common equity $ 208,881 $ 201,892 $ 175,542 $ 205,387 $ 172,082 Core net income $ 9,058 $ 8,128 $ 7,058 $ 17,186 $ 14,339 Core return on average tangible common it 17.44 % 16.19 % 16.13 % 16.83 % 16.80 % Net interest income $ 21,579 $ 20,839 $ 19,432 $ 42,418 $ 38,978 Add: Noninterest income 1,368 1,268 6,862 2,636 8,648 Less: Employee retention related revenue — — 5,100 — 5,100 Less: Net gain (loss) on securities 20 (12) (45) 8 469 Operating revenue $ 22,927 $ 22,119 $ 21,239 $ 45,046 $ 42,057 Expenses: Total noninterest expense $ 11,411 $ 10,375 $ 13,432 $ 21,786 $ 23,590 Less: One-time retirement related expenses — — 1,571 — 1,571 Less: Professional fees related to ERC — — 1,243 — 1,243 Less: Wire fraud loss 1,155 — — 1,155 — Less: Net OREO (gain) loss (3) — 7 (3) 7 Adjusted noninterest expenses $ 10,259 $ 10,375 $ 10,611 $ 20,634 $ 20,769 Core efficiency ratio 44.75 % 46.90 % 49.96 % 45.81 % 49.38 %