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

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

Fourth Quarter 2024 Performance and Operational Highlights

•Net income of $11.2 million, or $1.11 per diluted share

•Core net income(1) of $10.5 million, or $1.04 per diluted share(1)

•Pretax pre-provision core net income(1) of $14.0 million

•Net interest income of $25.1 million, an increase of $804,000 from the prior quarter

•Net interest margin (“NIM”) of 3.66%, up 1 basis point from the prior quarter

•Return on average assets (“ROAA”) of 1.55%; return on average stockholders’ equity (“ROAE”) of 16.13%; and return on average tangible common equity (“ROATCE”)(1) of 18.87%

•Core ROAA(1) of 1.45%; and core ROATCE(1) of 17.67%

•Efficiency ratio of 46.67%; and core efficiency ratio of 47.78%

•Linked-quarter loans grew 4.9% annualized

•Linked-quarter total deposits, excluding brokered deposits, grew 6.2% annualized

•Linked-quarter brokered deposits declined (22.7)%

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

ANNISTON, Ala., January 21, 2025 – 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 $11.2 million, or $1.11 diluted earnings per share, for the fourth quarter of 2024. This compares to net income of $7.4 million, or $0.76 diluted earnings per share, for the third quarter of 2024, and net income of $8.9 million, or $0.99 diluted earnings per share, for the fourth quarter of 2023. The Company reported core net income of $10.5 million, or $1.04 diluted core earnings per share, for the fourth quarter of 2024. This compares to core net income of $8.7 million, or $0.89 diluted core earnings per share, for the third quarter of 2024, and core net income of $7.3 million, or $0.81 diluted core earnings per share, for the fourth quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures”).

CEO Commentary

Mark Chambers, Chief Executive Officer and President of Southern States Bancshares, Inc., said “We are proud to report record net income of $11.2 million for the fourth quarter and $34.9 million for the full year, a testament to our team's diligent execution and superior customer service. Our strong operating results reflect our continued consistent growth supported by a healthy net interest margin of 3.66% for the fourth quarter, coupled with an efficiency ratio of 46.67%.”

“We remain firmly committed to prudently managing our franchise for sustainable growth across our dynamic footprint. That starts with maintaining excellent credit quality and strong capital levels. Disciplined underwriting is critical to our success, and at year end, nonperforming loans accounted for just 0.29% of total loans.’’

“In August 2024, we completed the acquisition of Century Bank and have now seamlessly integrated its customers and team members into our organization. It enhances our presence in Georgia, especially in the high-growth Atlanta metro market, and elevates our position as a premier Southeastern community bank. With 15 full-service branches and two loan production offices across the vibrant economies in Alabama and Georgia, we have substantially expanded and strengthened Southern States Bank’s community banking platform, which we believe sets us up to deliver resilient growth and shareholder returns in 2025.”

Net Interest Income and Net Interest Margin


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

Average interest-earning assets	$	2,722,907		$	2,645,388		$	2,195,381		2.9	%	24.0	%
Net interest income	$	25,050		$	24,246		$	20,404		3.3	%	22.8	%
Net interest margin	3.66		%	3.65		%	3.69		%	1	bps	(3)	bps

Net interest income for the fourth quarter of 2024 was $25.1 million, an increase of 3.3% from $24.2 million for the third quarter of 2024. The increase was substantially due to a decrease in higher-cost brokered deposits as a result of calls and repayments at maturity and replaced with less expensive core deposits.

Relative to the fourth quarter of 2023, net interest income increased $4.6 million, or 22.8%. The increase was mainly driven by significant organic growth, coupled with the acquisition of Century Bank on July 31, 2024.

Net interest margin for the fourth quarter of 2024 was 3.66%, compared to 3.65% for the third quarter of 2024. The slight increase was primarily due to cost savings attributed to calls and repayments at maturity on higher-cost brokered deposits.

Relative to the fourth quarter of 2023, net interest margin decreased slightly from 3.69%. The decrease was primarily the result of the decrease in interest rates. The acquisition of Century Bank resulted in a positive impact to the net interest margin, effectively helping to reduce the cost of interest-bearing liabilities.

Noninterest Income


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

Service charges on deposit accounts	$	565	$	532	$	441	6.2	%	28.1	%
Swap fees (expense)	17		(9)		70		288.9	%	(75.7)	%
SBA/USDA fees	89		179		70		(50.3)	%	27.1	%
Mortgage origination fees	55		112		87		(50.9)	%	(36.8)	%
Net gain on securities	25		75		98		(66.7)	%	(74.5)	%
Employee retention credit (“ERC”)	1,154		—		—		N/A		N/A
Other operating income	1,085		868		2,352		25.0	%	(53.9)	%
Total noninterest income	$	2,990	$	1,757	$	3,118	70.2	%	(4.1)	%

Noninterest income for the fourth quarter of 2024 was $3.0 million, an increase of 70.2% from $1.8 million for the third quarter of 2024. The Company applied for the Voluntary Disclosure Program (“VDP”) associated with the ERC program during the third quarter of 2023 and received approval during the fourth quarter of 2024. The fourth quarter of 2024 included $1.2 million in ERC as a participant in the program.

Relative to the fourth quarter of 2023, noninterest income decreased 4.1% from $3.1 million. The fourth quarter of 2023 included a $1.9 million fee related to the early payoff of a $12.0 million purchased loan. As this was unusually large and atypical for the Bank, it was recorded as noninterest income instead of interest income, which would have impacted the net interest margin. The fourth quarter of 2024 included the $1.2 million in ERC discussed earlier. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest income during the fourth quarter of 2024.

Noninterest Expense


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

Salaries and employee benefits	$	7,002	$	6,876	$	5,739	1.8	%	22.0	%
Equipment and occupancy expenses	851		814		681		4.5	%	25.0	%
Data processing fees	960		781		639		22.9	%	50.2	%
Regulatory assessments	441		414		355		6.5	%	24.2	%
Professional fees related to ERC	236		—		—		N/A		N/A
Merger-related expenses	—		1,511		—		N/A		N/A
Other operating expenses	3,584		3,291		2,303		8.9	%	55.6	%
Total noninterest expenses	$	13,074	$	13,687	$	9,717	(4.5)	%	34.5	%

Noninterest expense for the fourth quarter of 2024 was $13.1 million, a decrease of 4.5% from $13.7 million for the third quarter of 2024. The third quarter of 2024 included merger-related expenses of $1.5 million, of which $961,000 was not deductible for taxes, as a result of the acquisition of Century Bank. The fourth quarter of 2024 included professional fees paid to a third party related to ERC, along with an overall increase in noninterest expense as a result of the full-quarter recognition of the acquisition of Century Bank.

Relative to the fourth quarter of 2023, noninterest expense increased 34.5% from $9.7 million. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest expense during the fourth quarter of 2024.

Loans and Credit Quality


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

Gross loans	$	2,233,244		$	2,205,747		$	1,890,677		1.2	%	18.1	%
Unearned income	(6,675)			(6,536)			(6,169)			2.1	%	8.2	%
Loans, net of unearned income (“Loans”)	2,226,569			2,199,211			1,884,508			1.2	%	18.2	%
Average loans, net of unearned (“Average loans”)	$	2,205,892		$	2,134,318		$	1,814,484		3.4	%	21.6	%

Nonperforming loans (“NPL”)	$	6,533		$	7,868		$	1,177		(17.0)	%	455.1	%
Provision for credit losses	$	72		$	2,583		$	2,579		(97.2)	%	(97.2)	%
Allowance for credit losses (“ACL”)	$	28,338		$	28,061		$	24,378		1.0	%	16.2	%
Net (recoveries) charge-offs	$	(205)		$	350		$	382		158.6	%	153.7	%
NPL to gross loans	0.29		%	0.36		%	0.06		%
Net (recoveries) charge-offs to average loans(1)	(0.04)		%	0.07		%	0.08		%
ACL to loans	1.27		%	1.28		%	1.29		%

(1) Ratio is annualized.

Loans, net of unearned income, were $2.2 billion at December 31, 2024, up $27.4 million from September 30, 2024 and up $342.1 million from December 31, 2023. The linked-quarter increase in loans was primarily attributable to new business growth across our footprint. The year-over-year increase in loans was primarily attributable the new business growth across our footprint, coupled with the acquisition of Century Bank, which resulted in additional loans of $131.7 million at December 31, 2024.

Nonperforming loans totaled $6.5 million, or 0.29% of gross loans, at December 31, 2024, compared with $7.9 million, or 0.36% of gross loans, at September 30, 2024, and $1.2 million, or 0.06% of gross loans, at December 31, 2023. The $1.3 million net decrease in nonperforming loans from September 30, 2024 was primarily attributable to a significant commercial and industrial loan being paid down. The $5.4 million net increase in nonperforming loans from December 31, 2023, was primarily attributable to a significant commercial and industrial loan, which has since been paid down, and a commercial real estate loan being placed on nonaccrual status.

The Company recorded a provision for credit losses of $72,000 for the fourth quarter of 2024, compared to $2.6 million for the third quarter of 2024. Provision in the third quarter of 2024 included a $1.7 million provision as a result of the acquisition of Century Bank as well as additional provisions based on growth.

Net recoveries for the fourth quarter of 2024 were $205,000, or (0.04)% of average loans on an annualized basis, compared to net charge-offs of $350,000, or 0.07% of average loans on an annualized basis, for the third quarter of 2024, and net charge-offs of $382,000, or 0.08% of average loans on an annualized basis, for the fourth quarter of 2023. The net recoveries received in the fourth quarter of 2024 were primarily related to a pool of consumer loans charged-off in the third quarter. The charge-offs recorded during the third quarter of 2024 were substantially related to a purchased pool of consumer loans for which the borrower filed for bankruptcy. The loan was fully charged-off as of September 30, 2024.

The Company’s allowance for credit losses was 1.27% of total loans and 433.77% of nonperforming loans at December 31, 2024, compared with 1.28% of total loans and 356.65% of nonperforming loans at September 30, 2024. Allowance for credit losses on unfunded commitments was $1.4 million at December 31, 2024.

Deposits


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

Noninterest-bearing deposits	$	575,357		$	546,282		$	437,959		5.3	%	31.4	%
Interest-bearing deposits	1,835,940			1,874,264			1,580,230			(2.0)	%	16.2	%
Total deposits	$	2,411,297		$	2,420,546		$	2,018,189		(0.4)	%	19.5	%

Uninsured deposits	$	760,141		$	735,676		$	615,651		3.3	%	23.5	%
Uninsured deposits to total deposits and accrued interest on deposits	31.50		%	30.37		%	30.51		%
Noninterest deposits to total deposits	23.86		%	22.57		%	21.70		%

Total deposits were $2.4 billion at December 31, 2024, down slightly from $2.4 billion at September 30, 2024 and up from $2.0 billion at December 31, 2023. The $9.2 million decrease in total deposits in the fourth quarter from the previous quarter was primarily due to a $44.1 million decrease in brokered deposits due to calls and maturation, partially offset by an increase of $29.1 million in noninterest-bearing deposits. Total brokered deposits were $150.0 million at December 31, 2024, compared to $194.2 million at September 30, 2024. Excluding brokered deposits, total deposits increased $34.9 million in the fourth quarter of 2024.

Capital


	December 31, 2024				September 30, 2024				December 31, 2023
	Company		Bank		Company		Bank		Company		Bank

Tier 1 capital ratio to average assets	8.67	%	11.45	%	8.64	%	11.48	%	8.99	%	12.01	%
Risk-based capital ratios:
Common equity tier 1 (“CET1”) capital ratio	9.84	%	12.99	%	9.36	%	12.43	%	9.20	%	12.30	%
Tier 1 capital ratio	9.84	%	12.99	%	9.36	%	12.43	%	9.20	%	12.30	%
Total capital ratio	14.73	%	14.18	%	14.18	%	13.59	%	14.29	%	13.45	%

As of December 31, 2024, total stockholders’ equity was $279.9 million, up from $271.4 million at September 30, 2024. The increase of $8.5 million was substantially due to strong earnings growth, partially offset by an increase in accumulated other comprehensive losses resulting from changes in the value of available for sale securities.

About Southern States Bancshares, Inc.

Headquartered in Anniston, Alabama, Southern States Bancshares, Inc. is a bank holding company that operates primarily through its wholly-owned subsidiary, Southern States Bank. The Bank is a full service community banking institution, which offers an array of deposit, loan and other banking-related products and services to businesses and individuals in its communities. The Bank operates 15 branches in Alabama and Georgia and 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. 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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Results of Operations
Interest income	$	44,977		$	45,068		$	36,172		$	169,781		$	132,260
Interest expense	19,927			20,822			15,768			78,074			52,148
Net interest income	25,050			24,246			20,404			91,707			80,112
Provision for credit losses	72			2,583			2,579			4,957			6,090
Net interest income after provision	24,978			21,663			17,825			86,750			74,022
Noninterest income	2,990			1,757			3,118			7,390			8,874
Noninterest expense	13,074			13,687			9,717			48,548			41,876
Income tax expense	3,696			2,380			2,330			10,724			9,068
Net income	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
Core net income(1)	$	10,484		$	8,675		$	7,289		$	36,339		$	31,190

Share and Per Share Data
Shares issued and outstanding	9,889,260			9,882,350			8,841,349			9,889,260			8,841,349
Weighted average shares outstanding:
Basic	9,940,221			9,608,868			8,864,734			9,357,336			8,809,590
Diluted	10,061,735			9,725,884			9,021,358			9,503,994			9,038,004
Earnings per share:
Basic	$	1.13		$	0.76		$	1.00		$	3.72		$	3.63
Diluted	1.11			0.76			0.99			3.67			3.53
Core - diluted(1)	1.04			0.89			0.81			3.82			3.45
Book value per share	28.30			27.46			24.31			28.30			24.31
Tangible book value per share(1)	24.04			23.38			22.30			24.04			22.30
Cash dividends per common share	0.09			0.09			0.09			0.36			0.36

Performance and Financial Ratios
ROAA	1.55		%	1.05		%	1.53		%	1.31		%	1.44		%
ROAE	16.13		%	11.89		%	17.02		%	14.39		%	16.16		%
Core ROAA(1)	1.45		%	1.24		%	1.26		%	1.36		%	1.41		%
ROATCE(1)	18.87		%	13.35		%	18.62		%	16.10		%	17.78		%
Core ROATCE(1)	17.67		%	15.74		%	15.26		%	16.78		%	17.35		%
NIM	3.66		%	3.65		%	3.69		%	3.61		%	3.81		%
NIM - FTE(1)	3.67		%	3.66		%	3.71		%	3.63		%	3.82		%
Net interest spread	2.64		%	2.66		%	2.73		%	2.62		%	2.92		%
Yield on loans	7.03		%	7.21		%	6.91		%	7.12		%	6.70		%
Yield on interest-earning assets	6.57		%	6.78		%	6.54		%	6.69		%	6.29		%
Cost of interest-bearing liabilities	3.93		%	4.12		%	3.81		%	4.07		%	3.37		%
Cost of funds(2)	3.09		%	3.31		%	3.03		%	3.27		%	2.63		%
Cost of interest-bearing deposits	3.83		%	4.03		%	3.66		%	3.96		%	3.19		%
Cost of total deposits	2.96		%	3.19		%	2.86		%	3.13		%	2.44		%
Noninterest deposits to total deposits	23.86		%	22.57		%	21.70		%	23.86		%	21.70		%
Core deposits to total deposits	87.90		%	86.30		%	83.70		%	87.90		%	83.70		%
Uninsured deposits to total deposits and accrued interest on deposits	31.50		%	30.37		%	30.51		%	31.50		%	30.51		%
Total loans to total deposits	92.34		%	90.86		%	93.38		%	92.34		%	93.38		%
Efficiency ratio	46.67		%	52.79		%	41.48		%	49.04		%	47.35		%
Core efficiency ratio(1)	47.78		%	46.96		%	45.78		%	46.66		%	46.74		%

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Financial Condition (ending)
Total loans	$	2,226,569		$	2,199,211		$	1,884,508		$	2,226,569		$	1,884,508
Total securities	216,481			217,692			198,632			216,481			198,632
Total assets	2,849,264			2,841,440			2,446,663			2,849,264			2,446,663
Total noninterest bearing deposits	575,357			546,282			437,959			575,357			437,959
Total core deposits(1)	2,119,491			2,088,993			1,689,266			2,119,491			1,689,266
Total deposits	2,411,297			2,420,546			2,018,189			2,411,297			2,018,189
Total borrowings	131,224			121,083			183,673			131,224			183,673
Total liabilities	2,569,375			2,570,070			2,231,699			2,569,375			2,231,699
Total shareholders’ equity	279,889			271,370			214,964			279,889			214,964

Financial Condition (average)
Total loans	$	2,205,892		$	2,134,318		$	1,814,484		$	2,061,604		$	1,711,006
Total securities	228,213			223,750			209,074			217,943			200,047
Total other interest-earning assets	288,802			287,320			171,823			257,533			192,433
Total interest-bearing assets	2,722,907			2,645,388			2,195,381			2,537,080			2,103,486
Total assets	2,875,981			2,777,215			2,303,398			2,664,353			2,211,742
Total noninterest-bearing deposits	552,898			490,450			420,019			470,376			436,571
Total interest-bearing deposits	1,893,906			1,874,861			1,502,348			1,783,493			1,422,453
Total deposits	2,446,804			2,365,311			1,922,367			2,253,869			1,859,024
Total borrowings	121,356			134,035			140,790			136,788			126,853
Total interest-bearing liabilities	2,015,262			2,008,896			1,643,138			1,920,281			1,549,306
Total shareholders’ equity	276,250			246,081			207,324			242,224			197,680

Asset Quality
Nonperforming loans	$	6,533		$	7,868		$	1,177		$	6,533		$	1,177
Other real estate owned (“OREO”)	$	—		$	33		$	33		$	—		$	33
Nonperforming assets (“NPA”)	$	6,533		$	7,901		$	1,210		$	6,533		$	1,210
Net (recovery) charge-offs to average loans(2)	(0.04)		%	0.07		%	0.08		%	0.05		%	0.03		%
Provision for credit losses to average loans(2)	0.01		%	0.48		%	0.56		%	0.24		%	0.36		%
ACL to loans	1.27		%	1.28		%	1.29		%	1.27		%	1.29		%
ACL to gross loans	1.27		%	1.27		%	1.29		%	1.27		%	1.29		%
ACL to NPL	433.77		%	356.65		%	2071.20		%	433.77		%	2071.20		%
NPL to loans	0.29		%	0.36		%	0.06		%	0.29		%	0.06		%
NPL to gross loans	0.29		%	0.36		%	0.06		%	0.29		%	0.06		%
NPA to gross loans and OREO	0.29		%	0.36		%	0.06		%	0.29		%	0.06		%
NPA to total assets	0.23		%	0.28		%	0.05		%	0.23		%	0.05		%

Regulatory and Other Capital Ratios
Total shareholders’ equity to total assets	9.82		%	9.55		%	8.79		%	9.82		%	8.79		%
Tangible common equity to tangible assets(3)	8.47		%	8.25		%	8.12		%	8.47		%	8.12		%
Tier 1 capital ratio to average assets	8.67		%	8.64		%	8.99		%	8.67		%	8.99		%
Risk-based capital ratios:
CET1 capital ratio	9.84		%	9.36		%	9.20		%	9.84		%	9.20		%
Tier 1 capital ratio	9.84		%	9.36		%	9.20		%	9.84		%	9.20		%
Total capital ratio	14.73		%	14.18		%	14.29		%	14.73		%	14.29		%

(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)

	December 31, 2024		September 30, 2024		December 31, 2023
	(Unaudited)		(Unaudited)		(Audited)

Assets
Cash and due from banks	$	27,321	$	24,225	$	19,710
Interest-bearing deposits in banks	153,833		182,559		134,846
Federal funds sold	79,080		71,072		96,095
Total cash and cash equivalents	260,234		277,856		250,651

Securities available for sale, at fair value	196,870		198,076		179,000
Securities held to maturity, at amortized cost	19,611		19,616		19,632
Other equity securities, at fair value	3,697		3,733		3,649
Restricted equity securities, at cost	4,441		4,418		5,684
Loans held for sale	404		415		450

Loans, net of unearned income	2,226,569		2,199,211		1,884,508
Less allowance for credit losses	28,338		28,061		24,378
Loans, net	2,198,231		2,171,150		1,860,130

Premises and equipment, net	32,048		32,319		26,426
Accrued interest receivable	10,111		10,114		8,711
Bank owned life insurance	39,431		39,159		29,884
Annuities	16,772		16,843		15,036
Foreclosed assets	—		33		33
Goodwill	33,176		30,980		16,862
Core deposit intangible	8,939		9,338		899
Other assets	25,299		27,390		29,616

Total assets	$	2,849,264	$	2,841,440	$	2,446,663

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	575,357	$	546,282	$	437,959
Interest-bearing	1,835,940		1,874,264		1,580,230
Total deposits	2,411,297		2,420,546		2,018,189

Other borrowings	17,979		7,976		26,994
FHLB advances	22,000		22,000		70,000
Subordinated notes	91,245		91,107		86,679
Accrued interest payable	2,172		2,214		1,519
Other liabilities	24,682		26,227		28,318

Total liabilities	2,569,375		2,570,070		2,231,699
Stockholders' equity:
Common stock	49,821		49,684		44,479
Capital surplus	106,637		106,046		78,361
Retained earnings	134,075		123,783		102,523
Accumulated other comprehensive loss	(7,936)		(5,866)		(8,379)
Unvested restricted stock	(567)		(723)		(466)
Vested restricted stock units	(2,141)		(1,554)		(1,554)

Total stockholders' equity	279,889		271,370		214,964

Total liabilities and stockholders' equity	$	2,849,264	$	2,841,440	$	2,446,663


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

	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
Interest income:
Loans, including fees	$	38,972	$	38,690	$	31,613	$	146,712	$	114,662
Taxable securities	2,237		2,205		1,986		8,462		6,806
Nontaxable securities	248		243		230		952		977
Other interest and dividends	3,520		3,930		2,343		13,655		9,815
Total interest income	44,977		45,068		36,172		169,781		132,260

Interest expense:
Deposits	18,223		18,990		13,869		70,630		45,368
Other borrowings	1,704		1,832		1,899		7,444		6,780
Total interest expense	19,927		20,822		15,768		78,074		52,148

Net interest income	25,050		24,246		20,404		91,707		80,112
Provision for credit losses	72		2,583		2,579		4,957		6,090
Net interest income after provision for credit losses	24,978		21,663		17,825		86,750		74,022

Noninterest income:
Service charges on deposit accounts	565		532		441		2,022		1,790
Swap fees (expense)	17		(9)		70		27		691
SBA/USDA fees	89		179		70		391		344
Mortgage origination fees	55		112		87		356		533
Net gain on securities	25		75		98		108		555
Employee retention credit	1,154		—		—		1,162		—
Other operating income	1,085		868		2,352		3,324		4,961
Total noninterest income	2,990		1,757		3,118		7,390		8,874

Noninterest expenses:
Salaries and employee benefits	7,002		6,876		5,739		26,221		25,665
Equipment and occupancy expenses	851		814		681		3,021		2,776
Data processing fees	960		781		639		3,070		2,528
Regulatory assessments	441		414		355		1,590		1,198
Professional fees related to ERC	236		—		—		236		—
Merger-related expenses	—		1,511		—		1,511		—
Other operating expenses	3,584		3,291		2,303		12,899		9,709
Total noninterest expenses	13,074		13,687		9,717		48,548		41,876

Income before income taxes	14,894		9,733		11,226		45,592		41,020

Income tax expense	3,696		2,380		2,330		10,724		9,068

Net income	$	11,198	$	7,353	$	8,896	$	34,868	$	31,952

Basic earnings per share	$	1.13	$	0.76	$	1.00	$	3.72	$	3.63

Diluted earnings per share	$	1.11	$	0.76	$	0.99	$	3.67	$	3.53


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

	Three Months Ended
	December 31, 2024						September 30, 2024						December 31, 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)	$	2,205,892	$	38,972	7.03	%	$	2,134,318	$	38,690	7.21	%	$	1,814,484	$	31,613	6.91	%
Taxable securities	181,456		2,237		4.90	%	177,164		2,205		4.95	%	163,537		1,986		4.82	%
Nontaxable securities	46,757		248		2.11	%	46,586		243		2.08	%	45,537		230		2.00	%
Other interest-earnings assets	288,802		3,520		4.85	%	287,320		3,930		5.44	%	171,823		2,343		5.41	%
Total interest-earning assets	2,722,907		44,977		6.57	%	2,645,388		45,068		6.78	%	2,195,381		36,172		6.54	%
Allowance for credit losses	(28,280)						(27,253)						(22,666)
Noninterest-earning assets	181,354						159,080						130,683
Total Assets	$	2,875,981					$	2,777,215					$	2,303,398

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	94,039	$	27	0.12	%	$	95,040	$	30	0.13	%	$	86,163	$	23	0.11	%
Savings and money market accounts	1,112,679		10,279		3.68	%	1,042,661		10,264		3.92	%	885,548		8,445		3.78	%
Time deposits	687,188		7,917		4.58	%	737,160		8,696		4.69	%	530,637		5,401		4.04	%
FHLB advances	22,000		300		5.42	%	36,130		455		5.01	%	52,076		645		4.92	%
Other borrowings	99,356		1,404		5.63	%	97,905		1,377		5.59	%	88,714		1,254		5.61	%
Total interest-bearing liabilities	$	2,015,262	$	19,927	3.93	%	$	2,008,896	$	20,822	4.12	%	$	1,643,138	$	15,768	3.81	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	552,898					$	490,450					$	420,019
Other liabilities	31,571						31,788						32,917
Total noninterest-bearing liabilities	584,469						522,238						452,936
Stockholders’ Equity	276,250						246,081						207,324
Total Liabilities and Stockholders’ Equity	$	2,875,981					$	2,777,215					$	2,303,398

Net interest income			$	25,050					$	24,246					$	20,404
Net interest spread(2)					2.64	%					2.66	%					2.73	%
Net interest margin(3)					3.66	%					3.65	%					3.69	%
Net interest margin - FTE(4)(5)					3.67	%					3.66	%					3.71	%
Cost of funds(6)					3.09	%					3.31	%					3.03	%
Cost of interest-bearing deposits					3.83	%					4.03	%					3.66	%
Cost of total deposits					2.96	%					3.19	%					2.86	%

(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)

	Twelve Months Ended
	December 31, 2024						December 31, 2023
	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income(1)	$	2,061,604	$	146,712	7.12	%	$	1,711,006	$	114,662	6.70	%
Taxable securities	171,878		8,462		4.92	%	152,707		6,806		4.46	%
Nontaxable securities	46,065		952		2.07	%	47,340		977		2.06	%
Other interest-earnings assets	257,533		13,655		5.30	%	192,433		9,815		5.10	%
Total interest-earning assets	2,537,080		169,781		6.69	%	2,103,486		132,260		6.29	%
Allowance for credit losses	(26,302)						(21,233)
Noninterest-earning assets	153,575						129,489
Total Assets	$	2,664,353					$	2,211,742

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	90,252	$	105	0.12	%	$	90,231	$	82	0.09	%
Savings and money market accounts	997,349		38,576		3.87	%	851,351		28,124		3.30	%
Time deposits	695,892		31,949		4.59	%	480,871		17,162		3.57	%
FHLB advances	39,847		2,006		5.03	%	39,830		1,848		4.64	%
Other borrowings	96,941		5,438		5.61	%	87,023		4,932		5.67	%
Total interest-bearing liabilities	$	1,920,281	$	78,074	4.07	%	$	1,549,306	$	52,148	3.37	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	470,376					$	436,571
Other liabilities	31,472						28,185
Total noninterest-bearing liabilities	501,848						464,756
Stockholders’ Equity	242,224						197,680
Total Liabilities and Stockholders’ Equity	$	2,664,353					$	2,211,742

Net interest income			$	91,707					$	80,112
Net interest spread(2)					2.62	%					2.92	%
Net interest margin(3)					3.61	%					3.81	%
Net interest margin - FTE(4)(5)					3.63	%					3.82	%
Cost of funds(6)					3.27	%					2.63	%
Cost of interest-bearing deposits					3.96	%					3.19	%
Cost of total deposits					3.13	%					2.44	%

(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)

	December 31, 2024				September 30, 2024				December 31, 2023
	Amount		% of gross		Amount		% of gross		Amount		% of gross

Real estate mortgages:
Construction and development	$	238,634	10.7	%	$	245,275	11.1	%	$	242,960	12.9	%
Residential	315,092		14.1	%	293,150		13.3	%	224,603		11.9	%
Commercial	1,352,084		60.6	%	1,344,554		61.0	%	1,144,867		60.5	%
Commercial and industrial	315,854		14.1	%	310,540		14.1	%	269,961		14.3	%
Consumer and other	11,580		0.5	%	12,228		0.5	%	8,286		0.4	%
Gross loans	2,233,244		100.0	%	2,205,747		100.0	%	1,890,677		100.0	%
Unearned income	(6,675)				(6,536)				(6,169)
Loans, net of unearned income	2,226,569				2,199,211				1,884,508
Allowance for credit losses	(28,338)				(28,061)				(24,378)
Loans, net	$	2,198,231			$	2,171,150			$	1,860,130


DEPOSIT COMPOSITION
(Dollars in thousands)

	December 31, 2024				September 30, 2024				December 31, 2023
	Amount		% of total		Amount		% of total		Amount		% of total


Noninterest-bearing transaction	$	575,357	23.8	%	$	546,282	22.5	%	$	437,959	21.7	%
Interest-bearing transaction	1,128,959		46.8	%	1,124,706		46.5	%	946,347		46.9	%
Savings	52,472		2.2	%	53,565		2.2	%	35,412		1.7	%
Time deposits, $250,000 and under	512,717		21.3	%	558,600		23.1	%	500,406		24.8	%
Time deposits, over $250,000	141,792		5.9	%	137,393		5.7	%	98,065		4.9	%
Total deposits	$	2,411,297	100.0	%	$	2,420,546	100.0	%	$	2,018,189	100.0	%


Nonperfoming Assets
(Dollars in thousands)

	December 31, 2024			September 30, 2024			December 31, 2023


Nonaccrual loans	$	6,434		$	7,803		$	1,017
Past due loans 90 days or more and still accruing interest	99			65			160
Total nonperforming loans	6,533			7,868			1,177
OREO	—			33			33

Total nonperforming assets	$	6,533		$	7,901		$	1,210

Financial difficulty modification loans – nonaccrual(1)	600			622			907
Financial difficulty modification loans – accruing	1,055			1,071			1,095
Financial difficulty modification loans	$	1,655		$	1,693		$	2,002

Allowance for credit losses	$	28,338		$	28,061		$	24,378
Loans, net of unearned income at the end of the period	$	2,226,569		$	2,199,211		$	1,884,508
Gross loans outstanding at the end of period	$	2,233,244		$	2,205,747		$	1,890,677
Total assets	$	2,849,264		$	2,841,440		$	2,446,663
Allowance for credit losses to nonperforming loans	433.77		%	356.65		%	2071.20		%
Nonperforming loans to loans, net of unearned income	0.29		%	0.36		%	0.06		%
Nonperforming loans to gross loans	0.29		%	0.36		%	0.06		%
Nonperforming assets to gross loans and OREO	0.29		%	0.36		%	0.06		%
Nonperforming assets to total assets	0.23		%	0.28		%	0.05		%

Nonaccrual loans by category:
Real estate mortgages:
Construction & Development	$	415		$	—		$	—
Residential Mortgages	559			522			252
Commercial Real Estate Mortgages	2,097			2,155			765
Commercial & Industrial	3,363			5,126			—
Consumer and other	—			—			—
Total	$	6,434		$	7,803		$	1,017

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Average loans, net of unearned income	$	2,205,892		$	2,134,318		$	1,814,484		$	2,061,604		$	1,711,006
Loans, net of unearned income	2,226,569			2,199,211			1,884,508			2,226,569			1,884,508
Gross loans	2,233,244			2,205,747			1,890,677			2,233,244			1,890,677
Allowance for credit losses at beginning of the period	28,061			25,828			22,181			24,378			20,156
Impact of adoption of ASC 326	—			—			—			—			(1,285)
Charge-offs:
Construction and development	—			—			—			—			3
Residential	—			—			—			11			—
Commercial	—			119			—			157			—
Commercial and industrial	—			384			424			1,210			686
Consumer and other	—			—			2			25			8
Total charge-offs	—			503			426			1,403			697
Recoveries:
Construction and development	—			—			—			—			—
Residential	7			13			4			34			41
Commercial	—			—			—			—			—
Commercial and industrial	196			139			39			367			54
Consumer and other	2			1			1			5			19
Total recoveries	205			153			44			406			114
Net (recoveries) charge-offs	$	(205)		$	350		$	382		$	997		$	583

Provision for credit losses	$	72		$	2,583		$	2,579		$	4,957		$	6,090
Balance at end of the period	$	28,338		$	28,061		$	24,378		$	28,338		$	24,378

Allowance for credit losses on unfunded commitments at beginning of the period	$	1,405		$	1,206		$	1,524		$	1,239		$	—
Impact of adoption of ASC 326	—			—			—			—			1,285
Day 2 impact from acquisition	—			199			—			199			—
Credit for credit losses on unfunded commitments	—			—			(285)			(33)			(46)
Balance at the end of the period	$	1,405		$	1,405		$	1,239		$	1,405		$	1,239

Allowance to loans, net of unearned income	1.27		%	1.28		%	1.29		%	1.27		%	1.29		%
Allowance to gross loans	1.27		%	1.27		%	1.29		%	1.27		%	1.29		%
Net (recoveries) charge-offs to average loans, net of unearned income(1)	(0.04)		%	0.07		%	0.08		%	0.05		%	0.03		%
Provision for credit losses to average loans, net of unearned income(1)	0.01		%	0.48		%	0.56		%	0.24		%	0.36		%

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Net income	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
Add: One-time retirement related expenses	—			—			—			—			1,571
Add: Professional fees related to ERC	236			—			—			236			—
Add: Wire fraud loss	—			—			—			1,155			—
Add: Merger-related expenses	—			1,511			—			1,511			—
Add: Net OREO loss (gain)	3			—			(154)			—			(156)

Less: Employee retention credit	1,154			—			—			1,162			—
Less: Fee received on early loan payoff	—			—			1,863			—			1,863


Less: Net gain on securities	25			75			98			108			555
Less: Tax effect	(226)			114			(508)			161			(241)
Core net income	$	10,484		$	8,675		$	7,289		$	36,339		$	31,190
Average assets	$	2,875,981		$	2,777,215		$	2,303,398		$	2,664,353		$	2,211,742
Core return on average assets	1.45		%	1.24		%	1.26		%	1.36		%	1.41		%

Net income	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
Add: One-time retirement related expenses	—			—			—			—			1,571
Add: Professional fees related to ERC	236			—			—			236			—
Add: Wire fraud loss	—			—			—			1,155			—
Add: Merger-related expenses	—			1,511			—			1,511			—
Add: Net OREO loss (gain)	3			—			(154)			—			(156)
Add: Provision	72			2,583			2,579			4,957			6,090

Less: Employee retention credit	1,154			—			—			1,162			—
Less: Fee received on early loan payoff	—			—			1,863			—			1,863


Less: Net gain on securities	25			75			98			108			555
Add: Income taxes	3,696			2,380			2,330			10,724			9,068
Pretax pre-provision core net income	$	14,026		$	13,752		$	11,690		$	52,181		$	46,107
Average assets	$	2,875,981		$	2,777,215		$	2,303,398		$	2,664,353		$	2,211,742
Pretax pre-provision core return on average assets	1.94		%	1.97		%	2.01		%	1.96		%	2.08		%

Net interest income	$	25,050		$	24,246		$	20,404		$	91,707		$	80,112
Add: Fully-taxable equivalent adjustments(1)	66			75			99			288			312
Net interest income - FTE	$	25,116		$	24,321		$	20,503		$	91,995		$	80,424

Net interest margin	3.66		%	3.65		%	3.69		%	3.61		%	3.81		%
Effect of fully-taxable equivalent adjustments(1)	0.01		%	0.01		%	0.02		%	0.02		%	0.01		%
Net interest margin - FTE	3.67		%	3.66		%	3.71		%	3.63		%	3.82		%

Total stockholders' equity	$	279,889		$	271,370		$	214,964		$	279,889		$	214,964
Less: Intangible assets	42,115			40,318			17,761			42,115			17,761

Tangible common equity	$	237,774		$	231,052		$	197,203		$	237,774		$	197,203

(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									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Core net income	$	10,484		$	8,675		$	7,289		$	36,339		$	31,190
Diluted weighted average shares outstanding	10,061,735			9,725,884			9,021,358			9,503,994			9,038,004
Diluted core earnings per share	$	1.04		$	0.89		$	0.81		$	3.82		$	3.45

Common shares outstanding at year or period end	9,889,260			9,882,350			8,841,349			9,889,260			8,841,349
Tangible book value per share	$	24.04		$	23.38		$	22.30		$	24.04		$	22.30

Total assets at end of period	$	2,849,264		$	2,841,440		$	2,446,663		$	2,849,264		$	2,446,663
Less: Intangible assets	42,115			40,318			17,761			42,115			17,761
Adjusted assets at end of period	$	2,807,149		$	2,801,122		$	2,428,902		$	2,807,149		$	2,428,902
Tangible common equity to tangible assets	8.47		%	8.25		%	8.12		%	8.47		%	8.12		%

Total average shareholders equity	$	276,250		$	246,081		$	207,324		$	242,224		$	197,680
Less: Average intangible assets	40,177			26,884			17,809			25,653			17,932
Average tangible common equity	$	236,073		$	219,197		$	189,515		$	216,571		$	179,748
Net income to common shareholders	$	11,198		$	7,353		$	8,896		$	34,868		$	31,952
Return on average tangible common equity	18.87		%	13.35		%	18.62		%	16.10		%	17.78		%
Average tangible common equity	$	236,073		$	219,197		$	189,515		$	216,571		$	179,748
Core net income	$	10,484		$	8,675		$	7,289		$	36,339		$	31,190
Core return on average tangible common equity	17.67		%	15.74		%	15.26		%	16.78		%	17.35		%

Net interest income	$	25,050		$	24,246		$	20,404		$	91,707		$	80,112
Add: Noninterest income	2,990			1,757			3,118			7,390			8,874

Less: Employee retention credit	1,154			—			—			1,162			—
Less: Fee received on early loan payoff	—			—			1,863			—			1,863


Less: Net gain on securities	25			75			98			108			555
Operating revenue	$	26,861		$	25,928		$	21,561		$	97,827		$	86,568

Expenses:
Total noninterest expense	$	13,074		$	13,687		$	9,717		$	48,548		$	41,876
Less: One-time retirement related expenses	—			—			—			—			1,571
Less: Professional fees related to ERC	236			—			—			236			—
Less: Wire fraud loss	—			—			—			1,155			—
Less: Merger-related expenses	—			1,511			—			1,511			—
Less: Net OREO loss (gain)	3			—			(154)			—			(156)
Less: Loss on sale of branches	—			—			—			—			—
Adjusted noninterest expenses	$	12,835		$	12,176		$	9,871		$	45,646		$	40,461
Core efficiency ratio	47.78		%	46.96		%	45.78		%	46.66		%	46.74		%

Southern States Bancshares, Inc. 8-K