Southern States Bancshares, Inc. Announces First Quarter 2025 Financial Results

First Quarter 2025 Performance and Operational Highlights

   -- Net income of $10.4 million, or $1.03 per diluted share 
 
   -- Core net income(1) of $10.3 million, or $1.03 per diluted share(1) 
 
   -- Pretax pre-provision core net income(1) of $14.2 million 
 
   -- Net interest income of $24.9 million, a decrease of $171,000 from the 
      prior quarter 
 
   -- Net interest margin ("NIM") of 3.75%, up 9 basis points from the prior 
      quarter 
 
   -- Return on average assets ("ROAA") of 1.48%; return on average 
      stockholders' equity ("ROAE") of 14.67%; and return on average tangible 
      common equity ("ROATCE")(1) of 17.19% 
 
   -- Core ROAA(1) of 1.47%; and core ROATCE(1) of 17.16% 
 
   -- Efficiency ratio of 46.42% 
 
   -- Linked-quarter loans grew 6.1% annualized 
 
   -- Linked-quarter deposits grew 2.4% 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., April 21, 2025 (GLOBE NEWSWIRE) -- Southern States Bancshares, Inc. (NASDAQ: SSBK) ("Southern States" or the "Company"), the holding company for Southern States Bank, an Alabama state-chartered commercial bank (the "Bank"), today reported net income of $10.4 million, or $1.03 diluted earnings per share, for the first quarter of 2025. This compares to net income of $11.2 million, or $1.11 diluted earnings per share, for the fourth quarter of 2024, and net income of $8.1 million, or $0.90 diluted earnings per share, for the first quarter of 2024. The Company reported core net income of $10.3 million, or $1.03 diluted core earnings per share, for the first quarter of 2025. This compares to core net income of $10.5 million, or $1.04 diluted core earnings per share, for the fourth quarter of 2024, and core net income of $8.1 million, or $0.90 diluted core earnings per share, for the first quarter of 2024 (see "Reconciliation of Non-GAAP Financial Measures").

As previously disclosed on March 31, 2024, FB Financial Corporation, the parent company of FirstBank, and Southern States, jointly announced their entry into a definitive merger agreement pursuant to which Southern States will be merged with and into FB Financial (the "Merger").

 
CEO Commentary 
------------------------------------------------------------------------------ 
 
Mark Chambers, President and Chief Executive Officer said, "In the first 
quarter, we reported net income of $10.4 million and diluted EPS of $1.03, 
which was supported by a 9 basis point improvement in net interest margin and 
lower noninterest expense. We're particularly encouraged by the continued 
improvement in our deposit costs and the exceptionally low level of 
non-performing loans, which reflects our prudent credit culture and strong 
risk management." 
"We are embarking on an exciting new chapter for our bank, our 
 customers, our employees and the communities we proudly serve. 
 Joining forces with Nashville-based FB Financial, which has $13 
 billion in total assets and operates as FirstBank, is an ideal 
 combination. We are culturally aligned in our customer-centric 
 philosophy. We are geographically committed to serving vibrant 
 communities in the South, which now includes Tennessee, Kentucky, 
 Alabama, and Georgia. This merger allows us to expand our capabilities, 
 enhance the customer experience, and continue delivering the trusted, 
 relationship-based banking our clients have come to expect. While 
 our name may change, our commitment to our customers and communities 
 remains stronger than ever." 
------------------------------------------------------------------------------ 
 
 
Net Interest Income and Net Interest Margin 
------------------------------------------- 
 
 
                                                                    % Change March 31, 
                                 Three Months Ended                      2025 vs. 
                                                                   December 
                                    December 31,                     31,     March 31, 
                   March 31, 2025       2024       March 31, 2024    2024       2024 
                   --------------  --------------  --------------  --------  ---------- 
                               (Dollars in thousands) 
 
Average 
 interest-earning 
 assets            $2,690,714      $2,722,907      $2,336,369       (1.2) %  15.2% 
Net interest 
 income            $   24,879      $   25,050      $   20,839       (0.7) %  19.4% 
Net interest 
 margin                  3.75%           3.66%           3.59%        9 bps      16 bps 
 
 

Net interest income for the first quarter of 2025 was $24.9 million, a decrease of 0.7% from $25.1 million for the fourth quarter of 2024. The decrease was primarily driven by a lower yield on interest-earning assets resulting from lower interest rates on loans and a reduction in other interest-earning assets earning lower interest rates, which was significantly offset by a lower cost of interest-bearing deposits primarily resulting from lower interest rates.

Relative to the first quarter of 2024, net interest income increased $4.0 million, or 19.4%. 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 first quarter of 2025 was 3.75%, compared to 3.66% for the fourth quarter of 2024. The increase was primarily due to a reduction in earning assets, coupled with cost savings attributed to calls and repayments at maturity on higher-cost brokered deposits.

Relative to the first quarter of 2024, net interest margin increased from 3.59% to 3.75%. The increase in the margin was primarily the result of a decrease in interest rates paid on interest-bearing deposits. The acquisition of Century Bank resulted in a positive impact to the net interest margin, helping to reduce the cost of interest-bearing liabilities.

 
Noninterest Income 
------------------ 
 
 
                                                   % Change March 31, 
                     Three Months Ended                 2025 vs. 
              March 31,   December   March 31,   December    March 31, 
                 2025     31, 2024      2024     31, 2024      2024 
              ----------  ---------  ----------  ---------  ----------- 
                   (Dollars in thousands) 
 
Service 
 charges on 
 deposit 
 accounts     $  564      $     565  $  463        (0.2) %   21.8% 
Swap 
 (expenses) 
 fees             (3)            17      15      (117.6) %    (120.0) % 
SBA/USDA 
 fees             40             89      64       (55.1) %     (37.5) % 
Mortgage 
 origination 
 fees             80             55      96         45.5 %     (16.7) % 
Net gain 
 (loss) on 
 securities       23             25     (12)       (8.0) %  291.7     % 
Employee 
retention 
credit 
("ERC")           --          1,154      --            N/A          N/A 
Other 
 operating 
 income          949          1,085     642       (12.5) %   47.8% 
               -----       --------   -----      ---------  ----- --- 
Total 
 noninterest 
 income       $1,653      $   2,990  $1,268       (44.7) %   30.4% 
               =====       ========   =====      =========  ===== === 
 
 

Noninterest income for the first quarter of 2025 was $1.7 million, a decrease of 44.7% from $3.0 million for the fourth 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 first quarter of 2024, noninterest income increased 30.4% from $1.3 million. The acquisition of Century Bank on July 31, 2024 contributed to additional noninterest income during the first quarter of 2025.

 
Noninterest Expense 
------------------- 
 
 
                                             % Change March 31, 
                   Three Months Ended             2025 vs. 
                March               March   December 
                 31,    December     31,      31,     March 31, 
                2025    31, 2024    2024      2024       2024 
               -------  ---------  -------  --------  ---------- 
                 (Dollars in thousands) 
 
Salaries and 
 employee 
 benefits      $ 6,924  $   7,002  $ 6,231   (1.1) %  11.1% 
Equipment and 
 occupancy 
 expenses          828        851      689   (2.7) %  20.2% 
Data 
 processing 
 fees              909        960      643   (5.3) %  41.4% 
Regulatory 
 assessments       429        441      360   (2.7) %  19.2% 
Professional 
fees related 
to ERC              --        236       --       N/A         N/A 
Other 
 operating 
 expenses        3,216      3,584    2,452  (10.3) %  31.2% 
                ------   --------   ------  --------  ---- --- 
Total 
 noninterest 
 expenses      $12,306  $  13,074  $10,375   (5.9) %  18.6% 
                ======   ========   ======  ========  ==== === 
 
 

Noninterest expense for the first quarter of 2025 was $12.3 million, a decrease of 5.9% from $13.1 million for the fourth quarter of 2024. The fourth quarter of 2024 included professional fees paid to a third party related to ERC, as well as additional expenses related to a nonperforming loan that is in collection, legal fees and fraud/forgery losses, compared to the first quarter of 2025.

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April 21, 2025 08:00 ET (12:00 GMT)