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”).

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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

 Three Months Ended % Change March 31, 2025 vs.
March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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

 Three Months Ended % Change March 31, 2025 vs.
March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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

 Three Months Ended % Change March 31, 2025 vs.
March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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.

Relative to the first quarter of 2024, noninterest expense increased 18.6% from $10.4 million. The acquisition of Century Bank on July 31, 2024 contributed to additional noninterest expense during the first quarter of 2025.

Loans and Credit Quality

 Three Months Ended % Change March 31, 2025 vs.
March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 2024
(Dollars in thousands)    
          
Gross loans$2,266,740  $2,233,244  $1,971,396  1.5% 15.0%
Unearned income (6,704)  (6,675)  (6,247) 0.4% 7.3%
Loans, net of unearned income ("Loans”) 2,260,036   2,226,569   1,965,149  1.5% 15.0%
Average loans, net of unearned ("Average loans”)$2,235,194  $2,205,892  $1,916,288  1.3% 16.6%
          
Nonperforming loans ("NPL”)$7,175  $6,533  $3,446  9.8% 108.2%
Provision for credit losses$775  $72  $1,236  976.4 Advertisement

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