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 shareCore net income(1) of $10.3 million, or $1.03 per diluted share(1)Pretax pre-provision core net income(1) of $14.2 millionNet interest income of $24.9 million, a decrease of $171,000 from the prior quarterNet interest margin (“NIM”) of 3.75%, up 9 basis points from the prior quarterReturn 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% annualizedLinked-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 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. 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/AOther 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. 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/AOther 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. 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% (37.3) %Allowance for credit losses (“ACL”)$28,876 $28,338 $25,144 1.9% 14.8%Net charge-offs (recoveries)$237 $(205) $470 215.6% (49.6) %NPL to gross loans 0.32% 0.29% 0.17% Net charge-offs (recoveries) to average loans(1) 0.04% (0.04) % 0.10% ACL to loans 1.28% 1.27% 1.28% (1) Ratio is annualized. Loans, net of unearned income, were $2.3 billion at March 31, 2025, up $33.5 million from December 31, 2024 and up $294.9 million from March 31, 2024. The linked-quarter increase in loans was 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 $134.0 million at March 31, 2025. Nonperforming loans totaled $7.2 million, or 0.32% of gross loans, at March 31, 2025, compared with $6.5 million, or 0.29% of gross loans, at December 31, 2024, and $3.4 million, or 0.17% of gross loans, at March 31, 2024. The $642,000 net increase in nonperforming loans in the first quarter was primarily attributable to one significant commercial real estate loan being placed on nonaccrual status. The $3.7 million net increase in nonperforming loans from March 31, 2024 was primarily attributable to one significant commercial and industrial loan and the aforementioned commercial real estate loan being placed on nonaccrual status. These increases were partially offset by a commercial and industrial loan that was charged-off. The Company recorded a provision for credit losses of $775,000 for the first quarter of 2025, compared to $72,000 for the fourth quarter of 2024. Provision in the first quarter of 2025 was based on loan growth, qualitative economic factors and individually analyzed loans. Net charge-offs for the first quarter of 2025 were $237,000, or 0.04% of average loans on an annualized basis, compared to net recoveries of $205,000, or (0.04)% of average loans on an annualized basis, for the fourth quarter of 2024, and net charge-offs of $470,000, or 0.10% of average loans on an annualized basis, for the first quarter of 2024. The net charge-offs recorded during the first quarter of 2025 were substantially related to a commercial and industrial loan. 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 of 2024. The net charge-offs recorded during the first quarter of 2024 were substantially related to a partial charge-off of the aforementioned pool of consumer loans. The Company’s allowance for credit losses was 1.28% of total loans and 402.45% of nonperforming loans at March 31, 2025, compared with 1.27% of total loans and 433.77% of nonperforming loans at December 31, 2024. Allowance for credit losses on unfunded commitments was $1.4 million at March 31, 2025. 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) Noninterest-bearing deposits$533,220 $575,357 $416,704 (7.3) % 28.0%Interest-bearing deposits 1,892,411 1,835,940 1,693,094 3.1% 11.8%Total deposits$2,425,631 $2,411,297 $2,109,798 0.6% 15.0% Uninsured deposits$760,379 $760,141 $610,122 —% 24.6%Uninsured deposits to total deposits and accrued interest on deposits 31.33% 31.50% 28.92% Noninterest deposits to total deposits 21.98% 23.86% 19.75% Total deposits were $2.4 billion at March 31, 2025, $2.4 billion at December 31, 2024 and $2.1 billion at March 31, 2024. The $14.3 million increase in total deposits in the first quarter was primarily due to an increase of $56.5 million in interest-bearing deposits, which includes a $12.5 million increase in brokered deposits, partially offset by a $42.1 million decrease in noninterest-bearing deposits. Total brokered deposits were $162.5 million at March 31, 2025, compared to $150.0 million at December 31, 2024. March 31,2025 December 31,2024 March 31,2024Company Bank Company Bank Company Bank Tier 1 capital ratio to average assets9.14% 11.99% 8.67% 11.45% 8.79% 11.67%Risk-based capital ratios: Common equity tier 1 (“CET1”) capital ratio10.18% 13.35% 9.84% 12.99% 9.39% 12.47%Tier 1 capital ratio10.18% 13.35% 9.84% 12.99% 9.39% 12.47%Total capital ratio15.06% 14.55% 14.73% 14.18% 14.42% 13.63% As of March 31, 2025, total stockholders’ equity was $290.2 million, up from $279.9 million at December 31, 2024. The increase of $10.3 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 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 and the pending Merger. 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, 2024 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) 622-8247ljoyce@ssbank.bank ssbankir@finprofiles.com SELECT FINANCIAL DATA(Dollars in thousands, except share and per share amounts) Three Months EndedMarch 31, 2025 December 31,2024 March 31, 2024 Results of Operations Interest income$43,164 $44,977 $38,736 Interest expense 18,285 19,927 17,897 Net interest income 24,879 25,050 20,839 Provision for credit losses 775 72 1,236 Net interest income after provision 24,104 24,978 19,603 Noninterest income 1,653 2,990 1,268 Noninterest expense 12,306 13,074 10,375 Income tax expense 3,100 3,696 2,377 Net income$10,351 $11,198 $8,119 Core net income(1)$10,334 $10,484 $8,128 Share and Per Share Data Shares issued and outstanding 9,922,180 9,889,260 8,894,794 Weighted average shares outstanding: Basic 9,979,120 9,940,221 8,913,477 Diluted 10,072,329 10,061,735 9,043,122 Earnings per share: Basic$1.04 $1.13 $0.91 Diluted 1.03 1.11 0.90 Core - diluted(1) 1.03 1.04 0.90 Book value per share 29.25 28.30 25.06 Tangible book value per share(1) 25.04 24.04 23.07 Cash dividends per common share 0.09 0.09 0.09 Performance and Financial Ratios ROAA 1.48% 1.55% 1.33%ROAE 14.67% 16.13% 14.87%Core ROAA(1) 1.47% 1.45% 1.34%ROATCE(1) 17.19% 18.87% 16.17%Core ROATCE(1) 17.16% 17.67% 16.19%NIM 3.75% 3.66% 3.59%NIM - FTE(1) 3.76% 3.67% 3.60%Net interest spread 2.76% 2.64% 2.63%Yield on loans 6.93% 7.03% 7.06%Yield on interest-earning assets 6.51% 6.57% 6.67%Cost of interest-bearing liabilities 3.75% 3.93% 4.04%Cost of funds(2) 2.93% 3.09% 3.27%Cost of interest-bearing deposits 3.64% 3.83% 3.92%Cost of total deposits 2.80% 2.96% 3.12%Noninterest deposits to total deposits 21.98% 23.86% 19.75%Core deposits to total deposits 87.75% 87.90% 81.45%Uninsured deposits to total deposits and accrued interest on deposits 31.33% 31.50% 28.92%Total loans to total deposits 93.17% 92.34% 93.14%Efficiency ratio 46.42% 46.67% 46.90%Core efficiency ratio(1) 46.42% 47.78% 46.90% (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 EndedMarch 31, 2025 December 31,2024 March 31, 2024 Financial Condition (ending) Total loans$2,260,036 $2,226,569 $1,965,149 Total securities 218,544 216,481 197,006 Total assets 2,851,145 2,848,254 2,510,975 Total noninterest bearing deposits 533,220 575,357 416,704 Total core deposits(1) 2,128,422 2,119,491 1,718,333 Total deposits 2,425,631 2,411,297 2,109,798 Total borrowings 111,382 131,224 146,773 Total liabilities 2,560,961 2,568,365 2,288,094 Total shareholders’ equity 290,184 279,889 222,881 Financial Condition (average) Total loans$2,235,194 $2,205,892 $1,916,288 Total securities 228,396 228,213 208,954 Total other interest-earning assets 227,124 288,802 211,127 Total interest-bearing assets 2,690,714 2,722,907 2,336,369 Total assets 2,841,513 2,875,981 2,447,278 Total noninterest-bearing deposits 552,746 552,898 416,141 Total interest-bearing deposits 1,861,387 1,893,906 1,633,307 Total deposits 2,414,133 2,446,804 2,049,448 Total borrowings 113,728 121,356 148,771 Total interest-bearing liabilities 1,975,115 2,015,262 1,782,078 Total shareholders’ equity 286,126 276,250 219,622 Asset Quality Nonperforming loans$7,175 $6,533 $3,446 Other real estate owned (“OREO”)$— $— $33 Nonperforming assets (“NPA”)$7,175 $6,533 $3,479 Net charge-offs (recoveries) to average loans(2) 0.04% (0.04)% 0.10%Provision for credit losses to average loans(2) 0.14% 0.01% 0.26%ACL to loans 1.28% 1.27% 1.28%ACL to gross loans 1.27% 1.27% 1.28%ACL to NPL 402.45% 433.77% 729.66%NPL to loans 0.32% 0.29% 0.18%NPL to gross loans 0.32% 0.29% 0.17%NPA to gross loans and OREO 0.32% 0.29% 0.18%NPA to total assets 0.25% 0.23% 0.14% Regulatory and Other Capital Ratios Total shareholders’ equity to total assets 10.18% 9.83% 8.88%Tangible common equity to tangible assets(3) 8.84% 8.47% 8.23%Tier 1 capital ratio to average assets 9.14% 8.67% 8.79%Risk-based capital ratios: CET1 capital ratio 10.18% 9.84% 9.39%Tier 1 capital ratio 10.18% 9.84% 9.39%Total capital ratio 15.06% 14.73% 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) March 31,2025 December 31,2024 March 31,2024(Unaudited) (Audited) (Unaudited) Assets Cash and due from banks$25,555 $27,321 $20,470 Interest-bearing deposits in banks 127,430 153,833 129,917 Federal funds sold 76,390 79,080 86,736 Total cash and cash equivalents 229,375 260,234 237,123 Securities available for sale, at fair value 198,938 196,870 177,379 Securities held to maturity, at amortized cost 19,606 19,611 19,627 Other equity securities, at fair value 2,754 3,697 3,638 Restricted equity securities, at cost 4,408 4,441 5,108 Loans held for sale 1,236 404 425 Loans, net of unearned income 2,260,036 2,226,569 1,965,149 Less allowance for credit losses 28,876 28,338 25,144 Loans, net 2,231,160 2,198,231 1,940,005 Premises and equipment, net 31,728 32,048 26,262 Accrued interest receivable 10,432 10,111 9,561 Bank owned life insurance 39,698 39,431 30,075 Annuities 16,794 16,772 15,939 Foreclosed assets — — 33 Goodwill 33,176 33,176 16,862 Core deposit intangible 8,539 8,939 817 Other assets 23,301 24,289 28,121 Total assets$2,851,145 $2,848,254 $2,510,975 Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing$533,220 $575,357 $416,704 Interest-bearing 1,892,411 1,835,940 1,693,094 Total deposits 2,425,631 2,411,297 2,109,798 Other borrowings — 17,979 7,997 FHLB advances 20,000 22,000 52,000 Subordinated notes 91,382 91,245 86,776 Accrued interest payable 1,585 2,172 1,805 Other liabilities 22,363 23,672 29,718 Total liabilities 2,560,961 2,568,365 2,288,094 Stockholders' equity: Common stock 49,986 49,821 44,746 Capital surplus 107,480 106,637 79,282 Retained earnings 143,530 134,075 109,838 Accumulated other comprehensive loss (7,503) (7,936) (8,401)Unvested restricted stock (1,168) (567) (1,030)Vested restricted stock units (2,141) (2,141) (1,554) Total stockholders' equity 290,184 279,889 222,881 Total liabilities and stockholders' equity$2,851,145 $2,848,254 $2,510,975 CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) Three Months EndedMarch 31,2025 December 31,2024 March 31,2024(Unaudited) (Unaudited) (Unaudited)Interest income: Loans, including fees$38,202 $38,972 $33,628 Taxable securities 2,239 2,237 1,981 Nontaxable securities 247 248 229 Other interest and dividends 2,476 3,520 2,898 Total interest income 43,164 44,977 38,736 Interest expense: Deposits 16,689 18,223 15,906 Other borrowings 1,596 1,704 1,991 Total interest expense 18,285 19,927 17,897 Net interest income 24,879 25,050 20,839 Provision for credit losses 775 72 1,236 Net interest income after provision for credit losses 24,104 24,978 19,603 Noninterest income: Service charges on deposit accounts 564 565 463 Swap (expenses) fees (3) 17 15 SBA/USDA fees 40 89 64 Mortgage origination fees 80 55 96 Net gain (loss) on securities 23 25 (12)Employee retention credit — 1,154 — Other operating income 949 1,085 642 Total noninterest income 1,653 2,990 1,268 Noninterest expenses: Salaries and employee benefits 6,924 7,002 6,231 Equipment and occupancy expenses 828 851 689 Data processing fees 909 960 643 Regulatory assessments 429 441 360 Professional fees related to ERC — 236 — Other operating expenses 3,216 3,584 2,452 Total noninterest expenses 12,306 13,074 10,375 Income before income taxes 13,451 14,894 10,496 Income tax expense 3,100 3,696 2,377 Net income$10,351 $11,198 $8,119 Basic earnings per share$1.04 $1.13 $0.91 Diluted earnings per share$1.03 $1.11 $0.90 AVERAGE BALANCE SHEET AND NET INTEREST MARGIN(Dollars in thousands) Three Months EndedMarch 31,2025 December 31,2024 March 31,2024AverageBalance Interest Yield/Rate AverageBalance Interest Yield/Rate AverageBalance Interest Yield/RateAssets: Interest-earning assets: Loans, net of unearned income(1)$2,235,194 $38,202 6.93% $2,205,892 $38,972 7.03% $1,916,288 $33,628 7.06%Taxable securities 181,788 2,239 4.99% 181,456 2,237 4.90% 163,586 1,981 4.87%Nontaxable securities 46,608 247 2.15% 46,757 248 2.11% 45,368 229 2.03%Other interest-earnings assets 227,124 2,476 4.42% 288,802 3,520 4.85% 211,127 2,898 5.52%Total interest-earning assets$2,690,714 $43,164 6.51% $2,722,907 $44,977 6.57% $2,336,369 $38,736 6.67%Allowance for credit losses (28,430) (28,280) (24,313) Noninterest-earning assets 179,229 181,354 135,222 Total Assets$2,841,513 $2,875,981 $2,447,278 Liabilities and Stockholders’ Equity: Interest-bearing liabilities: Interest-bearing transaction accounts 95,573 20 0.09% 94,039 27 0.12% 85,858 26 0.12%Savings and money market accounts 1,120,998 9,765 3.53% 1,112,679 10,279 3.68% 902,361 8,804 3.92%Time deposits 644,816 6,904 4.34% 687,188 7,917 4.58% 645,088 7,076 4.41%FHLB advances 20,644 275 5.40% 22,000 300 5.42% 53,121 655 4.96%Other borrowings 93,084 1,321 5.76% 99,356 1,404 5.63% 95,650 1,336 5.62%Total interest-bearing liabilities$1,975,115 $18,285 3.75% $2,015,262 $19,927 3.93% $1,782,078 $17,897 4.04% Noninterest-bearing liabilities: Noninterest-bearing deposits$552,746 $552,898 $416,141 Other liabilities 27,526 31,571 29,437 Total noninterest-bearing liabilities$580,272 $584,469 $445,578 Stockholders’ Equity 286,126 276,250 219,622 Total Liabilities and Stockholders’ Equity$2,841,513 $2,875,981 $2,447,278 Net interest income $24,879 $25,050 $20,839 Net interest spread(2) 2.76% 2.64% 2.63%Net interest margin(3) 3.75% 3.66% 3.59%Net interest margin - FTE(4)(5) 3.76% 3.67% 3.60%Cost of funds(6) 2.93% 3.09% 3.27%Cost of interest-bearing deposits 3.64% 3.83% 3.92%Cost of total deposits 2.80% 2.96% 3.12% (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) March 31,2025 December 31,2024 March 31,2024Amount % of gross Amount % of gross Amount % of gross Real estate mortgages: Construction and development$247,264 10.9% $238,603 10.7% $252,934 12.8%Residential 317,994 14.0% 315,083 14.1% 238,702 12.1%Commercial 1,356,064 59.8% 1,350,091 60.4% 1,182,634 60.0%Commercial and industrial 333,831 14.8% 317,887 14.3% 288,701 14.7%Consumer and other 11,587 0.5% 11,580 0.5% 8,425 0.4%Gross loans 2,266,740 100.0% 2,233,244 100.0% 1,971,396 100.0%Unearned income (6,704) (6,675) (6,247) Loans, net of unearned income 2,260,036 2,226,569 1,965,149 Allowance for credit losses (28,876) (28,338) (25,144) Loans, net$2,231,160 $2,198,231 $1,940,005 DEPOSIT COMPOSITION(Dollars in thousands) March 31,2025 December 31,2024 March 31,2024Amount % of total Amount % of total Amount % of total Noninterest-bearing transaction$533,220 22.0% $575,357 23.8% $416,704 19.7%Interest-bearing transaction 1,183,984 48.8% 1,128,959 46.8% 974,079 46.2%Savings 54,795 2.3% 52,472 2.2% 33,909 1.6%Time deposits, $250,000 and under 518,958 21.4% 512,717 21.3% 584,658 27.7%Time deposits, over $250,000 134,674 5.5% 141,792 5.9% 100,448 4.8%Total deposits$2,425,631 100.0% $2,411,297 100.0% $2,109,798 100.0% Nonperfoming Assets(Dollars in thousands) March 31,2025 December 31,2024 March 31,2024 Nonaccrual loans$7,175 $6,434 $3,446 Past due loans 90 days or more and still accruing interest — 99 — Total nonperforming loans 7,175 6,533 3,446 OREO — — 33 Total nonperforming assets$7,175 $6,533 $3,479 Financial difficulty modification loans– nonaccrual(1) 543 600 675 Financial difficulty modification loans – accruing 1,029 1,055 1,283 Financial difficulty modification loans$1,572 $1,655 $1,958 Allowance for credit losses$28,876 $28,338 $25,144 Loans, net of unearned income at the end of the period$2,260,036 $2,226,569 $1,965,149 Gross loans outstanding at the end of period$2,266,740 $2,233,244 $1,971,396 Total assets$2,851,145 $2,848,254 $2,510,975 Allowance for credit losses to nonperforming loans 402.45% 433.77% 729.66%Nonperforming loans to loans, net of unearned income 0.32% 0.29% 0.18%Nonperforming loans to gross loans 0.32% 0.29% 0.17%Nonperforming assets to gross loans and OREO 0.32% 0.29% 0.18%Nonperforming assets to total assets 0.25% 0.23% 0.14% Nonaccrual loans by category: Real estate mortgages: Construction & Development$403 $415 $— Residential Mortgages 758 559 246 Commercial Real Estate Mortgages 2,694 2,097 2,422 Commercial & Industrial 3,320 3,363 778 Consumer and other — — — Total$7,175 $6,434 $3,446 (1) Financial difficulty modification 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 EndedMarch 31, 2025 December 31,2024 March 31, 2024 Average loans, net of unearned income$2,235,194 $2,205,892 $1,916,288 Loans, net of unearned income 2,260,036 2,226,569 1,965,149 Gross loans 2,266,740 2,233,244 1,971,396 Allowance for credit losses at beginning of the period 28,338 28,061 24,378 Charge-offs: Construction and development — — — Residential — — 11 Commercial — — 27 Commercial and industrial 331 — 442 Consumer and other 2 — 15 Total charge-offs 333 — 495 Recoveries: Construction and development — — — Residential 6 7 8 Commercial — — — Commercial and industrial 89 196 16 Consumer and other 1 2 1 Total recoveries 96 205 25 Net charge-offs (recoveries)$237 $(205) $470 Provision for credit losses$775 $72 $1,236 Balance at end of the period$28,876 $28,338 $25,144 Allowance for credit losses on unfunded commitments at beginning of the period$1,405 $1,405 $1,239 Provision for credit losses on unfunded commitments — — 49 Balance at the end of the period$1,405 $1,405 $1,288 Allowance to loans, net of unearned income 1.28% 1.27% 1.28%Allowance to gross loans 1.27% 1.27% 1.28%Net charge-offs (recoveries) to average loans, net of unearned income(1) 0.04% (0.04) % 0.10%Provision for credit losses to average loans, net of unearned income(1) 0.14% 0.01% 0.26% (1) Ratio is annualized. Reconciliation of Non-GAAP Financial Measures In addition to reporting GAAP results, the Company reports non-GAAP financial measures in this earnings release and other disclosures. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies. The following table provides a reconciliation of the non-GAAP financial measures to their most directly comparable financial measure presented in accordance with GAAP. Reconciliation of Non-GAAP Financial Measures(Dollars in thousands, except share and per share amounts Three Months EndedMarch 31, 2025 December 31,2024 March 31, 2024 Net income$10,351 $11,198 $8,119 Add: Professional fees related to ERC — 236 — Add: Net OREO gains — 3 — Less: Employee retention related revenue — 1,154 — Less: Net gain (loss) on securities 23 25 (12)Less: Tax effect (6) (226) 3 Core net income$10,334 $10,484 $8,128 Average assets$2,841,513 $2,875,981 $2,447,278 Core return on average assets 1.47% 1.45% 1.34% Net income$10,351 $11,198 $8,119 Add: Professional fees related to ERC — 236 — Add: Net OREO gains — 3 — Add: Provision for credit losses 775 72 1,236 Less: Employee retention related revenue — 1,154 — Less: Net gain (loss) on securities 23 25 (12)Add: Income taxes 3,100 3,696 2,377 Pretax pre-provision core net income$14,203 $14,026 $11,744 Average assets$2,841,513 $2,875,981 $2,447,278 Pretax pre-provision core return on average assets 2.03% 1.94% 1.93% Net interest income$24,879 $25,050 $20,839 Add: Fully-taxable equivalent adjustments(1) 62 66 73 Net interest income - FTE$24,941 $25,116 $20,912 Net interest margin 3.75% 3.66% 3.59%Effect of fully-taxable equivalent adjustments(1) 0.01% 0.01% 0.01%Net interest margin - FTE 3.76% 3.67% 3.60% Total stockholders' equity$290,184 $279,889 $222,881 Less: Intangible assets 41,715 42,115 17,679 Tangible common equity$248,469 $237,774 $205,202 (1) Assumes a 24.0% tax rate. Reconciliation of Non-GAAP Financial Measures(Dollars in thousands, except share and per share amounts Three Months EndedMarch 31, 2025 December 31,2024 March 31, 2024 Core net income$10,334 $10,484 $8,128 Diluted weighted average shares outstanding 10,072,329 10,061,735 9,043,122 Diluted core earnings per share$1.03 $1.04 $0.90 Common shares outstanding at year or period end 9,922,180 9,889,260 8,894,794 Tangible book value per share$25.04 $24.04 $23.07 Total assets at end of period$2,851,145 $2,848,254 $2,510,975 Less: Intangible assets 41,715 42,115 17,679 Adjusted assets at end of period$2,809,430 $2,806,139 $2,493,296 Tangible common equity to tangible assets 8.84% 8.47% 8.23% Total average shareholders equity$286,126 $276,250 $219,622 Less: Average intangible assets 41,957 40,177 17,730 Average tangible common equity$244,169 $236,073 $201,892 Net income to common shareholders$10,351 $11,198 $8,119 Return on average tangible common equity 17.19% 18.87% 16.17%Average tangible common equity$244,169 $236,073 $201,892 Core net income$10,334 $10,484 $8,128 Core return on average tangible common equity 17.16% 17.67% 16.19% Net interest income$24,879 $25,050 $20,839 Add: Noninterest income 1,653 2,990 1,268 Less: Employee retention related revenue — 1,154 — Less: Net gain (loss) on securities 23 25 (12)Operating revenue$26,509 $26,861 $22,119 Expenses: Total noninterest expense$12,306 $13,074 $10,375 Less: Professional fees related to ERC — 236 — Less: Net OREO gains — 3 — Adjusted noninterest expenses$12,306 $12,835 $10,375 Core efficiency ratio 46.42% 47.78% 46.90%

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

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