Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States”
or the “Company”), the holding company for Southern States Bank, an
Alabama state-chartered commercial bank (the “Bank”), today
reported net income of $8.1 million, or $0.90 diluted earnings per
share, for the first quarter of 2024. This compares to net income
of $8.9 million, or $0.99 diluted earnings per share, for the
fourth quarter of 2023, and net income of $7.7 million, or $0.85
diluted earnings per share, for the first quarter of 2023. The
Company reported core net income of $8.1 million, or $0.90 diluted
core earnings per share, for the first quarter of 2024. This
compares to core net income of $7.3 million, or $0.81 diluted core
earnings per share, for the fourth quarter of 2023, and core net
income of $7.3 million, or $0.80 diluted core earnings per share,
for the first quarter of 2023 (see “Reconciliation of Non-GAAP
Financial Measures”).
Mark Chambers, Chief Executive Officer and President of Southern
States, said, “We built on our momentum in 2023 and continued
strong lending activity in the first quarter, selectively
identifying compelling opportunities while carefully managing risk
and maintaining solid credit quality.” |
|
“We grew our total loans by 17.2% annualized from the prior
quarter, while our non-performing loans as a percentage of the
total portfolio was just 0.18%. Our portfolio is in excellent
shape. In addition to loan growth, we grew total non-brokered
deposits by 7.1% annualized, and net interest income expanded by
2.1% as we benefited from higher yields on earning assets. While
funding expenses remained elevated amid the higher-for-longer
interest rate environment, resulting in continued pressure on our
net interest margin, the rate of cost increases leveled off during
the first quarter, and our NIM remained healthy at 3.59%.” |
|
“With liquidity and capital levels, Southern States is well
well-positioned to drive further growth across our footprint, which
includes economically dynamic markets throughout Alabama and
Georgia. Importantly, our previously announced acquisition of CBB
Bancorp, the holding company for Century Bank of Georgia, will
further fortify our deposit base and provide an excellent platform
for loan growth in new markets. It gives us added confidence in our
ability to deliver long-term value for our shareholders.” |
Net Interest Income and Net Interest Margin |
|
Three Months Ended |
|
% Change March 31, 2024
vs. |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
$ |
2,336,369 |
|
|
$ |
2,195,381 |
|
|
$ |
1,947,957 |
|
|
6.4 |
% |
|
19.9 |
% |
Net interest income |
$ |
20,839 |
|
|
$ |
20,404 |
|
|
$ |
19,546 |
|
|
2.1 |
% |
|
6.6 |
% |
Net interest margin |
|
3.59 |
% |
|
|
3.69 |
% |
|
|
4.07 |
% |
|
(10)bps |
|
(48)bps |
|
|
|
|
|
|
|
|
|
|
Net interest income for the first quarter of
2024 was $20.8 million, an increase of 2.1% from $20.4 million for
the fourth quarter of 2023. The increase was primarily driven by a
higher yield on interest-earning assets resulting from growth at
higher interest rates, which more than offset a higher cost of
interest-bearing deposits due to both higher interest rates and
competition.
Relative to the first quarter of 2023, net
interest income increased $1.3 million, or 6.6%. The increase was
substantially due to growth, which offset the decline in net
interest margin.
Net interest margin for the first quarter of
2024 was 3.59%, compared to 3.69% for the fourth quarter of 2023.
The decrease was primarily due to an increase in the cost of
interest-bearing deposits, which was greater than the increase in
the yield on interest-earning assets.
Relative to the first quarter of 2023, net
interest margin decreased from 4.07%. The decrease was primarily
the result of the rapid increase in interest rates, which
accelerated the cost of interest-bearing liabilities at a greater
pace than the yield received on interest-earning assets. A shift
from noninterest-bearing deposits into interest-bearing deposits
also had a negative impact on net interest margin.
|
Three Months Ended |
|
% Change March 31, 2024
vs. |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
463 |
|
|
$ |
441 |
|
$ |
450 |
|
|
5.0 |
% |
|
2.9 |
% |
Swap fees |
|
15 |
|
|
|
70 |
|
|
(4 |
) |
|
(78.6)% |
|
(475.0)% |
SBA/USDA fees |
|
64 |
|
|
|
70 |
|
|
134 |
|
|
(8.6)% |
|
(52.2)% |
Mortgage origination fees |
|
96 |
|
|
|
87 |
|
|
100 |
|
|
10.3 |
% |
|
(4.0)% |
Net (loss) gain on
securities |
|
(12 |
) |
|
|
98 |
|
|
514 |
|
|
(112.2)% |
|
(102.3)% |
Other operating income |
|
642 |
|
|
|
2,352 |
|
|
592 |
|
|
(72.7)% |
|
8.4 |
% |
Total noninterest income |
$ |
1,268 |
|
|
$ |
3,118 |
|
$ |
1,786 |
|
|
(59.3)% |
|
(29.0)% |
|
|
|
|
|
|
|
|
|
|
Noninterest income for the first quarter of 2024
was $1.3 million, a decrease of 59.3% from $3.1 million for the
fourth quarter of 2023. 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.
Relative to the first quarter of 2023,
noninterest income decreased 29.0% from $1.8 million. The decrease
was primarily due to a realized net loss on securities during the
first quarter of 2024 compared to a net gain on securities during
the first quarter of 2023.
|
Three Months Ended |
|
% Change March 31, 2024
vs. |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
$ |
6,231 |
|
$ |
5,739 |
|
$ |
6,311 |
|
8.6 |
% |
|
(1.3)% |
Equipment and occupancy expenses |
|
689 |
|
|
681 |
|
|
683 |
|
1.2 |
% |
|
0.9 |
% |
Data processing fees |
|
643 |
|
|
639 |
|
|
593 |
|
0.6 |
% |
|
8.4 |
% |
Regulatory assessments |
|
360 |
|
|
355 |
|
|
342 |
|
1.4 |
% |
|
5.3 |
% |
Other operating expenses |
|
2,452 |
|
|
2,303 |
|
|
2,229 |
|
6.5 |
% |
|
10.0 |
% |
Total noninterest
expenses |
$ |
10,375 |
|
$ |
9,717 |
|
$ |
10,158 |
|
6.8 |
% |
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the first quarter of
2024 was $10.4 million, an increase of 6.8% from $9.7 million for
the fourth quarter of 2023. The increase was primarily due to an
increase in salaries and benefits, substantially as a result of
higher payroll taxes brought about by incentive expense paid during
the first quarter of 2024. In addition, other operating expense
increased primarily as a result of the recognition of a $49,000
provision for credit losses on unfunded loan commitments during the
first quarter of 2024, compared to a $334,000 credit for credit
losses on unfunded loan commitments during the fourth quarter of
2023. These increases were partially offset by net forgery/fraud
recoveries and a decrease in legal fees incurred during the first
quarter of 2024.
Relative to the first quarter of 2023,
noninterest expense increased 2.1% from $10.2 million. The increase
was primarily attributable to increases in other operating expense,
including marginal increases in insured deposit program expense,
provision for credit losses on unfunded commitments and expense
associated with a new market tax credit.
|
Three Months Ended |
|
% Change March 31, 2024
vs. |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
December 31, 2023 |
|
March 31, 2023 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
$ |
1,971,396 |
|
|
$ |
1,890,677 |
|
|
$ |
1,650,929 |
|
|
4.3 |
% |
|
19.4 |
% |
Unearned income |
|
(6,247 |
) |
|
|
(6,169 |
) |
|
|
(5,614 |
) |
|
1.3 |
% |
|
11.3 |
% |
Loans, net of unearned income
(“Loans”) |
|
1,965,149 |
|
|
|
1,884,508 |
|
|
|
1,645,315 |
|
|
4.3 |
% |
|
19.4 |
% |
Average loans, net of unearned
(“Average loans”) |
$ |
1,916,288 |
|
|
$ |
1,814,484 |
|
|
$ |
1,609,564 |
|
|
5.6 |
% |
|
19.1 |
% |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
(“NPL”) |
$ |
3,446 |
|
|
$ |
1,177 |
|
|
$ |
1,646 |
|
|
192.8 |
% |
|
109.4 |
% |
Provision for credit
losses |
$ |
1,236 |
|
|
$ |
2,579 |
|
|
$ |
1,181 |
|
|
(52.1)% |
|
4.7 |
% |
Allowance for credit losses
(“ACL”) |
$ |
25,144 |
|
|
$ |
24,378 |
|
|
$ |
19,855 |
|
|
3.1 |
% |
|
26.6 |
% |
Net charge-offs |
$ |
470 |
|
|
$ |
382 |
|
|
$ |
197 |
|
|
23.0 |
% |
|
138.6 |
% |
NPL to gross loans |
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.10 |
% |
|
|
|
|
Net charge-offs to average
loans(1) |
|
0.10 |
% |
|
|
0.08 |
% |
|
|
0.05 |
% |
|
|
|
|
ACL to loans |
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratio is annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income, were $2.0 billion
at March 31, 2024, up $80.6 million from December 31,
2023 and up $319.8 million from March 31, 2023. The
linked-quarter and year-over-year increases in loans were primarily
attributable to new business growth across our footprint.
Nonperforming loans totaled $3.4 million, or
0.17% of gross loans, at March 31, 2024, compared with $1.2
million, or 0.06% of gross loans, at December 31, 2023, and
$1.6 million, or 0.10% of gross loans, at March 31, 2023. The
$2.3 million net increase in nonperforming loans in the first
quarter was primarily attributable to one significant commercial
real estate loan and one significant commercial and industrial loan
each being placed on nonaccrual status. The $1.8 million net
increase in nonperforming loans from March 31, 2023 was
primarily attributable to the two significant aforementioned loans.
These increases were partially offset by one significant commercial
real estate loan being paid off.
The Company recorded a provision for credit
losses of $1.2 million for the first quarter of 2024, compared to
$2.6 million for the fourth quarter of 2023. Provision in the first
quarter of 2024 was based on loan growth, qualitative economic
factors and individually analyzed loans.
Net charge-offs for the first quarter of 2024
were $470,000, or 0.10% of average loans on an annualized basis,
compared to net charge-offs of $382,000, or 0.08% of average loans
on an annualized basis, for the fourth quarter of 2023, and net
charge-offs of $197,000, or 0.05% of average loans on an annualized
basis, for the first quarter of 2023.
The Company’s allowance for credit losses was
1.28% of total loans and 729.66% of nonperforming loans at
March 31, 2024, compared with 1.29% of total loans and
2071.20% of nonperforming loans at December 31, 2023.
Allowance for credit losses on unfunded commitments was $1.3
million at March 31, 2024.
|
Three Months Ended |
|
% Change March 31, 2024
vs. |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
416,704 |
|
|
$ |
437,959 |
|
|
$ |
433,833 |
|
|
(4.9)% |
|
(3.9)% |
Interest-bearing deposits |
|
1,693,094 |
|
|
|
1,580,230 |
|
|
|
1,355,658 |
|
|
7.1 |
% |
|
24.9 |
% |
Total deposits |
$ |
2,109,798 |
|
|
$ |
2,018,189 |
|
|
$ |
1,789,491 |
|
|
4.5 |
% |
|
17.9 |
% |
|
|
|
|
|
|
|
|
|
|
Uninsured deposits |
$ |
610,122 |
|
|
$ |
615,651 |
|
|
$ |
567,709 |
|
|
(0.9)% |
|
7.5 |
% |
Uninsured deposits to total
deposits |
|
28.92 |
% |
|
|
30.51 |
% |
|
|
31.72 |
% |
|
|
|
|
Noninterest deposits to total
deposits |
|
19.75 |
% |
|
|
21.70 |
% |
|
|
24.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $2.1 billion at
March 31, 2024, up from $2.0 billion at December 31, 2023
and $1.8 billion at March 31, 2023. The $91.6 million increase
in total deposits in the first quarter was primarily due to an
increase of $112.9 million in interest-bearing deposits, which
includes a $60.2 million increase in brokered deposits, partially
offset by a $21.3 million decrease in noninterest-bearing deposits.
Total brokered deposits were $291.0 million at March 31,
2024.
|
March 31,2024 |
|
December 31,2023 |
|
March 31,2023 |
Company |
|
Bank |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio to average assets |
8.79 |
% |
|
11.67 |
% |
|
8.99 |
% |
|
12.01 |
% |
|
8.89 |
% |
|
12.19 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 (“CET1”)
capital ratio |
9.39 |
% |
|
12.47 |
% |
|
9.20 |
% |
|
12.30 |
% |
|
9.00 |
% |
|
12.34 |
% |
Tier 1 capital ratio |
9.39 |
% |
|
12.47 |
% |
|
9.20 |
% |
|
12.30 |
% |
|
9.00 |
% |
|
12.34 |
% |
Total capital ratio |
14.42 |
% |
|
13.63 |
% |
|
14.29 |
% |
|
13.45 |
% |
|
14.41 |
% |
|
13.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2024, total stockholders’
equity was $222.9 million, up from $215.0 million at
December 31, 2023. The increase of $7.9 million was
substantially due to earnings growth.
About Southern States Bancshares, Inc. |
Headquartered in Anniston, Alabama, Southern
States Bancshares, Inc. is a bank holding company that operates
primarily through its wholly-owned subsidiary, Southern States
Bank. The Bank is a full service community banking institution,
which offers an array of deposit, loan and other banking-related
products and services to businesses and individuals in its
communities. The Bank operates 13 branches in Alabama and Georgia
and two loan production offices in Atlanta.
Forward-Looking Statements |
This press release contains forward-looking
statements within the meaning of the federal securities laws, which
reflect our current expectations and beliefs with respect to, among
other things, future events and our financial performance. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about our
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. This may be especially true given
recent events and trends in the banking industry and the
inflationary environment. Although we believe that the expectations
reflected in such forward-looking statements are reasonable as of
the dates made, we cannot give any assurance that such expectations
will prove correct and actual results may prove to be materially
different from the results expressed or implied by the
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements are set forth in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2023 under the
section entitled “Cautionary Note Regarding Forward-Looking
Statements” and “Risk Factors”. Accordingly, we caution you that
any such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict.
These statements are often, but not always, made
through the use of words or phrases such as “may,” “can,” “should,”
“could,” “to be,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “likely,” “anticipate,”
“seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would”
and “outlook,” or the negative version of those words or other
similar words or phrases of a future or forward-looking nature.
Forward-looking statements appear in a number of places in this
press release and may include statements about our acquisition of
Century Bank of Georgia, business strategy and prospects for
growth, operations, ability to pay dividends, competition,
regulation and general economic conditions.
Lynn Joyce |
|
|
|
Kevin Dobbs |
(205)
820-8065 |
|
|
|
(310)
622-8245 |
ljoyce@ssbank.bank |
|
|
|
ssbankir@finprofiles.com |
SELECT FINANCIAL DATA |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
Results of
Operations |
|
|
|
|
|
Interest income |
$ |
38,736 |
|
|
$ |
36,172 |
|
|
$ |
28,699 |
|
Interest expense |
|
17,897 |
|
|
|
15,768 |
|
|
|
9,153 |
|
Net interest income |
|
20,839 |
|
|
|
20,404 |
|
|
|
19,546 |
|
Provision for credit
losses |
|
1,236 |
|
|
|
2,579 |
|
|
|
1,181 |
|
Net interest income after
provision |
|
19,603 |
|
|
|
17,825 |
|
|
|
18,365 |
|
Noninterest income |
|
1,268 |
|
|
|
3,118 |
|
|
|
1,786 |
|
Noninterest expense |
|
10,375 |
|
|
|
9,717 |
|
|
|
10,158 |
|
Income tax expense |
|
2,377 |
|
|
|
2,330 |
|
|
|
2,322 |
|
Net income |
$ |
8,119 |
|
|
$ |
8,896 |
|
|
$ |
7,671 |
|
Core net income(1) |
$ |
8,128 |
|
|
$ |
7,289 |
|
|
$ |
7,280 |
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
Shares issued and
outstanding |
|
8,894,794 |
|
|
|
8,841,349 |
|
|
|
8,723,763 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
Basic |
|
8,913,477 |
|
|
|
8,864,734 |
|
|
|
8,762,450 |
|
Diluted |
|
9,043,122 |
|
|
|
9,021,358 |
|
|
|
9,044,490 |
|
Earnings per share: |
|
|
|
|
|
Basic |
$ |
0.91 |
|
|
$ |
1.00 |
|
|
$ |
0.87 |
|
Diluted |
|
0.90 |
|
|
|
0.99 |
|
|
|
0.85 |
|
Core - diluted(1) |
|
0.90 |
|
|
|
0.81 |
|
|
|
0.80 |
|
Book value per share |
|
25.06 |
|
|
|
24.31 |
|
|
|
21.74 |
|
Tangible book value per
share(1) |
|
23.07 |
|
|
|
22.30 |
|
|
|
19.68 |
|
Cash dividends per common
share |
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
|
|
|
|
Performance and Financial Ratios |
|
|
|
|
|
ROAA |
|
1.33 |
% |
|
|
1.53 |
% |
|
|
1.51 |
% |
ROAE |
|
14.87 |
% |
|
|
17.02 |
% |
|
|
16.67 |
% |
Core ROAA(1) |
|
1.34 |
% |
|
|
1.26 |
% |
|
|
1.44 |
% |
ROATCE(1) |
|
16.17 |
% |
|
|
18.62 |
% |
|
|
18.45 |
% |
Core ROATCE(1) |
|
16.19 |
% |
|
|
15.26 |
% |
|
|
17.51 |
% |
NIM |
|
3.59 |
% |
|
|
3.69 |
% |
|
|
4.07 |
% |
NIM - FTE(1) |
|
3.60 |
% |
|
|
3.71 |
% |
|
|
4.09 |
% |
Net interest spread |
|
2.63 |
% |
|
|
2.73 |
% |
|
|
3.33 |
% |
Yield on loans |
|
7.06 |
% |
|
|
6.91 |
% |
|
|
6.38 |
% |
Yield on interest-earning
assets |
|
6.67 |
% |
|
|
6.54 |
% |
|
|
5.97 |
% |
Cost of interest-bearing
liabilities |
|
4.04 |
% |
|
|
3.81 |
% |
|
|
2.64 |
% |
Cost of funds(2) |
|
3.27 |
% |
|
|
3.03 |
% |
|
|
2.01 |
% |
Cost of interest-bearing
deposits |
|
3.92 |
% |
|
|
3.66 |
% |
|
|
2.42 |
% |
Cost of total deposits |
|
3.12 |
% |
|
|
2.86 |
% |
|
|
1.81 |
% |
Noninterest deposits to total
deposits |
|
19.75 |
% |
|
|
21.70 |
% |
|
|
24.24 |
% |
Core deposits to total
deposits |
|
81.45 |
% |
|
|
83.70 |
% |
|
|
88.57 |
% |
Uninsured deposits to total
deposits |
|
28.92 |
% |
|
|
30.51 |
% |
|
|
31.72 |
% |
Total loans to total
deposits |
|
93.14 |
% |
|
|
93.38 |
% |
|
|
91.94 |
% |
Efficiency ratio |
|
46.90 |
% |
|
|
41.48 |
% |
|
|
48.79 |
% |
Core efficiency ratio(1) |
|
46.90 |
% |
|
|
45.78 |
% |
|
|
48.79 |
% |
|
|
|
|
|
|
(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 |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
Financial Condition
(ending) |
|
|
|
|
|
Total loans |
$ |
1,965,149 |
|
|
$ |
1,884,508 |
|
|
$ |
1,645,315 |
|
Total securities |
|
197,006 |
|
|
|
198,632 |
|
|
|
183,197 |
|
Total assets |
|
2,510,975 |
|
|
|
2,446,663 |
|
|
|
2,135,622 |
|
Total noninterest bearing
deposits |
|
416,704 |
|
|
|
437,959 |
|
|
|
433,833 |
|
Total core deposits(1) |
|
1,718,333 |
|
|
|
1,689,266 |
|
|
|
1,584,915 |
|
Total deposits |
|
2,109,798 |
|
|
|
2,018,189 |
|
|
|
1,789,491 |
|
Total borrowings |
|
146,773 |
|
|
|
183,673 |
|
|
|
131,372 |
|
Total liabilities |
|
2,288,094 |
|
|
|
2,231,699 |
|
|
|
1,945,959 |
|
Total shareholders’
equity |
|
222,881 |
|
|
|
214,964 |
|
|
|
189,663 |
|
|
|
|
|
|
|
Financial Condition (average) |
|
|
|
|
|
Total loans |
$ |
1,916,288 |
|
|
$ |
1,814,484 |
|
|
$ |
1,609,564 |
|
Total securities |
|
208,954 |
|
|
|
209,074 |
|
|
|
192,348 |
|
Total other interest-earning
assets |
|
211,127 |
|
|
|
171,823 |
|
|
|
146,045 |
|
Total interest-bearing
assets |
|
2,336,369 |
|
|
|
2,195,381 |
|
|
|
1,947,957 |
|
Total assets |
|
2,447,278 |
|
|
|
2,303,398 |
|
|
|
2,057,005 |
|
Total noninterest-bearing
deposits |
|
416,141 |
|
|
|
420,019 |
|
|
|
438,735 |
|
Total interest-bearing
deposits |
|
1,633,307 |
|
|
|
1,502,348 |
|
|
|
1,300,632 |
|
Total deposits |
|
2,049,448 |
|
|
|
1,922,367 |
|
|
|
1,739,367 |
|
Total borrowings |
|
148,771 |
|
|
|
140,790 |
|
|
|
104,901 |
|
Total interest-bearing
liabilities |
|
1,782,078 |
|
|
|
1,643,138 |
|
|
|
1,405,533 |
|
Total shareholders’
equity |
|
219,622 |
|
|
|
207,324 |
|
|
|
186,639 |
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
Nonperforming loans |
$ |
3,446 |
|
|
$ |
1,177 |
|
|
$ |
1,646 |
|
Other real estate owned
(“OREO”) |
$ |
33 |
|
|
$ |
33 |
|
|
$ |
2,930 |
|
Nonperforming assets
(“NPA”) |
$ |
3,479 |
|
|
$ |
1,210 |
|
|
$ |
4,576 |
|
Net charge-offs to average
loans(2) |
|
0.10 |
% |
|
|
0.08 |
% |
|
|
0.05 |
% |
Provision for credit losses to
average loans(2) |
|
0.26 |
% |
|
|
0.56 |
% |
|
|
0.30 |
% |
ACL to loans |
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.21 |
% |
ACL to gross loans |
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.20 |
% |
ACL to NPL |
|
729.66 |
% |
|
|
2071.20 |
% |
|
|
1206.26 |
% |
NPL to loans |
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.10 |
% |
NPL to gross loans |
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.10 |
% |
NPA to gross loans and
OREO |
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.28 |
% |
NPA to total assets |
|
0.14 |
% |
|
|
0.05 |
% |
|
|
0.21 |
% |
|
|
|
|
|
|
Regulatory and Other Capital Ratios |
|
|
|
|
|
Total shareholders’ equity to
total assets |
|
8.88 |
% |
|
|
8.79 |
% |
|
|
8.88 |
% |
Tangible common equity to
tangible assets(3) |
|
8.23 |
% |
|
|
8.12 |
% |
|
|
8.11 |
% |
Tier 1 capital ratio to
average assets |
|
8.79 |
% |
|
|
8.99 |
% |
|
|
8.89 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
CET1 capital ratio |
|
9.39 |
% |
|
|
9.20 |
% |
|
|
9.00 |
% |
Tier 1 capital ratio |
|
9.39 |
% |
|
|
9.20 |
% |
|
|
9.00 |
% |
Total capital ratio |
|
14.42 |
% |
|
|
14.29 |
% |
|
|
14.41 |
% |
|
|
|
|
|
|
(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, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
20,470 |
|
|
$ |
19,710 |
|
|
$ |
17,245 |
|
Interest-bearing deposits in
banks |
|
129,917 |
|
|
|
134,846 |
|
|
|
99,541 |
|
Federal funds sold |
|
86,736 |
|
|
|
96,095 |
|
|
|
76,010 |
|
Total cash and cash equivalents |
|
237,123 |
|
|
|
250,651 |
|
|
|
192,796 |
|
|
|
|
|
|
|
Securities available for sale,
at fair value |
|
177,379 |
|
|
|
179,000 |
|
|
|
163,550 |
|
Securities held to maturity,
at amortized cost |
|
19,627 |
|
|
|
19,632 |
|
|
|
19,647 |
|
Other equity securities, at
fair value |
|
3,638 |
|
|
|
3,649 |
|
|
|
3,806 |
|
Restricted equity securities,
at cost |
|
5,108 |
|
|
|
5,684 |
|
|
|
3,862 |
|
Loans held for sale |
|
425 |
|
|
|
450 |
|
|
|
2,376 |
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
1,965,149 |
|
|
|
1,884,508 |
|
|
|
1,645,315 |
|
Less allowance for credit
losses |
|
25,144 |
|
|
|
24,378 |
|
|
|
19,855 |
|
Loans, net |
|
1,940,005 |
|
|
|
1,860,130 |
|
|
|
1,625,460 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
26,262 |
|
|
|
26,426 |
|
|
|
27,098 |
|
Accrued interest
receivable |
|
9,561 |
|
|
|
8,711 |
|
|
|
7,077 |
|
Bank owned life insurance |
|
30,075 |
|
|
|
29,884 |
|
|
|
29,350 |
|
Annuities |
|
15,939 |
|
|
|
15,036 |
|
|
|
15,489 |
|
Foreclosed assets |
|
33 |
|
|
|
33 |
|
|
|
2,930 |
|
Goodwill |
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
Core deposit intangible |
|
817 |
|
|
|
899 |
|
|
|
1,144 |
|
Other assets |
|
28,121 |
|
|
|
29,616 |
|
|
|
24,175 |
|
|
|
|
|
|
|
Total assets |
$ |
2,510,975 |
|
|
$ |
2,446,663 |
|
|
$ |
2,135,622 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing |
$ |
416,704 |
|
|
$ |
437,959 |
|
|
$ |
433,833 |
|
Interest-bearing |
|
1,693,094 |
|
|
|
1,580,230 |
|
|
|
1,355,658 |
|
Total deposits |
|
2,109,798 |
|
|
|
2,018,189 |
|
|
|
1,789,491 |
|
|
|
|
|
|
|
Other borrowings |
|
7,997 |
|
|
|
26,994 |
|
|
|
(16 |
) |
FHLB advances |
|
52,000 |
|
|
|
70,000 |
|
|
|
45,000 |
|
Subordinated notes |
|
86,776 |
|
|
|
86,679 |
|
|
|
86,388 |
|
Accrued interest payable |
|
1,805 |
|
|
|
1,519 |
|
|
|
844 |
|
Other liabilities |
|
29,718 |
|
|
|
28,318 |
|
|
|
24,252 |
|
|
|
|
|
|
|
Total liabilities |
|
2,288,094 |
|
|
|
2,231,699 |
|
|
|
1,945,959 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Common stock |
|
44,746 |
|
|
|
44,479 |
|
|
|
43,798 |
|
Capital surplus |
|
79,282 |
|
|
|
78,361 |
|
|
|
77,053 |
|
Retained earnings |
|
109,838 |
|
|
|
102,523 |
|
|
|
80,642 |
|
Accumulated other comprehensive loss |
|
(8,401 |
) |
|
|
(8,379 |
) |
|
|
(9,846 |
) |
Unvested restricted stock |
|
(1,030 |
) |
|
|
(466 |
) |
|
|
(965 |
) |
Vested restricted stock units |
|
(1,554 |
) |
|
|
(1,554 |
) |
|
|
(1,019 |
) |
|
|
|
|
|
|
Total stockholders' equity |
|
222,881 |
|
|
|
214,964 |
|
|
|
189,663 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,510,975 |
|
|
$ |
2,446,663 |
|
|
$ |
2,135,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Interest
income: |
|
|
|
|
|
Loans, including fees |
$ |
33,628 |
|
|
$ |
31,613 |
|
$ |
25,335 |
|
Taxable securities |
|
1,981 |
|
|
|
1,986 |
|
|
1,383 |
|
Nontaxable securities |
|
229 |
|
|
|
230 |
|
|
291 |
|
Other interest and dividends |
|
2,898 |
|
|
|
2,343 |
|
|
1,690 |
|
Total interest income |
|
38,736 |
|
|
|
36,172 |
|
|
28,699 |
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
Deposits |
|
15,906 |
|
|
|
13,869 |
|
|
7,768 |
|
Other borrowings |
|
1,991 |
|
|
|
1,899 |
|
|
1,385 |
|
Total interest expense |
|
17,897 |
|
|
|
15,768 |
|
|
9,153 |
|
|
|
|
|
|
|
Net interest income |
|
20,839 |
|
|
|
20,404 |
|
|
19,546 |
|
Provision for credit
losses |
|
1,236 |
|
|
|
2,579 |
|
|
1,181 |
|
Net interest income after provision for credit
losses |
|
19,603 |
|
|
|
17,825 |
|
|
18,365 |
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
Service charges on deposit accounts |
|
463 |
|
|
|
441 |
|
|
450 |
|
Swap fees |
|
15 |
|
|
|
70 |
|
|
(4 |
) |
SBA/USDA fees |
|
64 |
|
|
|
70 |
|
|
134 |
|
Mortgage origination fees |
|
96 |
|
|
|
87 |
|
|
100 |
|
Net (loss) gain on securities |
|
(12 |
) |
|
|
98 |
|
|
514 |
|
Other operating income |
|
642 |
|
|
|
2,352 |
|
|
592 |
|
Total noninterest income |
|
1,268 |
|
|
|
3,118 |
|
|
1,786 |
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
Salaries and employee benefits |
|
6,231 |
|
|
|
5,739 |
|
|
6,311 |
|
Equipment and occupancy expenses |
|
689 |
|
|
|
681 |
|
|
683 |
|
Data processing fees |
|
643 |
|
|
|
639 |
|
|
593 |
|
Regulatory assessments |
|
360 |
|
|
|
355 |
|
|
342 |
|
Other operating expenses |
|
2,452 |
|
|
|
2,303 |
|
|
2,229 |
|
Total noninterest expenses |
|
10,375 |
|
|
|
9,717 |
|
|
10,158 |
|
|
|
|
|
|
|
Income before income taxes |
|
10,496 |
|
|
|
11,226 |
|
|
9,993 |
|
|
|
|
|
|
|
Income tax expense |
|
2,377 |
|
|
|
2,330 |
|
|
2,322 |
|
|
|
|
|
|
|
Net income |
$ |
8,119 |
|
|
$ |
8,896 |
|
$ |
7,671 |
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
0.91 |
|
|
$ |
1.00 |
|
$ |
0.87 |
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.90 |
|
|
$ |
0.99 |
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,916,288 |
|
|
$ |
33,628 |
|
7.06 |
% |
|
$ |
1,814,484 |
|
|
$ |
31,613 |
|
6.91 |
% |
|
$ |
1,609,564 |
|
|
$ |
25,335 |
|
6.38 |
% |
Taxable securities |
|
163,586 |
|
|
|
1,981 |
|
4.87 |
% |
|
|
163,537 |
|
|
|
1,986 |
|
4.82 |
% |
|
|
139,516 |
|
|
|
1,383 |
|
4.02 |
% |
Nontaxable securities |
|
45,368 |
|
|
|
229 |
|
2.03 |
% |
|
|
45,537 |
|
|
|
230 |
|
2.00 |
% |
|
|
52,832 |
|
|
|
291 |
|
2.24 |
% |
Other interest-earnings
assets |
|
211,127 |
|
|
|
2,898 |
|
5.52 |
% |
|
|
171,823 |
|
|
|
2,343 |
|
5.41 |
% |
|
|
146,045 |
|
|
|
1,690 |
|
4.69 |
% |
Total interest-earning assets |
$ |
2,336,369 |
|
|
$ |
38,736 |
|
6.67 |
% |
|
$ |
2,195,381 |
|
|
$ |
36,172 |
|
6.54 |
% |
|
$ |
1,947,957 |
|
|
$ |
28,699 |
|
5.97 |
% |
Allowance for credit losses |
|
(24,313 |
) |
|
|
|
|
|
|
(22,666 |
) |
|
|
|
|
|
|
(20,493 |
) |
|
|
|
|
Noninterest-earning assets |
|
135,222 |
|
|
|
|
|
|
|
130,683 |
|
|
|
|
|
|
|
129,541 |
|
|
|
|
|
Total Assets |
$ |
2,447,278 |
|
|
|
|
|
|
$ |
2,303,398 |
|
|
|
|
|
|
$ |
2,057,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
85,858 |
|
|
|
26 |
|
0.12 |
% |
|
|
86,163 |
|
|
|
23 |
|
0.11 |
% |
|
|
93,951 |
|
|
|
20 |
|
0.08 |
% |
Savings and money market accounts |
|
902,361 |
|
|
|
8,804 |
|
3.92 |
% |
|
|
885,548 |
|
|
|
8,445 |
|
3.78 |
% |
|
|
806,001 |
|
|
|
5,040 |
|
2.54 |
% |
Time deposits |
|
645,088 |
|
|
|
7,076 |
|
4.41 |
% |
|
|
530,637 |
|
|
|
5,401 |
|
4.04 |
% |
|
|
400,680 |
|
|
|
2,708 |
|
2.74 |
% |
FHLB advances |
|
53,121 |
|
|
|
655 |
|
4.96 |
% |
|
|
52,076 |
|
|
|
645 |
|
4.92 |
% |
|
|
18,578 |
|
|
|
159 |
|
3.47 |
% |
Other borrowings |
|
95,650 |
|
|
|
1,336 |
|
5.62 |
% |
|
|
88,714 |
|
|
|
1,254 |
|
5.61 |
% |
|
|
86,323 |
|
|
|
1,226 |
|
5.76 |
% |
Total interest-bearing liabilities |
$ |
1,782,078 |
|
|
$ |
17,897 |
|
4.04 |
% |
|
$ |
1,643,138 |
|
|
$ |
15,768 |
|
3.81 |
% |
|
$ |
1,405,533 |
|
|
$ |
9,153 |
|
2.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
416,141 |
|
|
|
|
|
|
$ |
420,019 |
|
|
|
|
|
|
$ |
438,735 |
|
|
|
|
|
Other liabilities |
|
29,437 |
|
|
|
|
|
|
|
32,917 |
|
|
|
|
|
|
|
26,098 |
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
445,578 |
|
|
|
|
|
|
$ |
452,936 |
|
|
|
|
|
|
$ |
464,833 |
|
|
|
|
|
Stockholders’ Equity |
|
219,622 |
|
|
|
|
|
|
|
207,324 |
|
|
|
|
|
|
|
186,639 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,447,278 |
|
|
|
|
|
|
$ |
2,303,398 |
|
|
|
|
|
|
$ |
2,057,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
20,839 |
|
|
|
|
|
$ |
20,404 |
|
|
|
|
|
$ |
19,546 |
|
|
Net interest spread(2) |
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.73 |
% |
|
|
|
|
|
3.33 |
% |
Net interest margin(3) |
|
|
|
|
3.59 |
% |
|
|
|
|
|
3.69 |
% |
|
|
|
|
|
4.07 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
3.60 |
% |
|
|
|
|
|
3.71 |
% |
|
|
|
|
|
4.09 |
% |
Cost of funds(6) |
|
|
|
|
3.27 |
% |
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
2.01 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
3.92 |
% |
|
|
|
|
|
3.66 |
% |
|
|
|
|
|
2.42 |
% |
Cost of total deposits |
|
|
|
|
3.12 |
% |
|
|
|
|
|
2.86 |
% |
|
|
|
|
|
1.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
|
|
|
|
|
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
$ |
252,934 |
|
|
12.8 |
% |
|
$ |
242,960 |
|
|
12.9 |
% |
|
$ |
227,560 |
|
|
13.8 |
% |
Residential |
|
238,702 |
|
|
12.1 |
% |
|
|
224,603 |
|
|
11.9 |
% |
|
|
196,923 |
|
|
11.9 |
% |
Commercial |
|
1,182,634 |
|
|
60.0 |
% |
|
|
1,144,867 |
|
|
60.5 |
% |
|
|
948,251 |
|
|
57.5 |
% |
Commercial and industrial |
|
288,701 |
|
|
14.7 |
% |
|
|
269,961 |
|
|
14.3 |
% |
|
|
270,825 |
|
|
16.4 |
% |
Consumer and other |
|
8,425 |
|
|
0.4 |
% |
|
|
8,286 |
|
|
0.4 |
% |
|
|
7,370 |
|
|
0.4 |
% |
Gross loans |
|
1,971,396 |
|
|
100.0 |
% |
|
|
1,890,677 |
|
|
100.0 |
% |
|
|
1,650,929 |
|
|
100.0 |
% |
Unearned income |
|
(6,247 |
) |
|
|
|
|
(6,169 |
) |
|
|
|
|
(5,614 |
) |
|
|
Loans, net of unearned income |
|
1,965,149 |
|
|
|
|
|
1,884,508 |
|
|
|
|
|
1,645,315 |
|
|
|
Allowance for credit
losses |
|
(25,144 |
) |
|
|
|
|
(24,378 |
) |
|
|
|
|
(19,855 |
) |
|
|
Loans, net |
$ |
1,940,005 |
|
|
|
|
$ |
1,860,130 |
|
|
|
|
$ |
1,625,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing transaction |
$ |
416,704 |
|
19.7 |
% |
|
$ |
437,959 |
|
21.7 |
% |
|
$ |
433,833 |
|
24.2 |
% |
Interest-bearing
transaction |
|
974,079 |
|
46.2 |
% |
|
|
946,347 |
|
46.9 |
% |
|
|
877,166 |
|
49.0 |
% |
Savings |
|
33,909 |
|
1.6 |
% |
|
|
35,412 |
|
1.7 |
% |
|
|
47,742 |
|
2.7 |
% |
Time deposits, $250,000 and
under |
|
584,658 |
|
27.7 |
% |
|
|
500,406 |
|
24.8 |
% |
|
|
366,271 |
|
20.5 |
% |
Time deposits, over
$250,000 |
|
100,448 |
|
4.8 |
% |
|
|
98,065 |
|
4.9 |
% |
|
|
64,479 |
|
3.6 |
% |
Total deposits |
$ |
2,109,798 |
|
100.0 |
% |
|
$ |
2,018,189 |
|
100.0 |
% |
|
$ |
1,789,491 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperfoming Assets |
(Dollars in thousands) |
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
3,446 |
|
|
$ |
1,017 |
|
|
$ |
1,646 |
|
Past due loans 90 days or more
and still accruing interest |
|
— |
|
|
|
160 |
|
|
|
— |
|
Total nonperforming loans |
|
3,446 |
|
|
|
1,177 |
|
|
|
1,646 |
|
OREO |
|
33 |
|
|
|
33 |
|
|
|
2,930 |
|
Total nonperforming assets |
$ |
3,479 |
|
|
$ |
1,210 |
|
|
$ |
4,576 |
|
|
|
|
|
|
|
Financial difficulty
modification loans– nonaccrual(1) |
|
675 |
|
|
|
907 |
|
|
|
805 |
|
Financial difficulty
modification loans – accruing |
|
1,283 |
|
|
|
1,095 |
|
|
|
1,272 |
|
Financial difficulty modification loans |
$ |
1,958 |
|
|
$ |
2,002 |
|
|
$ |
2,077 |
|
|
|
|
|
|
|
Allowance for credit
losses |
$ |
25,144 |
|
|
$ |
24,378 |
|
|
$ |
19,855 |
|
Loans, net of unearned income
at the end of the period |
$ |
1,965,149 |
|
|
$ |
1,884,508 |
|
|
$ |
1,645,315 |
|
Gross loans outstanding at the
end of period |
$ |
1,971,396 |
|
|
$ |
1,890,677 |
|
|
$ |
1,650,929 |
|
Total assets |
$ |
2,510,975 |
|
|
$ |
2,446,663 |
|
|
$ |
2,135,622 |
|
Allowance for credit losses to
nonperforming loans |
|
729.66 |
% |
|
|
2071.20 |
% |
|
|
1206.26 |
% |
Nonperforming loans to loans,
net of unearned income |
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.10 |
% |
Nonperforming loans to gross
loans |
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.10 |
% |
Nonperforming assets to gross
loans and OREO |
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.28 |
% |
Nonperforming assets to total
assets |
|
0.14 |
% |
|
|
0.05 |
% |
|
|
0.21 |
% |
|
|
|
|
|
|
Nonaccrual loans by
category: |
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
Construction & Development |
$ |
— |
|
|
$ |
— |
|
|
$ |
64 |
|
Residential Mortgages |
|
246 |
|
|
|
252 |
|
|
|
267 |
|
Commercial Real Estate Mortgages |
|
2,422 |
|
|
|
765 |
|
|
|
1,263 |
|
Commercial &
Industrial |
|
778 |
|
|
|
— |
|
|
|
51 |
|
Consumer and other |
|
— |
|
|
|
— |
|
|
|
1 |
|
Total |
$ |
3,446 |
|
|
$ |
1,017 |
|
|
$ |
1,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Ended |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
Average loans, net of unearned income |
$ |
1,916,288 |
|
|
$ |
1,814,484 |
|
|
$ |
1,609,564 |
|
Loans, net of unearned
income |
|
1,965,149 |
|
|
|
1,884,508 |
|
|
|
1,645,315 |
|
Gross loans |
|
1,971,396 |
|
|
|
1,890,677 |
|
|
|
1,650,929 |
|
Allowance for credit losses at
beginning of the period |
|
24,378 |
|
|
|
22,181 |
|
|
|
20,156 |
|
Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
(1,285 |
) |
Charge-offs: |
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
Residential |
|
11 |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
27 |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
442 |
|
|
|
424 |
|
|
|
218 |
|
Consumer and other |
|
15 |
|
|
|
2 |
|
|
|
6 |
|
Total charge-offs |
|
495 |
|
|
|
426 |
|
|
|
224 |
|
Recoveries: |
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
Residential |
|
8 |
|
|
|
4 |
|
|
|
11 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
16 |
|
|
|
39 |
|
|
|
14 |
|
Consumer and other |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Total recoveries |
|
25 |
|
|
|
44 |
|
|
|
27 |
|
Net charge-offs |
$ |
470 |
|
|
$ |
382 |
|
|
$ |
197 |
|
|
|
|
|
|
|
Provision for credit
losses |
$ |
1,236 |
|
|
$ |
2,579 |
|
|
$ |
1,181 |
|
Balance at end of the
period |
$ |
25,144 |
|
|
$ |
24,378 |
|
|
$ |
19,855 |
|
|
|
|
|
|
|
Allowance for credit losses on
unfunded commitments at beginning of the period |
$ |
1,239 |
|
|
$ |
1,524 |
|
|
$ |
— |
|
Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
1,285 |
|
Provision (credit) for credit
losses on unfunded commitments |
|
49 |
|
|
|
(285 |
) |
|
|
— |
|
Balance at the end of the
period |
$ |
1,288 |
|
|
$ |
1,239 |
|
|
$ |
1,285 |
|
|
|
|
|
|
|
Allowance to loans, net of
unearned income |
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.21 |
% |
Allowance to gross loans |
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.20 |
% |
Net charge-offs to average
loans, net of unearned income(1) |
|
0.10 |
% |
|
|
0.08 |
% |
|
|
0.05 |
% |
Provision for credit losses to
average loans, net of unearned income(1) |
|
0.26 |
% |
|
|
0.56 |
% |
|
|
0.30 |
% |
(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 Ended |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
Net income |
$ |
8,119 |
|
|
$ |
8,896 |
|
|
$ |
7,671 |
|
Add: Net OREO gains |
|
— |
|
|
|
(154 |
) |
|
|
— |
|
Less: Provision fee received
on early loan payoff |
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Less: Net (loss) gain on
securities |
|
(12 |
) |
|
|
98 |
|
|
|
514 |
|
Less: Tax effect |
|
3 |
|
|
|
(508 |
) |
|
|
(123 |
) |
Core net
income |
$ |
8,128 |
|
|
$ |
7,289 |
|
|
$ |
7,280 |
|
Average assets |
$ |
2,447,278 |
|
|
$ |
2,303,398 |
|
|
$ |
2,057,005 |
|
Core return on average
assets |
|
1.34 |
% |
|
|
1.26 |
% |
|
|
1.44 |
% |
|
|
|
|
|
|
Net income |
$ |
8,119 |
|
|
$ |
8,896 |
|
|
$ |
7,671 |
|
Add: Net OREO gains |
|
— |
|
|
|
(154 |
) |
|
|
— |
|
Add: Provision for credit
losses |
|
1,236 |
|
|
|
2,579 |
|
|
|
1,181 |
|
Less: Provision fee received
on early loan payoff |
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Less: Net (loss) gain on
securities |
|
(12 |
) |
|
|
98 |
|
|
|
514 |
|
Add: Income taxes |
|
2,377 |
|
|
|
2,330 |
|
|
|
2,322 |
|
Pretax pre-provision
core net income |
$ |
11,744 |
|
|
$ |
11,690 |
|
|
$ |
10,660 |
|
Average assets |
$ |
2,447,278 |
|
|
$ |
2,303,398 |
|
|
$ |
2,057,005 |
|
Pretax pre-provision
core return on average assets |
|
1.93 |
% |
|
|
2.01 |
% |
|
|
2.10 |
% |
|
|
|
|
|
|
Net interest income |
$ |
20,839 |
|
|
$ |
20,404 |
|
|
$ |
19,546 |
|
Add: Fully-taxable equivalent
adjustments(1) |
|
73 |
|
|
|
99 |
|
|
|
85 |
|
Net interest income -
FTE |
$ |
20,912 |
|
|
$ |
20,503 |
|
|
$ |
19,631 |
|
|
|
|
|
|
|
Net interest margin |
|
3.59 |
% |
|
|
3.69 |
% |
|
|
4.07 |
% |
Effect of fully-taxable
equivalent adjustments(1) |
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
Net interest margin -
FTE |
|
3.60 |
% |
|
|
3.71 |
% |
|
|
4.09 |
% |
|
|
|
|
|
|
Total stockholders'
equity |
$ |
222,881 |
|
|
$ |
214,964 |
|
|
$ |
189,663 |
|
Less: Intangible assets |
|
17,679 |
|
|
|
17,761 |
|
|
|
18,006 |
|
Tangible common
equity |
$ |
205,202 |
|
|
$ |
197,203 |
|
|
$ |
171,657 |
|
|
|
|
|
|
|
(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 |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
Core net income |
$ |
8,128 |
|
|
$ |
7,289 |
|
|
$ |
7,280 |
|
Diluted weighted average
shares outstanding |
|
9,043,122 |
|
|
|
9,021,358 |
|
|
|
9,044,490 |
|
Diluted core earnings
per share |
$ |
0.90 |
|
|
$ |
0.81 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
Common shares outstanding at
year or period end |
|
8,894,794 |
|
|
|
8,841,349 |
|
|
|
8,723,763 |
|
Tangible book value
per share |
$ |
23.07 |
|
|
$ |
22.30 |
|
|
$ |
19.68 |
|
|
|
|
|
|
|
Total assets at end of
period |
$ |
2,510,975 |
|
|
$ |
2,446,663 |
|
|
$ |
2,135,622 |
|
Less: Intangible assets |
|
17,679 |
|
|
|
17,761 |
|
|
|
18,006 |
|
Adjusted assets at end of
period |
$ |
2,493,296 |
|
|
$ |
2,428,902 |
|
|
$ |
2,117,616 |
|
Tangible common equity
to tangible assets |
|
8.23 |
% |
|
|
8.12 |
% |
|
|
8.11 |
% |
|
|
|
|
|
|
Total average shareholders
equity |
$ |
219,622 |
|
|
$ |
207,324 |
|
|
$ |
186,639 |
|
Less: Average intangible
assets |
|
17,730 |
|
|
|
17,809 |
|
|
|
18,055 |
|
Average tangible common
equity |
$ |
201,892 |
|
|
$ |
189,515 |
|
|
$ |
168,584 |
|
Net income to common
shareholders |
$ |
8,119 |
|
|
$ |
8,896 |
|
|
$ |
7,671 |
|
Return on average
tangible common equity |
|
16.17 |
% |
|
|
18.62 |
% |
|
|
18.45 |
% |
Average tangible common
equity |
$ |
201,892 |
|
|
$ |
189,515 |
|
|
$ |
168,584 |
|
Core net income |
$ |
8,128 |
|
|
$ |
7,289 |
|
|
$ |
7,280 |
|
Core return on average
tangible common equity |
|
16.19 |
% |
|
|
15.26 |
% |
|
|
17.51 |
% |
|
|
|
|
|
|
Net interest income |
$ |
20,839 |
|
|
$ |
20,404 |
|
|
$ |
19,546 |
|
Add: Noninterest income |
|
1,268 |
|
|
|
3,118 |
|
|
|
1,786 |
|
Less: Provision fee received
on early loan payoff |
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Less: Net (loss) gain on
securities |
|
(12 |
) |
|
|
98 |
|
|
|
514 |
|
Operating revenue |
$ |
22,119 |
|
|
$ |
21,561 |
|
|
$ |
20,818 |
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Total noninterest expense |
$ |
10,375 |
|
|
$ |
9,717 |
|
|
$ |
10,158 |
|
Less: Net OREO gains |
|
— |
|
|
|
(154 |
) |
|
|
— |
|
Adjusted noninterest
expenses |
$ |
10,375 |
|
|
$ |
9,871 |
|
|
$ |
10,158 |
|
Core efficiency
ratio |
|
46.90 |
% |
|
|
45.78 |
% |
|
|
48.79 |
% |
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