Southern States Bancshares (SSBK) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $7.4 million, up 10.9% year-over-year but down from $8.2 million in Q2 2024, with growth driven by the Century Bank acquisition and higher net interest and noninterest income, offset by increased expenses and credit loss provisions.

• Core net income was $8.7 million ($0.89 per diluted share), compared to $9.1 million in Q2 2024 and $9.6 million in Q3 2023.

• Loans, net of unearned income, reached $2.2 billion as of September 30, 2024, up 16.7% from December 31, 2023, with strong growth from the Century Bank acquisition.

• Deposits grew 19.9% year-to-date to $2.4 billion, with noninterest-bearing deposits comprising 22.5% of the total and a $130.2 million increase in Q3 2024.

• The acquisition of Century Bank closed August 1, 2024, adding $336.8 million in assets, $131.7 million in loans, and $308.7 million in deposits, resulting in $14.1 million in goodwill.

Financial highlights

• Net interest income for Q3 2024 was $24.2 million, up 17.0% year-over-year and 12.4% sequentially, with a net interest margin of 3.65%.

• Provision for credit losses was $2.6 million in Q3 2024, including a $1.7 million provision related to the Century Bank acquisition.

• Noninterest income was $1.8 million in Q3 2024, up 28.4% sequentially and a $4.7 million increase from Q3 2023, reflecting acquisition impact and higher SBA/USDA fees.

• Noninterest expense rose 59.7% year-over-year and 19.9% sequentially to $13.7 million in Q3 2024, driven by merger-related costs and higher salaries.

• For the nine months ended September 30, 2024, net income was $23.7 million, up 2.7% year-over-year.

Outlook and guidance

• Management expects to meet obligations through profitability, loan and securities repayments, and continued deposit growth, with adequate liquidity and capital resources.

• The company remains focused on efficient operations, core deposit growth, prudent loan underwriting, and managing interest rate risk amid a competitive deposit environment.

• Forward-looking statements caution about risks and uncertainties, especially given recent banking industry trends.