Southern States Bancshares(SSBK) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $7.4 million, or $0.76 per diluted share, compared to $8.2 million, or $0.90 per diluted share in Q2 2024[2] - Core net income for Q3 2024 was $8.7 million, or $0.89 per diluted share, down from $9.1 million, or $1.00 per diluted share in Q2 2024[2] - Basic earnings per share for Q3 2024 were $0.76, compared to $0.91 in Q2 2024 and $0.75 in Q3 2023[23] - Net income for September 2024 was $7,353 thousand, a decrease of 10.3% from $8,198 thousand in June 2024 but an increase of 10.9% from $6,629 thousand in September 2023[27] - Core net income for September 2024 was $8,675 thousand, down from $9,058 thousand in June 2024, reflecting a decrease of 4.2%[27] - The return on average assets (ROAA) for September 2024 was 1.05%, down from 1.29% in June 2024, indicating a decline in profitability[28] - Core return on average assets was 1.24% for the three months ended September 30, 2024, down from 1.43% in the prior year[36] Income and Expenses - Net interest income increased by 12.4% to $24.2 million in Q3 2024, largely due to the acquisition of Century Bank[3] - Noninterest income for Q3 2024 was $1.8 million, an increase of 28.4% from $1.4 million in Q2 2024, driven by the acquisition of Century Bank[8] - Noninterest expense for Q3 2024 was $13.7 million, a 19.9% increase from $11.4 million in Q2 2024, including $1.5 million in merger-related expenses[10] - Total noninterest expense increased to $13,687,000 from $11,411,000, reflecting a rise of 19.9%[37] - Adjusted noninterest expenses were $12,176,000, compared to $10,259,000, representing an increase of 18.7%[37] Asset and Deposit Growth - Total assets reached $2,841,440 thousand, compared to $2,296,527 thousand in the previous year, marking an increase of 23.7%[25] - Total deposits grew 44.8% annualized linked-quarter, with legacy total deposits excluding brokered deposits growing 9.6% annualized[2] - Total deposits reached $2.4 billion at September 30, 2024, up from $2.2 billion at June 30, 2024, and $1.9 billion at September 30, 2023[17] - Total deposits rose to $2,420,546 thousand, a 11.2% increase from $1,916,401 thousand year-over-year[25] - The company reported a 31.3% increase in noninterest-bearing deposits, totaling $546.3 million at September 30, 2024[17] Loan Performance - As of September 30, 2024, net loans were $2.2 billion, an increase of $183.8 million from June 30, 2024, and $425.1 million from September 30, 2023[12] - Total loans increased to $2,199,211 thousand, up from $1,774,148 thousand year-over-year, representing a growth of 23.9%[25] - Nonperforming loans totaled $7.9 million, or 0.36% of gross loans, up from $3.8 million (0.19%) at June 30, 2024, and $1.1 million (0.06%) at September 30, 2023[13] - The provision for credit losses was $2.6 million for Q3 2024, compared to $1.1 million in Q2 2024, including a $1.7 million provision related to the acquisition[14] Capital and Equity - Total stockholders' equity increased to $271.4 million, up from $230.6 million at June 30, 2024, primarily due to the issuance of $31.5 million in common stock for the acquisition[18] - Total shareholders' equity improved to $271,370 thousand, compared to $201,924 thousand, showing a growth of 34.3%[25] - The Tier 1 capital ratio remained stable at 9.36%, compared to 9.32% in the previous year, indicating strong capital adequacy[25] Efficiency and Ratios - The efficiency ratio improved to 52.79%, with a core efficiency ratio of 46.96%[2] - The efficiency ratio for September 2024 was 52.79%, compared to 49.78% in June 2024, indicating a decline in operational efficiency[28] - Return on average tangible common equity (ROATCE) was 13.35% for Q3 2024[2] - Diluted core earnings per share decreased to $0.89 from $1.00, representing a decline of 11%[37] Acquisition Impact - The acquisition of Century Bank was completed on August 1, 2024, enhancing the company's platform for loan and deposit growth in Georgia markets[3] - The acquisition of Century Bank contributed an additional $131.7 million in loans and $304.4 million in deposits as of September 30, 2024[12][17]