Southern States Bancshares(US:SSBK)2025-04-22 17:09Financial Performance - Net income for Q1 2025 was $10.4 million, or $1.03 diluted earnings per share, compared to $11.2 million, or $1.11 diluted EPS in Q4 2024, and $8.1 million, or $0.90 diluted EPS in Q1 2024[4]. - Core net income for Q1 2025 was $10.3 million, or $1.03 diluted core EPS, compared to $10.5 million, or $1.04 diluted core EPS in Q4 2024, and $8.1 million, or $0.90 diluted core EPS in Q1 2024[6]. - Net income for the three months ended March 31, 2025, was $10,351 thousand, compared to $11,198 thousand for the previous quarter and $8,119 thousand for the same period last year, reflecting a decrease of 7.6% quarter-over-quarter but an increase of 27.5% year-over-year[35]. - Core net income for the three months ended March 31, 2025, was $10,334 thousand, compared to $8,128 thousand for the same period last year, reflecting a year-over-year increase of 27.1%[51]. - Basic earnings per share for the first quarter of 2025 was $1.04, down from $1.13 in the previous quarter but up from $0.91 in the same quarter last year, reflecting a year-over-year increase of 14.3%[35]. - Diluted core earnings per share for the quarter was $1.03, up from $0.90 in the same quarter last year, representing a growth of 14.4%[53]. Income and Margin - Net interest income for Q1 2025 was $24.9 million, a decrease of 0.7% from $25.1 million in Q4 2024, but an increase of 19.4% from $20.8 million in Q1 2024[8]. - Net interest margin for Q1 2025 was 3.75%, up 9 basis points from 3.66% in Q4 2024, and up from 3.59% in Q1 2024[9]. - The net interest income after provision for credit losses was $24,104 thousand for the three months ended March 31, 2025, compared to $24,978 thousand in the previous quarter and $19,603 thousand in the same quarter last year, reflecting a year-over-year increase of 22.7%[35]. - Net interest income for the period was $24,879 thousand, up from $20,839 thousand a year ago, indicating a growth of 19.6%[51]. - The company reported a net interest spread of 2.76% for the period[38]. Loans and Credit Quality - Nonperforming loans totaled $7.2 million, or 0.32% of gross loans, at March 31, 2025, compared to $6.5 million, or 0.29% at December 31, 2024, and $3.4 million, or 0.17% at March 31, 2024[16]. - The provision for credit losses was $775,000 for Q1 2025, compared to $72,000 in Q4 2024, reflecting loan growth and qualitative economic factors[17]. - 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[15]. - Nonperforming loans (NPL) increased to $7,175 thousand as of March 31, 2025, from $6,533 thousand at December 31, 2024, and $3,446 thousand at March 31, 2024, indicating a year-over-year increase of 108.1%[30]. - The provision for credit losses was $775 thousand, significantly lower than $1,236 thousand in the same quarter last year, showing a decrease of 37.2%[46]. - The allowance for credit losses to nonperforming loans ratio stood at 402.45%[44]. Deposits and Assets - Total deposits as of March 31, 2025, were $2.4 billion, a 0.6% increase from $2.4 billion at December 31, 2024, and a 15.0% increase from $2.1 billion at March 31, 2024[20]. - Total deposits rose to $2,425,631 thousand as of March 31, 2025, from $2,411,297 thousand at December 31, 2024, and $2,109,798 thousand at March 31, 2024, marking a year-over-year growth of 15.0%[33]. - Total assets reached $2,851,145 thousand as of March 31, 2025, slightly up from $2,848,254 thousand at December 31, 2024, and significantly higher than $2,510,975 thousand at March 31, 2024, indicating a year-over-year increase of 13.5%[33]. - Interest-bearing deposits increased by $56.5 million in the first quarter of 2025, while noninterest-bearing deposits decreased by $42.1 million[20]. Capital and Efficiency - The Tier 1 capital ratio to average assets improved to 9.14% as of March 31, 2025, up from 8.67% at December 31, 2024[21]. - The common equity tier 1 (CET1) capital ratio was 10.18% as of March 31, 2025, compared to 9.84% at December 31, 2024[21]. - The efficiency ratio for the first quarter of 2025 was 46.42%, slightly improved from 46.67% in the previous quarter[27]. - The tangible common equity to tangible assets ratio improved to 8.84% from 8.23% year-over-year[52]. - The core efficiency ratio improved to 46.42% from 46.90% year-over-year, reflecting better operational efficiency[52]. Strategic Developments - Southern States Bancshares, Inc. announced a merger with FB Financial Corporation, which has $13 billion in total assets, aimed at expanding capabilities and enhancing customer experience[5]. - The acquisition of Century Bank on July 31, 2024, contributed to both loan growth and additional noninterest income in Q1 2025[12]. - The company operates 15 branches in Alabama and Georgia, along with two loan production offices in Atlanta, indicating ongoing market presence and expansion[22]. - The company plans to continue focusing on market expansion and enhancing its product offerings in the upcoming quarters[40].