Southern States Bancshares(US:SSBK)2025-05-05 18:43Financial Performance - Net income for the three months ended March 31, 2025, was $10,351,000, an increase of 27.5% compared to $8,119,000 for the same period in 2024[20]. - Total interest income rose to $43,164,000, up 11.8% from $38,736,000 year-over-year[18]. - Net interest income after provision for credit losses increased to $24,104,000, compared to $19,603,000 in the prior year, reflecting a growth of 22.7%[18]. - Noninterest income totaled $1,653,000, a 30.4% increase from $1,268,000 in the same quarter last year[18]. - Basic earnings per share for Q1 2025 were $1.04, compared to $0.91 in Q1 2024, representing a 14.3% increase[18]. - The company reported a net cash provided by operating activities of $9,610,000, down from $11,396,000 in the previous year[25]. Asset and Deposit Growth - Total assets increased to $2,851,145 thousand as of March 31, 2025, compared to $2,848,254 thousand at December 31, 2024, reflecting a growth of 0.1%[15]. - Total deposits reached $2,425,631 thousand, a rise of 0.6% from $2,411,297 thousand at the end of the previous quarter[15]. - The net increase in deposits was $14,334,000, a significant decrease compared to $91,609,000 in the same quarter of 2024[25]. - Cash and cash equivalents at the end of the period were $229,375,000, down from $237,123,000 year-over-year[25]. - Interest-bearing deposits increased to $1,892,411 thousand, up 3.1% from $1,835,940 thousand[16]. Credit Quality and Allowance for Credit Losses - The company reported an allowance for credit losses of $28,876 thousand, slightly up from $28,338 thousand, reflecting a 1.9% increase[15]. - The allowance for credit losses was $28,876,000 as of March 31, 2025, compared to $28,338,000 at the end of 2024, indicating a slight increase in provisions for potential loan losses[93]. - The provision for credit losses for the first quarter of 2025 was $775,000, compared to $1,236,000 for the same period in 2024[111]. - The risk category analysis as of March 31, 2025, shows that the majority of loans are classified as "Pass," indicating strong credit quality across the portfolio[101]. Mergers and Acquisitions - The company completed the acquisition of CBB Bancorp on July 31, 2024, merging it with its subsidiary, resulting in the acquisition of $334,622 in assets, including $127,871 in loans and $308,747 in deposits[69]. - The total consideration paid for the acquisition included 961,920 shares of common stock valued at $31,474 and $3,150 in cash, totaling $34,624[70]. - The acquisition resulted in goodwill of $16,313, with no impairment recorded as of March 31, 2025[72]. Regulatory Capital and Compliance - The Company and the Bank believe they are well capitalized, with Tier 1 capital ratios of 9.14% and 11.99% respectively as of March 31, 2025, exceeding minimum requirements[148]. - The Company reported total capital to risk-weighted assets ratio of 15.06% as of March 31, 2025, above the minimum requirement of 10.50%[148]. - The Company qualifies for the Community Bank Leverage Ratio framework, which requires a Tier 1 leverage ratio greater than 9.00%[147]. Market Presence and Strategy - The company operates multiple branches across Alabama and Georgia, enhancing its market presence[27]. - The company is focused on executing its growth strategy, including potential mergers and acquisitions, to enhance market presence[11]. - The company is currently navigating various risks including credit risk management and regulatory compliance as outlined in their forward-looking statements[11].