Southern States Bancshares(SSBK) - 2023 Q2 - Quarterly Report

Cautionary Note Regarding Forward-Looking Statements This section provides a standard disclaimer for forward-looking statements, noting inherent risks and uncertainties - Forward-looking statements are based on current expectations, estimates, and projections, but actual results may differ materially due to inherent uncertainties and factors beyond control[10] - Key risk factors include the ability to manage growth, credit risk, general business and economic conditions, compliance with governmental and regulatory requirements, and changes in interest rates[12] - Other significant risks include systems failures, cyber-crime, ability to maintain growth rate, asset quality deterioration, changes in laws/regulations, and natural disasters[15] Part I. Financial Information Item 1. Financial Statements (unaudited) This section presents the Company's unaudited consolidated financial statements and detailed notes Consolidated Balance Sheets The consolidated balance sheets provide a snapshot of the Company's financial position, showing increases in key metrics Consolidated Balance Sheet Data | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | | Total assets | $2,277,803 | $2,045,204 | | Total liabilities | $2,080,553 | $1,863,485 | | Total stockholders' equity | $197,250 | $181,719 | | Loans, net | $1,695,127 | $1,567,008 | | Total deposits | $1,923,911 | $1,720,743 | Consolidated Statements of Income The consolidated statements of income show significant net income growth from higher interest and noninterest income Consolidated Income Statement Data | Metric | 3 Months Ended June 30, 2023 (in thousands) | 3 Months Ended June 30, 2022 (in thousands) | 6 Months Ended June 30, 2023 (in thousands) | 6 Months Ended June 30, 2022 (in thousands) | | :----------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total interest income | $32,185 | $17,752 | $60,884 | $33,624 | | Total interest expense | $12,753 | $1,387 | $21,906 | $2,605 | | Net interest income | $19,432 | $16,365 | $38,978 | $31,019 | | Provision for credit losses | $1,557 | $1,304 | $2,738 | $2,004 | | Total noninterest income | $6,862 | $1,404 | $8,648 | $2,737 | | Total noninterest expenses | $13,432 | $9,652 | $23,590 | $18,942 | | Net income | $8,756 | $5,223 | $16,427 | $9,780 | | Basic earnings per share | $1.00 | $0.60 | $1.87 | $1.11 | | Diluted earnings per share | $0.98 | $0.59 | $1.82 | $1.09 | Consolidated Statements of Comprehensive Income (Loss) Comprehensive income (loss) reflects net income adjusted for unrealized gains/losses on available-for-sale securities Consolidated Comprehensive Income Data | Metric | 3 Months Ended June 30, 2023 (in thousands) | 3 Months Ended June 30, 2022 (in thousands) | 6 Months Ended June 30, 2023 (in thousands) | 6 Months Ended June 30, 2022 (in thousands) | | :------------------------------------------------------------------------------------------------ | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net income | $8,756 | $5,223 | $16,427 | $9,780 | | Unrealized holding gains (losses) on securities available for sale arising during the period, net | $(953) | $(4,684) | $240 | $(10,552) |\n| Comprehensive income (loss) | $7,803 | $539 | $16,676 | $(772) | Consolidated Statements of Changes in Stockholders' Equity This statement details changes in stockholders' equity, showing increases from net income and stock issuances, and decreases from dividends and repurchases Consolidated Stockholders' Equity Data | Metric | December 31, 2022 (in thousands) | June 30, 2023 (in thousands) | | :------------------------------------ | :------------------------------- | :--------------------------- | | Balance, Total Stockholders' Equity | $181,719 | $197,250 | | Net income | — | $16,427 | | Common stock dividends | — | $(1,588) | | Repurchase of common stock | — | $(979) | | Other comprehensive income | — | $249 | Consolidated Statements of Cash Flows The consolidated statements of cash flows categorize cash movements, showing a net increase in cash and cash equivalents, primarily from financing activities Consolidated Cash Flow Data | Activity | 6 Months Ended June 30, 2023 (in thousands) | 6 Months Ended June 30, 2022 (in thousands) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $20,256 | $17,580 | | Net cash used in investing activities | $(138,552) | $(224,294) | | Net cash provided by financing activities | $215,726 | $113,105 | | Net increase (decrease) in cash and cash equivalents | $97,430 | $(93,609) | | Cash and cash equivalents at end of year | $265,929 | $190,347 | Notes to Condensed Consolidated Financial Statements These notes provide detailed disclosures on significant accounting policies, earnings per share, securities, loans, deposits, and other financial instruments NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines the Company's business nature, financial statement presentation, key accounting estimates, and significant accounting policies - Southern States Bancshares, Inc. is a bank holding company operating through Southern States Bank, a commercial bank with branches in Alabama and Georgia[33] - Management's estimates, particularly for the allowance for credit losses, valuation of foreclosed assets, financial instruments, deferred taxes, and investment securities, are susceptible to significant change based on economic and market conditions[35][36][37] - The Company adopted ASU 2016-13 (CECL) on January 1, 2023, which requires earlier recognition of lifetime expected credit losses for loans and off-balance sheet credit exposures[52][78] - Securities are classified as held to maturity (amortized cost) or available for sale (fair value with unrealized gains/losses in other comprehensive income)[42] NOTE 2. EARNINGS PER SHARE This note details the calculation of basic and diluted earnings per share for the reported periods Earnings Per Share Data | Metric | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :----------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic earnings per share | $1.00 | $0.60 | $1.87 | $1.11 | | Diluted earnings per share | $0.98 | $0.59 | $1.82 | $1.09 | [NOTE 3. SECURITIES](index=21&