On July 23, 2024, Southern States Bancshares Inc (SSBK, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Southern States Bancshares Inc is a full-service community banking institution that offers an array of deposit, loan, and other banking-related products and services to businesses and individuals in its communities. The company operates through three portfolio segments: Real estate, Commercial and industrial, and Consumer and other.
Performance Overview
Southern States Bancshares Inc (SSBK, Financial) reported a net income of $8.2 million, or $0.90 per diluted share, for the second quarter of 2024. This compares to net income of $8.1 million, or $0.90 per diluted share, for the first quarter of 2024, and $8.8 million, or $0.98 per diluted share, for the second quarter of 2023. The company also reported core net income of $9.1 million, or $1.00 per diluted share, for Q2 2024, surpassing the analyst estimate of $0.89 per share.
Key Financial Metrics
Net interest income for the second quarter was $21.6 million, reflecting a 3.6% increase from $20.8 million in the first quarter of 2024. The net interest margin (NIM) was 3.56%, slightly down from 3.59% in the previous quarter. The return on average assets (ROAA) stood at 1.29%, while the return on average stockholders' equity (ROAE) was 14.55%. The efficiency ratio was 49.78%, indicating effective expense management.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $8.2 million | $8.1 million | $8.8 million |
| Core Net Income | $9.1 million | $8.1 million | $7.1 million |
| Net Interest Income | $21.6 million | $20.8 million | $19.4 million |
| Net Interest Margin | 3.56% | 3.59% | 3.73% |
Operational Highlights
Southern States Bancshares Inc (SSBK, Financial) experienced a 10.3% annualized growth in loans and a 12.6% annualized growth in total deposits from the previous quarter. Excluding brokered deposits, the growth in total deposits was 15.2% annualized. Noninterest income for Q2 2024 was $1.4 million, up 7.9% from Q1 2024, but down 80.1% from Q2 2023 due to a one-time Employee Retention Credit (ERC) received in the previous year.
Challenges and Risk Management
Despite the positive growth, Southern States Bancshares Inc (SSBK, Financial) faced challenges such as a $1.2 million wire fraud loss and an increase in nonperforming loans to $3.8 million, or 0.19% of gross loans. The company recorded a provision for credit losses of $1.1 million for Q2 2024, slightly down from $1.2 million in Q1 2024. The allowance for credit losses remained stable at 1.28% of total loans.
"We generated consistent growth in the second quarter with continued progress in business development adding high-quality loans and core deposits. We are seeing well-balanced loan growth across all our major areas of lending," said Mark Chambers, Chief Executive Officer and President of Southern States.
Financial Position
Total deposits were $2.2 billion at the end of Q2 2024, up from $2.1 billion in Q1 2024. Total stockholders' equity increased to $230.6 million from $222.9 million in the previous quarter, driven by earnings growth. The company's strong capital reserves and credit quality underscore its prudent approach to risk management.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Southern States Bancshares Inc for further details.
