Document

First Quarter 2024 Performance and Operational Highlights

•Net income of $8.1 million, or $0.90 per diluted share

•Core net income(1) of $8.1 million, or $0.90 per diluted share(1)

•Net interest income of $20.8 million, an increase of $435,000 from the prior quarter

•Net interest margin (“NIM”) of 3.59%, down 10 basis points from the prior quarter

•NIM of 3.60% on a fully-taxable equivalent basis (“NIM - FTE”)(1)

•Return on average assets (“ROAA”) of 1.33%; return on average stockholders’ equity (“ROAE”) of 14.87%; and return on average tangible common equity (“ROATCE”)(1) of 16.17%

•Core ROAA(1) of 1.34%; and core ROATCE(1) of 16.19%

•Efficiency ratio of 46.90%

•Linked-quarter loan growth of 17.2% annualized

•Linked-quarter total deposits grew 18.3% annualized

•Linked-quarter total deposits, excluding brokered deposits, grew 7.1% annualized

(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

ANNISTON, Ala., April 22, 2024 – Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States” or the “Company”), the holding company for Southern States Bank, an Alabama state-chartered commercial bank (the “Bank”), today reported net income of $8.1 million, or $0.90 diluted earnings per share, for the first quarter of 2024. This compares to net income of $8.9 million, or $0.99 diluted earnings per share, for the fourth quarter of 2023, and net income of $7.7 million, or $0.85 diluted earnings per share, for the first quarter of 2023. The Company reported core net income of $8.1 million, or $0.90 diluted core earnings per share, for the first quarter of 2024. This compares to core net income of $7.3 million, or $0.81 diluted core earnings per share, for the fourth quarter of 2023, and core net income of $7.3 million, or $0.80 diluted core earnings per share, for the first quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures”).

CEO Commentary

Mark Chambers, Chief Executive Officer and President of Southern States, said, “We built on our momentum in 2023 and continued strong lending activity in the first quarter, selectively identifying compelling opportunities while carefully managing risk and maintaining solid credit quality.”

“We grew our total loans by 17.2% annualized from the prior quarter, while our non-performing loans as a percentage of the total portfolio was just 0.18%. Our portfolio is in excellent shape. In addition to loan growth, we grew total non-brokered deposits by 7.1% annualized, and net interest income expanded by 2.1% as we benefited from higher yields on earning assets. While funding expenses remained elevated amid the higher-for-longer interest rate environment, resulting in continued pressure on our net interest margin, the rate of cost increases leveled off during the first quarter, and our NIM remained healthy at 3.59%.”

“With liquidity and capital levels, Southern States is well well-positioned to drive further growth across our footprint, which includes economically dynamic markets throughout Alabama and Georgia. Importantly, our previously announced acquisition of CBB Bancorp, the holding company for Century Bank of Georgia, will further fortify our deposit base and provide an excellent platform for loan growth in new markets. It gives us added confidence in our ability to deliver long-term value for our shareholders.”


	Three Months Ended						% Change March 31, 2024 vs.
	March 31, 2024		December 31, 2023		March 31, 2023		December 31, 2023		March 31, 2023
	(Dollars in thousands)

Service charges on deposit accounts	$	463	$	441	$	450	5.0	%	2.9	%
Swap fees	15		70		(4)		(78.6)	%	(475.0)	%
SBA/USDA fees	64		70		134		(8.6)	%	(52.2)	%
Mortgage origination fees	96		87		100		10.3	%	(4.0)	%
Net (loss) gain on securities	(12)		98		514		(112.2)	%	(102.3)	%

Other operating income	642		2,352		592		(72.7)	%	8.4	%
Total noninterest income	$	1,268	$	3,118	$	1,786	(59.3)	%	(29.0)	%


	Three Months Ended						% Change March 31, 2024 vs.
	March 31, 2024		December 31, 2023		March 31, 2023		December 31, 2023		March 31, 2023
	(Dollars in thousands)

Salaries and employee benefits	$	6,231	$	5,739	$	6,311	8.6	%	(1.3)	%
Equipment and occupancy expenses	689		681		683		1.2	%	0.9	%
Data processing fees	643		639		593		0.6	%	8.4	%
Regulatory assessments	360		355		342		1.4	%	5.3	%

Other operating expenses	2,452		2,303		2,229		6.5	%	10.0	%
Total noninterest expenses	$	10,375	$	9,717	$	10,158	6.8	%	2.1	%

Noninterest expense for the first quarter of 2024 was $10.4 million, an increase of 6.8% from $9.7 million for the fourth quarter of 2023. The increase was primarily due to an increase in salaries and benefits, substantially as a result of higher payroll taxes brought about by incentive expense paid during the first quarter of 2024. In addition, other operating expense increased primarily as a result of the recognition of a $49,000 provision for credit losses on unfunded loan commitments during the first quarter of 2024, compared to a $334,000 credit for credit losses on unfunded loan commitments during the fourth quarter of 2023. These increases were partially offset by net forgery/fraud recoveries and a decrease in legal fees incurred during the first quarter of 2024.


	Three Months Ended									% Change March 31, 2024 vs.
	March 31, 2024			December 31, 2023			March 31, 2023			December 31, 2023		March 31, 2023
	(Dollars in thousands)

Gross loans	$	1,971,396		$	1,890,677		$	1,650,929		4.3	%	19.4	%
Unearned income	(6,247)			(6,169)			(5,614)			1.3	%	11.3	%
Loans, net of unearned income (“Loans”)	1,965,149			1,884,508			1,645,315			4.3	%	19.4	%
Average loans, net of unearned (“Average loans”)	$	1,916,288		$	1,814,484		$	1,609,564		5.6	%	19.1	%

Nonperforming loans (“NPL”)	$	3,446		$	1,177		$	1,646		192.8	%	109.4	%
Provision for credit losses	$	1,236		$	2,579		$	1,181		(52.1)	%	4.7	%
Allowance for credit losses (“ACL”)	$	25,144		$	24,378		$	19,855		3.1	%	26.6	%
Net charge-offs	$	470		$	382		$	197		23.0	%	138.6	%
NPL to gross loans	0.17		%	0.06		%	0.10		%
Net charge-offs to average loans(1)	0.10		%	0.08		%	0.05		%
ACL to loans	1.28		%	1.29		%	1.21		%

(1) Ratio is annualized.

Nonperforming loans totaled $3.4 million, or 0.17% of gross loans, at March 31, 2024, compared with $1.2 million, or 0.06% of gross loans, at December 31, 2023, and $1.6 million, or 0.10% of gross loans, at March 31, 2023. The $2.3 million net increase in nonperforming loans in the first quarter was primarily attributable to one significant commercial real estate loan and one significant commercial and industrial loan each being placed on nonaccrual status. The $1.8 million net increase in nonperforming loans from March 31, 2023 was primarily attributable to the two significant aforementioned loans. These increases were partially offset by one significant commercial real estate loan being paid off.


	Three Months Ended									% Change March 31, 2024 vs.
	March 31, 2024			December 31, 2023			March 31, 2023			December 31, 2023		March 31, 2023
	(Dollars in thousands)

Noninterest-bearing deposits	$	416,704		$	437,959		$	433,833		(4.9)	%	(3.9)	%
Interest-bearing deposits	1,693,094			1,580,230			1,355,658			7.1	%	24.9	%
Total deposits	$	2,109,798		$	2,018,189		$	1,789,491		4.5	%	17.9	%

Uninsured deposits	$	610,122		$	615,651		$	567,709		(0.9)	%	7.5	%
Uninsured deposits to total deposits	28.92		%	30.51		%	31.72		%
Noninterest deposits to total deposits	19.75		%	21.70		%	24.24		%

Total deposits were $2.1 billion at March 31, 2024, up from $2.0 billion at December 31, 2023 and $1.8 billion at March 31, 2023. The $91.6 million increase in total deposits in the first quarter was primarily due to an increase of $112.9 million in interest-bearing deposits, which includes a $60.2 million increase in brokered deposits, partially offset by a $21.3 million decrease in noninterest-bearing deposits. Total brokered deposits were $291.0 million at March 31, 2024.

Headquartered in Anniston, Alabama, Southern States Bancshares, Inc. is a bank holding company that operates primarily through its wholly-owned subsidiary, Southern States Bank. The Bank is a full service community banking institution, which offers an array of deposit, loan and other banking-related products and services to businesses and individuals in its communities. The Bank operates 13 branches in Alabama and Georgia and two loan production offices in Atlanta.

This press release contains forward-looking statements within the meaning of the federal securities laws, which reflect our current expectations and beliefs with respect to, among other things, future events and our financial performance. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. This may be especially true given recent events and trends in the banking industry and the inflationary environment. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the dates made, we cannot give any assurance that such expectations will prove correct and actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 under the section entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict.

These statements are often, but not always, made through the use of words or phrases such as “may,” “can,” “should,” “could,” “to be,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “likely,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would” and “outlook,” or the negative version of those words or other similar words or phrases of a future or forward-looking nature. Forward-looking statements appear in a number of places in this press release and may include statements about our acquisition of Century Bank of Georgia, business strategy and prospects for growth, operations, ability to pay dividends, competition, regulation and general economic conditions.


SELECT FINANCIAL DATA
(Dollars in thousands, except share and per share amounts)

	Three Months Ended
	March 31, 2024			December 31, 2023			March 31, 2023

Results of Operations
Interest income	$	38,736		$	36,172		$	28,699
Interest expense	17,897			15,768			9,153
Net interest income	20,839			20,404			19,546
Provision for credit losses	1,236			2,579			1,181
Net interest income after provision	19,603			17,825			18,365
Noninterest income	1,268			3,118			1,786
Noninterest expense	10,375			9,717			10,158
Income tax expense	2,377			2,330			2,322
Net income	$	8,119		$	8,896		$	7,671
Core net income(1)	$	8,128		$	7,289		$	7,280

Share and Per Share Data
Shares issued and outstanding	8,894,794			8,841,349			8,723,763
Weighted average shares outstanding:
Basic	8,913,477			8,864,734			8,762,450
Diluted	9,043,122			9,021,358			9,044,490
Earnings per share:
Basic	$	0.91		$	1.00		$	0.87
Diluted	0.90			0.99			0.85
Core - diluted(1)	0.90			0.81			0.80
Book value per share	25.06			24.31			21.74
Tangible book value per share(1)	23.07			22.30			19.68
Cash dividends per common share	0.09			0.09			0.09

Performance and Financial Ratios
ROAA	1.33		%	1.53		%	1.51		%
ROAE	14.87		%	17.02		%	16.67		%
Core ROAA(1)	1.34		%	1.26		%	1.44		%
ROATCE(1)	16.17		%	18.62		%	18.45		%
Core ROATCE(1)	16.19		%	15.26		%	17.51		%
NIM	3.59		%	3.69		%	4.07		%
NIM - FTE(1)	3.60		%	3.71		%	4.09		%
Net interest spread	2.63		%	2.73		%	3.33		%
Yield on loans	7.06		%	6.91		%	6.38		%
Yield on interest-earning assets	6.67		%	6.54		%	5.97		%
Cost of interest-bearing liabilities	4.04		%	3.81		%	2.64		%
Cost of funds(2)	3.27		%	3.03		%	2.01		%
Cost of interest-bearing deposits	3.92		%	3.66		%	2.42		%
Cost of total deposits	3.12		%	2.86		%	1.81		%
Noninterest deposits to total deposits	19.75		%	21.70		%	24.24		%
Core deposits to total deposits	81.45		%	83.70		%	88.57		%
Uninsured deposits to total deposits	28.92		%	30.51		%	31.72		%
Total loans to total deposits	93.14		%	93.38		%	91.94		%
Efficiency ratio	46.90		%	41.48		%	48.79		%
Core efficiency ratio(1)	46.90		%	45.78		%	48.79		%


SELECT FINANCIAL DATA
(Dollars in thousands)

	Three Months Ended
	March 31, 2024			December 31, 2023			March 31, 2023

Financial Condition (ending)
Total loans	$	1,965,149		$	1,884,508		$	1,645,315
Total securities	197,006			198,632			183,197
Total assets	2,510,975			2,446,663			2,135,622
Total noninterest bearing deposits	416,704			437,959			433,833
Total core deposits(1)	1,718,333			1,689,266			1,584,915
Total deposits	2,109,798			2,018,189			1,789,491
Total borrowings	146,773			183,673			131,372
Total liabilities	2,288,094			2,231,699			1,945,959
Total shareholders’ equity	222,881			214,964			189,663

Financial Condition (average)
Total loans	$	1,916,288		$	1,814,484		$	1,609,564
Total securities	208,954			209,074			192,348
Total other interest-earning assets	211,127			171,823			146,045
Total interest-bearing assets	2,336,369			2,195,381			1,947,957
Total assets	2,447,278			2,303,398			2,057,005
Total noninterest-bearing deposits	416,141			420,019			438,735
Total interest-bearing deposits	1,633,307			1,502,348			1,300,632
Total deposits	2,049,448			1,922,367			1,739,367
Total borrowings	148,771			140,790			104,901
Total interest-bearing liabilities	1,782,078			1,643,138			1,405,533
Total shareholders’ equity	219,622			207,324			186,639

Asset Quality
Nonperforming loans	$	3,446		$	1,177		$	1,646
Other real estate owned (“OREO”)	$	33		$	33		$	2,930
Nonperforming assets (“NPA”)	$	3,479		$	1,210		$	4,576
Net charge-offs to average loans(2)	0.10		%	0.08		%	0.05		%
Provision for credit losses to average loans(2)	0.26		%	0.56		%	0.30		%
ACL to loans	1.28		%	1.29		%	1.21		%
ACL to gross loans	1.28		%	1.29		%	1.20		%
ACL to NPL	729.66		%	2071.20		%	1206.26		%
NPL to loans	0.18		%	0.06		%	0.10		%
NPL to gross loans	0.17		%	0.06		%	0.10		%
NPA to gross loans and OREO	0.18		%	0.06		%	0.28		%
NPA to total assets	0.14		%	0.05		%	0.21		%

Regulatory and Other Capital Ratios
Total shareholders’ equity to total assets	8.88		%	8.79		%	8.88		%
Tangible common equity to tangible assets(3)	8.23		%	8.12		%	8.11		%
Tier 1 capital ratio to average assets	8.79		%	8.99		%	8.89		%
Risk-based capital ratios:
CET1 capital ratio	9.39		%	9.20		%	9.00		%
Tier 1 capital ratio	9.39		%	9.20		%	9.00		%
Total capital ratio	14.42		%	14.29		%	14.41		%


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)

	March 31, 2024		December 31, 2023		March 31, 2023
	(Unaudited)		(Audited)		(Unaudited)

Assets
Cash and due from banks	$	20,470	$	19,710	$	17,245
Interest-bearing deposits in banks	129,917		134,846		99,541
Federal funds sold	86,736		96,095		76,010
Total cash and cash equivalents	237,123		250,651		192,796

Securities available for sale, at fair value	177,379		179,000		163,550
Securities held to maturity, at amortized cost	19,627		19,632		19,647
Other equity securities, at fair value	3,638		3,649		3,806
Restricted equity securities, at cost	5,108		5,684		3,862
Loans held for sale	425		450		2,376

Loans, net of unearned income	1,965,149		1,884,508		1,645,315
Less allowance for credit losses	25,144		24,378		19,855
Loans, net	1,940,005		1,860,130		1,625,460

Premises and equipment, net	26,262		26,426		27,098
Accrued interest receivable	9,561		8,711		7,077
Bank owned life insurance	30,075		29,884		29,350
Annuities	15,939		15,036		15,489
Foreclosed assets	33		33		2,930
Goodwill	16,862		16,862		16,862
Core deposit intangible	817		899		1,144
Other assets	28,121		29,616		24,175

Total assets	$	2,510,975	$	2,446,663	$	2,135,622

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	416,704	$	437,959	$	433,833
Interest-bearing	1,693,094		1,580,230		1,355,658
Total deposits	2,109,798		2,018,189		1,789,491

Other borrowings	7,997		26,994		(16)
FHLB advances	52,000		70,000		45,000
Subordinated notes	86,776		86,679		86,388
Accrued interest payable	1,805		1,519		844
Other liabilities	29,718		28,318		24,252

Total liabilities	2,288,094		2,231,699		1,945,959

Stockholders' equity:
Common stock	44,746		44,479		43,798
Capital surplus	79,282		78,361		77,053
Retained earnings	109,838		102,523		80,642
Accumulated other comprehensive loss	(8,401)		(8,379)		(9,846)
Unvested restricted stock	(1,030)		(466)		(965)
Vested restricted stock units	(1,554)		(1,554)		(1,019)

Total stockholders' equity	222,881		214,964		189,663

Total liabilities and stockholders' equity	$	2,510,975	$	2,446,663	$	2,135,622


CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)

	Three Months Ended
	March 31, 2024		December 31, 2023		March 31, 2023
	(Unaudited)		(Unaudited)		(Unaudited)
Interest income:
Loans, including fees	$	33,628	$	31,613	$	25,335
Taxable securities	1,981		1,986		1,383
Nontaxable securities	229		230		291
Other interest and dividends	2,898		2,343		1,690
Total interest income	38,736		36,172		28,699

Interest expense:
Deposits	15,906		13,869		7,768
Other borrowings	1,991		1,899		1,385
Total interest expense	17,897		15,768		9,153

Net interest income	20,839		20,404		19,546
Provision for credit losses	1,236		2,579		1,181
Net interest income after provision for credit losses	19,603		17,825		18,365

Noninterest income:
Service charges on deposit accounts	463		441		450
Swap fees	15		70		(4)
SBA/USDA fees	64		70		134
Mortgage origination fees	96		87		100
Net (loss) gain on securities	(12)		98		514

Other operating income	642		2,352		592
Total noninterest income	1,268		3,118		1,786

Noninterest expenses:
Salaries and employee benefits	6,231		5,739		6,311
Equipment and occupancy expenses	689		681		683
Data processing fees	643		639		593
Regulatory assessments	360		355		342

Other operating expenses	2,452		2,303		2,229
Total noninterest expenses	10,375		9,717		10,158

Income before income taxes	10,496		11,226		9,993

Income tax expense	2,377		2,330		2,322

Net income	$	8,119	$	8,896	$	7,671

Basic earnings per share	$	0.91	$	1.00	$	0.87

Diluted earnings per share	$	0.90	$	0.99	$	0.85


AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
(Dollars in thousands)

	Three Months Ended
	March 31, 2024						December 31, 2023						March 31, 2023
	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans, net of unearned income(1)	$	1,916,288	$	33,628	7.06	%	$	1,814,484	$	31,613	6.91	%	$	1,609,564	$	25,335	6.38	%
Taxable securities	163,586		1,981		4.87	%	163,537		1,986		4.82	%	139,516		1,383		4.02	%
Nontaxable securities	45,368		229		2.03	%	45,537		230		2.00	%	52,832		291		2.24	%
Other interest-earnings assets	211,127		2,898		5.52	%	171,823		2,343		5.41	%	146,045		1,690		4.69	%
Total interest-earning assets	$	2,336,369	$	38,736	6.67	%	$	2,195,381	$	36,172	6.54	%	$	1,947,957	$	28,699	5.97	%
Allowance for credit losses	(24,313)						(22,666)						(20,493)
Noninterest-earning assets	135,222						130,683						129,541
Total Assets	$	2,447,278					$	2,303,398					$	2,057,005

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing transaction accounts	85,858		26		0.12	%	86,163		23		0.11	%	93,951		20		0.08	%
Savings and money market accounts	902,361		8,804		3.92	%	885,548		8,445		3.78	%	806,001		5,040		2.54	%
Time deposits	645,088		7,076		4.41	%	530,637		5,401		4.04	%	400,680		2,708		2.74	%
FHLB advances	53,121		655		4.96	%	52,076		645		4.92	%	18,578		159		3.47	%
Other borrowings	95,650		1,336		5.62	%	88,714		1,254		5.61	%	86,323		1,226		5.76	%
Total interest-bearing liabilities	$	1,782,078	$	17,897	4.04	%	$	1,643,138	$	15,768	3.81	%	$	1,405,533	$	9,153	2.64	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits	$	416,141					$	420,019					$	438,735
Other liabilities	29,437						32,917						26,098
Total noninterest-bearing liabilities	$	445,578					$	452,936					$	464,833
Stockholders’ Equity	219,622						207,324						186,639
Total Liabilities and Stockholders’ Equity	$	2,447,278					$	2,303,398					$	2,057,005

Net interest income			$	20,839					$	20,404					$	19,546
Net interest spread(2)					2.63	%					2.73	%					3.33	%
Net interest margin(3)					3.59	%					3.69	%					4.07	%
Net interest margin - FTE(4)(5)					3.60	%					3.71	%					4.09	%
Cost of funds(6)					3.27	%					3.03	%					2.01	%
Cost of interest-bearing deposits					3.92	%					3.66	%					2.42	%
Cost of total deposits					3.12	%					2.86	%					1.81	%


LOAN COMPOSITION
(Dollars in thousands)

	March 31, 2024				December 31, 2023				March 31, 2023
	Amount		% of gross		Amount		% of gross		Amount		% of gross

Real estate mortgages:
Construction and development	$	252,934	12.8	%	$	242,960	12.9	%	$	227,560	13.8	%
Residential	238,702		12.1	%	224,603		11.9	%	196,923		11.9	%
Commercial	1,182,634		60.0	%	1,144,867		60.5	%	948,251		57.5	%
Commercial and industrial	288,701		14.7	%	269,961		14.3	%	270,825		16.4	%
Consumer and other	8,425		0.4	%	8,286		0.4	%	7,370		0.4	%
Gross loans	1,971,396		100.0	%	1,890,677		100.0	%	1,650,929		100.0	%
Unearned income	(6,247)				(6,169)				(5,614)
Loans, net of unearned income	1,965,149				1,884,508				1,645,315
Allowance for credit losses	(25,144)				(24,378)				(19,855)
Loans, net	$	1,940,005			$	1,860,130			$	1,625,460


DEPOSIT COMPOSITION
(Dollars in thousands)

	March 31, 2024				December 31, 2023				March 31, 2023
	Amount		% of total		Amount		% of total		Amount		% of total


Noninterest-bearing transaction	$	416,704	19.7	%	$	437,959	21.7	%	$	433,833	24.2	%
Interest-bearing transaction	974,079		46.2	%	946,347		46.9	%	877,166		49.0	%
Savings	33,909		1.6	%	35,412		1.7	%	47,742		2.7	%
Time deposits, $250,000 and under	584,658		27.7	%	500,406		24.8	%	366,271		20.5	%
Time deposits, over $250,000	100,448		4.8	%	98,065		4.9	%	64,479		3.6	%
Total deposits	$	2,109,798	100.0	%	$	2,018,189	100.0	%	$	1,789,491	100.0	%


Nonperfoming Assets
(Dollars in thousands)

	March 31, 2024			December 31, 2023			March 31, 2023


Nonaccrual loans	$	3,446		$	1,017		$	1,646
Past due loans 90 days or more and still accruing interest	—			160			—
Total nonperforming loans	3,446			1,177			1,646
OREO	33			33			2,930

Total nonperforming assets	$	3,479		$	1,210		$	4,576

Financial difficulty modification loans– nonaccrual(1)	675			907			805
Financial difficulty modification loans – accruing	1,283			1,095			1,272
Financial difficulty modification loans	$	1,958		$	2,002		$	2,077

Allowance for credit losses	$	25,144		$	24,378		$	19,855
Loans, net of unearned income at the end of the period	$	1,965,149		$	1,884,508		$	1,645,315
Gross loans outstanding at the end of period	$	1,971,396		$	1,890,677		$	1,650,929
Total assets	$	2,510,975		$	2,446,663		$	2,135,622
Allowance for credit losses to nonperforming loans	729.66		%	2071.20		%	1206.26		%
Nonperforming loans to loans, net of unearned income	0.18		%	0.06		%	0.10		%
Nonperforming loans to gross loans	0.17		%	0.06		%	0.10		%
Nonperforming assets to gross loans and OREO	0.18		%	0.06		%	0.28		%
Nonperforming assets to total assets	0.14		%	0.05		%	0.21		%

Nonaccrual loans by category:
Real estate mortgages:
Construction & Development	$	—		$	—		$	64
Residential Mortgages	246			252			267
Commercial Real Estate Mortgages	2,422			765			1,263
Commercial & Industrial	778			—			51
Consumer and other	—			—			1
Total	$	3,446		$	1,017		$	1,646


Allowance for Credit Losses
(Dollars in thousands)

	Three Months Ended
	March 31, 2024			December 31, 2023			March 31, 2023

Average loans, net of unearned income	$	1,916,288		$	1,814,484		$	1,609,564
Loans, net of unearned income	1,965,149			1,884,508			1,645,315
Gross loans	1,971,396			1,890,677			1,650,929
Allowance for credit losses at beginning of the period	24,378			22,181			20,156
Impact of adoption of ASC 326	—			—			(1,285)
Charge-offs:
Construction and development	—			—			—
Residential	11			—			—
Commercial	27			—			—
Commercial and industrial	442			424			218
Consumer and other	15			2			6
Total charge-offs	495			426			224
Recoveries:
Construction and development	—			—			—
Residential	8			4			11
Commercial	—			—			—
Commercial and industrial	16			39			14
Consumer and other	1			1			2
Total recoveries	25			44			27
Net charge-offs	$	470		$	382		$	197

Provision for credit losses	$	1,236		$	2,579		$	1,181
Balance at end of the period	$	25,144		$	24,378		$	19,855

Allowance for credit losses on unfunded commitments at beginning of the period	$	1,239		$	1,524		$	—
Impact of adoption of ASC 326	—			—			1,285
Provision (credit) for credit losses on unfunded commitments	49			(285)			—
Balance at the end of the period	$	1,288		$	1,239		$	1,285

Allowance to loans, net of unearned income	1.28		%	1.29		%	1.21		%
Allowance to gross loans	1.28		%	1.29		%	1.20		%
Net charge-offs to average loans, net of unearned income(1)	0.10		%	0.08		%	0.05		%
Provision for credit losses to average loans, net of unearned income(1)	0.26		%	0.56		%	0.30		%

In addition to reporting GAAP results, the Company reports non-GAAP financial measures in this earnings release and other disclosures. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.


Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts

	Three Months Ended
	March 31, 2024			December 31, 2023			March 31, 2023

Net income	$	8,119		$	8,896		$	7,671


Add: Net OREO gains	—			(154)			—


Less: Provision fee received on early loan payoff	—			1,863			—


Less: Net (loss) gain on securities	(12)			98			514
Less: Tax effect	3			(508)			(123)
Core net income	$	8,128		$	7,289		$	7,280
Average assets	$	2,447,278		$	2,303,398		$	2,057,005
Core return on average assets	1.34		%	1.26		%	1.44		%

Net income	$	8,119		$	8,896		$	7,671


Add: Net OREO gains	—			(154)			—
Add: Provision for credit losses	1,236			2,579			1,181


Less: Provision fee received on early loan payoff	—			1,863			—


Less: Net (loss) gain on securities	(12)			98			514
Add: Income taxes	2,377			2,330			2,322
Pretax pre-provision core net income	$	11,744		$	11,690		$	10,660
Average assets	$	2,447,278		$	2,303,398		$	2,057,005
Pretax pre-provision core return on average assets	1.93		%	2.01		%	2.10		%

Net interest income	$	20,839		$	20,404		$	19,546
Add: Fully-taxable equivalent adjustments(1)	73			99			85
Net interest income - FTE	$	20,912		$	20,503		$	19,631

Net interest margin	3.59		%	3.69		%	4.07		%
Effect of fully-taxable equivalent adjustments(1)	0.01		%	0.02		%	0.02		%
Net interest margin - FTE	3.60		%	3.71		%	4.09		%

Total stockholders' equity	$	222,881		$	214,964		$	189,663
Less: Intangible assets	17,679			17,761			18,006

Tangible common equity	$	205,202		$	197,203		$	171,657

(1) Assumes a 24.0% tax rate.


Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands, except share and per share amounts

	Three Months Ended
	March 31, 2024			December 31, 2023			March 31, 2023

Core net income	$	8,128		$	7,289		$	7,280
Diluted weighted average shares outstanding	9,043,122			9,021,358			9,044,490
Diluted core earnings per share	$	0.90		$	0.81		$	0.80

Common shares outstanding at year or period end	8,894,794			8,841,349			8,723,763
Tangible book value per share	$	23.07		$	22.30		$	19.68

Total assets at end of period	$	2,510,975		$	2,446,663		$	2,135,622
Less: Intangible assets	17,679			17,761			18,006
Adjusted assets at end of period	$	2,493,296		$	2,428,902		$	2,117,616
Tangible common equity to tangible assets	8.23		%	8.12		%	8.11		%

Total average shareholders equity	$	219,622		$	207,324		$	186,639
Less: Average intangible assets	17,730			17,809			18,055
Average tangible common equity	$	201,892		$	189,515		$	168,584
Net income to common shareholders	$	8,119		$	8,896		$	7,671
Return on average tangible common equity	16.17		%	18.62		%	18.45		%
Average tangible common equity	$	201,892		$	189,515		$	168,584
Core net income	$	8,128		$	7,289		$	7,280
Core return on average tangible common equity	16.19		%	15.26		%	17.51		%

Net interest income	$	20,839		$	20,404		$	19,546
Add: Noninterest income	1,268			3,118			1,786


Less: Provision fee received on early loan payoff	—			1,863			—


Less: Net (loss) gain on securities	(12)			98			514
Operating revenue	$	22,119		$	21,561		$	20,818

Expenses:
Total noninterest expense	$	10,375		$	9,717		$	10,158


Less: Net OREO gains	—			(154)			—

Adjusted noninterest expenses	$	10,375		$	9,871		$	10,158
Core efficiency ratio	46.90		%	45.78		%	48.79		%


SOUTHERN STATES BANCSHARES, INC.			615 Quintard Avenue / Anniston, AL 36201 / (256) 241-1092