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 (GLOBE NEWSWIRE) -- 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." Net Interest Income and Net Interest Margin   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)                             Average interest-earning assets $ 2,336,369     $ 2,195,381     $ 1,947,957     6.4 %   19.9 % Net interest income $ 20,839     $ 20,404     $ 19,546     2.1 %   6.6 % Net interest margin   3.59 %     3.69 %     4.07 %   (10)bps   (48)bps                     Net interest income for the first quarter of 2024 was $20.8 million, an increase of 2.1% from $20.4 million for the fourth quarter of 2023. The increase was primarily driven by a higher yield on interest-earning assets resulting from growth at higher interest rates, which more than offset a higher cost of interest-bearing deposits due to both higher interest rates and competition. Relative to the first quarter of 2023, net interest income increased $1.3 million, or 6.6%. The increase was substantially due to growth, which offset the decline in net interest margin. Net interest margin for the first quarter of 2024 was 3.59%, compared to 3.69% for the fourth quarter of 2023. The decrease was primarily due to an increase in the cost of interest-bearing deposits, which was greater than the increase in the yield on interest-earning assets. Relative to the first quarter of 2023, net interest margin decreased from 4.07%. The decrease was primarily the result of the rapid increase in interest rates, which accelerated the cost of interest-bearing liabilities at a greater pace than the yield received on interest-earning assets. A shift from noninterest-bearing deposits into interest-bearing deposits also had a negative impact on net interest margin. Noninterest Income   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)%                     Noninterest income for the first quarter of 2024 was $1.3 million, a decrease of 59.3% from $3.1 million for the fourth quarter of 2023. The fourth quarter of 2023 included a $1.9 million fee related to the early payoff of a $12.0 million purchased loan. As this was unusually large and atypical for the Bank, it was recorded as noninterest income instead of interest income, which would have impacted the net interest margin. Relative to the first quarter of 2023, noninterest income decreased 29.0% from $1.8 million. The decrease was primarily due to a realized net loss on securities during the first quarter of 2024 compared to a net gain on securities during the first quarter of 2023. Noninterest Expense   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. Relative to the first quarter of 2023, noninterest expense increased 2.1% from $10.2 million. The increase was primarily attributable to increases in other operating expense, including marginal increases in insured deposit program expense, provision for credit losses on unfunded commitments and expense associated with a new market tax credit. Loans and Credit Quality   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.                                       Loans, net of unearned income, were $2.0 billion at March 31, 2024, up $80.6 million from December 31, 2023 and up $319.8 million from March 31, 2023. The linked-quarter and year-over-year increases in loans were primarily attributable to new business growth across our footprint. 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. The Company recorded a provision for credit losses of $1.2 million for the first quarter of 2024, compared to $2.6 million for the fourth quarter of 2023. Provision in the first quarter of 2024 was based on loan growth, qualitative economic factors and individually analyzed loans. Net charge-offs for the first quarter of 2024 were $470,000, or 0.10% of average loans on an annualized basis, compared to net charge-offs of $382,000, or 0.08% of average loans on an annualized basis, for the fourth quarter of 2023, and net charge-offs of $197,000, or 0.05% of average loans on an annualized basis, for the first quarter of 2023. The Company's allowance for credit losses was 1.28% of total loans and 729.66% of nonperforming loans at March 31, 2024, compared with 1.29% of total loans and 2071.20% of nonperforming loans at December 31, 2023. Allowance for credit losses on unfunded commitments was $1.3 million at March 31, 2024. Deposits   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. Capital   March 31,2024   December 31,2023   March 31,2023 Company   Bank   Company   Bank   Company   Bank                       Tier 1 capital ratio to average assets 8.79 %   11.67 %   8.99 %   12.01 %   8.89 %   12.19 % Risk-based capital ratios:                       Common equity tier 1 ("CET1") capital ratio 9.39 %   12.47 %   9.20 %   12.30 %   9.00 %   12.34 % Tier 1 capital ratio 9.39 %   12.47 %   9.20 %   12.30 %   9.00 %   12.34 % Total capital ratio 14.42 %   13.63 %   14.29 %   13.45 %   14.41 %   13.38 %                         As of March 31, 2024, total stockholders' equity was $222.9 million, up from $215.0 million at December 31, 2023. The increase of $7.9 million was substantially due to earnings growth. About Southern States Bancshares, Inc. 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. Forward-Looking Statements 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. Contact Information Lynn Joyce       Kevin Dobbs (205) 820-8065       (310) 622-8245       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 %             (1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.(2) Includes total interest-bearing liabilities and noninterest deposits. 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