Second Quarter 2024 Performance and Operational Highlights Net income of $8.2 million, or $0.90 per diluted share Core net income(1) of $9.1 million, or $1.00 per diluted share(1) Net interest income of $21.6 million, an increase of $740,000 from the prior quarter Net interest margin ("NIM") of 3.56%, down 3 basis points from the prior quarter NIM of 3.57% on a fully-taxable equivalent basis ("NIM - FTE")(1) Return on average assets ("ROAA") of 1.29%; return on average stockholders' equity ("ROAE") of 14.55%; and return on average tangible common equity ("ROATCE")(1) of 15.79% Core ROAA(1) of 1.43%; and core ROATCE(1) of 17.44% Efficiency ratio of 49.78%; and core efficiency ratio of 44.75% Linked-quarter loans grew 10.3% annualized Linked-quarter total deposits grew 12.6% annualized Linked-quarter total deposits, excluding brokered deposits, grew 15.2% 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., July 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 $8.2 million, or $0.90 diluted earnings per share, for the second quarter of 2024. This compares to net income of $8.1 million, or $0.90 diluted earnings per share, for the first quarter of 2024, and net income of $8.8 million, or $0.98 diluted earnings per share, for the second quarter of 2023. The Company reported core net income of $9.1 million, or $1.00 diluted core earnings per share, for the second quarter of 2024. This compares to core net income of $8.1 million, or $0.90 diluted core earnings per share, for the first quarter of 2024, and core net income of $7.1 million, or $0.79 diluted core earnings per share, for the second quarter of 2023 (see "Reconciliation of Non-GAAP Financial Measures"). CEO Commentary           Mark Chambers, Chief Executive Officer and President of Southern States said, "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. Our total loan growth of 10.3% (annualized from the prior quarter) and total deposit growth of 12.6% reflected our ability to perform well through economic cycles." "We continue to be a high-performing bank with strong profitability metrics including ROATCE of 15.79%. Effective expense management resulted in our second highest core efficiency ratio of 44.75%." "Consistent with our prudent approach to risk management, we have a strong and durable foundation with high levels of capital reserves and strong credit quality. The addition of CBB Bancorp, which we expect to close on August 1, will strengthen our platform, drive loan and deposit growth, and expand our franchise in growing and attractive Georgia markets. Our two organizations are culturally aligned with a ‘Customer First' mindset and we are excited to realize all the synergies that will benefit our customers, employees, shareholders, and the communities we serve." Net Interest Income and Net Interest Margin   Three Months Ended   % Change June 30, 2024 vs. June 30,2024   March 31,2024   June 30,2023   March 31,2024   June 30,2023   (Dollars in thousands)                             Average interest-earning assets $ 2,440,425     $ 2,336,369     $ 2,091,998     4.5 %   16.7 % Net interest income $ 21,579     $ 20,839     $ 19,432     3.6 %   11.0 % Net interest margin   3.56 %     3.59 %     3.73 %   (3) bps   (17) bps                     Net interest income for the second quarter of 2024 was $21.6 million, an increase of 3.6% from $20.8 million in the first quarter of 2024. 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 second quarter of 2023, net interest income increased $2.1 million, or 11.0%. The increase was mainly driven by growth, which offset the slight decline in net interest margin. Net interest margin for the second quarter of 2024 was 3.56%, compared to 3.59% for the first quarter of 2024. 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 second quarter of 2023, net interest margin decreased from 3.73%. The decrease was primarily the result of the 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 June 30, 2024 vs. June 30,2024   March 31,2024   June 30,2023   March 31,2024   June 30,2023   (Dollars in thousands)                             Service charges on deposit accounts $ 462   $ 463     $ 456     (0.2 )%   1.3 % Swap fees   4     15       173     (73.3 )%   (97.7 )% SBA/USDA fees   58     64       66     (9.4 )%   (12.1 )% Mortgage origination fees   92     96       188     (4.2 )%   (51.1 )% Net gain (loss) on securities   20     (12 )     (45 )   (266.7 )%   (144.4 )% Employee retention credit and related revenue ("ERC")   —     —       5,100     N/A     N/A   Other operating income   732     642       924     14.0 %   (20.8 )% Total noninterest income $ 1,368   $ 1,268     $ 6,862     7.9 %   (80.1 )%                     Noninterest income for the second quarter of 2024 was $1.4 million, an increase of 7.9% from $1.3 million in the first quarter of 2024. The increase primarily reflected the purchase of additional bank owned life insurance ("BOLI") that resulted in increased BOLI income, a realized net gain on securities during the second quarter of 2024 compared to a net loss on securities during the first quarter of 2024, and an increase in interchange fees. Relative to the second quarter of 2023, noninterest income decreased 80.1% from $6.9 million. In the second quarter of 2023, the Company received $5.1 million in ERC from the Internal Revenue Service ("IRS"), which was subsequently returned in the third quarter of 2023 as a result of revised IRS eligibility guidelines. Other operating income decreased as a result of the Company receiving less nonrecurring income from a third party during the second quarter of 2024. In addition, there was a decline in swap fees during the second quarter of 2024, substantially as a result of the Company not participating in any swap transactions. Noninterest Expense   Three Months Ended   % Change June 30, 2024 vs. June 30,2024   March 31,2024   June 30,2023   March 31,2024   June 30,2023   (Dollars in thousands)                             Salaries and employee benefits $ 6,112   $ 6,231   $ 7,863   (1.9 )%   (22.3 )% Equipment and occupancy expenses   667     689     694   (3.2 )%   (3.9 )% Data processing fees   686     643     646   6.7 %   6.2 % Regulatory assessments   375     360     180   4.2 %   108.3 % Professional fees related to ERC   —     —     1,243   N/A     N/A   Other operating expenses   3,571     2,452     2,806   45.6 %   27.3 % Total noninterest expenses $ 11,411   $ 10,375   $ 13,432   10.0 %   (15.0 )%                     Noninterest expense for the second quarter of 2024 was $11.4 million, an increase of 10.0% from $10.4 million in the first quarter of 2024. The second quarter of 2024 included a $1.2 million wire fraud loss. This was not a systematic issue with systems, only a procedural incident. The increase was partially offset by a reduction in salaries and benefits during the second quarter of 2024, substantially due to higher payroll taxes and 401k matching brought about by incentive expense paid during the first quarter of 2024. Relative to the second quarter of 2023, noninterest expense decreased 15.0% from $13.4 million. The decrease was primarily attributable to a decrease in salaries and benefits, substantially as a result of one-time retirement-related expenses of $1.6 million paid to our former CEO in May 2023 and professional fees paid to a third party during the second quarter of 2023 related to ERC, which were subsequently refunded during the third quarter of 2023. These decreases were significantly offset by the wire fraud loss the Company incurred during the second quarter of 2024. As previously mentioned, this was not a systematic issue with systems, only a procedural incident. Loans and Credit Quality   Three Months Ended   % Change June 30, 2024 vs. June 30,2024   March 31,2024   June 30,2023   March 31,2024   June 30,2023 (Dollars in thousands)                             Gross loans $ 2,021,877     $ 1,971,396     $ 1,722,278     2.6 %   17.4 % Unearned income   (6,443 )     (6,247 )     (5,766 )   3.1 %   11.7 % Loans, net of unearned income ("Loans")   2,015,434       1,965,149       1,716,512     2.6 %   17.4 % Average loans, net of unearned ("Average loans") $ 1,987,533     $ 1,916,288     $ 1,676,816     3.7 %   18.5 %                     Nonperforming loans ("NPL") $ 3,784     $ 3,446     $ 1,010     9.8 %   274.7 % Provision for credit losses $ 1,067     $ 1,236     $ 1,557     (13.7 )%   (31.5 )% Allowance for credit losses ("ACL") $ 25,828     $ 25,144     $ 21,385     2.7 %   20.8 % Net charge-offs $ 383     $ 470     $ 27     (18.5 )%   1318.5 % NPL to gross loans   0.19 %     0.17 %     0.06 %         Net charge-offs to average loans(1)   0.08 %     0.10 %     0.01 %         ACL to loans   1.28 %     1.28 %     1.25 %                             (1) Ratio is annualized.                                       Loans, net of unearned income, were $2.0 billion at June 30, 2024, up $50.3 million from March 31, 2024 and up $298.9 million from June 30, 2023. The linked-quarter and year-over-year increases in loans were primarily attributable to new business growth across our footprint. Nonperforming loans totaled $3.8 million, or 0.19% of gross loans, at June 30, 2024, compared with $3.4 million, or 0.17% of gross loans, at March 31, 2024, and $1.0 million, or 0.06% of gross loans, at June 30, 2023. The $338,000 net increase in nonperforming loans in the second quarter of 2024 was primarily attributable to a commercial and industrial loan that was added to nonaccrual status and partially offset by a commercial and industrial loan that was charged-off. The $2.8 million net increase in nonperforming loans from June 30, 2023, was primarily attributable to a significant commercial real estate loan and two commercial and industrial loans that were added to nonaccrual status. The Company recorded a provision for credit losses of $1.1 million for the second quarter of 2024, compared to $1.2 million for the first quarter of 2024. Provision in the second quarter of 2024 was based primarily on loan growth along with qualitative economic factors and individually analyzed loans. Net charge-offs for the second quarter of 2024 were $383,000, or 0.08% of average loans on an annualized basis, compared to net charge-offs of $470,000, or 0.10% of average loans on an annualized basis, for the first quarter of 2024, and net charge-offs of $27,000, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. The charge-offs recorded during the the first and second quarters of 2024 were substantially related to the charge-off of approximately 70% of a purchased pool of consumer loans, as the borrower has filed for bankruptcy. This was a conservative approach based on uncertainty. The Company's allowance for credit losses was 1.28% of total loans and 682.56% of nonperforming loans at June 30, 2024, compared with 1.28% of total loans and 729.66% of nonperforming loans at March 31, 2024. Allowance for credit losses on unfunded commitments was $1.2 million at June 30, 2024. Deposits   Three Months Ended   % Change June 30, 2024 vs. June 30,2024   March 31,2024   June 30,2023   March 31,2024   June 30,2023   (Dollars in thousands)                             Noninterest-bearing deposits $ 416,068     $ 416,704     $ 449,433     (0.2 )%   (7.4 )% Interest-bearing deposits   1,759,610       1,693,094       1,474,478     3.9 %   19.3 % Total deposits $ 2,175,678     $ 2,109,798     $ 1,923,911     3.1 %   13.1 %                     Uninsured deposits $ 645,283     $ 610,122     $ 553,084     5.8 %   16.7 % Uninsured deposits to total deposits   29.66 %     28.92 %     28.75 %         Noninterest deposits to total deposits   19.12 %     19.75 %     23.36 %                             Total deposits were $2.2 billion at June 30, 2024, up from $2.1 billion at March 31, 2024 and $1.9 billion at June 30, 2023. The $65.9 million increase in total deposits in the second quarter was primarily due to an increase of $66.5 million in interest-bearing deposits, which included a $2.7 million decrease in brokered deposits, partially offset by a $636,000 decrease in noninterest-bearing deposits. Total brokered deposits were $288.3 million at June 30, 2024, compared to 291.0 million at March 31, 2024. Capital   June 30,2024   March 31,2024   June 30,2023 Company   Bank   Company   Bank   Company   Bank                       Tier 1 capital ratio to average assets 8.72 %   11.52 %   8.79 %   11.67 %   8.70 %   11.82 % Risk-based capital ratios:                       Common equity tier 1 ("CET1") capital ratio 9.54 %   12.61 %   9.39 %   12.47 %   9.11 %   12.37 % Tier 1 capital ratio 9.54 %   12.61 %   9.39 %   12.47 %   9.11 %   12.37 % Total capital ratio 14.50 %   13.77 %   14.42 %   13.63 %   14.42 %   13.47 %                         As of June 30, 2024, total stockholders' equity was $230.6 million, up from $222.9 million at March 31, 2024. The increase of $7.7 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       Margaret Boyce (205) 820-8065       (310) 622-8247       SELECT FINANCIAL DATA (Dollars in thousands, except share and per share amounts)                       Three Months Ended   Six Months Ended June 30,2024   March 31,2024   June 30,2023   June 30,2024   June 30,2023                   Results of Operations                   Interest income $ 41,007     $ 38,736     $ 32,185     $ 79,743     $ 60,884   Interest expense   19,428       17,897       12,753       37,325       21,906   Net interest income   21,579       20,839       19,432       42,418       38,978   Provision for credit losses   1,067       1,236       1,557       2,303       2,738   Net interest income after provision   20,512       19,603       17,875       40,115       36,240   Noninterest income   1,368       1,268       6,862       2,636       8,648   Noninterest expense   11,411       10,375       13,432       21,786       23,590   Income tax expense   2,271       2,377       2,549       4,648       4,871   Net income $ 8,198     $ 8,119     $ 8,756     $ 16,317     $ 16,427   Core net income(1) $ 9,058     $ 8,128     $ 7,058     $ 17,186     $ 14,339                       Share and Per Share Data                   Shares issued and outstanding   8,908,130       8,894,794       8,738,814       8,908,130       8,738,814   Weighted average shares outstanding:                   Basic   8,957,608       8,913,477       8,763,635       8,935,542       8,763,046   Diluted   9,070,568       9,043,122       8,950,847       9,062,548       9,001,600   Earnings per share:                   Basic $ 0.91     $ 0.91     $ 1.00     $ 1.82     $ 1.87   Diluted   0.90       0.90       0.98       1.80       1.82   Core - diluted(1)   1.00       0.90       0.79       1.90       1.59   Book value per share   25.88       25.06       22.57       25.88       22.57   Tangible book value per share(1)   23.91       23.07       20.52       23.91       20.52   Cash dividends per common share   0.09       0.09       0.09       0.18       0.18                       Performance and Financial Ratios                   ROAA   1.29 %     1.33 %     1.60 %     1.31 %     1.56 % ROAE   14.55 %     14.87 %     18.15 %     14.71 %     17.43 % Core ROAA(1)   1.43 %     1.34 %     1.29 %     1.38 %     1.36 % ROATCE(1)   15.79 %     16.17 %     20.01 %     15.98 %     19.25 % Core ROATCE(1)   17.44 %     16.19 %     16.13 %     16.83 %     16.80 % NIM   3.56 %     3.59 %     3.73 %     3.57 %     3.89 % NIM - FTE(1)   3.57 %     3.60 %     3.74 %     3.58 %     3.90 % Net interest spread   2.59 %     2.63 %     2.86 %     2.60 %     3.08 % Yield on loans   7.17 %     7.06 %     6.61 %     7.11 %     6.50 % Yield on interest-earning assets   6.76 %     6.67 %     6.17 %     6.71 %     6.08 % Cost of interest-bearing liabilities   4.17 %     4.04 %     3.31 %     4.11 %     3.00 % Cost of funds(2)   3.41 %     3.27 %     2.58 %     3.34 %     2.31 % Cost of interest-bearing deposits   4.07 %     3.92 %     3.12 %     4.00 %     2.79 % Cost of total deposits   3.27 %     3.12 %     2.38 %     3.20 %     2.11 % Noninterest deposits to total deposits   19.12 %     19.75 %     23.36 %     19.12 %     23.36 % Core deposits to total deposits   81.78 %     81.45 %     86.43 %     81.78 %     86.43 % Uninsured deposits to total deposits   29.66 %     28.92 %     28.75 %     29.66 %     28.75 % Total loans to total deposits   92.63 %     93.14 %     89.22 %     92.63 %     89.22 % Efficiency ratio   49.78 %     46.90 %     51.00 %     48.36 %     50.02 % Core efficiency ratio(1)   44.75 %     46.90 %     49.96 %     45.81 %     49.38 %                     (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   Six Months Ended June 30,2024   March 31,2024   June 30,2023   June 30,2024   June 30,2023                   Financial Condition (ending)                   Total loans $ 2,015,434     $ 1,965,149     $ 1,716,512     $ 2,015,434     $ 1,716,512   Total securities   204,131       197,006       182,717       204,131       182,717   Total assets   2,572,011       2,510,975       2,277,803       2,572,011       2,277,803   Total noninterest-bearing deposits   416,068       416,704       449,433       416,068       449,433   Total core deposits(1)   1,779,253       1,718,333       1,662,855       1,779,253       1,662,855   Total deposits   2,175,678       2,109,798       1,923,911       2,175,678       1,923,911   Total borrowings   136,873       146,773       131,472       136,873       131,472   Total liabilities   2,341,430       2,288,094       2,080,553       2,341,430       2,080,553   Total shareholders' equity   230,581       222,881       197,250       230,581       197,250                       Financial Condition (average)                   Total loans $ 1,987,533     $ 1,916,288     $ 1,676,816     $ 1,951,910     $ 1,643,376   Total securities   210,678       208,954       196,731       209,816       194,552   Total other interest-earning assets   242,214       211,127       218,451       226,671       182,447   Total interest-earning assets   2,440,425       2,336,369       2,091,998       2,388,397       2,020,375   Total assets   2,553,010       2,447,278       2,200,843       2,500,144       2,129,328   Total noninterest-bearing deposits   420,885       416,141       438,987       418,513       438,862   Total interest-bearing deposits   1,729,682       1,633,307       1,412,047       1,681,494       1,356,648   Total deposits   2,150,567       2,049,448       1,851,034       2,100,007       1,795,510   Total borrowings   143,189       148,771       131,411       145,980       118,229   Total interest-bearing liabilities   1,872,871       1,782,078       1,543,458       1,827,474       1,474,877   Total shareholders' equity   226,527       219,622       193,516       223,075       190,096                       Asset Quality                   Nonperforming loans $ 3,784     $ 3,446     $ 1,010     $ 3,784     $ 1,010   Other real estate owned ("OREO") $ 33     $ 33     $ 2,870     $ 33     $ 2,870   Nonperforming assets ("NPA") $ 3,817     $ 3,479     $ 3,880     $ 3,817     $ 3,880   Net charge-offs to average loans(2)   0.08 %     0.10 %     0.01 %     0.09 %     0.03 % Provision for credit losses to average loans(2)   0.22 %     0.26 %     0.37 %     0.24 %     0.34 % ACL to loans   1.28 %     1.28 %     1.25 %     1.28 %     1.25 % ACL to gross loans   1.28 %     1.28 %     1.24 %     1.28 %     1.24 % ACL to NPL   682.56 %     729.66 %     2117.33 %     682.56 %     2117.33 % NPL to loans   0.19 %     0.18 %     0.06 %     0.19 %     0.06 % NPL to gross loans