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Southern States Bancshares, Inc. Announces Fourth Quarter 2024 Financial Results
المصدر: Nasdaq GlobeNewswire / 21 يناير 2025 07:00:53 America/New_York
Fourth Quarter 2024 Performance and Operational Highlights
- Net income of $11.2 million, or $1.11 per diluted share
- Core net income(1) of $10.5 million, or $1.04 per diluted share(1)
- Pretax pre-provision core net income(1) of $14.0 million
- Net interest income of $25.1 million, an increase of $804,000 from the prior quarter
- Net interest margin (“NIM”) of 3.66%, up 1 basis point from the prior quarter
- Return on average assets (“ROAA”) of 1.55%; return on average stockholders’ equity (“ROAE”) of 16.13%; and return on average tangible common equity (“ROATCE”)(1) of 18.87%
- Core ROAA(1) of 1.45%; and core ROATCE(1) of 17.67%
- Efficiency ratio of 46.67%; and core efficiency ratio of 47.78%
- Linked-quarter loans grew 4.9% annualized
- Linked-quarter total deposits, excluding brokered deposits, grew 6.2% annualized
- Linked-quarter brokered deposits declined (22.7)%
ANNISTON, Ala., Jan. 21, 2025 (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 $11.2 million, or $1.11 diluted earnings per share, for the fourth quarter of 2024. This compares to net income of $7.4 million, or $0.76 diluted earnings per share, for the third quarter of 2024, and net income of $8.9 million, or $0.99 diluted earnings per share, for the fourth quarter of 2023. The Company reported core net income of $10.5 million, or $1.04 diluted core earnings per share, for the fourth quarter of 2024. This compares to core net income of $8.7 million, or $0.89 diluted core earnings per share, for the third quarter of 2024, and core net income of $7.3 million, or $0.81 diluted core earnings per share, for the fourth quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures”).
CEO Commentary Mark Chambers, Chief Executive Officer and President of Southern States Bancshares, Inc., said “We are proud to report record net income of $11.2 million for the fourth quarter and $34.9 million for the full year, a testament to our team's diligent execution and superior customer service. Our strong operating results reflect our continued consistent growth supported by a healthy net interest margin of 3.66% for the fourth quarter, coupled with an efficiency ratio of 46.67%.” “We remain firmly committed to prudently managing our franchise for sustainable growth across our dynamic footprint. That starts with maintaining excellent credit quality and strong capital levels. Disciplined underwriting is critical to our success, and at year end, nonperforming loans accounted for just 0.29% of total loans.’’ “In August 2024, we completed the acquisition of Century Bank and have now seamlessly integrated its customers and team members into our organization. It enhances our presence in Georgia, especially in the high-growth Atlanta metro market, and elevates our position as a premier Southeastern community bank. With 15 full-service branches and two loan production offices across the vibrant economies in Alabama and Georgia, we have substantially expanded and strengthened Southern States Bank’s community banking platform, which we believe sets us up to deliver resilient growth and shareholder returns in 2025.” Net Interest Income and Net Interest Margin Three Months Ended % Change December 31, 2024 vs. December 31,
2024September 30,
2024December 31,
2023September 30,
2024December 31,
2023(Dollars in thousands) Average interest-earning assets $ 2,722,907 $ 2,645,388 $ 2,195,381 2.9 % 24.0 % Net interest income $ 25,050 $ 24,246 $ 20,404 3.3 % 22.8 % Net interest margin 3.66 % 3.65 % 3.69 % 1 bps (3) bps Net interest income for the fourth quarter of 2024 was $25.1 million, an increase of 3.3% from $24.2 million for the third quarter of 2024. The increase was substantially due to a decrease in higher-cost brokered deposits as a result of calls and repayments at maturity and replaced with less expensive core deposits.
Relative to the fourth quarter of 2023, net interest income increased $4.6 million, or 22.8%. The increase was mainly driven by significant organic growth, coupled with the acquisition of Century Bank on July 31, 2024.
Net interest margin for the fourth quarter of 2024 was 3.66%, compared to 3.65% for the third quarter of 2024. The slight increase was primarily due to cost savings attributed to calls and repayments at maturity on higher-cost brokered deposits.
Relative to the fourth quarter of 2023, net interest margin decreased slightly from 3.69%. The decrease was primarily the result of the decrease in interest rates. The acquisition of Century Bank resulted in a positive impact to the net interest margin, effectively helping to reduce the cost of interest-bearing liabilities.
Noninterest Income Three Months Ended % Change December 31, 2024 vs. December 31,
2024September 30,
2024December 31,
2023September 30,
2024December 31,
2023(Dollars in thousands) Service charges on deposit accounts $ 565 $ 532 $ 441 6.2 % 28.1 % Swap fees (expense) 17 (9 ) 70 288.9 % (75.7) % SBA/USDA fees 89 179 70 (50.3) % 27.1 % Mortgage origination fees 55 112 87 (50.9) % (36.8) Net gain on securities 25 75 98 (66.7) % (74.5) % Employee retention credit (“ERC”) 1,154 — — N/A N/A Other operating income 1,085 868 2,352 25.0 % (53.9) % Total noninterest income $ 2,990 $ 1,757 $ 3,118 70.2 % (4.1) % Noninterest income for the fourth quarter of 2024 was $3.0 million, an increase of 70.2% from $1.8 million for the third quarter of 2024. The Company applied for the Voluntary Disclosure Program (“VDP”) associated with the ERC program during the third quarter of 2023 and received approval during the fourth quarter of 2024. The fourth quarter of 2024 included $1.2 million in ERC as a participant in the program.
Relative to the fourth quarter of 2023, noninterest income decreased 4.1% from $3.1 million. 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. The fourth quarter of 2024 included the $1.2 million in ERC discussed earlier. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest income during the fourth quarter of 2024.
Noninterest Expense Three Months Ended % Change December 31, 2024 vs. December 31,
2024September 30,
2024December 31,
2023September 30,
2024December 31,
2023(Dollars in thousands) Salaries and employee benefits $ 7,002 $ 6,876 $ 5,739 1.8 % 22.0 % Equipment and occupancy expenses 851 814 681 4.5 % 25.0 % Data processing fees 960 781 639 22.9 % 50.2 % Regulatory assessments 441 414 355 6.5 % 24.2 % Professional fees related to ERC 236 — — N/A N/A Merger-related expenses — 1,511 — N/A N/A Other operating expenses 3,584 3,291 2,303 8.9 % 55.6 % Total noninterest expenses $ 13,074 $ 13,687 $ 9,717 (4.5) % 34.5 % Noninterest expense for the fourth quarter of 2024 was $13.1 million, a decrease of 4.5% from $13.7 million for the third quarter of 2024. The third quarter of 2024 included merger-related expenses of $1.5 million, of which $961,000 was not deductible for taxes, as a result of the acquisition of Century Bank. The fourth quarter of 2024 included professional fees paid to a third party related to ERC, along with an overall increase in noninterest expense as a result of the full-quarter recognition of the acquisition of Century Bank.
Relative to the fourth quarter of 2023, noninterest expense increased 34.5% from $9.7 million. The acquisition of Century Bank on July 31, 2024 resulted in additional noninterest expense during the fourth quarter of 2024.
Loans and Credit Quality Three Months Ended % Change December 31, 2024 vs. December 31,
2024September 30,
2024December 31,
2023September 30,
2024December 31,
2023(Dollars in thousands) Gross loans $ 2,233,244 $ 2,205,747 $ 1,890,677 1.2 % 18.1 % Unearned income (6,675 ) (6,536 ) (6,169 ) 2.1 % 8.2 % Loans, net of unearned income (“Loans”) 2,226,569 2,199,211 1,884,508 1.2 % 18.2 % Average loans, net of unearned (“Average loans”) $ 2,205,892 $ 2,134,318 $ 1,814,484 3.4 % 21.6 % Nonperforming loans (“NPL”) $ 6,533 $ 7,868 $ 1,177 (17.0) % 455.1 % Provision for credit losses $ 72 $ 2,583 $ 2,579 (97.2) % (97.2) % Allowance for credit losses (“ACL”) $ 28,338 $ 28,061 $ 24,378 1.0 % 16.2 % Net (recoveries) charge-offs $ (205 ) $ 350 $ 382 158.6 % 153.7 % NPL to gross loans 0.29 % 0.36 % 0.06 % Net (recoveries) charge-offs to average loans(1) (0.04) % 0.07 % 0.08 % ACL to loans 1.27 % 1.28 % 1.29 % (1) Ratio is annualized. Loans, net of unearned income, were $2.2 billion at December 31, 2024, up $27.4 million from September 30, 2024 and up $342.1 million from December 31, 2023. The linked-quarter increase in loans was primarily attributable to new business growth across our footprint. The year-over-year increase in loans was primarily attributable the new business growth across our footprint, coupled with the acquisition of Century Bank, which resulted in additional loans of $131.7 million at December 31, 2024.
Nonperforming loans totaled $6.5 million, or 0.29% of gross loans, at December 31, 2024, compared with $7.9 million, or 0.36% of gross loans, at September 30, 2024, and $1.2 million, or 0.06% of gross loans, at December 31, 2023. The $1.3 million net decrease in nonperforming loans from September 30, 2024 was primarily attributable to a significant commercial and industrial loan being paid down. The $5.4 million net increase in nonperforming loans from December 31, 2023, was primarily attributable to a significant commercial and industrial loan, which has since been paid down, and a commercial real estate loan being placed on nonaccrual status.
The Company recorded a provision for credit losses of $72,000 for the fourth quarter of 2024, compared to $2.6 million for the third quarter of 2024. Provision in the third quarter of 2024 included a $1.7 million provision as a result of the acquisition of Century Bank as well as additional provisions based on growth.
Net recoveries for the fourth quarter of 2024 were $205,000, or (0.04)% of average loans on an annualized basis, compared to net charge-offs of $350,000, or 0.07% of average loans on an annualized basis, for the third quarter of 2024, and net charge-offs of $382,000, or 0.08% of average loans on an annualized basis, for the fourth quarter of 2023. The net recoveries received in the fourth quarter of 2024 were primarily related to a pool of consumer loans charged-off in the third quarter. The charge-offs recorded during the third quarter of 2024 were substantially related to a purchased pool of consumer loans for which the borrower filed for bankruptcy. The loan was fully charged-off as of September 30, 2024.
The Company’s allowance for credit losses was 1.27% of total loans and 433.77% of nonperforming loans at December 31, 2024, compared with 1.28% of total loans and 356.65% of nonperforming loans at September 30, 2024. Allowance for credit losses on unfunded commitments was $1.4 million at December 31, 2024.
Deposits Three Months Ended % Change December 31, 2024 vs. December 31,
2024September 30,
2024December 31,
2023September 30,
2024December 31,
2023(Dollars in thousands) Noninterest-bearing deposits $ 575,357 $ 546,282 $ 437,959 5.3 % 31.4 % Interest-bearing deposits 1,835,940 1,874,264 1,580,230 (2.0) % 16.2 % Total deposits $ 2,411,297 $ 2,420,546 $ 2,018,189 (0.4) % 19.5 % Uninsured deposits $ 760,141 $ 735,676 $ 615,651 3.3 % 23.5 % Uninsured deposits to total deposits and accrued interest on deposits 31.50 % 30.37 % 30.51 % Noninterest deposits to total deposits 23.86 % 22.57 % 21.70 % Total deposits were $2.4 billion at December 31, 2024, down slightly from $2.4 billion at September 30, 2024 and up from $2.0 billion at December 31, 2023. The $9.2 million decrease in total deposits in the fourth quarter from the previous quarter was primarily due to a $44.1 million decrease in brokered deposits due to calls and maturation, partially offset by an increase of $29.1 million in noninterest-bearing deposits. Total brokered deposits were $150.0 million at December 31, 2024, compared to $194.2 million at September 30, 2024. Excluding brokered deposits, total deposits increased $34.9 million in the fourth quarter of 2024.
Capital December 31,
2024September 30,
2024December 31,
2023Company Bank Company Bank Company Bank Tier 1 capital ratio to average assets 8.67 % 11.45 % 8.64 % 11.48 % 8.99 % 12.01 % Risk-based capital ratios: Common equity tier 1 (“CET1”) capital ratio 9.84 % 12.99 % 9.36 % 12.43 % 9.20 % 12.30 % Tier 1 capital ratio 9.84 % 12.99 % 9.36 % 12.43 % 9.20 % 12.30 % Total capital ratio 14.73 % 14.18 % 14.18 % 13.59 % 14.29 % 13.45 % As of December 31, 2024, total stockholders’ equity was $279.9 million, up from $271.4 million at September 30, 2024. The increase of $8.5 million was substantially due to strong earnings growth, partially offset by an increase in accumulated other comprehensive losses resulting from changes in the value of available for sale securities.
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 15 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. 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 ljoyce@ssbank.bank ssbankir@finprofiles.com SELECT FINANCIAL DATA (Dollars in thousands, except share and per share amounts) Three Months Ended Twelve Months Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Results of Operations Interest income $ 44,977 $ 45,068 $ 36,172 $ 169,781 $ 132,260 Interest expense 19,927 20,822 15,768 78,074 52,148 Net interest income 25,050 24,246 20,404 91,707 80,112 Provision for credit losses 72 2,583 2,579 4,957 6,090 Net interest income after provision 24,978 21,663 17,825 86,750 74,022 Noninterest income 2,990 1,757 3,118 7,390 8,874 Noninterest expense 13,074 13,687 9,717 48,548 41,876 Income tax expense 3,696 2,380 2,330 10,724 9,068 Net income $ 11,198 $ 7,353 $ 8,896 $ 34,868 $ 31,952 Core net income(1) $ 10,484 $ 8,675 $ 7,289 $ 36,339 $ 31,190 Share and Per Share Data Shares issued and outstanding 9,889,260 9,882,350 8,841,349 9,889,260 8,841,349 Weighted average shares outstanding: Basic 9,940,221 9,608,868 8,864,734 9,357,336 8,809,590 Diluted 10,061,735 9,725,884 9,021,358 9,503,994 9,038,004 Earnings per share: Basic $ 1.13 $ 0.76 $ 1.00 $ 3.72 $ 3.63 Diluted 1.11 0.76 0.99 3.67 3.53 Core - diluted(1) 1.04 0.89 0.81 3.82 3.45 Book value per share 28.30 27.46 24.31 28.30 24.31 Tangible book value per share(1) 24.04 23.38 22.30 24.04 22.30 Cash dividends per common share 0.09 0.09 0.09 0.36 0.36 Performance and Financial Ratios ROAA 1.55 % 1.05 % 1.53 % 1.31 % 1.44 % ROAE 16.13 % 11.89 % 17.02 % 14.39 % 16.16 % Core ROAA(1) 1.45 % 1.24 % 1.26 % 1.36 % 1.41 % ROATCE(1) 18.87 % 13.35 % 18.62 % 16.10 % 17.78 % Core ROATCE(1) 17.67 % 15.74 % 15.26 % 16.78 % 17.35 % NIM 3.66 % 3.65 % 3.69 % 3.61 % 3.81 % NIM - FTE(1) 3.67 % 3.66 % 3.71 % 3.63 % 3.82 % Net interest spread 2.64 % 2.66 % 2.73 % 2.62 % 2.92 % Yield on loans 7.03 % 7.21 % 6.91 % 7.12 % 6.70 % Yield on interest-earning assets 6.57 % 6.78 % 6.54 % 6.69 % 6.29 % Cost of interest-bearing liabilities 3.93 % 4.12 % 3.81 % 4.07 % 3.37 % Cost of funds(2) 3.09 % 3.31 % 3.03 % 3.27 % 2.63 % Cost of interest-bearing deposits 3.83 % 4.03 % 3.66 % 3.96 % 3.19 % Cost of total deposits 2.96 % 3.19 % 2.86 % 3.13 % 2.44 % Noninterest deposits to total deposits 23.86 % 22.57 % 21.70 % 23.86 % 21.70 % Core deposits to total deposits 87.90 % 86.30 % 83.70 % 87.90 % 83.70 % Uninsured deposits to total deposits and accrued interest on deposits 31.50 % 30.37 % 30.51 % 31.50 % 30.51 % Total loans to total deposits 92.34 % 90.86 % 93.38 % 92.34 % 93.38 % Efficiency ratio 46.67 % 52.79 % 41.48 % 49.04 % 47.35 % Core efficiency ratio(1) 47.78 % 46.96 % 45.78 % 46.66 % 46.74 % (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 Twelve Months Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Financial Condition (ending) Total loans $ 2,226,569 $ 2,199,211 $ 1,884,508 $ 2,226,569 $ 1,884,508 Total securities 216,481 217,692 198,632 216,481 198,632 Total assets 2,849,264 2,841,440 2,446,663 2,849,264 2,446,663 Total noninterest bearing deposits 575,357 546,282 437,959 575,357 437,959 Total core deposits(1) 2,119,491 2,088,993 1,689,266 2,119,491 1,689,266 Total deposits 2,411,297 2,420,546 2,018,189 2,411,297 2,018,189 Total borrowings 131,224 121,083 183,673 131,224 183,673 Total liabilities 2,569,375 2,570,070 2,231,699 2,569,375 2,231,699 Total shareholders’ equity 279,889 271,370 214,964 279,889 214,964 Financial Condition (average) Total loans $ 2,205,892 $ 2,134,318 $ 1,814,484 $ 2,061,604 $ 1,711,006 Total securities 228,213 223,750 209,074 217,943 200,047 Total other interest-earning assets 288,802 287,320 171,823 257,533 192,433 Total interest-bearing assets 2,722,907 2,645,388 2,195,381 2,537,080 2,103,486 Total assets 2,875,981 2,777,215 2,303,398 2,664,353 2,211,742 Total noninterest-bearing deposits 552,898 490,450 420,019 470,376 436,571 Total interest-bearing deposits 1,893,906 1,874,861 1,502,348 1,783,493 1,422,453 Total deposits 2,446,804 2,365,311 1,922,367 2,253,869 1,859,024 Total borrowings 121,356 134,035 140,790 136,788 126,853 Total interest-bearing liabilities 2,015,262 2,008,896 1,643,138 1,920,281 1,549,306 Total shareholders’ equity 276,250 246,081 207,324 242,224 197,680 Asset Quality Nonperforming loans $ 6,533 $ 7,868 $ 1,177 $ 6,533 $ 1,177 Other real estate owned (“OREO”) $ — $ 33 $ 33 $ — $ 33 Nonperforming assets (“NPA”) $ 6,533 $ 7,901 $ 1,210 $ 6,533 $ 1,210 Net (recovery) charge-offs to average loans(2) (0.04) % 0.07 % 0.08 % 0.05 % 0.03 % Provision for credit losses to average loans(2) 0.01 % 0.48 % 0.56 % 0.24 % 0.36 % ACL to loans 1.27 % 1.28 % 1.29 % 1.27 % 1.29 % ACL to gross loans 1.27 % 1.27 % 1.29 % 1.27 % 1.29 % ACL to NPL 433.77 % 356.65 % 2071.20 % 433.77 % 2071.20 % NPL to loans 0.29 % 0.36 % 0.06 % 0.29 % 0.06 % NPL to gross loans 0.29 % 0.36 % 0.06 % 0.29 % 0.06 % NPA to gross loans and OREO 0.29 % 0.36 % 0.06 % 0.29 % 0.06 % NPA to total assets 0.23 % 0.28 % 0.05 % 0.23 % 0.05 % Regulatory and Other Capital Ratios Total shareholders’ equity to total assets 9.82 % 9.55 % 8.79 % 9.82 % 8.79 % Tangible common equity to tangible assets(3) 8.47 % 8.25 % 8.12 % 8.47 % 8.12 % Tier 1 capital ratio to average assets 8.67 % 8.64 % 8.99 % 8.67 % 8.99 % Risk-based capital ratios: CET1 capital ratio 9.84 % 9.36 % 9.20 % 9.84 % 9.20 % Tier 1 capital ratio 9.84 % 9.36 % 9.20 % 9.84 % 9.20 % Total capital ratio 14.73 % 14.18 % 14.29 % 14.73 % 14.29 % (1) We define core deposits as total deposits excluding brokered deposits and time deposits greater than $250,000.
(2) Ratio is annualized.
(3) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands) December 31,
2024September 30,
2024December 31,
2023(Unaudited) (Unaudited) (Audited) Assets Cash and due from banks $ 27,321 $ 24,225 $ 19,710 Interest-bearing deposits in banks 153,833 182,559 134,846 Federal funds sold 79,080 71,072 96,095 Total cash and cash equivalents 260,234 277,856 250,651 Securities available for sale, at fair value 196,870 198,076 179,000 Securities held to maturity, at amortized cost 19,611 19,616 19,632 Other equity securities, at fair value 3,697 3,733 3,649 Restricted equity securities, at cost 4,441 4,418 5,684 Loans held for sale 404 415 450 Loans, net of unearned income 2,226,569 2,199,211 1,884,508 Less allowance for credit losses 28,338 28,061 24,378 Loans, net 2,198,231 2,171,150 1,860,130 Premises and equipment, net 32,048 32,319 26,426 Accrued interest receivable 10,111 10,114 8,711 Bank owned life insurance 39,431 39,159 29,884 Annuities 16,772 16,843 15,036 Foreclosed assets — 33 33 Goodwill 33,176 30,980 16,862 Core deposit intangible 8,939 9,338 899 Other assets 25,299 27,390 29,616 Total assets $ 2,849,264 $ 2,841,440 $ 2,446,663 Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing $ 575,357 $ 546,282 $ 437,959 Interest-bearing 1,835,940 1,874,264 1,580,230 Total deposits 2,411,297 2,420,546 2,018,189 Other borrowings 17,979 7,976 26,994 FHLB advances 22,000 22,000 70,000 Subordinated notes 91,245 91,107 86,679 Accrued interest payable 2,172 2,214 1,519 Other liabilities 24,682 26,227 28,318 Total liabilities 2,569,375 2,570,070 2,231,699 Stockholders' equity: Common stock 49,821 49,684 44,479 Capital surplus 106,637 106,046 78,361 Retained earnings 134,075 123,783 102,523 Accumulated other comprehensive loss (7,936 ) (5,866 ) (8,379 ) Unvested restricted stock (567 ) (723 ) (466 ) Vested restricted stock units (2,141 ) (1,554 ) (1,554 ) Total stockholders' equity 279,889 271,370 214,964 Total liabilities and stockholders' equity $ 2,849,264 $ 2,841,440 $ 2,446,663 CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Interest income: Loans, including fees $ 38,972 $ 38,690 $ 31,613 $ 146,712 $ 114,662 Taxable securities 2,237 2,205 1,986 8,462 6,806 Nontaxable securities 248 243 230 952 977 Other interest and dividends 3,520 3,930 2,343 13,655 9,815 Total interest income 44,977 45,068 36,172 169,781 132,260 Interest expense: Deposits 18,223 18,990 13,869 70,630 45,368 Other borrowings 1,704 1,832 1,899 7,444 6,780 Total interest expense 19,927 20,822 15,768 78,074 52,148 Net interest income 25,050 24,246 20,404 91,707 80,112 Provision for credit losses 72 2,583 2,579 4,957 6,090 Net interest income after provision for credit losses 24,978 21,663 17,825 86,750 74,022 Noninterest income: Service charges on deposit accounts 565 532 441 2,022 1,790 Swap fees (expense) 17 (9 ) 70 27 691 SBA/USDA fees 89 179 70 391 344 Mortgage origination fees 55 112 87 356 533 Net gain on securities 25 75 98 108 555 Employee retention credit 1,154 — — 1,162 — Other operating income 1,085 868 2,352 3,324 4,961 Total noninterest income 2,990 1,757 3,118 7,390 8,874 Noninterest expenses: Salaries and employee benefits 7,002 6,876 5,739 26,221 25,665 Equipment and occupancy expenses 851 814 681 3,021 2,776 Data processing fees 960 781 639 3,070 2,528 Regulatory assessments 441 414 355 1,590 1,198 Professional fees related to ERC 236 — — 236 — Merger-related expenses — 1,511 — 1,511 — Other operating expenses 3,584 3,291 2,303 12,899 9,709 Total noninterest expenses 13,074 13,687 9,717 48,548 41,876 Income before income taxes 14,894 9,733 11,226 45,592 41,020 Income tax expense 3,696 2,380 2,330 10,724 9,068 Net income $ 11,198 $ 7,353 $ 8,896 $ 34,868 $ 31,952 Basic earnings per share $ 1.13 $ 0.76 $ 1.00 $ 3.72 $ 3.63 Diluted earnings per share $ 1.11 $ 0.76 $ 0.99 $ 3.67 $ 3.53 AVERAGE BALANCE SHEET AND NET INTEREST MARGIN (Dollars in thousands) Three Months Ended December 31,
2024September 30,
2024December 31,
2023Average
BalanceInterest Yield/Rate Average
BalanceInterest Yield/Rate Average
BalanceInterest Yield/Rate Assets: Interest-earning assets: Loans, net of unearned income(1) $ 2,205,892 $ 38,972 7.03 % $ 2,134,318 $ 38,690 7.21 % $ 1,814,484 $ 31,613 6.91 % Taxable securities 181,456 2,237 4.90 % 177,164 2,205 4.95 % 163,537 1,986 4.82 % Nontaxable securities 46,757 248 2.11 % 46,586 243 2.08 % 45,537 230 2.00 % Other interest-earnings assets 288,802 3,520 4.85 % 287,320 3,930 5.44 % 171,823 2,343 5.41 % Total interest-earning assets 2,722,907 44,977 6.57 % 2,645,388 45,068 6.78 % 2,195,381 36,172 6.54 % Allowance for credit losses (28,280 ) (27,253 ) (22,666 ) Noninterest-earning assets 181,354 159,080 130,683 Total Assets $ 2,875,981 $ 2,777,215 $ 2,303,398 Liabilities and Stockholders’ Equity: Interest-bearing liabilities: Interest-bearing transaction accounts $ 94,039 $ 27 0.12 % $ 95,040 $ 30 0.13 % $ 86,163 $ 23 0.11 % Savings and money market accounts 1,112,679 10,279 3.68 % 1,042,661 10,264 3.92 % 885,548 8,445 3.78 % Time deposits 687,188 7,917 4.58 % 737,160 8,696 4.69 % 530,637 5,401 4.04 % FHLB advances 22,000 300 5.42 % 36,130 455 5.01 % 52,076 645 4.92 % Other borrowings 99,356 1,404 5.63 % 97,905 1,377 5.59 % 88,714 1,254 5.61 % Total interest-bearing liabilities $ 2,015,262 $ 19,927 3.93 % $ 2,008,896 $ 20,822 4.12 % $ 1,643,138 $ 15,768 3.81 % Noninterest-bearing liabilities: Noninterest-bearing deposits $ 552,898 $ 490,450 $ 420,019 Other liabilities 31,571 31,788 32,917 Total noninterest-bearing liabilities 584,469 522,238 452,936 Stockholders’ Equity 276,250 246,081 207,324 Total Liabilities and Stockholders’ Equity $ 2,875,981 $ 2,777,215 $ 2,303,398 Net interest income $ 25,050 $ 24,246 $ 20,404 Net interest spread(2) 2.64 % 2.66 % 2.73 % Net interest margin(3) 3.66 % 3.65 % 3.69 % Net interest margin - FTE(4)(5) 3.67 % 3.66 % 3.71 % Cost of funds(6) 3.09 % 3.31 % 3.03 % Cost of interest-bearing deposits 3.83 % 4.03 % 3.66 % Cost of total deposits 2.96 % 3.19 % 2.86 % - Includes nonaccrual loans.
- Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.
- Net interest margin is a ratio of net interest income to average interest earning assets for the same period.
- Net interest margin - FTE is a ratio of fully-taxable equivalent net interest income to average interest earning assets for the same period. It assumes a 24.0% tax rate.
- Refer to “Reconciliation of Non-GAAP Financial Measures”.
- Includes total interest-bearing liabilities and noninterest deposits.
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN (Dollars in thousands) Twelve Months Ended December 31,
2024December 31,
2023Average
BalanceInterest Yield/Rate Average
BalanceInterest Yield/Rate Assets: Interest-earning assets: Loans, net of unearned income(1) $ 2,061,604 $ 146,712 7.12 % $ 1,711,006 $ 114,662 6.70 % Taxable securities 171,878 8,462 4.92 % 152,707 6,806 4.46 % Nontaxable securities 46,065 952 2.07 % 47,340 977 2.06 % Other interest-earnings assets 257,533 13,655 5.30 % 192,433 9,815 5.10 % Total interest-earning assets 2,537,080 169,781 6.69 % 2,103,486 132,260 6.29 % Allowance for credit losses (26,302 ) (21,233 ) Noninterest-earning assets 153,575 129,489 Total Assets $ 2,664,353 $ 2,211,742 Liabilities and Stockholders’ Equity: Interest-bearing liabilities: Interest-bearing transaction accounts $ 90,252 $ 105 0.12 % $ 90,231 $ 82 0.09 % Savings and money market accounts 997,349 38,576 3.87 % 851,351 28,124 3.30 % Time deposits 695,892 31,949 4.59 % 480,871 17,162 3.57 % FHLB advances 39,847 2,006 5.03 % 39,830 1,848 4.64 % Other borrowings 96,941 5,438 5.61 % 87,023 4,932 5.67 % Total interest-bearing liabilities $ 1,920,281 $ 78,074 4.07 % $ 1,549,306 $ 52,148 3.37 % Noninterest-bearing liabilities: Noninterest-bearing deposits $ 470,376 $ 436,571 Other liabilities 31,472 28,185 Total noninterest-bearing liabilities 501,848 464,756 Stockholders’ Equity 242,224 197,680 Total Liabilities and Stockholders’ Equity $ 2,664,353 $ 2,211,742 Net interest income $ 91,707 $ 80,112 Net interest spread(2) 2.62 % 2.92 % Net interest margin(3) 3.61 % 3.81 % Net interest margin - FTE(4)(5) 3.63 % 3.82 % Cost of funds(6) 3.27 % 2.63 % Cost of interest-bearing deposits 3.96 % 3.19 % Cost of total deposits 3.13 % 2.44 % - Includes nonaccrual loans.
- Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.
- Net interest margin is a ratio of net interest income to average interest earning assets for the same period.
- Net interest margin - FTE is a ratio of fully-taxable equivalent net interest income to average interest earning assets for the same period. It assumes a 24.0% tax rate.
- Refer to “Reconciliation of Non-GAAP Financial Measures”.
- Includes total interest-bearing liabilities and noninterest deposits.
LOAN COMPOSITION (Dollars in thousands) December 31,
2024September 30,
2024December 31,
2023Amount % of gross Amount % of gross Amount % of gross Real estate mortgages: Construction and development $ 238,634 10.7 % $ 245,275 11.1 % $ 242,960 12.9 % Residential 315,092 14.1 % 293,150 13.3 % 224,603 11.9 % Commercial 1,352,084 60.6 % 1,344,554 61.0 % 1,144,867 60.5 % Commercial and industrial 315,854 14.1 % 310,540 14.1 % 269,961 14.3 % Consumer and other 11,580 0.5 % 12,228 0.5 % 8,286 0.4 % Gross loans 2,233,244 100.0 % 2,205,747 100.0 % 1,890,677 100.0 % Unearned income (6,675 ) (6,536 ) (6,169 ) Loans, net of unearned income 2,226,569 2,199,211 1,884,508 Allowance for credit losses (28,338 ) (28,061 ) (24,378 ) Loans, net $ 2,198,231 $ 2,171,150 $ 1,860,130 DEPOSIT COMPOSITION (Dollars in thousands) December 31,
2024September 30,
2024December 31,
2023Amount % of total Amount % of total Amount % of total Noninterest-bearing transaction $ 575,357 23.8 % $ 546,282 22.5 % $ 437,959 21.7 % Interest-bearing transaction 1,128,959 46.8 % 1,124,706 46.5 % 946,347 46.9 % Savings 52,472 2.2 % 53,565 2.2 % 35,412 1.7 % Time deposits, $250,000 and under 512,717 21.3 % 558,600 23.1 % 500,406 24.8 % Time deposits, over $250,000 141,792 5.9 % 137,393 5.7 % 98,065 4.9 % Total deposits $ 2,411,297 100.0 % $ 2,420,546 100.0 % $ 2,018,189 100.0 % Nonperfoming Assets (Dollars in thousands) December 31,
2024September 30,
2024December 31,
2023Nonaccrual loans $ 6,434 $ 7,803 $ 1,017 Past due loans 90 days or more and still accruing interest 99 65 160 Total nonperforming loans 6,533 7,868 1,177 OREO — 33 33 Total nonperforming assets $ 6,533 $ 7,901 $ 1,210 Financial difficulty modification loans – nonaccrual(1) 600 622 907 Financial difficulty modification loans – accruing 1,055 1,071 1,095 Financial difficulty modification loans $ 1,655 $ 1,693 $ 2,002 Allowance for credit losses $ 28,338 $ 28,061 $ 24,378 Loans, net of unearned income at the end of the period $ 2,226,569 $ 2,199,211 $ 1,884,508 Gross loans outstanding at the end of period $ 2,233,244 $ 2,205,747 $ 1,890,677 Total assets $ 2,849,264 $ 2,841,440 $ 2,446,663 Allowance for credit losses to nonperforming loans 433.77 % 356.65 % 2071.20 % Nonperforming loans to loans, net of unearned income 0.29 % 0.36 % 0.06 % Nonperforming loans to gross loans 0.29 % 0.36 % 0.06 % Nonperforming assets to gross loans and OREO 0.29 % 0.36 % 0.06 % Nonperforming assets to total assets 0.23 % 0.28 % 0.05 % Nonaccrual loans by category: Real estate mortgages: Construction & Development $ 415 $ — $ — Residential Mortgages 559 522 252 Commercial Real Estate Mortgages 2,097 2,155 765 Commercial & Industrial 3,363 5,126 — Consumer and other — — — Total $ 6,434 $ 7,803 $ 1,017 (1) Financial difficulty modifications loans are excluded from nonperforming loans unless they otherwise meet the definition of nonaccrual loans or are more than 90 days past due.
Allowance for Credit Losses (Dollars in thousands) Three Months Ended Twelve Months Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31, 2023 Average loans, net of unearned income $ 2,205,892 $ 2,134,318 $ 1,814,484 $ 2,061,604 $ 1,711,006 Loans, net of unearned income 2,226,569 2,199,211 1,884,508 2,226,569 1,884,508 Gross loans 2,233,244 2,205,747 1,890,677 2,233,244 1,890,677 Allowance for credit losses at beginning of the period 28,061 25,828 22,181 24,378 20,156 Impact of adoption of ASC 326 — — — — (1,285 ) Charge-offs: Construction and development — — — — 3 Residential — — — 11 — Commercial — 119 — 157 — Commercial and industrial — 384 424 1,210 686 Consumer and other — — 2 25 8 Total charge-offs — 503 426 1,403 697 Recoveries: Construction and development — — — — — Residential 7 13 4 34 41 Commercial — — — — — Commercial and industrial 196 139 39 367 54 Consumer and other 2 1 1 5 19 Total recoveries 205 153 44 406 114 Net (recoveries) charge-offs $ (205 ) $ 350 $ 382 $ 997 $ 583 Provision for credit losses $ 72 $ 2,583 $ 2,579 $ 4,957 $ 6,090 Balance at end of the period $ 28,338 $ 28,061 $ 24,378 $ 28,338 $ 24,378 Allowance for credit losses on unfunded commitments at beginning of the period $ 1,405 $ 1,206 $ 1,524 $ 1,239 $ — Impact of adoption of ASC 326 — — — — 1,285 Day 2 impact from acquisition — 199 — 199 — Credit for credit losses on unfunded commitments — — (285 ) (33 ) (46 ) Balance at the end of the period $ 1,405 $ 1,405 $ 1,239 $ 1,405 $ 1,239 Allowance to loans, net of unearned income 1.27 % 1.28 % 1.29 % 1.27 % 1.29 % Allowance to gross loans 1.27 % 1.27 % 1.29 % 1.27 % 1.29 % Net (recoveries) charge-offs to average loans, net of unearned income(1) (0.04) % 0.07 % 0.08 % 0.05 % 0.03 % Provision for credit losses to average loans, net of unearned income(1) 0.01 % 0.48 % 0.56 % 0.24 % 0.36 % (1) Ratio is annualized.
Reconciliation of Non-GAAP Financial Measures Noninterest Expense
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.
The following table provides a reconciliation of the non-GAAP financial measures to their most directly comparable financial measure presented in accordance with GAAP.
Reconciliation of Non-GAAP Financial Measures (Dollars in thousands, except share and per share amounts) Three Months Ended Twelve Months Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Net income $ 11,198 $ 7,353 $ 8,896 $ 34,868 $ 31,952 Add: One-time retirement related expenses — — — — 1,571 Add: Professional fees related to ERC 236 — — 236 — Add: Wire fraud loss — — — 1,155 — Add: Merger-related expenses — 1,511 — 1,511 — Add: Net OREO loss (gain) 3 — (154 ) — (156 ) Less: Employee retention credit 1,154 — — 1,162 — Less: Fee received on early loan payoff — — 1,863 — 1,863 Less: Net gain on securities 25 75 98 108 555 Less: Tax effect (226 ) 114 (508 ) 161 (241 ) Core net income $ 10,484 $ 8,675 $ 7,289 $ 36,339 $ 31,190 Average assets $ 2,875,981 $ 2,777,215 $ 2,303,398 $ 2,664,353 $ 2,211,742 Core return on average assets 1.45 % 1.24 % 1.26 % 1.36 % 1.41 % Net income $ 11,198 $ 7,353 $ 8,896 $ 34,868 $ 31,952 Add: One-time retirement related expenses — — — — 1,571 Add: Professional fees related to ERC 236 — — 236 — Add: Wire fraud loss — — — 1,155 — Add: Merger-related expenses — 1,511 — 1,511 — Add: Net OREO loss (gain) 3 — (154 ) — (156 ) Add: Provision 72 2,583 2,579 4,957 6,090 Less: Employee retention credit 1,154 — — 1,162 — Less: Fee received on early loan payoff — — 1,863 — 1,863 Less: Net gain on securities 25 75 98 108 555 Add: Income taxes 3,696 2,380 2,330 10,724 9,068 Pretax pre-provision core net income $ 14,026 $ 13,752 $ 11,690 $ 52,181 $ 46,107 Average assets $ 2,875,981 $ 2,777,215 $ 2,303,398 $ 2,664,353 $ 2,211,742 Pretax pre-provision core return on average assets 1.94 % 1.97 % 2.01 % 1.96 % 2.08 % Net interest income $ 25,050 $ 24,246 $ 20,404 $ 91,707 $ 80,112 Add: Fully-taxable equivalent adjustments(1) 66 75 99 288 312 Net interest income - FTE $ 25,116 $ 24,321 $ 20,503 $ 91,995 $ 80,424 Net interest margin 3.66 % 3.65 % 3.69 % 3.61 % 3.81 % Effect of fully-taxable equivalent adjustments(1) 0.01 % 0.01 % 0.02 % 0.02 % 0.01 % Net interest margin - FTE 3.67 % 3.66 % 3.71 % 3.63 % 3.82 % Total stockholders' equity $ 279,889 $ 271,370 $ 214,964 $ 279,889 $ 214,964 Less: Intangible assets 42,115 40,318 17,761 42,115 17,761 Tangible common equity $ 237,774 $ 231,052 $ 197,203 $ 237,774 $ 197,203 (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 Twelve Months Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Core net income $ 10,484 $ 8,675 $ 7,289 $ 36,339 $ 31,190 Diluted weighted average shares outstanding 10,061,735 9,725,884 9,021,358 9,503,994 9,038,004 Diluted core earnings per share $ 1.04 $ 0.89 $ 0.81 $ 3.82 $ 3.45 Common shares outstanding at year or period end 9,889,260 9,882,350 8,841,349 9,889,260 8,841,349 Tangible book value per share $ 24.04 $ 23.38 $ 22.30 $ 24.04 $ 22.30 Total assets at end of period $ 2,849,264 $ 2,841,440 $ 2,446,663 $ 2,849,264 $ 2,446,663 Less: Intangible assets 42,115 40,318 17,761 42,115 17,761 Adjusted assets at end of period $ 2,807,149 $ 2,801,122 $ 2,428,902 $ 2,807,149 $ 2,428,902 Tangible common equity to tangible assets 8.47 % 8.25 % 8.12 % 8.47 % 8.12 % Total average shareholders equity $ 276,250 $ 246,081 $ 207,324 $ 242,224 $ 197,680 Less: Average intangible assets 40,177 26,884 17,809 25,653 17,932 Average tangible common equity $ 236,073 $ 219,197 $ 189,515 $ 216,571 $ 179,748 Net income to common shareholders $ 11,198 $ 7,353 $ 8,896 $ 34,868 $ 31,952 Return on average tangible common equity 18.87 % 13.35 % 18.62 % 16.10 % 17.78 % Average tangible common equity $ 236,073 $ 219,197 $ 189,515 $ 216,571 $ 179,748 Core net income $ 10,484 $ 8,675 $ 7,289 $ 36,339 $ 31,190 Core return on average tangible common equity 17.67 % 15.74 % 15.26 % 16.78 % 17.35 % Net interest income $ 25,050 $ 24,246 $ 20,404 $ 91,707 $ 80,112 Add: Noninterest income 2,990 1,757 3,118 7,390 8,874 Less: Employee retention credit 1,154 — — 1,162 — Less: Fee received on early loan payoff — — 1,863 — 1,863 Less: Net gain on securities 25 75 98 108 555 Operating revenue $ 26,861 $ 25,928 $ 21,561 $ 97,827 $ 86,568 Expenses: Total noninterest expense $ 13,074 $ 13,687 $ 9,717 $ 48,548 $ 41,876 Less: One-time retirement related expenses — — — — 1,571 Less: Professional fees related to ERC 236 — — 236 — Less: Wire fraud loss — — — 1,155 — Less: Merger-related expenses — 1,511 — 1,511 — Less: Net OREO loss (gain) 3 — (154 ) — (156 ) Less: Loss on sale of branches — — — — — Adjusted noninterest expenses $ 12,835 $ 12,176 $ 9,871 $ 45,646 $ 40,461 Core efficiency ratio 47.78 % 46.96 % 45.78 % 46.66 % 46.74 % 
