Southern States Bancshares, Inc. Announces First Quarter 2025 Financial Results
First Quarter 2025 Performance and Operational Highlights
-- Net income of $10.4 million, or $1.03 per diluted share
-- Core net income(1) of $10.3 million, or $1.03 per diluted share(1)
-- Pretax pre-provision core net income(1) of $14.2 million
-- Net interest income of $24.9 million, a decrease of $171,000 from the
prior quarter
-- Net interest margin ("NIM") of 3.75%, up 9 basis points from the prior
quarter
-- Return on average assets ("ROAA") of 1.48%; return on average
stockholders' equity ("ROAE") of 14.67%; and return on average tangible
common equity ("ROATCE")(1) of 17.19%
-- Core ROAA(1) of 1.47%; and core ROATCE(1) of 17.16%
-- Efficiency ratio of 46.42%
-- Linked-quarter loans grew 6.1% annualized
-- Linked-quarter deposits grew 2.4% 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 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 $10.4 million, or $1.03 diluted earnings per share, for the first quarter of 2025. This compares to net income of $11.2 million, or $1.11 diluted earnings per share, for the fourth quarter of 2024, and net income of $8.1 million, or $0.90 diluted earnings per share, for the first quarter of 2024. The Company reported core net income of $10.3 million, or $1.03 diluted core earnings per share, for the first quarter of 2025. This compares to core net income of $10.5 million, or $1.04 diluted core earnings per share, for the fourth quarter of 2024, and core net income of $8.1 million, or $0.90 diluted core earnings per share, for the first quarter of 2024 (see "Reconciliation of Non-GAAP Financial Measures").
As previously disclosed on March 31, 2024, FB Financial Corporation, the parent company of FirstBank, and Southern States, jointly announced their entry into a definitive merger agreement pursuant to which Southern States will be merged with and into FB Financial (the "Merger").
CEO Commentary
------------------------------------------------------------------------------
Mark Chambers, President and Chief Executive Officer said, "In the first
quarter, we reported net income of $10.4 million and diluted EPS of $1.03,
which was supported by a 9 basis point improvement in net interest margin and
lower noninterest expense. We're particularly encouraged by the continued
improvement in our deposit costs and the exceptionally low level of
non-performing loans, which reflects our prudent credit culture and strong
risk management."
"We are embarking on an exciting new chapter for our bank, our
customers, our employees and the communities we proudly serve.
Joining forces with Nashville-based FB Financial, which has $13
billion in total assets and operates as FirstBank, is an ideal
combination. We are culturally aligned in our customer-centric
philosophy. We are geographically committed to serving vibrant
communities in the South, which now includes Tennessee, Kentucky,
Alabama, and Georgia. This merger allows us to expand our capabilities,
enhance the customer experience, and continue delivering the trusted,
relationship-based banking our clients have come to expect. While
our name may change, our commitment to our customers and communities
remains stronger than ever."
------------------------------------------------------------------------------
Net Interest Income and Net Interest Margin
-------------------------------------------
% Change March 31,
Three Months Ended 2025 vs.
December
December 31, 31, March 31,
March 31, 2025 2024 March 31, 2024 2024 2024
-------------- -------------- -------------- -------- ----------
(Dollars in thousands)
Average
interest-earning
assets $2,690,714 $2,722,907 $2,336,369 (1.2) % 15.2%
Net interest
income $ 24,879 $ 25,050 $ 20,839 (0.7) % 19.4%
Net interest
margin 3.75% 3.66% 3.59% 9 bps 16 bps
Net interest income for the first quarter of 2025 was $24.9 million, a decrease of 0.7% from $25.1 million for the fourth quarter of 2024. The decrease was primarily driven by a lower yield on interest-earning assets resulting from lower interest rates on loans and a reduction in other interest-earning assets earning lower interest rates, which was significantly offset by a lower cost of interest-bearing deposits primarily resulting from lower interest rates.
Relative to the first quarter of 2024, net interest income increased $4.0 million, or 19.4%. 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 first quarter of 2025 was 3.75%, compared to 3.66% for the fourth quarter of 2024. The increase was primarily due to a reduction in earning assets, coupled with cost savings attributed to calls and repayments at maturity on higher-cost brokered deposits.
Relative to the first quarter of 2024, net interest margin increased from 3.59% to 3.75%. The increase in the margin was primarily the result of a decrease in interest rates paid on interest-bearing deposits. The acquisition of Century Bank resulted in a positive impact to the net interest margin, helping to reduce the cost of interest-bearing liabilities.
Noninterest Income
------------------
% Change March 31,
Three Months Ended 2025 vs.
March 31, December March 31, December March 31,
2025 31, 2024 2024 31, 2024 2024
---------- --------- ---------- --------- -----------
(Dollars in thousands)
Service
charges on
deposit
accounts $ 564 $ 565 $ 463 (0.2) % 21.8%
Swap
(expenses)
fees (3) 17 15 (117.6) % (120.0) %
SBA/USDA
fees 40 89 64 (55.1) % (37.5) %
Mortgage
origination
fees 80 55 96 45.5 % (16.7) %
Net gain
(loss) on
securities 23 25 (12) (8.0) % 291.7 %
Employee
retention
credit
("ERC") -- 1,154 -- N/A N/A
Other
operating
income 949 1,085 642 (12.5) % 47.8%
----- -------- ----- --------- ----- ---
Total
noninterest
income $1,653 $ 2,990 $1,268 (44.7) % 30.4%
===== ======== ===== ========= ===== ===
Noninterest income for the first quarter of 2025 was $1.7 million, a decrease of 44.7% from $3.0 million for the fourth 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 first quarter of 2024, noninterest income increased 30.4% from $1.3 million. The acquisition of Century Bank on July 31, 2024 contributed to additional noninterest income during the first quarter of 2025.
Noninterest Expense
-------------------
% Change March 31,
Three Months Ended 2025 vs.
March March December
31, December 31, 31, March 31,
2025 31, 2024 2024 2024 2024
------- --------- ------- -------- ----------
(Dollars in thousands)
Salaries and
employee
benefits $ 6,924 $ 7,002 $ 6,231 (1.1) % 11.1%
Equipment and
occupancy
expenses 828 851 689 (2.7) % 20.2%
Data
processing
fees 909 960 643 (5.3) % 41.4%
Regulatory
assessments 429 441 360 (2.7) % 19.2%
Professional
fees related
to ERC -- 236 -- N/A N/A
Other
operating
expenses 3,216 3,584 2,452 (10.3) % 31.2%
------ -------- ------ -------- ---- ---
Total
noninterest
expenses $12,306 $ 13,074 $10,375 (5.9) % 18.6%
====== ======== ====== ======== ==== ===
Noninterest expense for the first quarter of 2025 was $12.3 million, a decrease of 5.9% from $13.1 million for the fourth quarter of 2024. The fourth quarter of 2024 included professional fees paid to a third party related to ERC, as well as additional expenses related to a nonperforming loan that is in collection, legal fees and fraud/forgery losses, compared to the first quarter of 2025.
Relative to the first quarter of 2024, noninterest expense increased 18.6% from $10.4 million. The acquisition of Century Bank on July 31, 2024 contributed to additional noninterest expense during the first quarter of 2025.
Loans and Credit Quality
------------------------
% Change March 31, 2025
Three Months Ended vs.
December 31, December 31, March 31,
March 31, 2025 2024 March 31, 2024 2024 2024
-------------- -------------- -------------- ------------ -----------
(Dollars in thousands)
Gross loans $2,266,740 $2,233,244 $1,971,396 1.5% 15.0%
Unearned income (6,704) (6,675) (6,247) 0.4% 7.3%
--------- --------- --------- ----- ---- ----- ---
Loans, net of
unearned income
("Loans") 2,260,036 2,226,569 1,965,149 1.5% 15.0%
========= ========= ========= ===== ==== ===== ===
Average loans, net
of unearned
("Average
loans") $2,235,194 $2,205,892 $1,916,288 1.3% 16.6%
Nonperforming
loans ("NPL") $ 7,175 $ 6,533 $ 3,446 9.8% 108.2%
Provision for
credit losses $ 775 $ 72 $ 1,236 976.4% (37.3) %
Allowance for
credit losses
("ACL") $ 28,876 $ 28,338 $ 25,144 1.9% 14.8%
Net charge-offs
(recoveries) $ 237 $ (205) $ 470 215.6% (49.6) %
NPL to gross loans 0.32% 0.29% 0.17%
Net charge-offs
(recoveries) to
average loans(1) 0.04% (0.04) % 0.10%
ACL to loans 1.28% 1.27% 1.28%
(1) Ratio is
annualized.
Loans, net of unearned income, were $2.3 billion at March 31, 2025, up $33.5 million from December 31, 2024 and up $294.9 million from March 31, 2024. The linked-quarter increase in loans was 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 $134.0 million at March 31, 2025.
Nonperforming loans totaled $7.2 million, or 0.32% of gross loans, at March 31, 2025, compared with $6.5 million, or 0.29% of gross loans, at December 31, 2024, and $3.4 million, or 0.17% of gross loans, at March 31, 2024. The $642,000 net increase in nonperforming loans in the first quarter was primarily attributable to one significant commercial real estate loan being placed on nonaccrual status. The $3.7 million net increase in nonperforming loans from March 31, 2024 was primarily attributable to one significant commercial and industrial loan and the aforementioned commercial real estate loan being placed on nonaccrual status. These increases were partially offset by a commercial and industrial loan that was charged-off.
The Company recorded a provision for credit losses of $775,000 for the first quarter of 2025, compared to $72,000 for the fourth quarter of 2024. Provision in the first quarter of 2025 was based on loan growth, qualitative economic factors and individually analyzed loans.
Net charge-offs for the first quarter of 2025 were $237,000, or 0.04% of average loans on an annualized basis, compared to net recoveries of $205,000, or (0.04)% of average loans on an annualized basis, for the fourth quarter of 2024, and net charge-offs of $470,000, or 0.10% of average loans on an annualized basis, for the first quarter of 2024. The net charge-offs recorded during the first quarter of 2025 were substantially related to a commercial and industrial loan. 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 of 2024. The net charge-offs recorded during the first quarter of 2024 were substantially related to a partial charge-off of the aforementioned pool of consumer loans.
The Company's allowance for credit losses was 1.28% of total loans and 402.45% of nonperforming loans at March 31, 2025, compared with 1.27% of total loans and 433.77% of nonperforming loans at December 31, 2024. Allowance for credit losses on unfunded commitments was $1.4 million at March 31, 2025.
Deposits
--------
% Change March 31, 2025
Three Months Ended vs.
December 31, December 31, March 31,
March 31, 2025 2024 March 31, 2024 2024 2024
-------------- -------------- -------------- ------------- ----------
(Dollars in thousands)
Noninterest-bearing
deposits $ 533,220 $ 575,357 $ 416,704 (7.3) % 28.0%
Interest-bearing
deposits 1,892,411 1,835,940 1,693,094 3.1% 11.8%
Total deposits $2,425,631 $2,411,297 $2,109,798 0.6% 15.0%
========= ========= ========= === ======= ==== ===
Uninsured deposits $ 760,379 $ 760,141 $ 610,122 --% 24.6%
Uninsured deposits
to total deposits
and accrued
interest on
deposits 31.33% 31.50% 28.92%
Noninterest deposits
to total deposits 21.98% 23.86% 19.75%
Total deposits were $2.4 billion at March 31, 2025, $2.4 billion at December 31, 2024 and $2.1 billion at March 31, 2024. The $14.3 million increase in total deposits in the first quarter was primarily due to an increase of $56.5 million in interest-bearing deposits, which includes a $12.5 million increase in brokered deposits, partially offset by a $42.1 million decrease in noninterest-bearing deposits. Total brokered deposits were $162.5 million at March 31, 2025, compared to $150.0 million at December 31, 2024.
Capital
March 31, December 31, March 31,
2025 2024 2024
-------------------- -------------------- --------------------
Company Bank Company Bank Company Bank
--------- --------- --------- --------- --------- ---------
Tier 1
capital
ratio to
average
assets 9.14% 11.99% 8.67% 11.45% 8.79% 11.67%
Risk-based
capital
ratios:
Common
equity
tier 1
("CET1")
capital
ratio 10.18% 13.35% 9.84% 12.99% 9.39% 12.47%
Tier 1
capital
ratio 10.18% 13.35% 9.84% 12.99% 9.39% 12.47%
Total
capital
ratio 15.06% 14.55% 14.73% 14.18% 14.42% 13.63%
As of March 31, 2025, total stockholders' equity was $290.2 million, up from $279.9 million at December 31, 2024. The increase of $10.3 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 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 and the pending Merger. 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, 2024 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
December 31,
March 31, 2025 2024 March 31, 2024
--------------- --------------- -----------------
Results of
Operations
-----------------
Interest income $ 43,164 $ 44,977 $ 38,736
Interest expense 18,285 19,927 17,897
---------- ---------- ---------
Net interest
income 24,879 25,050 20,839
Provision for
credit losses 775 72 1,236
---------- ---------- ---------
Net interest
income after
provision 24,104 24,978 19,603
Noninterest
income 1,653 2,990 1,268
Noninterest
expense 12,306 13,074 10,375
Income tax
expense 3,100 3,696 2,377
---------- ---------- ---------
Net income $ 10,351 $ 11,198 $ 8,119
========== ========== =========
Core net
income(1) $ 10,334 $ 10,484 $ 8,128
Share and Per
Share Data
-----------------
Shares issued and
outstanding 9,922,180 9,889,260 8,894,794
Weighted average
shares
outstanding:
Basic 9,979,120 9,940,221 8,913,477
Diluted 10,072,329 10,061,735 9,043,122
Earnings per
share:
Basic $ 1.04 $ 1.13 $ 0.91
Diluted 1.03 1.11 0.90
Core - diluted(1) 1.03 1.04 0.90
Book value per
share 29.25 28.30 25.06
Tangible book
value per
share(1) 25.04 24.04 23.07
Cash dividends
per common
share 0.09 0.09 0.09
Performance and
Financial Ratios
-----------------
ROAA 1.48% 1.55% 1.33%
ROAE 14.67% 16.13% 14.87%
Core ROAA(1) 1.47% 1.45% 1.34%
ROATCE(1) 17.19% 18.87% 16.17%
Core ROATCE(1) 17.16% 17.67% 16.19%
NIM 3.75% 3.66% 3.59%
NIM - FTE(1) 3.76% 3.67% 3.60%
Net interest
spread 2.76% 2.64% 2.63%
Yield on loans 6.93% 7.03% 7.06%
Yield on
interest-earning
assets 6.51% 6.57% 6.67%
Cost of
interest-bearing
liabilities 3.75% 3.93% 4.04%
Cost of funds(2) 2.93% 3.09% 3.27%
Cost of
interest-bearing
deposits 3.64% 3.83% 3.92%
Cost of total
deposits 2.80% 2.96% 3.12%
Noninterest
deposits to
total deposits 21.98% 23.86% 19.75%
Core deposits to
total deposits 87.75% 87.90% 81.45%
Uninsured
deposits to
total deposits
and accrued
interest on
deposits 31.33% 31.50% 28.92%
Total loans to
total deposits 93.17% 92.34% 93.14%
Efficiency ratio 46.42% 46.67% 46.90%
Core efficiency
ratio(1) 46.42% 47.78% 46.90%
(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
December 31,
March 31, 2025 2024 March 31, 2024
-------------- -------------- --------------
Financial Condition
(ending)
--------------------
Total loans $2,260,036 $2,226,569 $1,965,149
Total securities 218,544 216,481 197,006
Total assets 2,851,145 2,848,254 2,510,975
Total noninterest
bearing deposits 533,220 575,357 416,704
Total core
deposits(1) 2,128,422 2,119,491 1,718,333
Total deposits 2,425,631 2,411,297 2,109,798
Total borrowings 111,382 131,224 146,773
Total liabilities 2,560,961 2,568,365 2,288,094
Total shareholders'
equity 290,184 279,889 222,881
Financial Condition
(average)
--------------------
Total loans $2,235,194 $2,205,892 $1,916,288
Total securities 228,396 228,213 208,954
Total other
interest-earning
assets 227,124 288,802 211,127
Total
interest-bearing
assets 2,690,714 2,722,907 2,336,369
Total assets 2,841,513 2,875,981 2,447,278
Total
noninterest-bearing
deposits 552,746 552,898 416,141
Total
interest-bearing
deposits 1,861,387 1,893,906 1,633,307
Total deposits 2,414,133 2,446,804 2,049,448
Total borrowings 113,728 121,356 148,771
Total
interest-bearing
liabilities 1,975,115 2,015,262 1,782,078
Total shareholders'
equity 286,126 276,250 219,622
Asset Quality
--------------------
Nonperforming loans $ 7,175 $ 6,533 $ 3,446
Other real estate
owned ("OREO") $ -- $ -- $ 33
Nonperforming assets
("NPA") $ 7,175 $ 6,533 $ 3,479
Net charge-offs
(recoveries) to
average loans(2) 0.04% (0.04)% 0.10%
Provision for credit
losses to average
loans(2) 0.14% 0.01% 0.26%
ACL to loans 1.28% 1.27% 1.28%
ACL to gross loans 1.27% 1.27% 1.28%
ACL to NPL 402.45% 433.77% 729.66%
NPL to loans 0.32% 0.29% 0.18%
NPL to gross loans 0.32% 0.29% 0.17%
NPA to gross loans
and OREO 0.32% 0.29% 0.18%
NPA to total assets 0.25% 0.23% 0.14%
Regulatory and Other
Capital Ratios
--------------------
Total shareholders'
equity to total
assets 10.18% 9.83% 8.88%
Tangible common
equity to tangible
assets(3) 8.84% 8.47% 8.23%
Tier 1 capital ratio
to average assets 9.14% 8.67% 8.79%
Risk-based capital
ratios:
CET1 capital ratio 10.18% 9.84% 9.39%
Tier 1 capital
ratio 10.18% 9.84% 9.39%
Total capital
ratio 15.06% 14.73% 14.42%
(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)
-----------------------------------------------------------------
March 31, December March 31,
2025 31, 2024 2024
(Unaudited) (Audited) (Unaudited)
----------- ----------- -------------
Assets
------------------------
Cash and due from banks $ 25,555 $ 27,321 $ 20,470
Interest-bearing
deposits in banks 127,430 153,833 129,917
Federal funds sold 76,390 79,080 86,736
--------- --------- ---------
Total cash and
cash equivalents 229,375 260,234 237,123
Securities available for
sale, at fair value 198,938 196,870 177,379
Securities held to
maturity, at amortized
cost 19,606 19,611 19,627
Other equity securities,
at fair value 2,754 3,697 3,638
Restricted equity
securities, at cost 4,408 4,441 5,108
Loans held for sale 1,236 404 425
Loans, net of unearned
income 2,260,036 2,226,569 1,965,149
Less allowance for
credit losses 28,876 28,338 25,144
--------- --------- ---------
Loans, net 2,231,160 2,198,231 1,940,005
Premises and equipment,
net 31,728 32,048 26,262
Accrued interest
receivable 10,432 10,111 9,561
Bank owned life
insurance 39,698 39,431 30,075
Annuities 16,794 16,772 15,939
Foreclosed assets -- -- 33
Goodwill 33,176 33,176 16,862
Core deposit intangible 8,539 8,939 817
Other assets 23,301 24,289 28,121
--------- --------- ---------
Total assets $2,851,145 $2,848,254 $2,510,975
========= ========= =========
Liabilities and
Stockholders' Equity
------------------------
Liabilities:
Deposits:
Noninterest-bearing $ 533,220 $ 575,357 $ 416,704
Interest-bearing 1,892,411 1,835,940 1,693,094
--------- --------- ---------
Total deposits 2,425,631 2,411,297 2,109,798
Other borrowings -- 17,979 7,997
FHLB advances 20,000 22,000 52,000
Subordinated notes 91,382 91,245 86,776
Accrued interest payable 1,585 2,172 1,805
Other liabilities 22,363 23,672 29,718
Total liabilities 2,560,961 2,568,365 2,288,094
Stockholders' equity:
Common stock 49,986 49,821 44,746
Capital surplus 107,480 106,637 79,282
Retained earnings 143,530 134,075 109,838
Accumulated other
comprehensive loss (7,503) (7,936) (8,401)
Unvested restricted
stock (1,168) (567) (1,030)
Vested restricted
stock units (2,141) (2,141) (1,554)
--------- --------- ---------
Total
stockholders'
equity 290,184 279,889 222,881
--------- --------- ---------
Total liabilities
and stockholders'
equity $2,851,145 $2,848,254 $2,510,975
========= ========= =========
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
------------------------------------------------------------------------
Three Months Ended
----------------------------------------------
March 31, December 31, March 31,
2025 2024 2024
(Unaudited) (Unaudited) (Unaudited)
------------- -------------- ---------------
Interest income:
Loans, including
fees $ 38,202 $ 38,972 $ 33,628
Taxable securities 2,239 2,237 1,981
Nontaxable
securities 247 248 229
Other interest and
dividends 2,476 3,520 2,898
-------- ---------- --------
Total interest
income 43,164 44,977 38,736
-------- ---------- --------
Interest expense:
Deposits 16,689 18,223 15,906
Other borrowings 1,596 1,704 1,991
-------- ---------- --------
Total interest
expense 18,285 19,927 17,897
-------- ---------- --------
Net interest
income 24,879 25,050 20,839
Provision for credit
losses 775 72 1,236
-------- ---------- --------
Net interest
income after
provision for
credit losses 24,104 24,978 19,603
-------- ---------- --------
Noninterest income:
Service charges on
deposit accounts 564 565 463
Swap (expenses) fees (3) 17 15
SBA/USDA fees 40 89 64
Mortgage origination
fees 80 55 96
Net gain (loss) on
securities 23 25 (12)
Employee retention
credit -- 1,154 --
Other operating
income 949 1,085 642
-------- ---------- --------
Total noninterest
income 1,653 2,990 1,268
-------- ---------- --------
Noninterest expenses:
Salaries and
employee benefits 6,924 7,002 6,231
Equipment and
occupancy expenses 828 851 689
Data processing fees 909 960 643
Regulatory
assessments 429 441 360
Professional fees
related to ERC -- 236 --
Other operating
expenses 3,216 3,584 2,452
-------- ---------- --------
Total noninterest
expenses 12,306 13,074 10,375
-------- ---------- --------
Income before
income taxes 13,451 14,894 10,496
Income tax expense 3,100 3,696 2,377
-------- ---------- --------
Net income $ 10,351 $ 11,198 $ 8,119
======== ========== ========
Basic earnings per share $ 1.04 $ 1.13 $ 0.91
======== ========== ========
Diluted earnings per
share $ 1.03 $ 1.11 $ 0.90
======== ========== ========
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
(Dollars in thousands)
---------------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended
March 31, December 31, March 31,
2025 2024 2024
------------------------------------- ------------------------------------- -------------------------------------
Average Average Average
Balance Interest Yield/Rate Balance Interest Yield/Rate Balance Interest Yield/Rate
----------- ---------- ------------ ----------- ---------- ------------ ----------- ---------- ------------
Assets:
Interest-earning assets:
Loans, net of unearned
income(1) $2,235,194 $ 38,202 6.93% $2,205,892 $ 38,972 7.03% $1,916,288 $ 33,628 7.06%
Taxable securities 181,788 2,239 4.99% 181,456 2,237 4.90% 163,586 1,981 4.87%
Nontaxable securities 46,608 247 2.15% 46,757 248 2.11% 45,368 229 2.03%
Other interest-earnings
assets 227,124 2,476 4.42% 288,802 3,520 4.85% 211,127 2,898 5.52%
--------- ------ ------- --------- ------ ------- --------- ------ ----- ----
Total interest-earning
assets $2,690,714 $ 43,164 6.51% $2,722,907 $ 44,977 6.57% $2,336,369 $ 38,736 6.67%
Allowance for credit
losses (28,430) (28,280) (24,313)
Noninterest-earning
assets 179,229 181,354 135,222
--------- --------- ---------
Total Assets $2,841,513 $2,875,981 $2,447,278
========= ========= =========
Liabilities and
Stockholders' Equity:
Interest-bearing
liabilities:
Interest-bearing
transaction accounts 95,573 20 0.09% 94,039 27 0.12% 85,858 26 0.12%
Savings and money
market accounts 1,120,998 9,765 3.53% 1,112,679 10,279 3.68% 902,361 8,804 3.92%
Time deposits 644,816 6,904 4.34% 687,188 7,917 4.58% 645,088 7,076 4.41%
FHLB advances 20,644 275 5.40% 22,000 300 5.42% 53,121 655 4.96%
Other borrowings 93,084 1,321 5.76% 99,356 1,404 5.63% 95,650 1,336 5.62%
--------- ------ ------- --------- ------ ------- --------- ------ ----- ----
Total
interest-bearing
liabilities $1,975,115 $ 18,285 3.75% $2,015,262 $ 19,927 3.93% $1,782,078 $ 17,897 4.04%
Noninterest-bearing
liabilities:
Noninterest-bearing
deposits $ 552,746 $ 552,898 $ 416,141
Other liabilities 27,526 31,571 29,437
--------- --------- ---------
Total
noninterest-bearing
liabilities $ 580,272 $ 584,469 $ 445,578
Stockholders' Equity 286,126 276,250 219,622
--------- --------- ---------
Total Liabilities
and Stockholders'
Equity $2,841,513 $2,875,981 $2,447,278
========= ========= =========
Net interest income $ 24,879 $ 25,050 $ 20,839
Net interest spread(2) 2.76% 2.64% 2.63%
Net interest margin(3) 3.75% 3.66% 3.59%
Net interest margin -
FTE(4)(5) 3.76% 3.67% 3.60%
Cost of funds(6) 2.93% 3.09% 3.27%
Cost of interest-bearing
deposits 3.64% 3.83% 3.92%
Cost of total deposits 2.80% 2.96% 3.12%
(1) Includes nonaccrual loans.
(2) Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.
(3) Net interest margin is a ratio of net interest income to average interest earning assets for the same period.
(4) 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.
(5) Refer to "Reconciliation of Non-GAAP Financial Measures".
(6) Includes total interest-bearing liabilities and noninterest deposits.
LOAN COMPOSITION
(Dollars in thousands)
---------------------------------------------------------------------------------------
March 31, December 31, March 31,
2025 2024 2024
---------------------- ---------------------- ----------------------
% of % of % of
Amount gross Amount gross Amount gross
----------- --------- ----------- --------- ----------- ---------
Real estate
mortgages:
Construction
and
development $ 247,264 10.9% $ 238,603 10.7% $ 252,934 12.8%
Residential 317,994 14.0% 315,083 14.1% 238,702 12.1%
Commercial 1,356,064 59.8% 1,350,091 60.4% 1,182,634 60.0%
Commercial and
industrial 333,831 14.8% 317,887 14.3% 288,701 14.7%
Consumer and
other 11,587 0.5% 11,580 0.5% 8,425 0.4%
--------- ----- --------- ----- --------- -----
Gross loans 2,266,740 100.0% 2,233,244 100.0% 1,971,396 100.0%
Unearned income (6,704) (6,675) (6,247)
--------- --------- ---------
Loans, net of
unearned
income 2,260,036 2,226,569 1,965,149
Allowance for
credit losses (28,876) (28,338) (25,144)
--------- --------- ---------
Loans, net $2,231,160 $2,198,231 $1,940,005
========= ========= =========
DEPOSIT COMPOSITION
(Dollars in thousands)
-----------------------------------------------------------------------------------------
March 31, December 31, March 31,
2025 2024 2024
---------------------
% of % of % of
Amount total Amount total Amount total
---------- --------- ---------- --------- ---------- ---------
Noninterest-bearing
transaction $ 533,220 22.0% $ 575,357 23.8% $ 416,704 19.7%
Interest-bearing
transaction 1,183,984 48.8% 1,128,959 46.8% 974,079 46.2%
Savings 54,795 2.3% 52,472 2.2% 33,909 1.6%
Time deposits,
$250,000 and under 518,958 21.4% 512,717 21.3% 584,658 27.7%
Time deposits, over
$250,000 134,674 5.5% 141,792 5.9% 100,448 4.8%
--------- ----- --------- ----- --------- -----
Total deposits $2,425,631 100.0% $2,411,297 100.0% $2,109,798 100.0%
========= ===== ========= ===== ========= =====
Nonperfoming Assets
(Dollars in thousands)
--------------------------------------------------------------------
March 31, December 31, March 31,
2025 2024 2024
-------------- -------------- --------------
Nonaccrual loans $ 7,175 $ 6,434 $ 3,446
Past due loans 90
days or more and
still accruing
interest -- 99 --
--------- --------- ---------
Total
nonperforming
loans 7,175 6,533 3,446
========= ========= =========
OREO -- -- 33
Total
nonperforming
assets $ 7,175 $ 6,533 $ 3,479
========= ========= =========
Financial difficulty
modification
loans--
nonaccrual(1) 543 600 675
Financial difficulty
modification loans
-- accruing 1,029 1,055 1,283
--------- --------- ---------
Financial
difficulty
modification
loans $ 1,572 $ 1,655 $ 1,958
========= ========= =========
Allowance for credit
losses $ 28,876 $ 28,338 $ 25,144
Loans, net of
unearned income at
the end of the
period $2,260,036 $2,226,569 $1,965,149
Gross loans
outstanding at the
end of period $2,266,740 $2,233,244 $1,971,396
Total assets $2,851,145 $2,848,254 $2,510,975
Allowance for credit
losses to
nonperforming
loans 402.45% 433.77% 729.66%
Nonperforming loans
to loans, net of
unearned income 0.32% 0.29% 0.18%
Nonperforming loans
to gross loans 0.32% 0.29% 0.17%
Nonperforming assets
to gross loans and
OREO 0.32% 0.29% 0.18%
Nonperforming assets
to total assets 0.25% 0.23% 0.14%
Nonaccrual loans by
category:
Real estate
mortgages:
Construction &
Development $ 403 $ 415 $ --
Residential
Mortgages 758 559 246
Commercial Real
Estate
Mortgages 2,694 2,097 2,422
Commercial &
Industrial 3,320 3,363 778
Consumer and other -- -- --
--------- --------- ---------
Total $ 7,175 $ 6,434 $ 3,446
========= ========= =========
(1) Financial difficulty modification 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
-------------------------------------------------
December 31,
March 31, 2025 2024 March 31, 2024
-------------- -------------- -----------------
Average loans, net
of unearned
income $2,235,194 $2,205,892 $ 1,916,288
Loans, net of
unearned income 2,260,036 2,226,569 1,965,149
Gross loans 2,266,740 2,233,244 1,971,396
Allowance for
credit losses at
beginning of the
period 28,338 28,061 24,378
Charge-offs:
Construction
and
development -- -- --
Residential -- -- 11
Commercial -- -- 27
Commercial and
industrial 331 -- 442
Consumer and
other 2 -- 15
--------- --------- ---------
Total
charge-offs 333 -- 495
Recoveries:
Construction
and
development -- -- --
Residential 6 7 8
Commercial -- -- --
Commercial and
industrial 89 196 16
Consumer and
other 1 2 1
--------- --------- ---------
Total
recoveries 96 205 25
--------- --------- ---------
Net
charge-offs
(recoveries) $ 237 $ (205) $ 470
Provision for
credit losses $ 775 $ 72 $ 1,236
--------- --------- ---------
Balance at end of
the period $ 28,876 $ 28,338 $ 25,144
========= ========= =========
Allowance for
credit losses on
unfunded
commitments at
beginning of the
period $ 1,405 $ 1,405 $ 1,239
Provision for
credit losses on
unfunded
commitments -- -- 49
--------- --------- ---------
Balance at the end
of the period $ 1,405 $ 1,405 $ 1,288
========= ========= =========
Allowance to loans,
net of unearned
income 1.28% 1.27% 1.28%
Allowance to gross
loans 1.27% 1.27% 1.28%
Net charge-offs
(recoveries) to
average loans, net
of unearned
income(1) 0.04% (0.04) % 0.10%
Provision for
credit losses to
average loans, net
of unearned
income(1) 0.14% 0.01% 0.26%
(1) Ratio is annualized.
Reconciliation of Non-GAAP Financial Measures ---------------------------------------------
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
-------------------------------------------------------
December 31,
March 31, 2025 2024 March 31, 2024
------------------ --------------- ------------------
Net income $ 10,351 $ 11,198 $ 8,119
Add:
Professional
fees related to
ERC -- 236 --
Add: Net OREO
gains -- 3 --
Less: Employee
retention
related
revenue -- 1,154 --
Less: Net gain
(loss) on
securities 23 25 (12)
Less: Tax
effect (6) (226) 3
---------- ---------- ----------
Core net income $ 10,334 $ 10,484 $ 8,128
========== ========== ==========
Average assets $ 2,841,513 $ 2,875,981 $ 2,447,278
========== ========== ==========
Core return on
average
assets 1.47% 1.45% 1.34%
========== ========== ==========
Net income $ 10,351 $ 11,198 $ 8,119
Add:
Professional
fees related to
ERC -- 236 --
Add: Net OREO
gains -- 3 --
Add: Provision
for credit
losses 775 72 1,236
Less: Employee
retention
related
revenue -- 1,154 --
Less: Net gain
(loss) on
securities 23 25 (12)
Add: Income
taxes 3,100 3,696 2,377
---------- ---------- ----------
Pretax
pre-provision
core net
income $ 14,203 $ 14,026 $ 11,744
========== ========== ==========
Average assets $ 2,841,513 $ 2,875,981 $ 2,447,278
========== ========== ==========
Pretax
pre-provision
core return on
average
assets 2.03% 1.94% 1.93%
========== ========== ==========
Net interest
income $ 24,879 $ 25,050 $ 20,839
Add:
Fully-taxable
equivalent
adjustments(1) 62 66 73
---------- ---------- ----------
Net interest
income - FTE $ 24,941 $ 25,116 $ 20,912
========== ========== ==========
Net interest
margin 3.75% 3.66% 3.59%
Effect of
fully-taxable
equivalent
adjustments(1) 0.01% 0.01% 0.01%
---------- ---------- ----------
Net interest
margin - FTE 3.76% 3.67% 3.60%
========== ========== ==========
Total
stockholders'
equity $ 290,184 $ 279,889 $ 222,881
Less:
Intangible
assets 41,715 42,115 17,679
Tangible common
equity $ 248,469 $ 237,774 $ 205,202
========== ========== ==========
(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
December 31,
March 31, 2025 2024 March 31, 2024
------------------ --------------- ------------------
Core net income $ 10,334 $ 10,484 $ 8,128
Diluted
weighted
average shares
outstanding 10,072,329 10,061,735 9,043,122
---------- ---------- ----------
Diluted core
earnings per
share $ 1.03 $ 1.04 $ 0.90
========== ========== ==========
Common shares
outstanding at
year or period
end 9,922,180 9,889,260 8,894,794
---------- ---------- ----------
Tangible book
value per
share $ 25.04 $ 24.04 $ 23.07
========== ========== ==========
Total assets at
end of period $ 2,851,145 $ 2,848,254 $ 2,510,975
Less:
Intangible
assets 41,715 42,115 17,679
---------- ---------- ----------
Adjusted assets
at end of
period $ 2,809,430 $ 2,806,139 $ 2,493,296
========== ========== ==========
Tangible common
equity to
tangible
assets 8.84% 8.47% 8.23%
========== ========== ==========
Total average
shareholders
equity $ 286,126 $ 276,250 $ 219,622
Less: Average
intangible
assets 41,957 40,177 17,730
---------- ---------- ----------
Average
tangible
common equity $ 244,169 $ 236,073 $ 201,892
========== ========== ==========
Net income to
common
shareholders $ 10,351 $ 11,198 $ 8,119
Return on
average
tangible
common equity 17.19% 18.87% 16.17%
========== ========== ==========
Average
tangible
common equity $ 244,169 $ 236,073 $ 201,892
Core net income $ 10,334 $ 10,484 $ 8,128
Core return on
average
tangible
common equity 17.16% 17.67% 16.19%
========== ========== ==========
Net interest
income $ 24,879 $ 25,050 $ 20,839
Add:
Noninterest
income 1,653 2,990 1,268
Less: Employee
retention
related
revenue -- 1,154 --
Less: Net gain
(loss) on
securities 23 25 (12)
---------- ---------- ----------
Operating
revenue $ 26,509 $ 26,861 $ 22,119
Expenses:
Total
noninterest
expense $ 12,306 $ 13,074 $ 10,375
Less:
Professional
fees related to
ERC -- 236 --
Less: Net OREO
gains -- 3 --
Adjusted
noninterest
expenses $ 12,306 $ 12,835 $ 10,375
Core efficiency
ratio 46.42% 47.78% 46.90%
========== ========== ==========
(END) Dow Jones Newswires
April 21, 2025 08:00 ET (12:00 GMT)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.