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 $7.7 million, or $0.85 diluted earnings per
share, for the first quarter of 2023. This compares to net income
of $10.6 million, or $1.18 diluted earnings per share, for the
fourth quarter of 2022, and net income of $4.6 million, or $0.50
diluted earnings per share, for the first quarter of 2022. The
Company reported core net income of $7.3 million, or $0.80 diluted
core earnings per share, for the first quarter of 2023. This
compares to core net income of $8.1 million, or $0.90 diluted core
earnings per share, for the fourth quarter of 2022, and core net
income of $4.8 million, or $0.53 diluted core earnings per share,
for the first quarter of 2022 (see “Reconciliation of Non-GAAP
Financial Measures”).
CEO Commentary
Stephen Whatley, Chairman and Chief Executive Officer of Southern
States, said, “Despite the recent volatility in our industry, we
continued to drive strong earnings, growing both loans and deposits
and improving upon our already strong capital levels. After several
quarters of Federal Reserve interest rate hikes, combined with
increased competition for funding, our deposit betas accelerated in
the first quarter and we continued to see a moderate deposit mix
shift from noninterest-bearing to interest-bearing deposits,
impacting our net interest margin. We are confident in our ability
to strategically manage our deposit balances, which we believe
reflects the diversity and durability of our franchise.’’ |
Mr. Whatley continued, “We also continue to prudently meet the
needs of clients across our vibrant and resilient footprint. We
grew loans during the quarter by 14.9% annualized, while
maintaining excellent credit quality. We are focused on selectively
growing our loan portfolio while carefully managing asset quality
and exercising disciplined expense management as we have throughout
multiple economic cycles.’’ |
Mr. Whatley concluded, “We are of course closely monitoring the
fallout from recent regional bank failures. But it is important to
emphasize that Southern States is focused on traditional banking
services. The banks that failed had unique business models with
idiosyncratic challenges that are unrelated to Southern States. We
are confident our robust balance sheet and conservative
underwriting principles position us well to navigate the current
environment while delivering strong returns for our
shareholders.” |
Net Interest Income and Net Interest Margin
|
Three Months Ended |
|
% Change March 31, 2023
vs. |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
$ |
1,947,957 |
|
|
$ |
1,893,069 |
|
|
$ |
1,684,298 |
|
|
2.9 |
% |
|
15.7 |
% |
Net interest income |
$ |
19,546 |
|
|
$ |
20,884 |
|
|
$ |
14,654 |
|
|
(6.4 |
)% |
|
33.4 |
% |
Net interest margin |
|
4.07 |
% |
|
|
4.38 |
% |
|
|
3.53 |
% |
|
(31 |
) bps |
|
54 |
bps |
|
|
|
|
|
|
|
|
|
|
Net interest income for the first quarter of
2023 was $19.5 million, a decrease of 6.4% from $20.9 million for
the fourth quarter of 2022. The decrease was primarily attributable
to the higher cost of deposits and other borrowings, which more
than offset an increase in the yield on interest-earnings
assets.
Relative to the first quarter of 2022, net
interest income increased $4.9 million, or 33.4%. The increase was
partially the result of improvement in the yield on
interest-earning assets, which outpaced the rise in deposit costs
and other borrowings. In addition, we benefited from the
significant organic growth over the last year.
Net interest margin for the first quarter of
2023 was 4.07%, compared to 4.38% for the fourth quarter of 2022.
The decrease was primarily due to higher interest rates paid on
deposits, which outpaced the increase in yields on interest-earning
assets.
Relative to the first quarter of 2022, net
interest margin increased from 3.53%. The increase was primarily
due to a rapid increase in interest rates, which produced higher
yields on interest-earning assets.
Noninterest Income
|
Three Months Ended |
|
% Change March 31, 2023
vs. |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
450 |
|
|
$ |
431 |
|
|
$ |
445 |
|
|
4.4 |
% |
|
1.1 |
% |
Swap fees |
|
(4 |
) |
|
|
2 |
|
|
|
15 |
|
|
(300.0 |
)% |
|
(126.7 |
)% |
SBA/USDA fees |
|
134 |
|
|
|
70 |
|
|
|
388 |
|
|
91.4 |
% |
|
(65.5 |
)% |
Mortgage origination fees |
|
100 |
|
|
|
98 |
|
|
|
286 |
|
|
2.0 |
% |
|
(65.0 |
)% |
Net gain (loss) on
securities |
|
514 |
|
|
|
(86 |
) |
|
|
(361 |
) |
|
(697.7 |
)% |
|
(242.4 |
)% |
Other operating income |
|
592 |
|
|
|
4,088 |
|
|
|
560 |
|
|
(85.5 |
)% |
|
5.7 |
% |
Total noninterest income |
$ |
1,786 |
|
|
$ |
4,603 |
|
|
$ |
1,333 |
|
|
(61.2 |
)% |
|
34.0 |
% |
|
|
|
|
|
|
|
|
|
|
Noninterest income for the first quarter of 2023
was $1.8 million, a decrease of 61.2% from $4.6 million for the
fourth quarter of 2022. The fourth quarter 2022 results included a
$2.6 million gain on the sale of two branches and a bank owned life
insurance ("BOLI") benefit claim of $774,000. The first quarter
decrease was partially offset by a realized net gain on securities
during the quarter, compared to a net loss on securities during the
previous quarter.
Relative to the first quarter of 2022,
noninterest income increased 34.0% from $1.3 million. The increase
was primarily due to a realized net gain on securities during the
first quarter of 2023 compared to a net loss on securities during
the first quarter of 2022. This increase was partially offset by a
decrease in SBA/USDA fees and mortgage fees during the first
quarter of 2023.
Noninterest Expense
|
Three Months Ended |
|
% Change March 31, 2023
vs. |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
$ |
6,311 |
|
$ |
6,738 |
|
$ |
5,725 |
|
(6.3 |
)% |
|
10.2 |
% |
Equipment and occupancy
expenses |
|
683 |
|
|
730 |
|
|
705 |
|
(6.4 |
)% |
|
(3.1 |
)% |
Data processing fees |
|
593 |
|
|
711 |
|
|
564 |
|
(16.6 |
)% |
|
5.1 |
% |
Regulatory assessments |
|
342 |
|
|
165 |
|
|
263 |
|
107.3 |
% |
|
30.0 |
% |
Other operating expenses |
|
2,229 |
|
|
2,092 |
|
|
2,033 |
|
6.5 |
% |
|
9.6 |
% |
Total noninterest expenses |
$ |
10,158 |
|
$ |
10,436 |
|
$ |
9,290 |
|
(2.7 |
)% |
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the first quarter of
2023 was $10.2 million, a decrease of 2.7% from $10.4 million for
the fourth quarter of 2022. The decrease was primarily attributable
to a decrease in salaries and benefits as a result of expenses
related to the issuance of restricted stock units in a deferred
compensation plan during the fourth quarter of 2022 and partially
offset by various increases in other operating expenses, none of
which were individually significant. The fourth quarter 2022
results also included waivers of regulatory assessments from State
regulators.
Relative to the first
quarter of 2022, noninterest expense increased 9.3% from $9.3
million. The increase was primarily attributable to an increase in
salaries and benefits as a result of various equity, retirement and
incentive plans.
Loans and Credit Quality
|
Three Months Ended |
|
% Change March 31, 2023
vs. |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
December 31, 2022 |
|
March 31, 2022 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans |
$ |
1,650,929 |
|
|
$ |
1,592,707 |
|
|
$ |
1,313,173 |
|
|
3.7 |
% |
|
25.7 |
% |
PPP loans |
|
— |
|
|
|
— |
|
|
|
893 |
|
|
— |
% |
|
NM |
|
Gross loans |
|
1,650,929 |
|
|
|
1,592,707 |
|
|
|
1,314,066 |
|
|
3.7 |
% |
|
25.6 |
% |
Unearned income |
|
(5,614 |
) |
|
|
(5,543 |
) |
|
|
(3,996 |
) |
|
1.3 |
% |
|
40.5 |
% |
Loans, net of unearned income
(“Loans”) |
$ |
1,645,315 |
|
|
$ |
1,587,164 |
|
|
$ |
1,310,070 |
|
|
3.7 |
% |
|
25.6 |
% |
Average loans, net of unearned
(“Average loans”) |
$ |
1,609,564 |
|
|
$ |
1,563,255 |
|
|
$ |
1,278,413 |
|
|
3.0 |
% |
|
25.9 |
% |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
(“NPL”) |
$ |
1,646 |
|
|
$ |
2,245 |
|
|
$ |
3,246 |
|
|
(26.7 |
)% |
|
(49.3 |
)% |
Provision for loan losses |
$ |
1,181 |
|
|
$ |
1,938 |
|
|
$ |
700 |
|
|
(39.1 |
)% |
|
68.7 |
% |
Allowance for loan losses
(“ALLL”) |
$ |
21,140 |
|
|
$ |
20,156 |
|
|
$ |
15,492 |
|
|
4.9 |
% |
|
36.5 |
% |
Net charge-offs
(recoveries) |
$ |
197 |
|
|
$ |
205 |
|
|
$ |
52 |
|
|
(3.9 |
)% |
|
278.8 |
% |
NPL to gross loans |
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.25 |
% |
|
|
|
|
Net charge-offs (recoveries)
to average loans(1) |
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.02 |
% |
|
|
|
|
ALLL to loans |
|
1.28 |
% |
|
|
1.27 |
% |
|
|
1.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratio is annualized. |
|
|
|
|
|
|
|
|
|
NM = Not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income, were $1.6 billion
at March 31, 2023, up $58.2 million from December 31,
2022 and up $335.2 million from March 31, 2022. The
linked-quarter and year-over-year increases in loans were primarily
attributable to new business growth across our footprint.
Nonperforming loans totaled $1.6 million, or
0.10% of gross loans, at March 31, 2023, compared with $2.2
million, or 0.14% of gross loans, at December 31, 2022, and
$3.2 million, or 0.25% of gross loans, at March 31, 2022. The
$599,000 net decrease in nonperforming loans in the first quarter
was primarily attributable to three loans that were returned to
accruing status or charged-off. The $1.6 million net decrease in
nonperforming loans from March 31, 2022 was primarily
attributable to a significant commercial real estate loan being
moved back to accruing status.
The Company recorded a provision for loan losses
of $1.2 million for the first quarter of 2023, compared to $1.9
million for the fourth quarter of 2022. The lower provision was
primarily due to changes in our qualitative economic factors and
less loan growth for the the quarter.
Net charge-offs for the first quarter of 2023
were $197,000, or 0.05% of average loans, compared to net
charge-offs of $205,000, or 0.05% of average loans, for the fourth
quarter of 2022, and net charge-offs of $52,000, or 0.02% of
average loans, for the first quarter of 2022.
The Company’s allowance for loan losses was
1.28% of total loans and 1284.33% of nonperforming loans at
March 31, 2023, compared with 1.27% of total loans and 897.82%
of nonperforming loans at December 31, 2022.
Deposits
|
Three Months Ended |
|
% Change March 31, 2023
vs. |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
433,832 |
|
$ |
460,977 |
|
$ |
515,110 |
|
(5.9 |
)% |
|
(15.8 |
)% |
Interest-bearing deposits |
|
1,355,659 |
|
|
1,259,766 |
|
|
1,026,729 |
|
7.6 |
% |
|
32.0 |
% |
Total deposits |
$ |
1,789,491 |
|
$ |
1,720,743 |
|
$ |
1,541,839 |
|
4.0 |
% |
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
Total deposits were $1.8 billion at
March 31, 2023, up from $1.7 billion at December 31, 2022
and $1.5 billion at March 31, 2022. The $68.7 million increase
in total deposits in the first quarter was due to an increase of
$95.9 million in interest-bearing account balances, partially
offset by a $27.1 million decrease in noninterest-bearing deposits.
Included in the increase was $35.1 million in brokered
deposits.
Capital
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
Company |
|
Bank |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio to average assets |
8.89 |
% |
|
12.19 |
% |
|
8.82 |
% |
|
12.17 |
% |
|
8.75 |
% |
|
10.88 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 (“CET1”)
capital ratio |
9.00 |
% |
|
12.34 |
% |
|
8.86 |
% |
|
12.21 |
% |
|
9.90 |
% |
|
12.32 |
% |
Tier 1 capital ratio |
9.00 |
% |
|
12.34 |
% |
|
8.86 |
% |
|
12.21 |
% |
|
9.90 |
% |
|
12.32 |
% |
Total capital ratio |
14.41 |
% |
|
13.38 |
% |
|
14.34 |
% |
|
13.24 |
% |
|
13.97 |
% |
|
13.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2023, total stockholders’
equity was $189.7 million, up from $181.7 million at
December 31, 2022. The increase of $7.9 million was
substantially due to strong 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, the inflationary
environment, the COVID-19 pandemic and governmental responses.
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, 2022 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 business strategy
and prospects for growth, operations, ability to pay dividends,
competition, regulation and general economic conditions.
Contact Information
Lynn Joyce |
|
|
|
Kevin Dobbs |
(205)
820-8065 |
|
|
|
(310)
622-8245 |
ljoyce@ssbank.bank |
|
|
|
ssbankir@finprofiles.com |
|
SELECT FINANCIAL DATA |
(In thousands, except share and per share amounts) |
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2023 |
|
December 31,2022 |
|
March 31, 2022 |
|
|
|
|
|
Results of
Operations |
|
|
|
|
|
Interest income |
$ |
28,699 |
|
|
$ |
26,706 |
|
|
$ |
15,872 |
|
Interest expense |
|
9,153 |
|
|
|
5,822 |
|
|
|
1,218 |
|
Net interest income |
|
19,546 |
|
|
|
20,884 |
|
|
|
14,654 |
|
Provision for loan losses |
|
1,181 |
|
|
|
1,938 |
|
|
|
700 |
|
Net interest income after
provision |
|
18,365 |
|
|
|
18,946 |
|
|
|
13,954 |
|
Noninterest income |
|
1,786 |
|
|
|
4,603 |
|
|
|
1,333 |
|
Noninterest expense |
|
10,158 |
|
|
|
10,436 |
|
|
|
9,290 |
|
Income tax expense(1) |
|
2,322 |
|
|
|
2,521 |
|
|
|
1,440 |
|
Net income |
$ |
7,671 |
|
|
$ |
10,592 |
|
|
$ |
4,557 |
|
Core net income(2) |
$ |
7,280 |
|
|
$ |
8,081 |
|
|
$ |
4,824 |
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
Shares issued and
outstanding |
|
8,723,763 |
|
|
|
8,706,920 |
|
|
|
8,749,878 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
Basic |
|
8,762,450 |
|
|
|
8,707,026 |
|
|
|
8,935,384 |
|
Diluted |
|
9,044,490 |
|
|
|
8,932,585 |
|
|
|
9,065,364 |
|
Earnings per share: |
|
|
|
|
|
Basic |
$ |
0.87 |
|
|
$ |
1.22 |
|
|
$ |
0.51 |
|
Diluted |
$ |
0.85 |
|
|
$ |
1.18 |
|
|
$ |
0.50 |
|
Core - diluted(2) |
$ |
0.80 |
|
|
$ |
0.90 |
|
|
$ |
0.53 |
|
Book value per share |
$ |
21.74 |
|
|
$ |
20.87 |
|
|
$ |
19.34 |
|
Tangible book value per
share(2) |
$ |
19.68 |
|
|
$ |
18.79 |
|
|
$ |
17.25 |
|
Cash dividends declared |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
Performance and Financial Ratios |
|
|
|
|
|
ROAA |
|
1.51 |
% |
|
|
2.11 |
% |
|
|
1.03 |
% |
ROAE |
|
16.67 |
% |
|
|
23.77 |
% |
|
|
10.43 |
% |
Core ROAA(2) |
|
1.44 |
% |
|
|
1.61 |
% |
|
|
1.09 |
% |
ROATCE(2) |
|
18.45 |
% |
|
|
26.49 |
% |
|
|
11.63 |
% |
Core ROATCE(2) |
|
17.51 |
% |
|
|
20.21 |
% |
|
|
12.31 |
% |
NIM |
|
4.07 |
% |
|
|
4.38 |
% |
|
|
3.53 |
% |
NIM - FTE(2) |
|
4.09 |
% |
|
|
4.39 |
% |
|
|
3.55 |
% |
Net interest spread |
|
3.33 |
% |
|
|
3.84 |
% |
|
|
3.36 |
% |
Yield on loans |
|
6.38 |
% |
|
|
6.05 |
% |
|
|
4.68 |
% |
Yield on interest-earning
assets |
|
5.97 |
% |
|
|
5.60 |
% |
|
|
3.82 |
% |
Cost of interest-bearing
liabilities |
|
2.64 |
% |
|
|
1.76 |
% |
|
|
0.46 |
% |
Cost of funds(3) |
|
2.01 |
% |
|
|
1.29 |
% |
|
|
0.31 |
% |
Cost of interest-bearing
deposits |
|
2.42 |
% |
|
|
1.52 |
% |
|
|
0.35 |
% |
Cost of total deposits |
|
1.81 |
% |
|
|
1.09 |
% |
|
|
0.23 |
% |
Noninterest deposits to total
deposits |
|
24.24 |
% |
|
|
26.79 |
% |
|
|
33.41 |
% |
Total loans to total
deposits |
|
91.94 |
% |
|
|
92.24 |
% |
|
|
84.97 |
% |
Efficiency ratio |
|
48.79 |
% |
|
|
40.81 |
% |
|
|
56.83 |
% |
Core efficiency ratio(2) |
|
48.79 |
% |
|
|
45.98 |
% |
|
|
56.83 |
% |
|
|
|
|
|
|
(1) Three months ended December 31, 2022
included a $540,000 investment tax credit. (2) See "Reconciliation
of Non-GAAP Financial Measures" below for reconciliation of
non-GAAP financial measures to their most closely comparable GAAP
financial measures.(3) Includes total interest-bearing liabilities
and noninterest deposits.
SELECT FINANCIAL DATA |
(In thousands) |
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2023 |
|
December 31,2022 |
|
March 31, 2022 |
|
|
|
|
|
Financial Condition
(ending) |
|
|
|
|
|
Total loans |
$ |
1,645,315 |
|
|
$ |
1,587,164 |
|
|
$ |
1,310,070 |
|
Total securities |
|
183,197 |
|
|
|
175,196 |
|
|
|
170,694 |
|
Total assets |
|
2,134,337 |
|
|
|
2,045,204 |
|
|
|
1,798,834 |
|
Total noninterest bearing
deposits |
|
433,832 |
|
|
|
460,977 |
|
|
|
515,110 |
|
Total deposits |
|
1,789,491 |
|
|
|
1,720,743 |
|
|
|
1,541,839 |
|
Total borrowings |
|
131,372 |
|
|
|
117,295 |
|
|
|
73,104 |
|
Total liabilities |
|
1,944,674 |
|
|
|
1,863,485 |
|
|
|
1,629,645 |
|
Total shareholders’
equity |
$ |
189,663 |
|
|
$ |
181,719 |
|
|
$ |
169,189 |
|
|
|
|
|
|
|
Financial Condition (average) |
|
|
|
|
|
Total loans |
$ |
1,609,564 |
|
|
$ |
1,563,255 |
|
|
$ |
1,278,413 |
|
Total securities |
|
192,348 |
|
|
|
188,765 |
|
|
|
161,683 |
|
Other interest-earning
assets |
|
146,045 |
|
|
|
141,049 |
|
|
|
244,202 |
|
Total interest-bearing
assets |
|
1,947,957 |
|
|
|
1,893,069 |
|
|
|
1,684,298 |
|
Total assets |
|
2,057,005 |
|
|
|
1,994,087 |
|
|
|
1,787,015 |
|
Noninterest-bearing
deposits |
|
438,735 |
|
|
|
477,301 |
|
|
|
514,456 |
|
Interest-bearing deposits |
|
1,300,632 |
|
|
|
1,216,492 |
|
|
|
1,023,898 |
|
Total deposits |
|
1,739,367 |
|
|
|
1,693,793 |
|
|
|
1,538,354 |
|
Total borrowings |
|
104,901 |
|
|
|
99,111 |
|
|
|
58,874 |
|
Total interest-bearing
liabilities |
|
1,405,533 |
|
|
|
1,315,603 |
|
|
|
1,082,772 |
|
Total shareholders’
equity |
$ |
186,639 |
|
|
$ |
176,769 |
|
|
$ |
177,244 |
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
Nonperforming loans |
$ |
1,646 |
|
|
$ |
2,245 |
|
|
$ |
3,246 |
|
Other real estate owned
(“OREO”) |
$ |
2,930 |
|
|
$ |
2,930 |
|
|
$ |
2,930 |
|
Nonperforming assets
(“NPA”) |
$ |
4,576 |
|
|
$ |
5,175 |
|
|
$ |
6,176 |
|
Net charge-offs (recovery) to
average loans(1) |
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.02 |
% |
Provision for loan losses to
average loans(1) |
|
0.30 |
% |
|
|
0.49 |
% |
|
|
0.22 |
% |
ALLL to loans |
|
1.28 |
% |
|
|
1.27 |
% |
|
|
1.18 |
% |
ALLL to gross loans |
|
1.28 |
% |
|
|
1.27 |
% |
|
|
1.18 |
% |
ALLL to NPL |
|
1284.33 |
% |
|
|
897.82 |
% |
|
|
477.26 |
% |
NPL to loans |
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.25 |
% |
NPL to gross loans |
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.25 |
% |
NPA to gross loans and
OREO |
|
0.28 |
% |
|
|
0.32 |
% |
|
|
0.47 |
% |
NPA to total assets |
|
0.21 |
% |
|
|
0.25 |
% |
|
|
0.34 |
% |
|
|
|
|
|
|
Regulatory and Other Capital Ratios |
|
|
|
|
|
Total shareholders’ equity to
total assets |
|
8.89 |
% |
|
|
8.89 |
% |
|
|
9.41 |
% |
Tangible common equity to
tangible assets(2) |
|
8.11 |
% |
|
|
8.07 |
% |
|
|
8.47 |
% |
Tier 1 capital ratio to
average assets |
|
8.89 |
% |
|
|
8.82 |
% |
|
|
8.75 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
CET1 capital ratio |
|
9.00 |
% |
|
|
8.86 |
% |
|
|
9.90 |
% |
Tier 1 capital ratio |
|
9.00 |
% |
|
|
8.86 |
% |
|
|
9.90 |
% |
Total capital ratio |
|
14.41 |
% |
|
|
14.34 |
% |
|
|
13.97 |
% |
|
|
|
|
|
|
(1) Ratio is annualized.(2) 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 |
(In thousands) |
|
|
|
|
|
|
|
March 31, 2023 (Unaudited) |
|
December 31, 2022 (Audited) |
|
March 31, 2022 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
17,245 |
|
|
$ |
15,260 |
|
|
$ |
22,851 |
|
Interest-bearing deposits in
banks |
|
99,541 |
|
|
|
90,198 |
|
|
|
111,951 |
|
Federal funds sold |
|
76,010 |
|
|
|
63,041 |
|
|
|
74,022 |
|
Total cash and cash equivalents |
|
192,796 |
|
|
|
168,499 |
|
|
|
208,824 |
|
|
|
|
|
|
|
Securities available for sale,
at fair value |
|
163,550 |
|
|
|
155,544 |
|
|
|
151,027 |
|
Securities held to maturity,
at amortized cost |
|
19,647 |
|
|
|
19,652 |
|
|
|
19,667 |
|
Other equity securities, at
fair value |
|
3,806 |
|
|
|
4,444 |
|
|
|
8,937 |
|
Restricted equity securities,
at cost |
|
3,862 |
|
|
|
3,134 |
|
|
|
2,825 |
|
Loans held for sale |
|
2,376 |
|
|
|
1,047 |
|
|
|
2,509 |
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
1,645,315 |
|
|
|
1,587,164 |
|
|
|
1,310,070 |
|
Less allowance for loan
losses |
|
21,140 |
|
|
|
20,156 |
|
|
|
15,492 |
|
Loans, net |
|
1,624,175 |
|
|
|
1,567,008 |
|
|
|
1,294,578 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
27,098 |
|
|
|
27,345 |
|
|
|
28,065 |
|
Accrued interest
receivable |
|
7,077 |
|
|
|
6,963 |
|
|
|
4,427 |
|
Bank owned life insurance |
|
29,350 |
|
|
|
29,186 |
|
|
|
29,343 |
|
Annuities |
|
15,489 |
|
|
|
15,478 |
|
|
|
15,523 |
|
Foreclosed assets |
|
2,930 |
|
|
|
2,930 |
|
|
|
2,930 |
|
Goodwill |
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
Core deposit intangible |
|
1,144 |
|
|
|
1,226 |
|
|
|
1,434 |
|
Other assets |
|
24,175 |
|
|
|
25,886 |
|
|
|
11,883 |
|
|
|
|
|
|
|
Total assets |
$ |
2,134,337 |
|
|
$ |
2,045,204 |
|
|
$ |
1,798,834 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing |
$ |
433,832 |
|
|
$ |
460,977 |
|
|
$ |
515,110 |
|
Interest-bearing |
|
1,355,659 |
|
|
|
1,259,766 |
|
|
|
1,026,729 |
|
Total deposits |
|
1,789,491 |
|
|
|
1,720,743 |
|
|
|
1,541,839 |
|
|
|
|
|
|
|
Other borrowings |
|
(16 |
) |
|
|
(19 |
) |
|
|
— |
|
FHLB advances |
|
45,000 |
|
|
|
31,000 |
|
|
|
25,950 |
|
Subordinated notes |
|
86,388 |
|
|
|
86,314 |
|
|
|
47,154 |
|
Accrued interest payable |
|
844 |
|
|
|
584 |
|
|
|
107 |
|
Other liabilities |
|
22,967 |
|
|
|
24,863 |
|
|
|
14,595 |
|
|
|
|
|
|
|
Total liabilities |
|
1,944,674 |
|
|
|
1,863,485 |
|
|
|
1,629,645 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Common stock |
|
43,798 |
|
|
|
43,714 |
|
|
|
43,749 |
|
Capital surplus |
|
77,053 |
|
|
|
76,785 |
|
|
|
76,426 |
|
Retained earnings |
|
80,642 |
|
|
|
73,764 |
|
|
|
53,604 |
|
Accumulated other comprehensive loss |
|
(9,846 |
) |
|
|
(11,048 |
) |
|
|
(3,755 |
) |
Unvested restricted stock |
|
(965 |
) |
|
|
(477 |
) |
|
|
(835 |
) |
Vested restricted stock units |
|
(1,019 |
) |
|
|
(1,019 |
) |
|
|
— |
|
|
|
|
|
|
|
Total stockholders' equity |
|
189,663 |
|
|
|
181,719 |
|
|
|
169,189 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,134,337 |
|
|
$ |
2,045,204 |
|
|
$ |
1,798,834 |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
Three Months Ended |
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Interest
income: |
|
|
|
|
|
Loans, including fees |
$ |
25,335 |
|
|
$ |
23,853 |
|
|
$ |
14,766 |
|
Taxable securities |
|
1,383 |
|
|
|
1,206 |
|
|
|
619 |
|
Nontaxable securities |
|
291 |
|
|
|
322 |
|
|
|
299 |
|
Other interest and dividends |
|
1,690 |
|
|
|
1,325 |
|
|
|
188 |
|
Total interest income |
|
28,699 |
|
|
|
26,706 |
|
|
|
15,872 |
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
Deposits |
|
7,768 |
|
|
|
4,655 |
|
|
|
873 |
|
Other borrowings |
|
1,385 |
|
|
|
1,167 |
|
|
|
345 |
|
Total interest expense |
|
9,153 |
|
|
|
5,822 |
|
|
|
1,218 |
|
|
|
|
|
|
|
Net interest income |
|
19,546 |
|
|
|
20,884 |
|
|
|
14,654 |
|
Provision for loan
losses |
|
1,181 |
|
|
|
1,938 |
|
|
|
700 |
|
Net interest income after provision for loan
losses |
|
18,365 |
|
|
|
18,946 |
|
|
|
13,954 |
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
Service charges on deposit accounts |
|
450 |
|
|
|
431 |
|
|
|
445 |
|
Swap fees |
|
(4 |
) |
|
|
2 |
|
|
|
15 |
|
SBA/USDA fees |
|
134 |
|
|
|
70 |
|
|
|
388 |
|
Mortgage origination fees |
|
100 |
|
|
|
98 |
|
|
|
286 |
|
Net gain (loss) on securities |
|
514 |
|
|
|
(86 |
) |
|
|
(361 |
) |
Other operating income |
|
592 |
|
|
|
4,088 |
|
|
|
560 |
|
Total noninterest income |
|
1,786 |
|
|
|
4,603 |
|
|
|
1,333 |
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
Salaries and employee benefits |
|
6,311 |
|
|
|
6,738 |
|
|
|
5,725 |
|
Equipment and occupancy expenses |
|
683 |
|
|
|
730 |
|
|
|
705 |
|
Data processing fees |
|
593 |
|
|
|
711 |
|
|
|
564 |
|
Regulatory assessments |
|
342 |
|
|
|
165 |
|
|
|
263 |
|
Other operating expenses |
|
2,229 |
|
|
|
2,092 |
|
|
|
2,033 |
|
Total noninterest expenses |
|
10,158 |
|
|
|
10,436 |
|
|
|
9,290 |
|
|
|
|
|
|
|
Income before income taxes |
|
9,993 |
|
|
|
13,113 |
|
|
|
5,997 |
|
|
|
|
|
|
|
Income tax expense |
|
2,322 |
|
|
|
2,521 |
|
|
|
1,440 |
|
|
|
|
|
|
|
Net income |
$ |
7,671 |
|
|
$ |
10,592 |
|
|
$ |
4,557 |
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
0.87 |
|
|
$ |
1.22 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.85 |
|
|
$ |
1.18 |
|
|
$ |
0.50 |
|
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,609,564 |
|
|
$ |
25,335 |
|
6.38 |
% |
|
$ |
1,563,255 |
|
|
$ |
23,853 |
|
6.05 |
% |
|
$ |
1,278,413 |
|
|
$ |
14,766 |
|
4.68 |
% |
Taxable securities |
|
139,516 |
|
|
|
1,383 |
|
4.02 |
% |
|
|
132,222 |
|
|
|
1,206 |
|
3.62 |
% |
|
|
106,820 |
|
|
|
619 |
|
2.35 |
% |
Nontaxable securities |
|
52,832 |
|
|
|
291 |
|
2.24 |
% |
|
|
56,543 |
|
|
|
322 |
|
2.26 |
% |
|
|
54,863 |
|
|
|
299 |
|
2.21 |
% |
Other interest-earnings
assets |
|
146,045 |
|
|
|
1,690 |
|
4.69 |
% |
|
|
141,049 |
|
|
|
1,325 |
|
3.73 |
% |
|
|
244,202 |
|
|
|
188 |
|
0.31 |
% |
Total interest-earning assets |
$ |
1,947,957 |
|
|
$ |
28,699 |
|
5.97 |
% |
|
$ |
1,893,069 |
|
|
$ |
26,706 |
|
5.60 |
% |
|
$ |
1,684,298 |
|
|
$ |
15,872 |
|
3.82 |
% |
Allowance for loan losses |
|
(20,493 |
) |
|
|
|
|
|
|
(19,374 |
) |
|
|
|
|
|
|
(15,041 |
) |
|
|
|
|
Noninterest-earning assets |
|
129,541 |
|
|
|
|
|
|
|
120,392 |
|
|
|
|
|
|
|
117,758 |
|
|
|
|
|
Total Assets |
$ |
2,057,005 |
|
|
|
|
|
|
$ |
1,994,087 |
|
|
|
|
|
|
$ |
1,787,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
93,951 |
|
|
|
20 |
|
0.08 |
% |
|
|
98,978 |
|
|
|
22 |
|
0.09 |
% |
|
|
110,983 |
|
|
|
26 |
|
0.09 |
% |
Savings and money market accounts |
|
806,001 |
|
|
|
5,040 |
|
2.54 |
% |
|
|
794,692 |
|
|
|
3,126 |
|
1.56 |
% |
|
|
675,504 |
|
|
|
591 |
|
0.36 |
% |
Time deposits |
|
400,680 |
|
|
|
2,708 |
|
2.74 |
% |
|
|
322,822 |
|
|
|
1,507 |
|
1.85 |
% |
|
|
237,411 |
|
|
|
256 |
|
0.44 |
% |
FHLB advances |
|
18,578 |
|
|
|
159 |
|
3.47 |
% |
|
|
22,739 |
|
|
|
147 |
|
2.56 |
% |
|
|
25,950 |
|
|
|
22 |
|
0.34 |
% |
Other borrowings |
|
86,323 |
|
|
|
1,226 |
|
5.76 |
% |
|
|
76,372 |
|
|
|
1,020 |
|
5.30 |
% |
|
|
32,924 |
|
|
|
323 |
|
3.98 |
% |
Total interest-bearing liabilities |
$ |
1,405,533 |
|
|
$ |
9,153 |
|
2.64 |
% |
|
$ |
1,315,603 |
|
|
$ |
5,822 |
|
1.76 |
% |
|
$ |
1,082,772 |
|
|
$ |
1,218 |
|
0.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
438,735 |
|
|
|
|
|
|
$ |
477,301 |
|
|
|
|
|
|
$ |
514,456 |
|
|
|
|
|
Other liabilities |
|
26,098 |
|
|
|
|
|
|
|
24,414 |
|
|
|
|
|
|
|
12,543 |
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
464,833 |
|
|
|
|
|
|
$ |
501,715 |
|
|
|
|
|
|
$ |
526,999 |
|
|
|
|
|
Stockholders’ Equity |
|
186,639 |
|
|
|
|
|
|
|
176,769 |
|
|
|
|
|
|
|
177,244 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,057,005 |
|
|
|
|
|
|
$ |
1,994,087 |
|
|
|
|
|
|
$ |
1,787,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
19,546 |
|
|
|
|
|
$ |
20,884 |
|
|
|
|
|
$ |
14,654 |
|
|
Net interest spread(2) |
|
|
|
|
3.33 |
% |
|
|
|
|
|
3.84 |
% |
|
|
|
|
|
3.36 |
% |
Net interest margin(3) |
|
|
|
|
4.07 |
% |
|
|
|
|
|
4.38 |
% |
|
|
|
|
|
3.53 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
4.09 |
% |
|
|
|
|
|
4.39 |
% |
|
|
|
|
|
3.55 |
% |
Cost of funds(6) |
|
|
|
|
2.01 |
% |
|
|
|
|
|
1.29 |
% |
|
|
|
|
|
0.31 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
2.42 |
% |
|
|
|
|
|
1.52 |
% |
|
|
|
|
|
0.35 |
% |
Cost of total deposits |
|
|
|
|
1.81 |
% |
|
|
|
|
|
1.09 |
% |
|
|
|
|
|
0.23 |
% |
(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 for the three months ended
March 31, 2023 and December 31, 2022 and a 23.5% tax rate for the
three months ended March 31, 2022. |
(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, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
|
|
|
|
|
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
$ |
227,560 |
|
|
13.8 |
% |
|
$ |
255,736 |
|
|
16.1 |
% |
|
$ |
165,400 |
|
|
12.6 |
% |
Residential |
|
196,923 |
|
|
11.9 |
% |
|
|
167,891 |
|
|
10.5 |
% |
|
|
154,143 |
|
|
11.7 |
% |
Commercial |
|
948,251 |
|
|
57.5 |
% |
|
|
904,872 |
|
|
56.8 |
% |
|
|
765,685 |
|
|
58.3 |
% |
Commercial and industrial |
|
270,825 |
|
|
16.4 |
% |
|
|
256,553 |
|
|
16.1 |
% |
|
|
218,868 |
|
|
16.6 |
% |
PPP loans |
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
893 |
|
|
0.1 |
% |
Consumer and other |
|
7,370 |
|
|
0.4 |
% |
|
|
7,655 |
|
|
0.5 |
% |
|
|
9,077 |
|
|
0.7 |
% |
Gross loans |
|
1,650,929 |
|
|
100.0 |
% |
|
|
1,592,707 |
|
|
100.0 |
% |
|
|
1,314,066 |
|
|
100.0 |
% |
Unearned income |
|
(5,614 |
) |
|
|
|
|
(5,543 |
) |
|
|
|
|
(3,996 |
) |
|
|
Loans, net of unearned income |
|
1,645,315 |
|
|
|
|
|
1,587,164 |
|
|
|
|
|
1,310,070 |
|
|
|
Allowance for loan losses |
|
(21,140 |
) |
|
|
|
|
(20,156 |
) |
|
|
|
|
(15,492 |
) |
|
|
Loans, net |
$ |
1,624,175 |
|
|
|
|
$ |
1,567,008 |
|
|
|
|
$ |
1,294,578 |
|
|
|
DEPOSIT COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing transaction |
$ |
433,833 |
|
24.2 |
% |
|
$ |
460,977 |
|
26.8 |
% |
|
$ |
515,110 |
|
33.4 |
% |
Interest-bearing
transaction |
|
877,166 |
|
49.0 |
% |
|
|
837,127 |
|
48.6 |
% |
|
|
749,119 |
|
48.6 |
% |
Savings |
|
47,742 |
|
2.7 |
% |
|
|
49,235 |
|
2.9 |
% |
|
|
62,462 |
|
4.1 |
% |
Time deposits, $250,000 and
under |
|
366,271 |
|
20.5 |
% |
|
|
307,145 |
|
17.8 |
% |
|
|
189,172 |
|
12.2 |
% |
Time deposits, over
$250,000 |
|
64,479 |
|
3.6 |
% |
|
|
66,259 |
|
3.9 |
% |
|
|
25,976 |
|
1.7 |
% |
Total deposits |
$ |
1,789,491 |
|
100.0 |
% |
|
$ |
1,720,743 |
|
100.0 |
% |
|
$ |
1,541,839 |
|
100.0 |
% |
Nonperfoming Assets |
(Dollars in thousands) |
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,646 |
|
|
$ |
2,245 |
|
|
$ |
3,246 |
|
Past due loans 90 days or more
and still accruing interest |
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
1,646 |
|
|
|
2,245 |
|
|
|
3,246 |
|
OREO |
|
2,930 |
|
|
|
2,930 |
|
|
|
2,930 |
|
Total nonperforming assets |
$ |
4,576 |
|
|
$ |
5,175 |
|
|
$ |
6,176 |
|
|
|
|
|
|
|
Troubled debt restructured
loans – nonaccrual(1) |
|
805 |
|
|
|
832 |
|
|
|
904 |
|
Troubled debt restructured
loans – accruing |
|
1,272 |
|
|
|
1,292 |
|
|
|
1,058 |
|
Total troubled debt restructured loans |
$ |
2,077 |
|
|
$ |
2,124 |
|
|
$ |
1,962 |
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
21,140 |
|
|
$ |
20,156 |
|
|
$ |
15,492 |
|
Loans, net of unearned income
at the end of the period |
$ |
1,645,315 |
|
|
$ |
1,587,164 |
|
|
$ |
1,310,070 |
|
Gross loans outstanding at the
end of period |
$ |
1,650,929 |
|
|
$ |
1,592,707 |
|
|
$ |
1,314,066 |
|
Total assets |
$ |
2,134,337 |
|
|
$ |
2,045,204 |
|
|
$ |
1,798,834 |
|
Allowance for loan losses to
nonperforming loans |
|
1284.33 |
% |
|
|
897.82 |
% |
|
|
477.26 |
% |
Nonperforming loans to loans,
net of unearned income |
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.25 |
% |
Nonperforming loans to gross
loans |
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.25 |
% |
Nonperforming assets to gross
loans and OREO |
|
0.28 |
% |
|
|
0.32 |
% |
|
|
0.47 |
% |
Nonperforming assets to total
assets |
|
0.21 |
% |
|
|
0.25 |
% |
|
|
0.34 |
% |
|
|
|
|
|
|
Nonaccrual loans by
category: |
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
Construction & Development |
$ |
64 |
|
|
$ |
67 |
|
|
$ |
76 |
|
Residential Mortgages |
|
267 |
|
|
|
565 |
|
|
|
510 |
|
Commercial Real Estate Mortgages |
|
1,263 |
|
|
|
1,278 |
|
|
|
2,388 |
|
Commercial &
Industrial |
|
51 |
|
|
|
312 |
|
|
|
269 |
|
Consumer and other |
|
1 |
|
|
|
23 |
|
|
|
3 |
|
Total |
$ |
1,646 |
|
|
$ |
2,245 |
|
|
$ |
3,246 |
|
(1) Troubled debt restructured 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 Loan Losses |
(Dollars in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2023 |
|
December 31,2022 |
|
March 31, 2022 |
|
|
|
|
|
Average loans, net of unearned income |
$ |
1,609,564 |
|
|
$ |
1,563,255 |
|
|
$ |
1,278,413 |
|
Loans, net of unearned
income |
$ |
1,645,315 |
|
|
$ |
1,587,164 |
|
|
$ |
1,310,070 |
|
Gross loans |
$ |
1,650,929 |
|
|
$ |
1,592,707 |
|
|
$ |
1,314,066 |
|
Allowance for loan losses at
beginning of the period |
$ |
20,156 |
|
|
$ |
18,423 |
|
|
$ |
14,844 |
|
Charge-offs: |
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
66 |
|
Residential |
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
218 |
|
|
|
210 |
|
|
|
— |
|
Consumer and other |
|
6 |
|
|
|
18 |
|
|
|
6 |
|
Total charge-offs |
|
224 |
|
|
|
228 |
|
|
|
72 |
|
Recoveries: |
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
Residential |
|
11 |
|
|
|
4 |
|
|
|
17 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
14 |
|
|
|
1 |
|
|
|
— |
|
Consumer and other |
|
2 |
|
|
|
18 |
|
|
|
3 |
|
Total recoveries |
|
27 |
|
|
|
23 |
|
|
|
20 |
|
Net charge-offs (recoveries) |
$ |
197 |
|
|
$ |
205 |
|
|
$ |
52 |
|
|
|
|
|
|
|
Provision for loan losses |
$ |
1,181 |
|
|
$ |
1,938 |
|
|
$ |
700 |
|
Balance at end of period |
$ |
21,140 |
|
|
$ |
20,156 |
|
|
$ |
15,492 |
|
Allowance to loans, net of
unearned income |
|
1.28 |
% |
|
|
1.27 |
% |
|
|
1.18 |
% |
Allowance to gross loans |
|
1.28 |
% |
|
|
1.27 |
% |
|
|
1.18 |
% |
Net charge-offs (recoveries)
to average loans, net of unearned income(1) |
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.02 |
% |
Provision for loan losses to
average loans, net of unearned income(1) |
|
0.30 |
% |
|
|
0.49 |
% |
|
|
0.22 |
% |
(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 |
March 31, 2023 |
|
December 31,2022 |
|
March 31, 2022 |
|
|
|
|
|
Net income |
$ |
7,671 |
|
|
$ |
10,592 |
|
|
$ |
4,557 |
|
Less: Net gain on sale of
branches |
|
— |
|
|
|
2,372 |
|
|
|
— |
|
Less: BOLI benefit claim |
|
— |
|
|
|
774 |
|
|
|
— |
|
Less: Gain (loss) on
securities |
|
514 |
|
|
|
(86 |
) |
|
|
(361 |
) |
Less: Tax effect |
|
(123 |
) |
|
|
(549 |
) |
|
|
94 |
|
Core net
income |
$ |
7,280 |
|
|
$ |
8,081 |
|
|
$ |
4,824 |
|
Average assets |
$ |
2,057,005 |
|
|
$ |
1,994,087 |
|
|
$ |
1,787,015 |
|
Core return on average
assets |
|
1.44 |
% |
|
|
1.61 |
% |
|
|
1.09 |
% |
|
|
|
|
|
|
Net income |
$ |
7,671 |
|
|
$ |
10,592 |
|
|
$ |
4,557 |
|
Add: Provision |
|
1,181 |
|
|
|
1,938 |
|
|
|
700 |
|
Less: Net gain on sale of
branches |
|
— |
|
|
|
2,372 |
|
|
|
— |
|
Less: BOLI benefit claim |
|
— |
|
|
|
774 |
|
|
|
— |
|
Less: Gain (loss) on
securities |
|
514 |
|
|
|
(86 |
) |
|
|
(361 |
) |
Add: Income taxes |
|
2,322 |
|
|
|
2,521 |
|
|
|
1,440 |
|
Pretax pre-provision
core net income |
$ |
10,660 |
|
|
$ |
11,991 |
|
|
$ |
7,058 |
|
Average assets |
$ |
2,057,005 |
|
|
$ |
1,994,087 |
|
|
$ |
1,787,015 |
|
Pretax pre-provision
core return on average assets |
|
2.10 |
% |
|
|
2.39 |
% |
|
|
1.60 |
% |
|
|
|
|
|
|
Net interest income |
$ |
19,546 |
|
|
$ |
20,884 |
|
|
$ |
14,654 |
|
Add: Fully-taxable equivalent
adjustments(1) |
|
85 |
|
|
|
84 |
|
|
|
78 |
|
Net interest income -
FTE |
$ |
19,631 |
|
|
$ |
20,968 |
|
|
$ |
14,732 |
|
|
|
|
|
|
|
Net interest margin |
|
4.07 |
% |
|
|
4.38 |
% |
|
|
3.53 |
% |
Effect of fully-taxable
equivalent adjustments(1) |
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
Net interest margin -
FTE |
|
4.09 |
% |
|
|
4.39 |
% |
|
|
3.55 |
% |
|
|
|
|
|
|
Total stockholders'
equity |
$ |
189,663 |
|
|
$ |
181,719 |
|
|
$ |
169,189 |
|
Less: Intangible assets |
|
18,006 |
|
|
|
18,088 |
|
|
|
18,296 |
|
Tangible common
equity |
$ |
171,657 |
|
|
$ |
163,631 |
|
|
$ |
150,893 |
|
|
|
|
|
|
|
(1) Assumes a 24.0% tax rate for the three months ended March 31,
2023 and December 31, 2022 and a 23.5% tax rate for the three
months ended March 31, 2022. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
(Dollars in thousands, except share and per share amounts |
|
|
|
|
|
|
|
Three Months Ended |
March 31, 2023 |
|
December 31,2022 |
|
March 31, 2022 |
|
|
|
|
|
Core net income |
$ |
7,280 |
|
|
$ |
8,081 |
|
|
$ |
4,824 |
|
Diluted weighted average
shares outstanding |
|
9,044,490 |
|
|
|
8,932,585 |
|
|
|
9,065,364 |
|
Diluted core earnings
per share |
$ |
0.80 |
|
|
$ |
0.90 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
Common shares outstanding at
year or period end |
|
8,723,763 |
|
|
|
8,706,920 |
|
|
|
8,749,878 |
|
Tangible book value
per share |
$ |
19.68 |
|
|
$ |
18.79 |
|
|
$ |
17.25 |
|
|
|
|
|
|
|
Total assets at end of
period |
$ |
2,134,337 |
|
|
$ |
2,045,204 |
|
|
$ |
1,798,834 |
|
Less: Intangible assets |
|
18,006 |
|
|
|
18,088 |
|
|
|
18,296 |
|
Adjusted assets at end of
period |
$ |
2,116,331 |
|
|
$ |
2,027,116 |
|
|
$ |
1,780,538 |
|
Tangible common equity
to tangible assets |
|
8.11 |
% |
|
|
8.07 |
% |
|
|
8.47 |
% |
|
|
|
|
|
|
Total average shareholders
equity |
$ |
186,639 |
|
|
$ |
176,769 |
|
|
$ |
177,244 |
|
Less: Average intangible
assets |
|
18,055 |
|
|
|
18,134 |
|
|
|
18,337 |
|
Average tangible common
equity |
$ |
168,584 |
|
|
$ |
158,635 |
|
|
$ |
158,907 |
|
Net income to common
shareholders |
$ |
7,671 |
|
|
$ |
10,592 |
|
|
$ |
4,557 |
|
Return on average
tangible common equity |
|
18.45 |
% |
|
|
26.49 |
% |
|
|
11.63 |
% |
Average tangible common
equity |
$ |
168,584 |
|
|
$ |
158,635 |
|
|
$ |
158,907 |
|
Core net income |
$ |
7,280 |
|
|
$ |
8,081 |
|
|
$ |
4,824 |
|
Core return on average
tangible common equity |
|
17.51 |
% |
|
|
20.21 |
% |
|
|
12.31 |
% |
|
|
|
|
|
|
Net interest income |
$ |
19,546 |
|
|
$ |
20,884 |
|
|
$ |
14,654 |
|
Add: Noninterest income |
|
1,786 |
|
|
|
4,603 |
|
|
|
1,333 |
|
Less: Gain on sale of
branches |
|
— |
|
|
|
2,600 |
|
|
|
— |
|
Less: BOLI benefit claim |
|
— |
|
|
|
774 |
|
|
|
— |
|
Less: Gain (loss) on
securities |
|
514 |
|
|
|
(86 |
) |
|
|
(361 |
) |
Operating revenue |
$ |
20,818 |
|
|
$ |
22,199 |
|
|
$ |
16,348 |
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Total noninterest expense |
$ |
10,158 |
|
|
$ |
10,436 |
|
|
$ |
9,290 |
|
Less: Loss on sale of
branches |
|
— |
|
|
|
228 |
|
|
|
— |
|
Adjusted noninterest
expenses |
$ |
10,158 |
|
|
$ |
10,208 |
|
|
$ |
9,290 |
|
Core efficiency
ratio |
|
48.79 |
% |
|
|
45.98 |
% |
|
|
56.83 |
% |
Southern States Bancshares (NASDAQ:SSBK)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Southern States Bancshares (NASDAQ:SSBK)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024