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Southern States Q1 2025 Earnings Report
Southern States Bancshares, Inc. reported its first quarter 2025 financial results, showing an increase in net income and diluted EPS compared to the prior year, driven by improved net interest margin and lower noninterest expense.
Key Takeaways
Southern States Bancshares, Inc. announced net income of $10.4 million, or $1.03 diluted earnings per share, for the first quarter of 2025. This represents a significant increase from $8.1 million, or $0.90 diluted earnings per share, in the first quarter of 2024. The company's net interest margin improved to 3.75%, and loans and deposits saw annualized growth.
Net income for Q1 2025 was $10.4 million, or $1.03 per diluted share, an increase from $8.1 million in Q1 2024.
Net interest margin improved to 3.75% in Q1 2025, up 9 basis points from the prior quarter and 16 basis points from the prior year.
Linked-quarter loans grew 6.1% annualized, and linked-quarter deposits grew 2.4% annualized.
Nonperforming loans increased to $7.2 million, or 0.32% of gross loans, primarily due to one significant commercial real estate loan.
Southern States
Southern States
Southern States Revenue by Segment
Revenue by Segment
Service charges on deposit accounts Revenue
CapyFin.comSwap (expenses) fees Revenue
CapyFin.comSBA/USDA fees Revenue
CapyFin.comMortgage origination fees Revenue
CapyFin.comNet gain (loss) on securities Revenue
CapyFin.comOther operating income Revenue
CapyFin.com Forward Guidance
Southern States Bancshares, Inc. anticipates continued strong performance, leveraging its merger with FB Financial Corporation to expand capabilities and enhance customer experience. The company expects to maintain its customer-centric philosophy and commitment to serving vibrant communities.
Positive Outlook
- The merger with FB Financial Corporation is expected to expand capabilities and enhance customer experience.
- The company anticipates continued improvement in deposit costs.
- The exceptionally low level of non-performing loans reflects prudent credit culture and strong risk management.
- The company is committed to delivering trusted, relationship-based banking.
- Geographic commitment to serving vibrant communities in the South, including Tennessee, Kentucky, Alabama, and Georgia, will be maintained.
Challenges Ahead
- The banking industry faces inherent uncertainties and trends that could impact future performance.
- The pending merger introduces integration risks.
- Actual results may differ materially from forward-looking statements due to various factors.
- Economic conditions and competition could affect future growth and profitability.
- The company's ability to pay dividends may be subject to future performance and regulatory considerations.