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Dec 31, 2022
Southern States Q4 2022 Earnings Report
Southern States Bancshares, Inc. reported net income for Q4 2022.
Key Takeaways
Southern States Bancshares, Inc. reported a net income of $10.6 million, or $1.18 per diluted share, for the fourth quarter of 2022. Net interest income increased to $20.9 million, and the net interest margin was 4.38%. The company completed the sale of two branches, resulting in a $2.4 million net gain.
Net income was $10.6 million, or $1.18 per diluted share.
Core net income was $8.1 million, or $0.90 per diluted share.
Net interest income increased to $20.9 million.
Completed the sale of two branches, resulting in a $2.4 million net gain.
Southern States
Southern States
Forward Guidance
Southern States Bancshares is cautiously optimistic about the economic environment heading into 2023 and is focused on prudent lending and expense management to drive risk-adjusted returns for shareholders.
Positive Outlook
- Talented bankers identified compelling opportunities throughout 2022, driving strong new business development.
- The company maintained underwriting discipline and excellent credit quality.
- Loan growth was 18.1% annualized in the fourth quarter and 27.7% for the full year.
- Increased net interest margin fueled the expansion of fourth-quarter net interest income.
- Long-term commitment to prudent, selective lending and proactive expense management give confidence in navigating the changing landscape.
Challenges Ahead
- Mindful of the slowing economic environment heading into 2023.
- Lagging impact of rising interest rates on deposit costs.
- Decrease in nonperforming loans in the fourth quarter was primarily attributable to one commercial real estate loan that was moved back to accruing status.
- The $46.3 million decrease in total deposits in the fourth quarter was substantially due to the sale of two branches in October, which resulted in a $66.0 million reduction in total deposits.
- The provision was primarily due to changes in our qualitative economic factors.