• Southern States Bancshares, Inc. Announces First Quarter 2025 Financial Results

    Source: Nasdaq GlobeNewswire / 21 Apr 2025 08:00:01   America/New_York

    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


     Three Months Ended % Change March 31, 2025 vs.
    March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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


     Three Months Ended % Change March 31, 2025 vs.
    March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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


     Three Months Ended % Change March 31, 2025 vs.
    March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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


     Three Months Ended % Change March 31, 2025 vs.
    March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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


     Three Months Ended % Change March 31, 2025 vs.
    March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2024 March 31, 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,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Company Bank Company Bank Company Bank
               
    Tier 1 capital ratio to average assets9.14% 11.99% 8.67% 11.45% 8.79% 11.67%
    Risk-based capital ratios:           
    Common equity tier 1 (“CET1”) capital ratio10.18% 13.35% 9.84% 12.99% 9.39% 12.47%
    Tier 1 capital ratio10.18% 13.35% 9.84% 12.99% 9.39% 12.47%
    Total capital ratio15.06% 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
    March 31, 2025 December 31,
    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
    March 31, 2025 December 31,
    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,
    2025    		 December 31,
    2024    		 March 31,
    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,
    2025    		 December 31,
    2024    		 March 31,
    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,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Average
    Balance    		 Interest Yield/Rate Average
    Balance    		 Interest Yield/Rate Average
    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,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Amount % of gross Amount % of gross Amount % of 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,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Amount % of total Amount % of total Amount % of 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,
    2025    		 December 31,
    2024    		 March 31,
    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
    March 31, 2025 December 31,
    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
    March 31, 2025 December 31,
    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
    March 31, 2025 December 31,
    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%

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