Southern States Bancshares Reports $10.4 Million Net Income in Q1 2025, Driven by Increased Net Interest Income

Southern States Bancshares, Inc. reported a net income of $10.4 million for the first quarter of 2025, reflecting a 27.5% increase from $8.1 million in the same period last year. This growth was driven by a significant rise in net interest income, which reached $24.9 million, up 19.4% from $20.8 million a year earlier. The annualized return on average assets (ROAA) was 1.48%, while the return on average equity (ROAE) stood at 14.67%. The company’s basic earnings per share increased to $1.04 from $0.91 in the prior year, although it was down from $1.13 in the previous quarter.

In terms of operational metrics, total assets grew slightly to $2.9 billion as of March 31, 2025, compared to $2.8 billion at the end of 2024. Loans, net of unearned income, increased by $33.5 million, or 1.5%, to $2.3 billion, while deposits rose by $14.3 million, or 0.6%, to $2.4 billion. The company also reported a net interest margin of 3.75%, an improvement from 3.59% in the same quarter last year. The increase in loans was attributed to growth from the acquisition of Century Bank, which expanded Southern States' footprint in Georgia.

The company’s recent acquisition of Century Bank, completed on July 31, 2024, has contributed to its growth strategy, adding two branch offices in Georgia and enhancing its market presence. The merger resulted in the acquisition of approximately $334.6 million in assets, including $127.9 million in loans and $308.7 million in deposits. The goodwill from this acquisition was recorded at $16.3 million, and no impairment was noted as of March 31, 2025.

Southern States Bancshares also reported an increase in its allowance for credit losses, which rose to $28.9 million from $28.3 million at the end of 2024. The provision for credit losses for the quarter was $775,000, down from $1.2 million a year earlier, indicating improved asset quality. Nonperforming loans increased to $7.2 million, primarily due to two significant loans being placed on nonaccrual status. The allowance for credit losses as a percentage of gross loans remained stable at 1.27%.

Looking ahead, the company has entered into a merger agreement with FB Financial Corporation, which is expected to be completed in the third quarter of 2025, subject to regulatory and shareholder approvals. This merger is anticipated to further enhance Southern States' market position and operational capabilities. The company remains focused on managing its growth, asset quality, and capital adequacy to navigate the evolving economic landscape.