SOUTHERN STATES BANCSHARES, INC. Q1 2023
Investor Presentation
April 24, 2023
Important Notices and Disclaimers
Forward-Looking Statements
This presentation 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 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 and in other SEC filings under the sections 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," "estim ate," "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.
Non-GAAP Financial Measures
In addition to reporting GAAP results, the Company reports non-GAAP financial measures in this presentation and other disclosures. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since thesemeasures 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 na ture 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. For a reconciliation of the non-GAAP measures we use to the most comparable GAAP measures, see the Appendix to this presentation.
2
Overview of Southern States Bancshares, Inc.
Southern States Bancshares (Nasdaq: SSBK) was founded in
Legend
August 2007 and priced its IPO on August 11, 2021
Hun tsville
75
Branches (13) LPOs (2)
Management team with 200 years of collective experience in
the banking industry and deep ties to local markets
65
59
An n iston
B irmingham
85
Atlan ta
History of solid growth, top-tier profitability and a strong credit culture
20
Tuscaloosa
65
Alabama Auburn
85
Augusta
Georgia
Macon
Bifurcated growth strategy through organic growth and
disciplined M&A
Focused on being a dominant bank in our smaller markets and a competitive player in the larger metropolitan areas
Diversified loan portfolio complemented by low-cost, core funding base
85
Mon tgomery
65
Mobile
Columbus
Savan n ah
75
Valdosta
Q1 '23 Financial Highlights
Assets ($B): | $2.1 | Quarterly Asset Growth(2): | 17.7% | NPLs / Loans: | 0.10% | Core Net Income(1)($M): $7.3 | |||
Gross Loans ($B): | $1.7 | Quarterly Loan Growth(2): | 14.9% | LLR / Loans: | 1.28% | Core ROAA(1): | 1.44% | ||
Deposits ($B): | $1.8 | Quarterly Deposit Growth(2): 16.2% | YTD NCOs / Avg. Loans: | 0.05% | NIM: | 4.07% | |||
Loans / Deposits: | 91.94% Quarterly Core Deposit Growth(2): | 9.3% | TCE / TA(1): | 8.11% | Core Efficiency Ratio(1): 48.79% | ||||
Source: Company Documents | |||||||||
Financial data as of the three months ended | 3/31/23 unless otherwise noted | ||||||||
3 (1) | Note: Core Deposits defined | as total deposits | less brokered and jumbo time deposits; jumbo time deposits classified as deposits larger than $250,000 | ||||||
Please refer to non-U.S. GAAP reconciliation | in the appendix | ||||||||
(2) | Annualized |
Robust Market Dynamics
Market Highlights | |||
Atlanta, GA - | |||
8th largest Metro Area in the USA | |||
- | Ranked 10th largest economy in the country | ||
- | Ranked 13th Best Places for Business and Careers by Forbes | ||
- | 17 Fortune 500 companies headquartered in Atlanta | ||
Birmingham, AL - | Largest market in Alabama, supported by strong steel, | ||
biotechnology, and banking industries |
'28 Projected Median HHI ($M)
$69.2 | $72.8 | $88.1 | $93.1 | $70.7 | $83.3 | |||
$62.3 | ||||||||
Columbus | Auburn- | Birmingham | Huntsville | Atlanta | Southeast | National | ||
MSA | Opelika | MSA | MSA | MSA | Average | Average | ||
MSA | ||||||||
'23 - '28 Projected Population Growth (%) | ||||||||
Huntsville, AL
Auburn / Opelika, AL
- Ranked 2nd best US city for job seekers by MoneyGeek
- University of Alabama Birmingham serves as an international leader in medicine and dentistry
- Voted best place to live in the country by US News
- Highest concentration of engineers in the US
- Ranked #1 best city for STEM workers by Livability
- Home of the Redstone Arsenal which includes the U.S. Space and Rocket Center, NASA's Marshall Space Flight Center, and the U.S. Army Aviation and Missile Command
- Auburn University contributes $5.6 billion annually and 27,000 jobs to the Alabama economy
- Named top-five growth city in America by U-Haul
- High-techmanufacturing and industrial hub for companies like Kia Motors, Hanwha Cimarron, and Niagara Bottling
4.7% | 5.9% | 6.6% | 3.2% | |||
1.6% | 1.9% | 2.1% | ||||
Birmingham | Columbus | Atlanta | Huntsville | Auburn- | Southeast | National |
MSA | MSA | MSA | MSA | Opelika | Average | Average |
MSA |
Major Employers
Columbus, GA | - | Fort Benning Military Base |
• U.S. Ar my Infantry and Armor Training Post | ||
• Columbus Chamber of Commerce estimates annual | ||
economic impact of $4.8 billion | ||
- Major companies headquartered include Aflac and Total | ||
Systems Services, Inc. | ||
- | Contains seven colleges and universities, with 83,000 | |
students pursuing degrees in higher education |
Source: U.S. Bureau of Labor Statistics; S&P Global Market Intelligence; Fortune; Forbes; Money.com; moneygeek.com; Business Facilities; USA Today; Livability,com; US News; Auburn.edu;
4 | Columbus, Georgia Economic Development |
Note: Southeast defined as AL, AR, FL. GA, KY, LA, MS, NC. SC, TN, VA, and WV | |
- Net income of $7.7 million, or $0.85 per diluted share, and core net income (1) of $7.3 million, or $0.80 per diluted share (1)
- ROAA of 1.51% and ROATCE of 18.45%; Core ROAA (1) of 1.44% and Core ROATCE (1) of 17.51%
- Net interest margin of 4.07%
- Efficiency ratio (1) of 48.79%
- YTD monthly margin trends - January 4.16%, February 4.17%, and March 3.90%
Deposits/Liquidity
Loans
• Deposits of $1.8 billion increased $68.7 million, or 4.0%, from Q4 2022 (2)
- Average cost of total deposits increased to 1.81% from 1.09% in Q4 2022
- Noninterest-bearingdeposits comprised 24.24% of total deposits compared to 26.79% at Q4 2022
• Loan portfolio of $1.6 billion increased $58.2 million from Q4 2022
- Annualized loan growth of 14.9% from Q4 2022
- Average yield on loans of 6.38% improved from 6.05% for Q4 2022
- Loans / deposits ratio of 91.94% compared to 92.24% for Q4 2022
Asset Quality
- Nonperforming loans to gross loans of 0.10% improved from 0.14% at Q4 2022
• Net charge-offs at $197,000, or 0.05% of average loans
- Allowance for loan losses to gross loans of 1.28% compared to 1.27% at Q4 2022
- OREO balance remained flat from Q4 at $2.9 million
Capital
- Announced and paid quarterly dividend of $0.09 per share
- Tangible common equity to tangible assets (1) of 8.11%, up from 8.07% at Q4 2022
- Tangible book value per share (1) of $19.68, up 4.7% from Q4 2022
5 | (1) | Please refer to non-U.S. GAAP reconciliation in the appendix |
(2) | Uninsured deposits are 31.4% of total deposits | |
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Disclaimer
Southern States Bancshares Inc. published this content on 24 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2023 20:31:05 UTC.
