Southern States Bancshares, Inc. reported significant growth in its financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company’s total interest income for the third quarter increased to $45.1 million, up from $35.2 million, while for the nine months, it rose to $124.8 million from $96.1 million. This growth was primarily driven by a substantial increase in average loans outstanding, attributed to the acquisition of Century Bank of Georgia on July 31, 2024.

Net interest income for the third quarter was $24.2 million, a 17.0% increase from $20.7 million in the prior year. For the nine months, net interest income reached $66.7 million, up from $59.7 million. However, the net interest margin decreased to 3.65% from 3.78% year-over-year, reflecting rising interest expenses, which increased to $20.8 million in Q3 2024 from $14.5 million in Q3 2023.

Net income for the third quarter was $7.4 million, compared to $6.6 million in the same quarter last year, while for the nine months, net income rose to $23.7 million from $23.1 million. Basic earnings per share for Q3 2024 were $0.76, slightly up from $0.75 in Q3 2023, but down from $0.91 in Q2 2024.

Total assets increased by 16.1% to $2.84 billion as of September 30, 2024, from $2.45 billion at the end of 2023. Loans, net of unearned income, rose to $2.2 billion, a 16.7% increase from $1.9 billion. Total deposits also saw a significant increase of 19.9%, reaching $2.4 billion, driven by both interest-bearing and noninterest-bearing accounts.

The company’s noninterest income turned positive, reporting $1.8 million for Q3 2024, a substantial recovery from a loss of $2.9 million in Q3 2023. This improvement was largely due to increased service charges and gains on securities. However, noninterest expenses surged to $13.7 million, up 59.7% from the previous year, primarily due to merger-related costs and increased salaries.

The acquisition of Century Bank contributed to a rise in the allowance for credit losses, which increased to $28.1 million as of September 30, 2024, reflecting the growth in the loan portfolio and qualitative economic factors. The company reported a provision for credit losses of $2.6 million for Q3 2024, significantly higher than the $773,000 recorded in Q3 2023.

Overall, Southern States Bancshares, Inc. demonstrated robust growth in key financial metrics, driven by strategic acquisitions and an expanding loan portfolio, despite facing challenges related to rising expenses and credit loss provisions.