NASDAQ$SSBK

Southern States Bancshares · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Southern States Bancshares, Inc. reported net income for Q4 2022.

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.

Headline financials

Total Revenue

$25.5M

Previous: $15.8M+60.8%
EPS (adj)

$0.90

Previous: $0.47+91.5%
Net interest margin

4.4%

No prior period
Efficiency ratio

40.8%

No prior period
Capital Expenditures

$106K

Previous: $1.6M-93.4%
Free Cash Flow

$9.38M

Previous: $5.42M+73.1%
Net Income

$10.6M

Previous: $4.06M+161.0%
Operating Income

$13.1M

No prior period
Gross Profit

$20.9M

Previous: $15.8M+31.8%
Cash & Equivalents

$168M

Previous: $284M-40.7%
Total Assets

$2.05B

Previous: $1.78B+14.7%
Stock-Based Comp

$217K

Previous: $218K-0.5%

Revenue & EPS history

Southern States · Revenue · Quarterly

$25.5M

Q4 2022+60.8%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Southern States · $2.22M total across 5 segments · Q3 2023

  • Other operating income
    $1.09M
  • Swap (expenses) fees
    $453K
  • Service charges on deposit accounts
    $442K
  • Mortgage origination fees
    $158K
  • SBA/USDA fees
    $74K

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 5 quarterly earnings reports

Historical avg

+1.7%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+4.8%

Avg return

30 days after

75%

15 / 20 earnings

Positive

+10.0%

Q2 2024

Best reaction

-4.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025
Q1 2025+3.0%+1.8%+1.9%
Q4 2025-1.6%-4.0%-4.7%
Q3 2024-0.7%-0.7%+15.0%
Q2 2024+10.0%+12.3%+0.1%
Q1 2024+2.3%+1.7%+11.7%
Q4 2023-0.2%
Q3 2023+1.4%
Q2 2023+7.3%
Q1 2023-4.0%
Q4 2022+0.9%
Q3 2022+2.3%
Q2 2022-0.5%
Q1 2021+3.6%
Q1 2022+0.2%
Q4 2020+2.1%
Q4 2021+0.6%
Q3 2020+0.5%
Q3 2021+2.0%
Q2 2020+1.8%
Q2 2021+1.8%
Q1 2020

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