Breaking Down Southern States Bancshares, Inc. (SSBK) Financial Health: Key Insights for Investors

You're looking at Southern States Bancshares, Inc. (SSBK) right now, and the biggest question is how their core performance-before the July 1, 2025 merger with FB Financial Corporation-really stacked up in a tough rate environment. The Q1 2025 numbers show a bank that was defintely holding its own, posting a net income of $10.4 million and diluted earnings per share (EPS) of $1.03, which is a solid 19.4% jump from the same quarter in 2024. The key is in the balance sheet quality: as of March 31, 2025, the bank was sitting on $2.9 billion in total assets and maintained a strong credit profile with nonperforming loans at just 0.32% of gross loans. That's a clean balance sheet. Plus, they saw annualized loan growth of 6.1%, proving they could still find good borrowers even as the net interest margin (NIM) was a respectable 3.75%. So, the question isn't just about what they were, but what this strong foundation means for the combined entity's value going forward, especially with $2.4 billion in deposits providing a stable funding base.

Revenue Analysis

The core takeaway for Southern States Bancshares, Inc. (SSBK) is simple: its revenue engine is running hot, but it's a single-cylinder engine-highly dependent on interest income. Analyst forecasts project a total revenue of approximately $112.20 million for the full 2025 fiscal year, which translates to a robust 19.18% jump over 2024's $94.14 million. That's a solid growth trajectory, but you need to understand where that money is coming from.

For a bank, revenue splits into two main categories: Net Interest Income (NII) and Noninterest Income. In the first quarter of 2025 (Q1 2025), SSBK's total revenue was approximately $25.76 million, marking a 23.41% growth year-over-year. This growth is defintely strong, but the distribution shows the bank's traditional focus.

Here's the quick math on the Q1 2025 revenue mix, which shows a heavy reliance on loan and investment interest:

• Net Interest Income (NII): $24.9 million
• Noninterest Income: $1.7 million

As you can see, Net Interest Income-the difference between what the bank earns on loans and investments and what it pays on deposits-contributed a massive 93.6% of the quarter's total revenue, with Noninterest Income making up the remaining 6.4%. This high NII concentration is typical for a regional bank, but it also means the company's profitability is highly sensitive to interest rate changes and loan demand.

Year-over-Year Revenue Trends and Segment Shifts

While the overall revenue growth is impressive, digging into the segments reveals important shifts. Net Interest Income for Q1 2025 was $24.9 million, a significant 19.4% increase compared to Q1 2024. This boost was largely driven by organic loan growth and the strategic acquisition of Century Bank in mid-2024.

The story for Noninterest Income is more volatile. It came in at only $1.7 million in Q1 2025, a steep 44.7% drop from the $3.0 million reported in the prior quarter (Q4 2024). This isn't a sign of core business weakness; it was an expected change. The Q4 2024 figure included a non-recurring $1.2 million gain from the Employee Retention Credit (ERC) program. Strip out that one-time item, and the sequential drop is much less dramatic, showing the core fee-based revenue is relatively stable.

For a clearer picture, here is the breakdown of the most recent quarterly revenue:

The big near-term opportunity is the announced merger with FB Financial Corporation, which is expected to expand SSBK's operations across Tennessee, Kentucky, Alabama, and Georgia, leveraging a much larger $13 billion asset base. This merger is the next major lever for non-interest revenue growth by expanding the service footprint.

Review the full financial picture in our deep dive: Breaking Down Southern States Bancshares, Inc. (SSBK) Financial Health: Key Insights for Investors.

Next Step: Monitor Q2 2025 earnings for any material change in the Net Interest Margin (NIM), which was 3.75% in Q1 2025, as this will directly impact the dominant NII stream.

Profitability Metrics

You want to know if Southern States Bancshares, Inc. (SSBK) is making money efficiently, and the short answer is yes, at least through the first quarter of 2025. The bank showed strong core profitability and excellent operational efficiency, especially when benchmarked against its regional peers. The key takeaway is that their Net Interest Margin (NIM) is trending positively, which is defintely a good sign in this rate environment.

For a bank like Southern States Bancshares, Inc., we look at three primary profitability measures, but we have to translate them from traditional manufacturing terms. Your 'Gross Profit' is essentially the Net Interest Income (NII), which is the difference between what the bank earns on loans and what it pays on deposits. Your 'Operating Profit' is the Pretax Pre-Provision Core Net Income (PTPPCNI), showing core earnings before taxes and loan loss reserves.

• Net Interest Margin (NIM): The core profitability metric, which hit 3.75% in Q1 2025. This is your 'Gross Margin' proxy.
• Operating Margin: Based on the Q1 2025 Pretax Pre-Provision Core Net Income of $14.2 million and total revenue of $26.6 million (NII plus non-interest income), the operating margin is approximately 53.38%.
• Net Profit Margin: The Q1 2025 Net Income was $10.4 million, giving a net profit margin of about 39.10%.

Here's the quick math on NIM: a 3.75% margin is solid for a community bank. Industry data suggests smaller community banks typically operate between 3.5% and 4.5%, so Southern States Bancshares, Inc. is comfortably in the middle of that healthy range.

Profitability Trends and Operational Efficiency

The trend in profitability has been positive, which matters more than a single quarter's number. Southern States Bancshares, Inc. managed to expand its NIM by 9 basis points (bps) sequentially, moving from 3.66% in Q4 2024 to 3.75% in Q1 2025. This margin improvement came from actively managing their funding costs, specifically by reducing higher-cost brokered deposits, even as total Net Interest Income slightly declined to $24.9 million in Q1 2025.

Operational efficiency is where Southern States Bancshares, Inc. really shines. We use the Efficiency Ratio for this, which measures non-interest expenses as a percentage of total revenue-lower is better.

The Efficiency Ratio of 46.42% is excellent; it means the bank is spending less than 47 cents to generate every dollar of revenue. For comparison, the optimal target for most banks is below 60%. The slight improvement from 46.67% in Q4 2024 shows good cost management, which is crucial as the bank navigates its pending merger with FB Financial Corporation.

What this estimate hides, however, is the half-year net income figure of only $3.68 million reported for the period ending June 30, 2025, which is a significant drop from the Q1 net income of $10.4 million. This suggests a very weak Q2 2025 that investors need to scrutinize for one-time merger or provision costs. Still, the Q1 core metrics show a high-quality, efficient bank. For a comprehensive look at the risks and opportunities, you should read the full post: Breaking Down Southern States Bancshares, Inc. (SSBK) Financial Health: Key Insights for Investors.

Next Step: Analyst Team: Investigate the H1 2025 earnings release to isolate and categorize the one-time charges that drove the Net Income down to $3.68 million by the end of next week.

Debt vs. Equity Structure

When you look at Southern States Bancshares, Inc. (SSBK)'s balance sheet right before its merger, you see a regional bank that was conservatively financed. The core takeaway is that the company relied far more on customer deposits and equity (stockholder capital) than on wholesale debt to fund its operations, which is a sign of a defintely strong, traditional banking model.

The most telling metric here is the Debt-to-Equity (D/E) ratio, which measures how much debt a company uses to finance its assets relative to the value of shareholders' equity. As of March 31, 2025, Southern States Bancshares, Inc.'s D/E ratio stood at approximately 0.40.

Here's the quick math: with total stockholders' equity reported at $290.2 million in the first quarter of 2025, the implied total debt was around $116.08 million. This low ratio shows a preference for equity funding, which reduces financial leverage (the risk associated with borrowing) but also limits the potential boost to returns on equity that debt can provide.

• Debt-to-Equity Ratio: 0.40 (Q1 2025)
• Industry Average: 0.50 for US Regional Banks (Nov 2025)
• Total Stockholders' Equity: $290.2 million (Mar 31, 2025)

To be fair, a bank's D/E ratio is often higher than other industries because deposits are technically listed as liabilities, but Southern States Bancshares, Inc.'s ratio of 0.40 was notably below the industry average of 0.50 for US Regional Banks as of late 2025. This conservative posture means the bank had a larger capital buffer to absorb unexpected loan losses, which is exactly what investors want to see in a regional bank facing macroeconomic headwinds.

Balancing Debt and Equity for Growth

Southern States Bancshares, Inc.'s balance between debt and equity was less about market-based debt issuance and more about organic growth and mergers. The company's primary liability was customer deposits, which reached $2.4 billion as of March 31, 2025. This deposit base provided a stable, low-cost source of funding, lessening the need for high-cost long-term debt or short-term borrowings.

The most significant capital event in 2025 wasn't a debt issuance; it was the definitive merger agreement with FB Financial Corporation (FBK), which closed on July 1, 2025. This event effectively provided a massive injection of capital and scale, expanding Southern States Bancshares, Inc.'s total assets to $2.9 billion and integrating its operations into a larger entity. This merger was the ultimate form of capital restructuring, favoring a stock-for-stock exchange rather than a debt-financed buyout, reinforcing the importance of equity in the company's final structure.

For a deeper look at the shareholders who benefited from this capital strategy, you should read Exploring Southern States Bancshares, Inc. (SSBK) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need a clear picture of how Southern States Bancshares, Inc. (SSBK) manages its short-term obligations, especially with the recent merger activity. The key takeaway is that while traditional liquidity ratios appear low, this is typical for a bank, and SSBK's core liquidity position-its ability to generate cash-was strong heading into the merger with FB Financial Corporation.

For a bank, the standard current and quick ratios (liquidity positions) are often misleading. As of the Q1 2025 period ending March 31, 2025, Southern States Bancshares, Inc.'s TTM Current Ratio and Quick Ratio both sat around 0.12. This low number simply reflects the banking model: customer deposits are technically current liabilities, while the bank's main assets-loans-are long-term. You should focus on the quality of their assets and their ability to generate cash from operations instead.

Analysis of Working Capital and Liquidity Ratios

The low current ratio translates directly to a large, negative working capital (current assets minus current liabilities), which is a normal state for a bank. This is because, as of March 31, 2025, the company held $2.41 billion in total deposits, which are current liabilities, but only $96.09 million in cash and cash equivalents.

The true measure of liquidity here is the stability of the deposit base and the quality of the loan portfolio. Southern States Bancshares, Inc. maintained strong credit quality with nonperforming loans at just 0.32% of gross loans in Q1 2025, which is a powerful liquidity strength. Good credit quality means fewer unexpected cash drains from loan write-offs. That's a defintely solid foundation.

• Current Ratio (Q1 2025 TTM): 0.12
• Quick Ratio (Q1 2025 TTM): 0.12
• Cash & Equivalents (Q1 2025): $96.09 million
• Total Deposits (Q1 2025): $2.41 billion

Cash Flow Statements Overview and Trends

Looking at the cash flow trends leading up to the July 1, 2025 merger, Southern States Bancshares, Inc. showed strong operational cash generation, with a Cash Flow per share of $3.93. However, the company's cash flow was highly dynamic due to growth and merger-related activities. For instance, Q1 2025 saw a 6.1% annualized growth in loans and a 2.4% annualized increase in deposits, which significantly impacts the three main cash flow categories:

While the core business generated cash, analysts did point to 'challenges in cash flow management' as a near-term risk, which often relates to the complexity of managing a rapidly growing balance sheet and the costs associated with the Century Bank acquisition in 2024. The merger with FB Financial Corporation, which closed on July 1, 2025, was a clear financing event designed to enhance capabilities and expand reach, fundamentally changing the future cash flow profile.

To dive deeper into the post-merger structure and the new parent company, you can read Exploring Southern States Bancshares, Inc. (SSBK) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Southern States Bancshares, Inc. (SSBK) to see if it was a good value proposition, and the short answer is that the market had it priced as a solid, but not wildly cheap, acquisition target. The stock was ultimately deemed fairly valued by the acquiring company, FB Financial Corporation, which sealed the deal on July 1, 2025, effectively ending the independent trading of SSBK shares. The final transaction valued the stock at approximately $36.24 per share, which was right in line with analyst expectations at the time.

This valuation was a premium to the bank's tangible book value, reflecting its strong profitability metrics like a 17.19% Return on Average Tangible Common Equity (ROATCE) in the first quarter of 2025. The question now shifts from whether to buy to whether the merger price was fair for existing shareholders.

Key Valuation Multiples (Pre-Merger)

For a regional bank like Southern States Bancshares, Inc., the most telling metrics are Price-to-Earnings (P/E) and Price-to-Book (P/B). Since the company is a financial institution, we don't focus on Enterprise Value-to-EBITDA (EV/EBITDA); that metric is defintely better suited for industrial or tech companies with heavy capital expenditures.

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month (TTM) P/E ratio, based on the last reported earnings before the merger, was 9.57x. Here's the quick math: with a TTM Earnings Per Share (EPS) of $3.80, this multiple suggested the stock was trading at a discount compared to the broader regional bank sector average, which often sits closer to 12x-15x.
• Price-to-Book (P/B) Ratio: This is crucial for banks, showing how the market values the company relative to its net asset value. With a pre-merger stock price of roughly $36.24 and a Book Value Per Share of $29.25 as of early 2025, the P/B ratio was approximately 1.24x. A P/B over 1.0x indicates the market believed the bank's assets and future earnings power were worth more than their accounting value.

Stock Price Trend and Final Acquisition

Over the 12 months leading up to the merger announcement, Southern States Bancshares, Inc. stock showed a solid upward trend, moving from a 52-week low of $25.92 to a high of $39.16. The highest end-of-day price was $38.00 in November 2024. This movement reflects the market recognizing the bank's strong performance, especially the 18.43% year-over-year revenue growth to $99.03 million in the last twelve months leading up to March 31, 2025. The final merger price of $36.24 per share was a clear exit point for investors, confirming the stock's appreciation over the period.

Dividend and Analyst View

The company was a consistent dividend payer, which added a layer of stability for income-focused investors. The annual dividend was $0.36 per share, translating to a dividend yield of 0.99% just before the merger. The payout ratio was very low at 9.48%, meaning the bank was retaining most of its earnings to fuel growth, which is a healthy sign for a growing regional institution.

Analyst consensus on the stock was generally positive, with a consensus rating of Buy and a 12-month price target of $36.00. The final acquisition price of $36.24 per share was essentially a bull's-eye on that target. This tells you the analysts had a very accurate read on the bank's intrinsic value and its potential as an acquisition target. For a deeper dive into the stakeholders who benefited from this valuation, you should look at Exploring Southern States Bancshares, Inc. (SSBK) Investor Profile: Who's Buying and Why?

What this estimate hides is the strategic value of the merger, which often pushes the final price slightly above the fundamental valuation. Still, the core metrics suggested a fair deal. Next step: Finance should analyze the FB Financial Corporation (FBK) stock performance since the merger to assess the value of the stock received by former Southern States Bancshares, Inc. shareholders.

Risk Factors

You need to look past Southern States Bancshares, Inc.'s (SSBK) solid Q1 2025 performance-a net income of $10.4 million and a net interest margin (NIM) of 3.75%-because the single biggest factor now is the strategic risk of its merger with FB Financial Corporation (FBK). The transaction, which closed on July 1, 2025, shifts the focus entirely to integration risk and away from traditional standalone banking threats.

Honestly, when a community bank with $2.9 billion in total assets merges with a larger entity, the primary challenge is not the balance sheet; it's the people and the plumbing. The combined company's success hinges on executing this massive operational and cultural shift without losing customers or key talent.

Operational and Strategic Risks: The Merger Integration

The strategic move to merge with FB Financial Corporation creates a larger regional bank, but it introduces significant near-term operational risk. Systems conversion, expected during the third quarter of 2025, is a common point of failure in bank mergers. If that onboarding takes 14+ days, churn risk rises dramatically, especially for commercial clients who demand seamless service. Plus, cultural integration is defintely hard to measure.

• Systems Integration Failure: Merging the core banking systems can disrupt customer access and services, leading to client attrition.
• Key Personnel Retention: The risk of losing top-performing loan officers or branch managers to competitors during the transition is high.
• Cost Synergy Delays: If the integration teams don't quickly realize the anticipated cost savings, the financial benefits of the $381 million transaction value will be delayed or lost.

The mitigation strategy here is straightforward: Both banks have completed similar mergers before, and they've established joint integration teams to manage the process. That experience helps, but it doesn't eliminate the risk.

Financial and External Market Risks

Even with the merger, Southern States Bancshares, Inc. operates within a challenging macroeconomic environment. Two financial risks stand out: sustained high interest rates and commercial real estate (CRE) exposure.

Credit Quality and Commercial Real Estate (CRE)

While management cites a 'prudent credit culture' and the bank's asset quality remains strong-its allowance for credit losses was a robust 402.45% of nonperforming loans as of March 31, 2025-the broader industry is seeing rising commercial credit risk. The bank's loan portfolio is substantial at $2.3 billion, and a large portion of community bank lending is often tied to CRE. Here's the quick math: a 10% decline in the value of their riskiest CRE loans could wipe out a significant portion of quarterly earnings. Refinance risk is particularly high for loans underwritten when rates were lower.

To be fair, the loan portfolio is diversified, with a near-even split of 46% fixed-rate and 54% variable-rate loans, which provides some natural hedging against rate swings.

This is a good time to check out Exploring Southern States Bancshares, Inc. (SSBK) Investor Profile: Who's Buying and Why? for a deeper dive into who is betting on this new combined entity.

Regulatory and Interest Rate Headwinds

The external environment remains volatile. The general banking industry faces a potential 'Regulatory shift' in 2025, which could affect capital requirements, especially for the larger combined entity. Also, while SSBK improved its NIM to 3.75% in Q1 2025, the future path of interest rates is still the main driver of bank profitability. Banks that are more asset-sensitive (more variable-rate loans) could see margin pressure if the Fed cuts rates, but lower rates could also boost loan demand.

What this estimate hides is the potential for a sharp economic downturn, which would stress all credit metrics simultaneously, regardless of the merger's success. Still, the primary risk is execution, not solvency.

Growth Opportunities

The future growth story for Southern States Bancshares, Inc. (SSBK) is defintely defined by a major strategic move: the merger with FB Financial Corporation. This isn't just a simple acquisition; it's a pivot that immediately transforms the company's scale and market reach, which is the clearest path to outsized returns in the regional banking space. You need to look past the standalone bank's near-term financials and focus on the combined entity's new footprint.

Strategic Initiatives and Market Expansion

The most significant driver of future growth is the definitive merger agreement with FB Financial Corporation (FBK), which closed around mid-year 2025. This transaction, valued at approximately $381 million based on the March 28, 2025, closing price of FBK, immediately expands Southern States Bancshares, Inc.'s presence. The combined bank now operates across four key Southern states: Tennessee, Kentucky, Alabama, and Georgia.

This is a classic 'in-market' deal that generates growth through scale and efficiency. Plus, the 2024 acquisition of Century Bank, which helped drive Q1 2025 net interest income up 19.4% year-over-year, already set the stage for this kind of expansion. The goal is to cross-sell a broader array of products across a larger, more diverse customer base.

• Gain scale across the Southeast banking market.
• Expand core markets into Tennessee and Kentucky.
• Leverage combined assets of approximately $16 billion post-merger.

Future Revenue Trajectory and Earnings Estimates

Since Southern States Bancshares, Inc. is now part of the larger FB Financial, projecting its standalone 2025 full-year earnings is moot. However, the Q1 2025 performance provides a strong baseline, showing the momentum the company brought into the merger. The last twelve months of revenue ending March 31, 2025, stood at $99.03 million, representing an 18.43% year-over-year growth rate.

Here's the quick math: Q1 2025 core net income was $10.3 million, translating to a diluted earnings per share of $1.03. If you annualize that, it suggests a pre-merger run rate of over $40 million in net income. What this estimate hides is the expected synergy savings (cost-cutting) and revenue enhancements from the merger, which will boost the combined entity's future profitability.

Core Competitive Advantages

Southern States Bancshares, Inc.'s competitive edge, even as a community bank, has always been its disciplined approach to risk and cost. This is what made it an attractive merger partner. The bank maintained a strong financial profile right up to the merger announcement, which is a sign of management quality.

Look at the Q1 2025 metrics:

A net interest margin (NIM)-the difference between interest income and interest expense-of 3.75% in Q1 2025 is solid, especially given the challenging interest rate environment. This focus on profitability and clean asset quality (nonperforming loans were only 0.32% of gross loans) provides a stable foundation for the larger bank. To understand who was betting on this stability, you should check out Exploring Southern States Bancshares, Inc. (SSBK) Investor Profile: Who's Buying and Why?