The bank has reported a net interest margin increase to 3.75% in the first quarter, representing a rise of 9 basis points compared to the previous quarter. This boost played a significant role in achieving a net income of $10.4 million and a diluted earnings per share (EPS) of $1.03. The bank also maintained a strong Common Equity Tier 1 (CET1) capital ratio of 10.18%.
The CEO highlighted that the quarter's financial success was bolstered by improved net interest margins and reduced noninterest expenses. Moreover, the institution has benefited from enhanced deposit costs and maintaining a minimal level of non-performing loans, reaffirming its effective risk management and credit practices.
As the bank embarks on a merger with Nashville-based FB Financial, which operates as FirstBank and holds $13 billion in total assets, the integration is seen as a strategic move. The merger is expected to leverage both banks' shared customer-focused philosophy and geographical strategy, expanding service areas to include Tennessee, Kentucky, Alabama, and Georgia. This collaboration intends to boost capabilities, enrich customer experiences, and maintain a commitment to relationship-based banking, ensuring continuity despite the upcoming change in name.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Southern States Bancshares Inc (SSBK, Financial) is $42.50 with a high estimate of $46.00 and a low estimate of $39.00. The average target implies an upside of 34.58% from the current price of $31.58. More detailed estimate data can be found on the Southern States Bancshares Inc (SSBK) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Southern States Bancshares Inc's (SSBK, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Southern States Bancshares Inc (SSBK, Financial) in one year is $34.22, suggesting a upside of 8.36% from the current price of $31.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Southern States Bancshares Inc (SSBK) Summary page.
