Core Viewpoint - SouthState Bank (NYSE: SSB) is positioned for growth following the successful integration of Independent Financial, with a price target of $126 set by Barclays indicating a potential increase of 25.76% from its current price of $100.19 [1][5]. Group 1: Acquisition and Integration - The acquisition of Independent Financial in 2025 has significantly expanded SouthState Bank's presence into Texas and Colorado, enhancing growth prospects [2][5]. - CEO John Corbett stated that the integration risk is now behind the company, marking 2025 as a successful year post-acquisition [2]. - Mark Thompson led the integration process, which has been recognized as crucial in improving the company's risk profile and positioning it for continued organic growth and revenue generation [3]. Group 2: Stock Performance and Market Position - Despite a slight decrease of 0.37% in stock price, closing at $100.19, SouthState Bank remains a significant player in the financial sector with a market capitalization of approximately $10.07 billion [4]. - The stock price fluctuated between $99.68 and $105.25 during the day, reflecting market volatility, with a yearly high of $109.64 and a low of $77.74 [4].

Core Insights - SouthState Bank reported strong financial performance in Q4 2025, with pre-provision net revenue (PP&R) of $323 million and earnings per share (EPS) of $2.47, contributing to a full-year PP&R of $1.27 billion and EPS of $9.50 for 2025 [2][5] Financial Performance - Loans and deposits grew at an annualized rate of 8% during the quarter, with cash and Fed Funds Sold levels increasing by nearly $500 million [1] - Excluding merger costs, 2025 EPS increased by over 30%, and tangible book value per share rose at a double-digit rate [3] - The company achieved record quarterly production of $3.9 billion in Q4, a 16% increase from Q3, with a loan pipeline of approximately $5 billion at year-end [11][12] Integration and Growth - The integration of Independent Financial, which expanded SouthState into Texas and Colorado, was characterized as "well-choreographed," with management noting reduced risk profile and positive momentum heading into 2026 [4][5] - Texas and Colorado markets produced $888 million in loans in Q4, a 15% increase from Q3, with full-year production in these markets up 10% compared to 2024 [13] Capital Management - The company was more aggressive with share repurchases in Q4, buying back 2 million shares at an average price of $90.65, and authorized an additional 5 million shares for repurchase [15][16] - The total payout ratio for the quarter was just shy of 100%, though management indicated this level is not expected to be sustained long term [16] Expense Management - Non-interest expenses rose due to performance-driven incentives and increased marketing and business development spending, but the efficiency ratio remained below 50% [6][9] - Management expects non-interest expenses to rise about 4% in 2026 from the 2025 base of $1.407 billion, reflecting inflationary pressures and growth initiatives [9] Outlook - The company anticipates net interest margin (NIM) to remain stable in the range of 3.80% to 3.90% for 2026, with average interest-earning assets expected to be between $61 billion and $62 billion [7][8] - Management forecasts loan accretion income of $125 million for 2026 and a deposit beta assumption of 27% to support loan growth [8]

Core Insights - SouthState Corporation (SSB) reported fourth-quarter 2025 adjusted earnings per share of $2.47, exceeding the Zacks Consensus Estimate of $2.30, with a 28% increase year-over-year [1] - The company's total revenues for the quarter reached $686.9 million, a 52.5% year-over-year increase, surpassing the Zacks Consensus Estimate by 3% [3] - For the full year 2025, adjusted earnings per share were $9.50, beating the Zacks Consensus Estimate of $9.11, representing a 31.8% rise from the previous year [2] Revenue and Income - Net interest income (NII) for the fourth quarter was $581.1 million, up 57.2% from the prior-year quarter, with the net interest margin increasing to 3.86% from 3.48% [3][4] - Non-interest income was reported at $105.8 million, reflecting a 31.3% increase year-over-year [4] - Total revenues for 2025 were $2.68 billion, a 56.1% increase, exceeding the Zacks Consensus Estimate of $2.65 billion [3] Expenses and Efficiency - Non-interest expenses rose 42.2% to $364.9 million, primarily due to increases in various expense components [4] - The efficiency ratio improved to 49.65% from 55.73% in the year-ago quarter, indicating enhanced profitability [4] Loans and Deposits - As of December 31, 2025, net loans stood at $48 billion, a 2% increase from the prior quarter, while total deposits rose to $55.1 billion, also up 2% [5] Asset Quality - The company recorded a provision for credit losses of $6.6 million, a 3.7% increase from the prior-year quarter [6] - The allowance for credit losses as a percentage of loans was 1.20%, down 17 basis points year-over-year [6] Capital and Profitability Ratios - As of December 31, 2025, the Tier I leverage ratio was 9.3%, down from 10% in the year-ago quarter, and the Tier 1 common equity ratio decreased to 11.4% from 12.6% [9] - The annualized return on average assets was 1.47%, up from 1.23% in the prior-year period, while return on average common equity improved to 10.90% from 9.72% [9] Future Outlook - The company's rising NII and non-interest income are expected to support top-line growth in the near term, alongside a strong loan pipeline and strategic buyouts [10]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for 2025 increased over 30% compared to the previous year, reaching $9.50 [4][5] - Tangible book value per share also experienced double-digit growth, despite day-one dilution from the merger [5] - The company achieved 8% loan growth and 8% deposit growth in the fourth quarter [6][10] Business Line Data and Key Metrics Changes - Non-interest income for the fourth quarter was $106 million, up $7 million from the previous quarter, driven by strong performance in the correspondent capital markets division [11] - The company repurchased 2 million shares in the fourth quarter, representing approximately 2% of the company [7][13] - The efficiency ratio remained below 50% for both the quarter and the year, despite higher expenses [11] Market Data and Key Metrics Changes - The loan production in Texas and Colorado reached $888 million in the fourth quarter, a 15% increase from the third quarter [58] - The overall loan pipeline grew from $3.4 billion at the beginning of the year to about $5 billion by year-end [20] Company Strategy and Development Direction - The company aims to continue its growth trajectory by focusing on organic growth and expanding its market presence in Texas and Colorado [3][21] - There is a strategic emphasis on hiring additional commercial relationship managers to support growth initiatives [24][63] - The company plans to invest in technology and revenue-producing platforms, including AI and commercial loan servicing [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's fundamentals and the successful integration of the Independent Financial deal, which is expected to yield long-term benefits [4][6] - The outlook for 2026 includes expectations for continued loan growth and a stable net interest margin (NIM) in the range of 380-390 basis points [18][48] - Management noted that the risk profile of the company has improved post-merger, and they are optimistic about future performance [7][14] Other Important Information - The company increased its dividend by 11% in July 2025 and maintained healthy capital ratios, with a TCE ratio of 8.8% and a CET1 ratio of 11.4% [13] - Non-performing assets (NPAs) declined slightly, and credit costs remained low, indicating a stable credit environment [12] Q&A Session Summary Question: Thoughts on net interest margin and deposit costs - Management indicated that NIM was in line with guidance and deposit costs were down, with expectations for NIM to remain stable in 2026 [16][18] Question: Loan growth expectations - The company expects mid to upper single-digit loan growth for 2026, supported by a strong pipeline [20] Question: Hiring activity and expense guidance - Management confirmed that hiring efforts are ongoing, with a focus on increasing commercial relationship managers by 10-15% [24][63] Question: Correspondent banking strength sustainability - Management noted that the recent strength in correspondent banking is expected to continue, driven by favorable market conditions [26][28] Question: Expense growth and run rate for 2026 - Management acknowledged that Q4 expenses were impacted by performance and seasonality, but guidance for mid-single-digit expense growth remains [34][42] Question: Share repurchase authorization usage - Management stated that capital return decisions will be flexible and based on share price relative to intrinsic value [37][39]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a pre-provision net revenue (PP&R) of $323 million and earnings per share (EPS) of $2.47, resulting in a full-year PP&R of $1.27 billion and EPS of $9.50 [9][10] - The return on tangible common equity for the year was approximately 20% [9] - The company experienced an 8% growth in loans and deposits during Q4 [6][10] Business Line Data and Key Metrics Changes - Non-interest income for Q4 was $106 million, up $7 million from the previous quarter, driven by performance in the correspondent capital markets division [11] - The company achieved double-digit growth in tangible book value per share, despite the day-one dilution from the merger [5][6] Market Data and Key Metrics Changes - The loan production in Texas and Colorado for Q4 was $888 million, which is 15% higher than Q3's $775 million [58] - The overall loan production for the year in Texas and Colorado was up 10% compared to 2024 [58] Company Strategy and Development Direction - The company aims to continue funding growth while being active in share repurchases, particularly when there is a disconnect between fundamentals and share price [14] - The strategic focus includes expanding revenue producers and investing in technology platforms, including AI and commercial loan servicing [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integration of the Independent Financial deal and noted that the risk profile of the company has been reduced [7][8] - The company anticipates mid to upper single-digit loan growth for 2026, supported by a growing pipeline [20][21] Other Important Information - The company repurchased 2 million shares in Q4, representing approximately 2% of the company, and authorized an additional 5 million shares for repurchase [7][13] - The efficiency ratio remained below 50% for both the quarter and the year [11] Q&A Session Summary Question: Thoughts on net interest margin and deposit costs - Management indicated that the net interest margin (NIM) was 3.86%, in line with guidance, and deposit costs were down 9 basis points [16][17] Question: Loan growth expectations - The company expects mid to upper single-digit loan growth for 2026, with a strong pipeline supporting this outlook [20][21] Question: Hiring activity and expense guidance - Management noted a focus on opportunistic hiring, particularly in commercial relationship managers, with a potential increase of 10%-15% in the next year or two [24][25] Question: Correspondent banking strength sustainability - Management believes the strength in correspondent capital markets is sustainable, driven by recent rate changes [26][28] Question: Increase in substandard loans - The increase in substandard loans was attributed to a few multifamily properties in lease-up, with the credit team not concerned due to strong equity positions [55]

Financial Data and Key Metrics Changes - For the full year 2025, earnings per share (EPS) increased by over 30%, with a full-year EPS of $9.50 and a return on tangible common equity of approximately 20% [4][8] - The company achieved a net interest margin (NIM) of 3.86% and a cost of deposits of 1.82% [8] - Tangible book value per share experienced double-digit growth, despite the dilution from the merger [5][12] Business Line Data and Key Metrics Changes - The company reported an 8% growth in both loans and deposits during the fourth quarter [5][9] - Non-interest income for the fourth quarter was $106 million, up $7 million from the previous quarter, driven by performance in the correspondent capital markets division [10] - The company repurchased 2 million shares, representing approximately 2% of the company, as part of its share repurchase plan [6][12] Market Data and Key Metrics Changes - The loan production in Texas and Colorado reached $888 million in the fourth quarter, a 15% increase from the third quarter [57] - The overall loan pipeline grew from $3.4 billion to $5 billion over the year, indicating strong future loan growth potential [20] Company Strategy and Development Direction - The company successfully integrated the Independent Financial acquisition, expanding into new markets in Texas and Colorado, and is now focusing on organic growth [3][4] - The strategic plan for 2025 included achieving a clean conversion and cost savings, which were accomplished, allowing the company to focus on growth [6] - The company is investing in technology and revenue-producing initiatives, including AI and commercial loan servicing platforms [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's fundamentals and the reduced risk profile following the merger integration [6] - The outlook for 2026 includes expectations for continued loan growth and a stable NIM in the range of 380-390 basis points [18][47] - Management noted that the economic environment and interest rate changes will influence future performance, particularly in loan pricing and deposit costs [44][52] Other Important Information - The company increased its dividend by 11% in July 2025 and maintained healthy capital ratios, with a TCE ratio of 8.8% and a CET1 ratio of 11.4% [12] - The total payout ratio, including dividends and share repurchases, was nearly 100% for the quarter, indicating a strong commitment to returning capital to shareholders [12][38] Q&A Session Summary Question: Thoughts on net interest margin and deposit costs - Management indicated that the NIM was in line with guidance and deposit costs were down, with expectations for NIM to remain stable in 2026 [16][17] Question: Loan growth expectations - The company expects mid to upper single-digit loan growth for 2026, supported by a strong pipeline [20][21] Question: Hiring activity and expense guidance - Management discussed plans to increase the number of commercial relationship managers by 10-15% to support organic growth [25][26] Question: Correspondent banking strength sustainability - Management noted that the recent strength in correspondent capital markets is expected to continue, although it may fluctuate seasonally [27][28] Question: Expense growth and buyback authorization - Management confirmed that expense growth guidance remains appropriate and discussed the flexibility of capital return strategies based on share price and economic outlook [35][38]

Statements included in this communication, which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on, among other things, management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and SouthState. Word ...

Core Insights - SouthState (SSB) reported a revenue of $686.87 million for the quarter ended December 2025, marking a year-over-year increase of 52.5% and exceeding the Zacks Consensus Estimate by 3.03% [1] - The earnings per share (EPS) for the same period was $2.47, compared to $1.93 a year ago, representing a surprise of 7.47% over the consensus estimate of $2.30 [1] Financial Performance Metrics - Net Interest Margin (Non-Tax Equivalent) was 3.9%, surpassing the average estimate of 3.8% [4] - Efficiency Ratio stood at 49.7%, better than the average estimate of 52% [4] - Net charge-offs as a percentage of average loans (annualized) were 0.1%, matching the average estimate [4] - Average Balance of Total interest-earning assets was $59.87 billion, exceeding the estimated $59.41 billion [4] - Total nonperforming assets were reported at $311.27 million, lower than the estimated $320.36 million [4] - Total Noninterest Income reached $105.75 million, above the average estimate of $93.3 million [4] - Net interest income (tax equivalent, Non-GAAP) was $581.92 million, compared to the estimate of $575.69 million [4] - Net Interest Income was $581.12 million, exceeding the average estimate of $571.68 million [4] - Mortgage banking income was $5.16 million, higher than the estimated $4.67 million [4] - Fees on deposit accounts totaled $41.95 million, slightly below the estimate of $42.79 million [4] - Trust and investment services income was $14.68 million, compared to the average estimate of $14.27 million [4] - Total correspondent banking and capital market income was $27.47 million, significantly higher than the estimated $19.08 million [4] Stock Performance - Shares of SouthState have returned +4.5% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Reported diluted earnings per share (EPS) of $2.46, an increase of 32% year over year; adjusted diluted EPS of $2.47, an increase of 28% year over year[3] - Net income for the fourth quarter reached $247.7 million, with adjusted net income of $248.2 million[3] - The company reported net income of $247,722 thousand in Q4 2025, up from $246,641 thousand in Q3 2025[20] - Adjusted net income (non-GAAP) for the twelve months ended June 30, 2025, was $964,011,000, an increase from $553,079,000 in the previous year[22] - The company reported a total net income (GAAP) of $247,722,000 for the three months ended June 30, 2025, compared to $89,080,000 in the previous quarter, marking a significant increase[22] Asset and Deposit Growth - Loans increased by $931 million, or 8%, and deposits increased by $1.1 billion, or 8%, with an ending loan to deposit ratio of 88%[3] - Total assets increased to $67.2 billion as of December 31, 2025, from $46.4 billion a year earlier[7] - Loans, net, reached $48.0 billion in Q4 2025, up from $33.4 billion in Q4 2024[7] - Total deposits rose to $55.1 billion in Q4 2025, compared to $38.1 billion in Q4 2024[7] - Total Loans increased to $48,598,527 thousand as of December 31, 2025, up from $47,667,911 thousand in the previous quarter[11] - Total Deposits reached $55,145,797 thousand, reflecting an increase from $54,073,269 thousand in the prior quarter[13] Income and Expense Metrics - Net interest income totaled $581 million, a decrease of $19 million, or 3%, compared to the prior quarter[3] - Noninterest income was $105.8 million, up $7 million from the prior quarter, primarily due to increases in correspondent banking and capital markets income[3] - Total Noninterest Expense for the three months ended December 31, 2025, was $364,855 thousand, an increase from $372,342 thousand in the prior quarter[10] - Pre-provision net revenue (PPNR) for Q4 2025 was $322,672 thousand, compared to $347,330 thousand in Q3 2025, a decrease of 7.1%[20] Capital and Equity - Tangible book value per share increased by 10% year over year to $56.27[3] - Return on average common equity was 10.9%, and return on average tangible common equity was 19.1%[3] - The company reported a strong capital position with a tangible common equity ratio of 8.8%[3] - Tier 1 common equity ratio was 11.4% in Q4 2025, down from 12.6% in Q4 2024[6] - Total shareholders' equity reached $9.1 billion as of December 31, 2025, compared to $5.9 billion a year earlier[7] Efficiency and Ratios - Efficiency ratio (tax equivalent) improved to 49.65% in Q4 2025 from 60.97% in Q4 2024[6] - Dividend payout ratio decreased to 24.23% in Q4 2025 from 28.82% in Q4 2024[6] - Adjusted return on average common equity (annualized) for Q4 2025 was 10.92%, compared to 9.41% in Q4 2024[6] - Adjusted efficiency ratio (non-GAAP) for the quarter was 49.56%[23] Dividends and Stock Repurchase - The company declared a quarterly cash dividend of $0.60 per share, payable on February 13, 2026[3] - The board authorized a new stock repurchase plan for up to 5.56 million shares, replacing the previous authorization[3] Risk Factors and Forward-Looking Statements - SouthState warns that forward-looking statements are subject to significant risks and uncertainties, which could lead to actual results differing materially from anticipated results[27] - The company highlights risks related to economic volatility, including potential higher rates and excessive loan losses, which could impact profitability[27] - SouthState identifies interest rate risk as a significant factor affecting earnings, particularly from its correspondent and mortgage divisions[27] - The company notes potential liquidity risks that could impact its ability to meet obligations when due[27] - SouthState acknowledges the impact of increasing digitization in the banking industry, which may affect its operations and customer base[27] - The company is aware of reputational risks arising from negative public opinion and the effects of social media on market perceptions[27] - SouthState highlights the potential for catastrophic events, such as natural disasters or public health crises, to disrupt economic activity and financial markets[27] Conference Call and Future Outlook - The company will host a conference call on January 23, 2026, to discuss its fourth quarter results[17] - The company anticipates continued growth in the financial services industry and expects to maintain its strategic initiatives[26] - Forward-looking statements indicate management's expectations for future performance based on current economic conditions[26]

Core Insights - SouthState Bank Corporation reported strong financial performance for the fourth quarter of 2025, with a 30% increase in earnings per share and an 8% annualized growth in loans and deposits [1][4]. Financial Performance - Reported diluted earnings per share (EPS) of $2.46, a 32% increase year over year; adjusted diluted EPS of $2.47, up 28% year over year [4]. - Net income reached $247.7 million; adjusted net income was $248.2 million [4]. - Return on average common equity was 10.9%; return on average tangible common equity was 19.1% [4][7]. - Return on average assets (ROAA) was 1.47%; adjusted ROAA was 1.48% [4][7]. - Net interest income totaled $581 million, a decrease of $19 million or 3% compared to the prior quarter [4][5]. - Noninterest income was $105.8 million, an increase of $7 million from the previous quarter [4][5]. Balance Sheet Highlights - Total assets amounted to $67.2 billion, with total loans net of allowance for credit losses at $48.0 billion [9]. - Total deposits increased by $1.1 billion, or 8%, to $55.1 billion [4][9]. - The ending loan-to-deposit ratio was 88% [4]. - Book value per share was $91.38, and tangible book value per share was $56.27, reflecting a 10% year-over-year increase [4][7]. Capital Management - The company repurchased 2 million shares during the quarter and authorized a new share repurchase plan of 5.56 million shares [1][4]. - The Board declared a quarterly cash dividend of $0.60 per share, payable on February 13, 2026 [4][7]. - Strong capital position with tangible common equity ratio of 8.8% and total risk-based capital ratio of 13.8% [4][7]. Operational Efficiency - The efficiency ratio was reported at 50%, indicating effective cost management [4][7]. - Net interest margin (NIM) was 3.85% on a non-tax equivalent basis [4][10]. Future Outlook - The CEO expressed confidence in the company's growth trajectory heading into 2026, citing a full pipeline of opportunities [1].