Core Insights - SouthState Bank Corporation has appointed Ben Sasse to its board of directors, bringing a wealth of experience from his public service and academic background [1][3]. Group 1: Appointment Details - Ben Sasse, aged 53, is currently the president emeritus and a professor at the Hamilton School at the University of Florida, and previously served as the 13th president of the University of Florida [2]. - Sasse has a notable political background, having served as a U.S. senator from Nebraska from 2015 to 2023, where he was involved in several key committees including Finance and Banking [2][4]. Group 2: Background and Qualifications - Prior to his senatorial role, Sasse was the 15th president of Midland University from 2010 to 2014 and has held various government and advisory positions with firms like Boston Consulting Group and McKinsey & Company [4]. - Sasse holds multiple degrees, including a bachelor's from Harvard University and advanced degrees from Yale University [5]. Group 3: Company Overview - SouthState Bank Corporation, headquartered in Winter Haven, Florida, provides a range of financial services to over 1.5 million customers across several states, including Florida, Texas, and the Carolinas [6].

Core Insights - SouthState Corporation (SSB) reported third-quarter 2025 adjusted earnings per share of $2.58, exceeding the Zacks Consensus Estimate of $2.20, and reflecting a 35.8% increase year-over-year [1][8] - The results were driven by a rise in net interest income (NII) and non-interest income, along with the successful integration of Independent Bank, acquired in January 2025 [1][10] - However, higher expenses and provisions posed challenges to overall performance [1][10] Revenues & Expenses - Total revenues for the quarter reached $698.8 million, marking a 63.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 6.7% [3][8] - NII was reported at $599.7 million, up 70.6% from the previous year, with the net interest margin increasing to 4.06% from 3.40% [3][4] - Non-interest income amounted to $99.1 million, reflecting a 32.2% increase year-over-year [3] - Non-interest expenses rose significantly by 50.8% to $372.3 million, primarily due to merger and restructuring costs related to the Independent Bank acquisition [4][8] - The efficiency ratio improved to 49.88% from 56.58% in the prior-year quarter, indicating enhanced profitability [4] Loans & Deposits - As of September 30, 2025, net loans stood at $47.1 billion, showing a nearly 1% increase from the prior quarter [5] - Total deposits were $54.1 billion, with a slight sequential rise [5] Asset Quality - Provision for credit losses was $5.1 million, compared to provision benefits of $6.9 million in the prior-year quarter [6] - The allowance for credit losses as a percentage of loans decreased to 1.24%, down 15 basis points year-over-year [6] - The ratio of annualized net charge-offs to total average loans increased to 0.27%, up from 0.07% in the prior-year quarter [6] - Non-performing loans to total loans rose to 0.63%, an increase of seven basis points from the prior-year quarter [6] Capital Ratios & Profitability Ratios - As of September 30, 2025, the Tier I leverage ratio was 9.4%, down from 10% in the prior-year quarter [9] - The Tier 1 common equity ratio decreased to 11.5% from 12.4% in the prior-year quarter [9] - The annualized return on average assets was 1.49%, up from 1.25% in the year-ago period [9] - Return on average common equity improved to 11.04% compared to 9.91% in the prior-year quarter [9] Overall Assessment - SSB concluded the third quarter positively, with both top and bottom lines showing year-over-year growth [10] - The increase in NII and non-interest income is expected to support future financial performance [10] - The growth in loan and deposit balances is viewed as encouraging [10] - The acquisition of Independent Bank enhances SSB's presence in rapidly growing U.S. Metropolitan Statistical Areas [10] - However, elevated expenses from expansion efforts may impact profitability in the near term [10]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Net interest income rose to $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Loan production reached nearly $3.4 billion, with a 67% increase in loan production in Texas and Colorado since the first quarter [3] - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [19][20] - Non-interest income increased to $99 million from $87 million, with capital markets contributing significantly [36] Market Data and Key Metrics Changes - The company identified approximately $90 billion in overlapping deposits in the Southeast, Texas, and Colorado, indicating potential growth opportunities [5] - The loan pipeline in Texas grew from $800 million to $1.2 billion, with Florida and Atlanta also showing significant pipeline growth [20] Company Strategy and Development Direction - The company is focused on organic growth and recruiting efforts in response to market disruptions, rather than pursuing M&A opportunities [63] - Strategic planning is underway, considering deregulation and market opportunities, with a focus on enhancing the sales force [4][5] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit loan growth for the remainder of 2025, with potential acceleration into 2026 [19] - The company is optimistic about capitalizing on market disruptions and is focused on recruiting talented bankers [5][22] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin [6][7] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the merger's dilutive impact [8] Q&A Session Summary Question: Margin dynamics and future rate cuts - Management discussed the impact of higher accretion and the expectations for future rate cuts, indicating a potential deposit beta of around 27% [11][12][43] Question: Loan growth environment - Management guided for mid-single-digit growth, with a focus on commercial and industrial lending as the primary growth driver [19][20] Question: Credit quality and charge-offs - A significant charge-off was attributed to a specific credit, with management expressing confidence in the overall portfolio quality [27][28] Question: Capital management and buyback strategy - The company is maintaining a CET1 ratio of 11.5% and is considering share repurchases as part of its capital management strategy [29] Question: Non-interest income outlook - Management provided insights into the strong performance of correspondent banking services and projected a more stable run rate for non-interest income [36][37] Question: Future expense guidance - The company expects expenses to remain in the $345 million-$350 million range for the fourth quarter, with a focus on cost control [71]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Net interest income rose to $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Loan production reached nearly $3.4 billion, with a 67% increase in loan production in Texas and Colorado since the first quarter [3] - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [17][18] - Non-interest income increased to $99 million from $87 million, with capital markets contributing significantly [32] Market Data and Key Metrics Changes - The company identified approximately $90 billion in overlapping deposits in the Southeast, Texas, and Colorado, indicating potential growth opportunities [5] - The loan pipeline in Texas grew from $800 million to $1.2 billion, with Florida and Atlanta also showing significant pipeline growth [18] Company Strategy and Development Direction - The company is focused on organic growth and recruiting efforts in response to market disruptions, particularly in Texas and Colorado [5][19] - Management is contemplating adjustments to incentive structures to encourage recruiting and hiring in 2026 [42] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving mid-single-digit loan growth for the remainder of 2025, with potential for higher growth in 2026 [17] - The company is well-positioned to capitalize on market disruptions and is focused on building out its infrastructure [4][5] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin [6][7] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the dilutive impact of the Independent Financial merger [8] Q&A Session Summary Question: Can you walk us through the margin question? - Management discussed the impact of higher accretion and the dynamics of loan and deposit pricing in light of potential rate cuts [10][11] Question: What is the outlook for loan growth? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on commercial and industrial lending [16][17] Question: How do you feel about the credit portfolio? - Management confirmed the large charge-off was related to a specific credit and stated that the rest of the portfolio remains stable [24][25] Question: What is the optimal CET1 ratio? - Management indicated a healthy CET1 ratio of 11.5% and expressed no specific target but a preference for the 11% to 12% range [26] Question: Can you provide insights on non-interest income? - Management noted a significant increase in non-interest income, particularly from capital markets, and provided a cautious outlook for future quarters [31][32] Question: What are the expectations for deposit beta? - Management expects a deposit beta of around 27% to 30% in the next easing cycle, indicating a lag in response to rate cuts [39][66] Question: What is the guidance for NIE in the fourth quarter? - Management maintained guidance for NIE in the range of $345 million to $350 million for Q4 [67]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [4] - Pre-provision net revenue (PPNR) was $347 million, with net interest income of $600 million, up $22 million from Q2 [9][10] - Cost of deposits rose by 7 basis points to 191 basis points, while loan yields improved by 15 basis points to 6.48% [11][12] - Capital position strengthened with a Common Equity Tier 1 (CET1) ratio of 11.5% and tangible book value (TBV) per share at $54.48, exceeding year-end 2024 levels [14] Business Line Data and Key Metrics Changes - Loan production reached nearly $3.4 billion, with a 67% increase in loan production in Texas and Colorado since Q1 [5] - Commercial and industrial (C&I) loans experienced 9% linked quarter annualized growth, while residential loans grew by 6% [31] - Non-interest income rose to $99 million, driven by correspondent capital markets and deposit fees [12][50] Market Data and Key Metrics Changes - The company identified approximately $90 billion in overlapping deposits in the Southeast Texas and Colorado markets, indicating significant growth opportunities [8] - Loan pipelines in Texas increased from $800 million to $1.2 billion, with Florida and Atlanta also showing strong pipelines of $1 billion and $900 million, respectively [32] Company Strategy and Development Direction - The company is focused on organic growth through recruiting and expanding its sales force, particularly in response to market disruptions [7][81] - Strategic planning is underway to capitalize on deregulation and market opportunities, with a focus on maintaining a strong capital formation rate [7][14] Management's Comments on Operating Environment and Future Outlook - Management expects net loan growth to accelerate in the coming quarters, with a forecast of charge-offs around 10 basis points for the year [6][13] - The company anticipates mid-single-digit loan growth for the remainder of 2025, potentially increasing to upper single digits in 2026 [30] Other Important Information - The company is currently in a strong capital position, allowing for share repurchases while pursuing growth opportunities [43][82] - Management indicated that the transition of IBTX bankers to South State's business model will involve changes in incentive structures to prioritize loan growth and profitability [61] Q&A Session Summary Question: Can you walk us through the excess accretion this quarter? - Management explained that higher accretion was observed in July, with expectations for a decrease in the following months due to early payoffs and changes in loan vintages [20][22] Question: What is the outlook for loan growth given the current market dynamics? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on C&I loans and a strong pipeline in Texas [30][31] Question: How do you feel about the rest of the portfolio apart from the large charge-off? - Management confirmed that the charge-off was an isolated incident and that the overall portfolio remains stable [39][40] Question: What are the expectations for non-interest income moving forward? - Management indicated that while the current quarter showed strong performance, they expect a more normalized run rate in the future, estimating around $370 million to $380 million for 2026 [52] Question: How will the transition of IBTX bankers affect growth and expenses? - Management stated that the transition will align incentives with South State's model, focusing on loan growth and profitability [61]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Loan production rose to nearly $3.4 billion, with moderate growth in both loans and deposits [3] - Net interest income reached $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [18] - The pipeline for loans in Texas increased from $800 million to $1.2 billion, indicating strong growth potential [19] - Non-interest income was $99 million, up from $87 million, with capital markets contributing significantly to this growth [32] Market Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 67% since the first quarter of the year [3] - The company identified approximately $90 billion of overlapping deposits in the Southeast, Texas, and Colorado markets that are currently consolidating [5] Company Strategy and Development Direction - The company is focused on capitalizing on market disruptions and is actively recruiting bankers to support organic growth in 2026 [5][19] - Strategic planning is underway, considering deregulation and opportunities in the banking landscape [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in net loan growth accelerating over the next few quarters, despite some challenges in the market [3][18] - The credit team forecasts charge-offs to land around 10 basis points for the year, indicating stable credit metrics [4][8] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin by approximately four basis points [6][8] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the dilutive impact of the Independent Financial merger [8] Q&A Session Summary Question: Can you walk us through the excess accretion and margin dynamics? - Management explained that higher accretion was seen in July, with expectations for a decrease in the following months due to early payoffs of loans [11][12] Question: What is the outlook for loan growth given market dislocation? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on commercial and industrial lending [18] Question: How do you feel about the rest of the credit portfolio apart from the large charge-off? - Management confirmed that the charge-off was related to a specific credit and that the rest of the portfolio remains stable [25] Question: What is the optimal CET1 ratio and capital management strategy? - Management indicated a preference for maintaining CET1 in the 11% to 12% range, with flexibility for share repurchases [26] Question: Can you quantify the impact of accretion on future margins? - Management noted that the expected accretion for the next quarter would be lower, impacting the overall margin guidance [46][49]

SouthState Bank Corporation ("SouthState" or the "Company") cautions readers that forward looking statements are subject to certain risks, uncertainties and assumptions that are difficult to predict with regard to, among other things, timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: (1) economic volatility risk, including as a result of monetary ...

Core Insights - SouthState (SSB) reported a revenue of $698.78 million for Q3 2025, marking a year-over-year increase of 63.9% and exceeding the Zacks Consensus Estimate of $654.7 million by 6.73% [1] - The company's EPS for the quarter was $2.58, up from $1.90 a year ago, and also surpassed the consensus EPS estimate of $2.20 by 17.27% [1] Financial Performance Metrics - Net Interest Margin (Non-Tax Equivalent) was reported at 4.1%, higher than the average estimate of 3.9% from four analysts [4] - The Efficiency Ratio stood at 49.9%, significantly better than the estimated 54.9% by four analysts [4] - Net charge-offs as a percentage of average loans (annualized) were 0.3%, compared to the average estimate of 0.1% from three analysts [4] - Average Balance of Total interest-earning assets was $58.73 billion, exceeding the estimate of $58.27 billion from two analysts [4] - Total nonperforming loans were $301.69 million, slightly above the average estimate of $283.64 million from two analysts [4] - Total nonperforming assets were reported at $320.81 million, compared to the average estimate of $316.07 million from two analysts [4] - Total Noninterest Income reached $99.09 million, surpassing the average estimate of $88.04 million from four analysts [4] - Net interest income (tax equivalent, Non-GAAP) was $600.42 million, exceeding the average estimate of $568.27 million from three analysts [4] - Net Interest Income was reported at $599.7 million, higher than the average estimate of $565.25 million from three analysts [4] Stock Performance - SouthState's shares have returned -5.7% over the past month, while the Zacks S&P 500 composite has increased by 1.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) SouthState Bank Corporation achieved strong third-quarter 2025 results with significant revenue and income growth, successful integration efforts, and improved profitability metrics [Third Quarter 2025 Overview](index=1&type=section&id=Third%20Quarter%202025%20Overview) SouthState Bank Corporation reported strong third-quarter 2025 results, driven by top-line revenue and bottom-line income growth, successful integration of Independent Financial, and fee income growth in capital markets, leading to a 30% year-over-year increase in earnings per share - CEO John C. Corbett stated, "SouthState delivered a strong third quarter. Growth in top line revenue and bottom-line income led to a **30% year-over-year increase in earnings per share**"[3](index=3&type=chunk) - The successful integration of Independent Financial, fee income growth in capital markets, and steady balance sheet growth contributed to a **return on tangible equity of 20%**"[3](index=3&type=chunk) [Key Performance Highlights](index=1&type=section&id=Key%20Performance%20Highlights) The third quarter of 2025 saw significant improvements in profitability metrics, balance sheet growth, and the declaration of a quarterly cash dividend, reflecting robust financial health and operational efficiency Key Returns Metrics (Q3 2025) | Metric | Value | | :------------------------------------------ | :-------- | | Reported Diluted EPS | $2.42 | | Adjusted Diluted EPS (Non-GAAP) | $2.58 | | Net Income | $246.6 million | | Adjusted Net Income (Non-GAAP) | $262.7 million | | Return on Average Common Equity | 11.0% | | Return on Average Tangible Common Equity (Non-GAAP) | 19.6% | | Adjusted Return on Average Tangible Common Equity (Non-GAAP) | 20.8% | | Return on Average Assets ("ROAA") | 1.49% | | Adjusted ROAA (Non-GAAP) | 1.59% | | Book Value per Share | $89.14 | | Tangible Book Value ("TBV") per Share (Non-GAAP) | $54.48 | Key Performance Metrics (Q3 2025 vs. Q2 2025) | Metric | Q3 2025 | Change from Q2 2025 | | :------------------------------------------ | :-------- | :------------------ | | Revenue, non-tax equivalent | $699 million | +$34 million (5%) | | Net Interest Income | $600 million | +$22 million (4%) | | Noninterest Income | $99.1 million | +$12 million | | Net Interest Margin ("NIM"), non-tax equivalent | 4.05% | N/A | | Net charge-offs | $32.2 million (0.27% annualized) | N/A | | Provision for Credit Losses ("PCL") | $5.1 million | N/A | | Allowance for Credit Losses ("ACL") + reserve for unfunded commitments | 1.38% of loans | N/A | | Efficiency Ratio | 50% | N/A | | Adjusted Efficiency Ratio (Non-GAAP) | 47% | N/A | Key Balance Sheet & Subsequent Events (Q3 2025) | Metric | Q3 2025 | Change from Q2 2025 | | :------------------------------------------ | :-------- | :------------------ | | Loans | +$401 million (3%) | N/A | | Deposits | +$376 million (3%) | N/A | | Average loans | +$571 million (5%) | N/A | | Average deposits | +$625 million (5%) | N/A | | Ending loan to deposit ratio | 88% | N/A | | Total loan yield | 6.48% | +0.15% | | Total deposit cost | 1.91% | +0.07% | | Tangible Common Equity ratio | 8.8% | N/A | | Total Risk-Based Capital ratio | 14.0% | N/A | | Tier 1 Leverage ratio | 9.4% | N/A | | Tier 1 Common Equity ratio | 11.5% | N/A | | Subordinated debentures redeemed | $405 million | N/A | | Quarterly cash dividend declared | $0.60 per share | N/A | [Financial Performance](index=2&type=section&id=Financial%20Performance) The company demonstrated robust financial performance in Q3 2025, marked by substantial growth in net income and net interest income [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) SouthState reported a significant increase in GAAP Net Income for Q3 2025, reaching $246.6 million, up from $215.2 million in Q2 2025. Net interest income also saw a healthy increase, while noninterest income grew, partially offset by higher noninterest expenses compared to the prior year Income Statement Summary (Dollars in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total interest income | $881,682 | $840,504 | $808,566 | $544,178 | $2,530,752 | $1,592,557 | | Total interest expense | $281,985 | $262,556 | $264,019 | $192,698 | $808,560 | $546,882 | | Net Interest Income | $599,697 | $577,948 | $544,547 | $351,480 | $1,722,192 | $1,045,675 | | Provision for credit losses | $5,085 | $7,505 | $100,562 | $(6,971) | $113,152 | $9,604 | | Total noninterest income | $99,086 | $86,817 | $86,088 | $74,934 | $271,991 | $221,717 | | Total noninterest expense | $372,342 | $375,061 | $408,826 | $246,847 | $1,156,229 | $744,884 | | Net Income (GAAP) | $246,641 | $215,224 | $89,080 | $143,179 | $550,945 | $390,605 | | Diluted EPS (GAAP) | $2.42 | $2.11 | $0.87 | $1.86 | $5.41 | $5.09 | | Adjusted Net Income (non-GAAP) | $262,673 | $233,817 | $219,282 | $145,715 | $715,772 | $404,315 | | Adjusted Diluted EPS (non-GAAP) | $2.58 | $2.30 | $2.15 | $1.90 | $7.03 | $5.27 | [Performance and Capital Ratios](index=3&type=section&id=Performance%20and%20Capital%20Ratios) The company exhibited strong financial health in Q3 2025, with improved profitability and robust capital ratios [Performance Ratios](index=3&type=section&id=Performance%20Ratios) Profitability ratios improved significantly in Q3 2025 compared to the previous quarter and year-to-date, with adjusted metrics showing even stronger performance, including a notable increase in adjusted return on average tangible common equity Performance Ratios (Annualized) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Return on average assets | 1.49% | 1.34% | 0.56% | 1.25% | 1.14% | 1.15% | | Adjusted return on average assets (non-GAAP) | 1.59% | 1.45% | 1.38% | 1.27% | 1.48% | 1.19% | | Return on average common equity | 11.04% | 9.93% | 4.29% | 9.91% | 8.50% | 9.29% | | Adjusted return on average tangible common equity (non-GAAP) | 20.81% | 19.61% | 19.85% | 15.89% | 20.10% | 15.44% | | Efficiency ratio (tax equivalent) | 49.88% | 52.75% | 60.97% | 56.58% | 54.35% | 57.35% | | Adjusted efficiency ratio (non-GAAP) | 46.89% | 49.09% | 50.24% | 55.80% | 48.68% | 55.93% | | Book value per common share | $89.14 | $86.71 | $84.99 | $77.42 | N/A | N/A | | Tangible book value per common share (non-GAAP) | $54.48 | $51.96 | $50.07 | $51.26 | N/A | N/A | [Capital Ratios](index=3&type=section&id=Capital%20Ratios) SouthState maintained a strong capital position in Q3 2025, with all key capital ratios remaining robust, indicating financial stability and compliance with regulatory requirements Capital Ratios | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Equity-to-assets | 13.6% | 13.4% | 13.2% | 12.8% | | Tangible equity-to-tangible assets (non-GAAP) | 8.8% | 8.5% | 8.2% | 8.9% | | Tier 1 leverage | 9.4% | 9.2% | 8.9% | 10.0% | | Tier 1 common equity | 11.5% | 11.2% | 11.0% | 12.4% | | Total risk-based capital | 14.0% | 14.5% | 13.7% | 14.7% | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) The balance sheet in Q3 2025 showed growth in total assets and deposits, alongside an increase in shareholders' equity [Assets](index=4&type=section&id=Assets) Total assets increased slightly to $66.05 billion in Q3 2025, primarily driven by growth in loans and investment securities, while cash and cash equivalents saw a decrease from the prior quarter Assets Summary (Dollars in thousands) | Metric | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Sep. 30, 2024 | | :------------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | Cash and cash equivalents | $3,144,455 | $3,464,106 | $3,299,690 | $1,212,679 | | Total investment securities | $8,505,745 | $8,431,345 | $8,395,044 | $7,077,128 | | Loans, net | $47,077,778 | $46,646,201 | $46,143,042 | $33,080,211 | | Goodwill | $3,094,059 | $3,094,059 | $3,088,059 | $1,923,106 | | Total assets | $66,048,210 | $65,893,322 | $65,135,454 | $46,082,647 | [Liabilities and Shareholders' Equity](index=4&type=section&id=Liabilities%20and%20Shareholders'%20Equity) Total deposits increased to $54.07 billion in Q3 2025, contributing to a slight increase in total liabilities. Shareholders' equity also grew, reflecting improved profitability and retained earnings Liabilities and Shareholders' Equity Summary (Dollars in thousands) | Metric | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Sep. 30, 2024 | | :------------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | Noninterest-bearing deposits | $13,430,459 | $13,719,030 | $13,757,255 | $10,376,531 | | Interest-bearing deposits | $40,642,810 | $39,977,931 | $39,580,360 | $27,261,664 | | Total deposits | $54,073,269 | $53,696,961 | $53,337,615 | $37,638,195 | | Other borrowings | $696,429 | $1,099,705 | $752,798 | $691,626 | | Total liabilities | $57,037,084 | $57,092,188 | $56,511,093 | $40,178,067 | | Total shareholders' equity | $9,011,126 | $8,801,134 | $8,624,361 | $5,904,580 | [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin showed positive trends in Q3 2025, driven by increased loan yields and effective interest-earning asset management [Yield Analysis](index=5&type=section&id=Yield%20Analysis) Interest-earning assets and interest-bearing liabilities both increased in Q3 2025, with the total loan yield rising to 6.48% and the overall cost of funds increasing to 2.04%, reflecting a dynamic interest rate environment Yield Analysis Summary (Dollars in thousands) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Average interest-earning assets | $58,727,110 | $57,710,001 | $41,223,980 | | Total interest income | $881,682 | $840,504 | $544,178 | | Yield on interest-earning assets | 5.96% | 5.84% | 5.25% | | Average total loans held for investment | $47,600,317 | $47,029,412 | $33,387,675 | | Yield on total loans held for investment | 6.48% | 6.33% | 5.86% | | Average interest-bearing liabilities | $41,401,172 | $40,555,703 | $28,054,288 | | Cost of interest-bearing liabilities | 2.70% | 2.60% | 2.73% | [Net Interest Margin Details](index=5&type=section&id=Net%20Interest%20Margin%20Details) Net Interest Income (NII) continued its upward trend, reaching $599.7 million, with the non-tax equivalent Net Interest Margin (NIM) improving to 4.05% in Q3 2025, indicating effective management of interest-earning assets and liabilities Net Interest Margin Details | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Net Interest Income (Non-Tax Equivalent) | $599,697 | $577,948 | $351,480 | | Net Interest Margin (Non-Tax Equivalent) | 4.05% | 4.02% | 3.39% | | Net Interest Margin (Tax Equivalent) (non-GAAP) | 4.06% | 4.02% | 3.40% | | Total Deposit Cost | 1.91% | 1.84% | 1.90% | | Overall Cost of Funds | 2.04% | 1.94% | 1.99% | | Total Accretion on Acquired Loans | $82,976 | $63,507 | $2,858 | - The remaining loan discount on acquired loans to be accreted into loan interest income totals **$309.8 million** as of September 30, 2025[11](index=11&type=chunk) [Noninterest Income and Expense](index=6&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income saw growth in Q3 2025, while noninterest expenses slightly decreased due to reduced merger-related costs [Noninterest Income Breakdown](index=6&type=section&id=Noninterest%20Income%20Breakdown) Total noninterest income increased to $99.1 million in Q3 2025, primarily driven by significant growth in correspondent banking and capital markets income, as well as increased fees on deposit accounts and bank owned life insurance income Noninterest Income Summary (Dollars in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Fees on deposit accounts | $42,572 | $37,869 | $35,933 | $33,986 | $116,374 | $100,973 | | Mortgage banking income | $5,462 | $5,936 | $7,737 | $3,189 | $19,135 | $15,270 | | Trust and investment services income | $14,157 | $14,419 | $14,932 | $11,578 | $43,508 | $33,060 | | Correspondent banking and capital markets income | $21,204 | $13,767 | $9,545 | $9,893 | $44,516 | $19,064 | | Bank owned life insurance income | $10,597 | $9,153 | $10,199 | $8,276 | $29,949 | $22,540 | | Total Noninterest Income | $99,086 | $86,817 | $86,088 | $74,934 | $271,991 | $221,717 | [Noninterest Expense Breakdown](index=6&type=section&id=Noninterest%20Expense%20Breakdown) Total noninterest expense decreased slightly to $372.3 million in Q3 2025 compared to Q2 2025, primarily due to a reduction in merger, branch consolidation, severance related, and other expenses, despite increases in other operating costs Noninterest Expense Summary (Dollars in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Salaries and employee benefits | $199,148 | $200,162 | $195,811 | $150,865 | $595,121 | $452,753 | | Occupancy expense | $40,874 | $41,507 | $35,493 | $22,242 | $117,874 | $67,272 | | Information services expense | $28,988 | $30,155 | $31,362 | $23,280 | $90,505 | $68,777 | | Amortization of intangibles | $23,426 | $24,048 | $23,831 | $5,327 | $71,305 | $17,069 | | Merger, branch consolidation, severance related and other expense | $20,889 | $24,379 | $68,006 | $3,304 | $113,274 | $13,602 | | Total Noninterest Expense | $372,342 | $375,061 | $408,826 | $246,847 | $1,156,229 | $744,884 | [Loans and Deposits](index=7&type=section&id=Loans%20and%20Deposits) Both loan and deposit portfolios expanded in Q3 2025, indicating robust growth in lending and a stable funding base [Loan Portfolio Summary](index=7&type=section&id=Loan%20Portfolio%20Summary) The total loan portfolio grew to $47.67 billion in Q3 2025, with significant increases in investor commercial real estate, commercial and industrial, and consumer real estate loans, reflecting continued lending activity Loan Portfolio Summary (Dollars in thousands) | Loan Type | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Sep. 30, 2024 | | :------------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | Construction and land development | $2,678,971 | $3,323,923 | $3,497,909 | $2,458,151 | | Investor commercial real estate | $17,603,205 | $16,953,410 | $16,822,119 | $9,856,709 | | Commercial owner occupied real estate | $7,529,075 | $7,497,906 | $7,417,116 | $5,544,716 | | Commercial and industrial | $8,644,636 | $8,445,878 | $8,106,484 | $5,931,187 | | Consumer real estate | $10,202,026 | $10,038,369 | $9,838,952 | $8,649,714 | | Total Loans | $47,667,911 | $47,267,247 | $46,766,732 | $33,548,192 | [Deposit Portfolio Summary](index=7&type=section&id=Deposit%20Portfolio%20Summary) Total deposits increased to $54.07 billion in Q3 2025, with growth across interest-bearing checking, money market, and time deposits, while noninterest-bearing checking saw a slight decrease. Core deposits also showed an increase, indicating a stable funding base Deposit Portfolio Summary (Dollars in thousands) | Deposit Type | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Sep. 30, 2024 | | :------------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | Noninterest-bearing checking | $13,430,459 | $13,719,030 | $13,757,255 | $10,376,531 | | Interest-bearing checking | $12,906,408 | $12,607,205 | $12,034,973 | $7,550,392 | | Savings | $2,853,410 | $2,889,670 | $2,939,407 | $2,442,584 | | Money market | $17,251,469 | $16,772,597 | $17,447,738 | $12,614,046 | | Time deposits | $7,631,523 | $7,708,459 | $7,158,242 | $4,654,642 | | Total Deposits | $54,073,269 | $53,696,961 | $53,337,615 | $37,638,195 | | Core Deposits (excludes Time Deposits) | $46,441,746 | $45,988,502 | $46,179,373 | $32,983,553 | [Asset Quality](index=8&type=section&id=Asset%20Quality) Asset quality remained stable in Q3 2025, with nonperforming assets showing a slight decrease and adjustments made to credit loss allowances [Nonperforming Assets](index=8&type=section&id=Nonperforming%20Assets) Total nonperforming assets remained relatively stable at $320.8 million in Q3 2025, with a slight decrease from the previous quarter, while acquired nonaccrual loans continued to be a significant component Nonperforming Assets Summary (Dollars in thousands) | Metric | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Sep. 30, 2024 | | :------------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | Non-acquired nonaccrual loans | $146,751 | $141,910 | $151,673 | $111,240 | | Acquired nonaccrual loans | $149,695 | $151,466 | $116,691 | $70,731 | | Total nonperforming assets | $320,805 | $323,841 | $280,440 | $190,960 | [Asset Quality Ratios](index=8&type=section&id=Asset%20Quality%20Ratios) Asset quality ratios showed a slight decrease in the allowance for credit losses as a percentage of loans, while net charge-offs increased in Q3 2025, primarily attributable to one specific credit Asset Quality Ratios | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Allowance for credit losses as a percentage of loans | 1.24% | 1.31% | 1.33% | 1.39% | | Allowance for credit losses, including reserve for unfunded commitments, as a percentage of loans | 1.38% | 1.45% | 1.47% | 1.52% | | Allowance for credit losses as a percentage of nonperforming loans | 195.61% | 208.57% | 229.15% | 247.28% | | Net charge-offs as a percentage of average loans (annualized) | 0.27% | 0.21% | 0.38% | 0.07% | | Total nonperforming assets as a percentage of total assets | 0.49% | 0.49% | 0.43% | 0.41% | | Nonperforming loans as a percentage of period end loans | 0.63% | 0.63% | 0.58% | 0.56% | [Current Expected Credit Losses (CECL)](index=8&type=section&id=Current%20Expected%20Credit%20Losses%20(CECL)) The Allowance for Credit Losses (ACL) decreased slightly to $590.1 million, while the reserve for unfunded commitments increased to $68.5 million in Q3 2025, reflecting adjustments for charge-offs and provisions ACL and UFC Roll Forward (Dollars in thousands) | Metric | Ending balance 6/30/2025 | Ending balance 9/30/2025 | | :------------------------------------------ | :----------------------- | :----------------------- | | Non-PCD ACL | $535,014 | $511,578 | | PCD ACL | $86,032 | $78,555 | | Total ACL | $621,046 | $590,133 | | UFC | $64,693 | $68,538 | | Allowance for Credit Losses to Loans | 1.31% | 1.24% | [Additional Information](index=9&type=section&id=Additional%20Information) This section provides essential supplementary information, including conference call details, company overview, non-GAAP reconciliations, and cautionary statements regarding future projections [Conference Call Details](index=9&type=section&id=Conference%20Call%20Details) SouthState Bank Corporation will host a conference call on October 23, 2025, at 9:00 a.m. Eastern Time to discuss its third-quarter results, with details provided for participation via phone or live webcast - Conference call to discuss Q3 results will be held on **October 23, 2025, at 9:00 a.m. Eastern Time**"[19](index=19&type=chunk) - Callers can participate toll-free by dialing **(888) 350-3899 (US)** or **(646) 960-0343 (international)**, using conference ID **4200408**"[19](index=19&type=chunk) - A live webcast and audio replay will be available on the Investor Relations section of **SouthStateBank.com**"[19](index=19&type=chunk) [Company Information](index=9&type=section&id=Company%20Information) SouthState is a financial services company headquartered in Winter Haven, Florida, providing a comprehensive range of consumer, commercial, mortgage, and wealth management solutions to over 1.5 million customers across multiple states and nationwide through its correspondent banking division - SouthState is a financial services company headquartered in **Winter Haven, Florida**"[20](index=20&type=chunk) - Its bank subsidiary, SouthState Bank, N.A., offers consumer, commercial, mortgage, and wealth management solutions"[20](index=20&type=chunk) - Serves over **1.5 million customers** in Florida, Texas, the Carolinas, Georgia, Colorado, Alabama, Virginia, and Tennessee, and clients nationwide through its correspondent banking division"[20](index=20&type=chunk) [Non-GAAP Measures Explanation and Reconciliation](index=9&type=section&id=Non-GAAP%20Measures%20Explanation%20and%20Reconciliation) This section provides an explanation of non-GAAP financial measures used by SouthState, emphasizing their supplementary nature to GAAP measures, along with detailed reconciliations for various adjusted metrics such as PPNR, NIM, Net Income, EPS, ROAA, ROACE, Efficiency Ratio, and Tangible Book Value - Non-GAAP measures are provided to offer additional useful information for evaluating ongoing performance but should not be considered an alternative to GAAP measures"[21](index=21&type=chunk)[26](index=26&type=chunk) - Management believes these non-GAAP tangible measures are particularly useful for industry analysts, especially for companies with prior merger and acquisition activities"[26](index=26&type=chunk) - Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for GAAP analysis"[21](index=21&type=chunk)[26](index=26&type=chunk) Pre-Provision Net Revenue (PPNR) Reconciliation (Dollars in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Net income (GAAP) | $246,641 | $215,224 | $89,080 | $143,179 | | Provision (recovery) for credit losses | $5,085 | $7,505 | $100,562 | $(6,971) | | Income tax provision | $74,715 | $66,975 | $26,586 | $43,359 | | Merger, branch consolidation, severance related and other expense | $20,889 | $24,379 | $68,006 | $3,304 | | Pre-provision net revenue (PPNR) (Non-GAAP) | $347,330 | $314,083 | $289,347 | $182,871 | Net Interest Margin (NIM), Tax Equivalent (TE) Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | NIM, non-tax equivalent | 4.05% | 4.02% | 3.84% | 3.39% | | Tax equivalent adjustment | $718 | $672 | $784 | $486 | | Net interest income, tax equivalent (Non-GAAP) | $600,415 | $578,620 | $545,331 | $351,966 | | NIM, TE (Non-GAAP) | 4.06% | 4.02% | 3.85% | 3.40% | Adjusted Net Income and EPS Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Net income (GAAP) | $246,641 | $215,224 | $89,080 | $143,179 | $550,945 | $390,605 | | Adjusted net income (non-GAAP) | $262,673 | $233,817 | $219,282 | $145,715 | $715,772 | $404,315 | | Diluted EPS (GAAP) | $2.42 | $2.11 | $0.87 | $1.86 | $5.41 | $5.09 | | Adjusted diluted EPS (non-GAAP) | $2.58 | $2.30 | $2.15 | $1.90 | $7.03 | $5.27 | Adjusted Return on Average Assets and Equity Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Return on average assets (GAAP) | 1.49% | 1.34% | 0.56% | 1.25% | 1.14% | 1.15% | | Adjusted return on average assets (non-GAAP) | 1.59% | 1.45% | 1.38% | 1.27% | 1.48% | 1.19% | | Return on average common equity (GAAP) | 11.04% | 9.93% | 4.29% | 9.91% | 8.50% | 9.29% | | Adjusted return on average common equity (non-GAAP) | 11.75% | 10.79% | 10.56% | 10.08% | 11.05% | 9.62% | | Return on average tangible equity (non-GAAP) | 19.62% | 18.17% | 8.99% | 15.63% | 15.80% | 14.94% | | Adjusted return on average common tangible equity (non-GAAP) | 20.81% | 19.61% | 19.85% | 15.89% | 20.10% | 15.44% | Adjusted Efficiency Ratio Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Efficiency ratio (GAAP) | 49.88% | 52.75% | 60.97% | 56.58% | 54.35% | 57.35% | | Adjusted efficiency ratio (non-GAAP) | 46.89% | 49.09% | 50.24% | 55.80% | 48.68% | 55.93% | Tangible Book Value and Tangible Equity-to-Tangible Assets Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Book value per common share (GAAP) | $89.14 | $86.71 | $84.99 | $77.42 | | Tangible book value per common share (non-GAAP) | $54.48 | $51.96 | $50.07 | $51.26 | | Equity-to-assets (GAAP) | 13.64% | 13.36% | 13.24% | 12.81% | | Tangible equity-to-tangible assets (non-GAAP) | 8.81% | 8.46% | 8.25% | 8.87% | [Footnotes to Tables](index=11&type=section&id=Footnotes%20to%20Tables) This section provides detailed explanations and definitions for various financial metrics and adjustments used in the tables, particularly for loan accretion, the components of non-GAAP measures, and the estimation status of capital ratios - Loan accretion income related to the discount on acquired loans totaled **$83.0 million** for Q3 2025[26](index=26&type=chunk) - Adjusted non-GAAP measures exclude specific items such as securities gains/losses, gain on sale leaseback, PCL on non-PCD loans, deferred tax asset remeasurement, merger/branch consolidation/severance expenses, and FDIC special assessments[26](index=26&type=chunk) - Tangible measures exclude the effect of intangible assets, and tangible returns on equity add back after-tax amortization of intangibles to GAAP net income[26](index=26&type=chunk) - September 30, 2025 capital ratios are estimated and subject to change pending final filing[26](index=26&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=12&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section outlines the inherent risks and uncertainties associated with forward-looking statements made in the communication, advising readers against undue reliance and emphasizing that actual results may differ materially from projections due to various factors including economic volatility, integration risks, and regulatory changes - Forward-looking statements are based on management's beliefs, assumptions, current expectations, estimates, and projections, and are subject to risks and uncertainties"[27](index=27&type=chunk)[28](index=28&type=chunk) - Risks include economic volatility, strategic plan execution, merger integration (Independent Financial), talent retention, deposit attrition, credit risks, interest rate risk, inflation, liquidity risk, real estate values, investment portfolio value, market factors, transaction risk, digitization, controls and procedures, financial industry volatility, competition, compliance, regulatory changes, strategic risk, reputation risk, cybersecurity, ESG matters, excessive loan losses, operational risks from acquisitions, catastrophic events, geopolitical risk, stock price fluctuations, dividend payments, and ownership dilution"[28](index=28&type=chunk) - SouthState does not undertake any obligation to update or revise any forward-looking statements, except as required by federal securities laws"[29](index=29&type=chunk)

Core Insights - SouthState Bank Corporation reported a strong third quarter for 2025, with a 30% year-over-year increase in earnings per share, driven by successful integration of Independent Financial and growth in fee income and balance sheet [2][6] Financial Performance - Reported diluted earnings per share (EPS) of $2.42 and adjusted diluted EPS of $2.58, with net income of $246.6 million and adjusted net income of $262.7 million [6] - Return on average common equity was 11.0%, while return on average tangible common equity was 19.6%, and adjusted return on average tangible common equity was 20.8% [6][9] - Revenue for the quarter was $699 million, a 5% increase from the previous quarter, with net interest income of $600 million, up 4% [6][12] - Noninterest income reached $99.1 million, primarily due to increases in correspondent banking and capital markets income [6][13] Balance Sheet Highlights - Total assets amounted to $66.05 billion, with loans increasing by $401 million (3%) and deposits rising by $376 million (3%) [10][11] - The ending loan-to-deposit ratio was 88%, with total loan yield at 6.48%, up 0.15% from the prior quarter [6][12] - The company maintained a strong capital position with tangible common equity ratio of 8.8% and total risk-based capital ratio of 14.0% [6][9] Efficiency and Cost Metrics - The efficiency ratio was reported at 50%, with an adjusted efficiency ratio of 47% [6][9] - Total noninterest expense was $372.3 million, reflecting ongoing costs related to merger and consolidation activities [14]