Financial Overview - As of December 31, 2024, SouthState Corporation had approximately $46.4 billion in assets, $33.9 billion in loans, $38.1 billion in deposits, and a market capitalization of approximately $7.6 billion[18]. - The loan portfolio consisted of 53% commercial real estate loans ($17.9 billion), 26% residential real estate loans ($8.7 billion), 18% commercial and industrial loans ($6.2 billion), and 3% other consumer loans ($1.1 billion) as of December 31, 2024[23][24][25][26]. - The deposit portfolio was comprised of 27% noninterest-bearing deposits and 73% interest-bearing deposits as of December 31, 2024[28]. - SouthState Corporation's revenue is primarily derived from interest on loans, fees from deposit accounts, and commissions on bond sales[19]. Employee and Workforce Management - As of December 31, 2024, the company had 4,986 full-time employees, a decrease from 5,070 in 2023, with a voluntary turnover rate of 9%[45]. - Approximately 96% of team members are located in six states, with South Carolina (32.5%) and Florida (32%) being the largest[45]. - In fiscal year 2024, the company hired 576 team members, with a management-level turnover rate of only 0.8%[45]. - The company completed over 200,000 training courses in 2024, emphasizing compliance and job-specific education[52]. - The company established a dashboard in 2024 to track metrics related to diversity, recruitment, and retention of talent[50]. - Approximately 27% of employees work remotely, reflecting the company's support for flexible work arrangements[55]. - The company has committed to building a diverse and inclusive workplace, with initiatives including unconscious bias training completed by over 600 leaders[49]. Regulatory Environment - The company is subject to extensive regulation and supervision, with increased scrutiny following the financial crisis and recent banking turmoil[60]. - The Bank's total assets exceeded $50 billion as a result of the merger with IBTX, effective January 1, 2025, which will subject it to heightened standards guidelines from the OCC starting in Q4 2026[76]. - The FDIC implemented a special assessment at an annual rate of approximately 13.4 basis points, projected to collect around $30.2 million from the Bank over eight quarters beginning in Q2 2024[83]. - The Company must maintain a common equity Tier 1 (CET1) capital conservation buffer of 2.5% to avoid restrictions on capital distributions, including dividends[88]. - The required capital ratios for the Company and the Bank include a CET1 risk-based capital ratio, a Tier 1 risk-based capital ratio, and a total capital ratio, with specific definitions for each[90]. - The OCC has the authority to limit dividends paid by the Bank if deemed unsafe or unsound, and all dividends must be paid from undivided profits after deducting expenses[87]. - The FDIC's risk-based deposit premium assessment system categorizes institutions into four risk categories based on capital levels and supervisory ratings[80]. - The Bank is subject to restrictions on lending to affiliates, with individual loans limited to 10% of the Bank's capital and surplus[70]. - The Company is required to provide prior notice to the Federal Reserve before acquiring 10% or more of its outstanding common stock[68]. - The Federal Reserve, OCC, and FDIC have broad supervisory and enforcement authority over the Company and the Bank, including the power to impose fines and initiate injunctive actions[77]. Capital and Financial Ratios - As of December 31, 2024, the Company's CET1 risk-based capital ratio was 12.62%, exceeding the minimum requirement of 4.5% and the well-capitalized standard of 6.5%[98]. - The Tier 1 risk-based capital ratio for the Company was 12.62%, significantly above the minimum requirement of 6.0% and the well-capitalized standard of 8.0%[98]. - The total risk-based capital ratio for the Company was 14.96%, well above the minimum requirement of 8.0% and the well-capitalized standard of 10.0%[98]. - The Tier 1 leverage ratio for the Company was 10.04%, exceeding the minimum requirement of 4.0%[98]. - The Company added approximately $15.3 million to Tier 1 capital as a result of the modified CECL transition as of December 31, 2024[100]. Mergers and Acquisitions - The IBTX Merger is expected to enhance revenues and strengthen the market position in Texas, with integration scheduled for the second quarter of 2025[143]. - The Company anticipates incurring substantial expenses related to the IBTX Merger and integration, which may exceed expected savings from eliminating duplicative expenses[147]. - The Company seeks to acquire financial institutions that are culturally similar and have experienced management to achieve economies of scale[215]. Risk Management - The Company is exposed to regulatory risks that could limit or restrict business activities, including changes in capital and liquidity requirements[139]. - The Company’s loan portfolio includes commercial and commercial real estate loans, which may carry higher risks of default[134]. - The Company is actively monitoring the impact of inflation and rising interest rates on its business and profitability[134]. - Effective management of credit risk and interest rate risk is crucial; failure to do so may adversely affect the company's business and financial condition[171]. - The company is exposed to credit risk if clients or counterparties default on obligations, which could negatively impact financial condition and results of operations[170]. - The company must manage liquidity risk effectively, including maintaining high-quality liquid assets and diversifying funding sources[175]. Technology and Cybersecurity - The company continues to invest significantly in information technology and cybersecurity systems, including cloud-based applications, to enhance functionality and security[204]. - The company experienced a cybersecurity incident in February 2024, leading to unauthorized activity in its systems and resulting in a pending class action lawsuit[214]. - The company has enhanced its cybersecurity defenses since the incident, but there is no assurance against future cyber-attacks or material losses[214]. - Cybersecurity risks have escalated with the growth of mobile payment and internet-based product offerings, increasing the potential for breaches[210]. - The company relies heavily on third-party service providers, which increases vulnerability to cyber-attacks and information security breaches[211]. Strategic Initiatives and Challenges - The company intends to pursue a growth strategy, but faces risks including economic conditions, regulatory compliance, and competition, which could adversely affect future growth opportunities[149]. - The company is integrating IBTX's business and expanding digital banking initiatives, including real-time payments and enhanced payment capabilities, to support growth[150]. - Future profitability may be impacted if strategic initiatives do not yield expected benefits or if expenses increase due to technology investments[151]. - The company faces risks related to the integration of IBTX, including potential delays and increased costs that could adversely affect financial performance[144]. - The company may face challenges in integrating operations and cultures following recent mergers, which could impact its corporate culture[196].

Core Viewpoint - SouthState (SSB) is positioned as a strong investment opportunity due to a significant revision in the company's earnings estimates, with an improving earnings outlook suggesting continued stock price gains [1][2]. Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding SouthState's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, SouthState is projected to earn $1.32 per share, indicating a year-over-year decline of 16.46%. However, the Zacks Consensus Estimate has increased by 15.79% over the last 30 days due to one upward and one downward revision [4]. - For the full year, the earnings estimate is $8.12 per share, representing a year-over-year increase of 12.62%. The consensus estimate has risen by 8.71% as two estimates moved higher against one negative revision [5]. Zacks Rank - SouthState has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for outperformance compared to the S&P 500 [6]. - Historically, stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, highlighting the effectiveness of this ranking system [3][6]. Stock Performance - SouthState shares have increased by 7.1% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects driven by the positive estimate revisions [7].

Financial Data and Key Metrics Changes - The company reported its fourth quarter 2024 earnings, with specific financial highlights to be discussed in detail during the call [3][5]. - Forward-looking statements regarding financial performance and risks were emphasized, indicating a cautious outlook [4]. Business Line Data and Key Metrics Changes - Specific details regarding the performance of various business lines were not provided in the initial remarks but are expected to be covered in the subsequent discussion [3][5]. Market Data and Key Metrics Changes - Market performance metrics and regional data were not explicitly mentioned in the opening statements, indicating that further details may be provided later in the call [3][5]. Company Strategy and Development Direction - The company is expected to outline its strategic initiatives and competitive positioning within the industry during the call [3][5]. Management's Comments on Operating Environment and Future Outlook - Management is likely to provide insights into the current operating environment and future outlook, which will be crucial for understanding potential growth and challenges [3][5]. Other Important Information - The call is being recorded, and participants are reminded of the forward-looking statements and associated risks [2][4]. Q&A Session Summary Question: What are the key highlights from the fourth quarter? - Specific highlights from the fourth quarter will be addressed in the Q&A session, with management expected to provide detailed responses [3][5].

All forward-looking statements speak only as of the date they are made and are based on information available at that time. SouthState does not undertake any obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. SOUTHSTATE ...

For the quarter ended December 2024, SouthState (SSB) reported revenue of $450.32 million, up 7.3% over the same period last year. EPS came in at $1.93, compared to $1.67 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $435.63 million, representing a surprise of +3.37%. The company delivered an EPS surprise of +11.56%, with the consensus EPS estimate being $1.73.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Core Viewpoint - SouthState (SSB) reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.73 per share, and showing an increase from $1.67 per share a year ago, indicating a positive earnings surprise of 11.56% [1] Financial Performance - The company achieved revenues of $450.32 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.37% and up from $419.72 million year-over-year [2] - Over the last four quarters, SouthState has consistently surpassed consensus EPS estimates and topped revenue estimates twice [2] Stock Performance and Outlook - SouthState shares have remained flat since the beginning of the year, contrasting with the S&P 500's gain of 3.5% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $1.52 for the upcoming quarter and $7.78 for the current fiscal year [4][7] Industry Context - The Financial - Miscellaneous Services industry, to which SouthState belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - SouthState reported net income of $144.2 million for Q4 2024, representing a 9% increase in PPNR over Q3 2024, driven by 6% revenue growth[2] - Diluted earnings per share (EPS) for Q4 2024 were $1.87, with adjusted diluted EPS (non-GAAP) of $1.93[4] - Net income for Q4 2024 reached $144.178 million, up from $143.179 million in Q3 2024, representing a 0.7% increase[20] - Adjusted net income for the twelve months ended December 31, 2024, was $553,079 thousand, compared to $524,653 thousand for the same period in 2023, reflecting a growth of 5.8%[22] - Earnings per common share - Basic (GAAP) for the three months ended September 30, 2024, was $1.88, up from $1.74 in the previous quarter[22] Revenue and Income Growth - Total noninterest income for Q4 2024 was $80,545,000, an increase of 7.5% compared to $74,934,000 in Q3 2024 and up from $65,489,000 in Q4 2023[10] - Mortgage banking income for Q4 2024 was $4,777,000, significantly higher than $3,189,000 in Q3 2024, representing a growth of 49.8%[10] - Trust and investment services income increased to $12,414,000 in Q4 2024, compared to $11,578,000 in Q3 2024, a rise of 7.2%[10] - The total correspondent banking and capital markets income for Q4 2024 was $13,555,000, up from $9,893,000 in Q3 2024, reflecting a growth of 37.3%[10] Asset and Liability Management - Total assets increased to $46.38 billion as of December 31, 2024, up from $44.90 billion a year earlier, representing a growth of 3.3%[7] - Total deposits rose to $38.06 billion, an increase of 2.3% from $37.05 billion in the previous year[7] - Loans, net, reached $33.44 billion, reflecting an increase from $31.93 billion year-over-year, marking a growth of 4.7%[7] - Interest-bearing liabilities totaled $28.72 billion, with a total interest expense of $179.03 million, resulting in an overall cost of funds of 1.81%[8] Efficiency and Capital Ratios - The efficiency ratio improved to 56%, with an adjusted efficiency ratio (non-GAAP) of 54%[4] - Return on average common equity was 9.7%, with an adjusted return on average tangible common equity (non-GAAP) of 15.6%[4] - Total risk-based capital ratio stood at 15.0%, indicating a strong capital position[6] - The adjusted efficiency ratio for the twelve months ended December 31, 2024, was 54.42%, indicating operational efficiency improvements[22] Credit Quality and Losses - The allowance for credit losses was $465.28 million, slightly down from $456.57 million a year ago[7] - Nonperforming assets totaled $213,354,000, an increase from $190,960,000 in Q3 2024, reflecting a rise of 11.5%[14] - The allowance for credit losses as a percentage of loans was 1.37% as of December 31, 2024, slightly down from 1.39% in Q3 2024[14] - The net charge-offs as a percentage of average loans (annualized) was 0.06% for Q4 2024, a slight decrease from 0.07% in Q3 2024[14] Merger and Expansion - The company completed the merger with Independent Bank Group on January 1, 2025, enhancing its market presence[3] - The company plans to continue expanding in high-growth markets following the successful merger[2] - Risks related to the merger and integration of SouthState and Independent include potential delays and cost overruns, affecting expected cost savings and revenue synergies[2] Future Outlook and Risks - The company anticipates potential economic volatility risks, including inflation and credit market deterioration, which could impact future performance[2] - The company faces competition risks that may pressure deposit and loan pricing, impacting net interest margins[2] - Regulatory changes may require higher capital levels and could affect the company's financial performance and compliance costs[2] - The company does not undertake any obligation to update forward-looking statements, which are subject to significant risks and uncertainties[3] Dividend and Shareholder Returns - The company declared a quarterly cash dividend of $0.54 per share, payable on February 14, 2025[4] - The dividend payout ratio is calculated by dividing total dividends paid during the period by total net income, reflecting the company's commitment to returning value to shareholders[1] Conference and Communication - The conference call to discuss Q4 results is scheduled for January 24, 2025, at 9:00 a.m. Eastern Time[16]

Core Insights - SouthState Corporation reported a strong finish in 2024 with net income of $144 million and a 9% increase in PPNR over the third quarter, driven by 6% revenue growth [2][5] - The company completed the merger with Independent Bank Group ahead of schedule on January 1, 2025, which is expected to enhance its market position [2][3] Financial Performance - For the fourth quarter of 2024, total interest income was $548.8 million, up from $544.2 million in the previous quarter, while total interest expense decreased to $179 million from $192.7 million [4][5] - Net interest income for the fourth quarter was $369.8 million, with a net interest margin of 3.48% [5][7] - Noninterest income reached $80.5 million, representing a significant increase from $65.5 million in the same quarter of the previous year [8][9] Balance Sheet Highlights - Total assets as of December 31, 2024, were $46.38 billion, an increase from $46.08 billion in the previous quarter [7][12] - Total loans increased to $33.90 billion, with a 4% annualized growth rate, while total deposits rose to $38.06 billion, also reflecting a 4% annualized increase [10][12] - The ending loan-to-deposit ratio was 89% [5] Capital Ratios - The company reported a return on average common equity of 9.7% and a return on average tangible common equity of 15.1% for the fourth quarter [5][6] - Tangible common equity ratio stood at 8.8%, with total risk-based capital at 15.0% [5][6] Dividends - The Board of Directors declared a quarterly cash dividend of $0.54 per share, payable on February 14, 2025 [5]

Core Insights - Analysts forecast SouthState (SSB) will report quarterly earnings of $1.73 per share, reflecting a year-over-year increase of 3.6% and revenues of $435.63 million, up 3.8% from the previous year [1] - There has been a 32.9% upward revision in the consensus EPS estimate over the past 30 days, indicating a collective reassessment by analysts [2] - Earnings estimate revisions are critical for predicting investor behavior and have a strong correlation with short-term stock price performance [3] Financial Metrics - The consensus estimate for 'Net Interest Margin (Non-Tax Equivalent)' is 3.5%, unchanged from the previous year [5] - Analysts expect the 'Efficiency Ratio' to be 56.6%, a significant improvement from 63.4% reported in the same quarter last year [5] - The estimate for 'Total Nonperforming Loans' is $187.14 million, up from $121.77 million in the same quarter last year [5] - 'Average Balance - Total Interest-Earning Assets' is projected to reach $41.60 billion, compared to $40.47 billion reported last year [6] - 'Total Nonperforming Assets' is expected to be $194.01 million, up from $184.12 million in the same quarter last year [6] - 'Net Interest Income' is forecasted at $360.77 million, compared to $354.23 million from the previous year [7] - 'Total Noninterest Income' is anticipated to reach $74.74 million, up from $65.49 million in the same quarter last year [7] - 'Net Interest Income, Tax Equivalent (Non-GAAP)' is projected at $362.31 million, compared to $354.89 million from the previous year [8] Market Performance - SouthState shares have changed by -0.3% in the past month, while the Zacks S&P 500 composite has seen a -2.1% change [8] - With a Zacks Rank 2 (Buy), SSB is expected to outperform the overall market in the near term [8]

Wall Street expects a year-over-year increase in earnings on higher revenues when SouthState (SSB) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 23, 2025, might help the stock move higher if these key numbers are better than ex ...