Core Insights - SouthState Corporation reported a strong financial performance for the second quarter of 2025, with revenue growth of 22% annualized and loan originations increasing by 57% quarter over quarter [2][4] - The company successfully completed the conversion of the IBTX franchise, which is expected to contribute positively to future growth [2] - The Board of Directors increased the quarterly cash dividend by 11%, raising it from $0.54 to $0.60 per share, payable on August 15, 2025 [3] Financial Performance - For the three months ended June 30, 2025, net interest income was $577.9 million, with a net interest margin of 4.02% [5][7] - Net income for the quarter was $215.2 million, with diluted earnings per share of $2.11 and adjusted diluted earnings per share of $2.30 [5][6] - The return on average common equity was 9.9%, while the return on average tangible common equity was 18.2% [5][6] Balance Sheet - Total assets as of June 30, 2025, were $65.9 billion, with total loans amounting to $47.3 billion [10][12] - Total deposits increased to $53.7 billion, reflecting a growth of $359 million or 3% from the previous quarter [5][12] - The company maintained a strong capital position with a Tier 1 common equity ratio of 11.2% and total risk-based capital ratio of 14.5% [5][6] Loan and Deposit Growth - Loans increased by $501 million, or 4%, during the quarter, while deposits rose by $359 million, or 3% [5][6] - The ending loan-to-deposit ratio was 88%, indicating a healthy balance between loans and deposits [5] - The loan portfolio included significant contributions from commercial real estate and consumer real estate segments [10][11] Noninterest Income and Expenses - Noninterest income for the quarter was $86.8 million, with fees on deposit accounts contributing $37.9 million [8][9] - Total noninterest expenses were $375.1 million, with salaries and employee benefits being the largest component [8][9] - The efficiency ratio improved to 53%, with an adjusted efficiency ratio of 49% [5][6]

Group 1 - The analysis highlights significant potential in the regional banking sector, specifically mentioning East West Bancorp, Inc. (EWBC) and SouthState Corporation (SSB) as key players [1] - The focus is on uncovering lesser-known stocks while also covering more established companies like HSBC and Watches of Switzerland [1]

WINTER HAVEN, Fla., July 3, 2025 /PRNewswire/ -- SouthState Corporation (NYSE: SSB) ("SouthState") announced today that it will release second quarter 2025 earnings results on Thursday, July 24, 2025, after the market closes. Upon release, investors may access a copy of SouthState's earnings results at the Company's website at www.SouthStateBank.com under Investor Relations, News, News & Market Data section.SouthState will host a conference call on Friday, July 25, 2025 at 9:00 a.m. (ET) to discuss its seco ...

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum by focusing on key metrics [2] Group 2: SouthState (SSB) Performance - SouthState currently has a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, SSB shares increased by 5.82%, outperforming the Zacks Financial - Miscellaneous Services industry, which rose by 3.24% [6] - In the last quarter, SSB shares rose by 12.15%, and over the past year, they increased by 21.41%, compared to the S&P 500's gains of 10.83% and 14.92%, respectively [7] Group 3: Trading Volume and Earnings Outlook - SSB's average 20-day trading volume is 1,567,230 shares, which is a bullish indicator when combined with rising stock prices [8] - Recent earnings estimate revisions for SSB show one upward revision for the current fiscal year, increasing the consensus estimate from $8.03 to $8.13 [10] - For the next fiscal year, there has been one upward revision with no downward revisions, indicating positive earnings outlook [10] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, SSB is positioned as a promising momentum pick for investors [12]

Core Insights - SouthState Corporation (NYSE: SSB) has experienced disappointing performance since September, trailing behind regional peers despite not having committed significant errors [1] Group 1: Company Performance - The shares of SouthState Corporation have underperformed compared to regional banks since the last analysis [1] - The investment strategy focuses on long-term, buy-and-hold approaches, particularly in high-quality earnings stocks [1] Group 2: Investment Strategy - The investment approach emphasizes dividend and income stocks, indicating a preference for stable returns [1]

Financial Performance - Consolidated net income for Q1 2025 was $89.1 million, a 22.6% decrease from $115.1 million in Q1 2024, with diluted EPS dropping 42.0% to $0.87 [218]. - Interest income increased by $291.3 million, driven by a $14.4 billion rise in average loan balances and a 52 basis point increase in yield [218]. - Interest expense rose by $90.7 million, primarily due to an increase in average interest-bearing deposits of $12.9 billion and a 10 basis point rise in average cost [219]. - Noninterest income grew by $14.5 million, mainly from service charges and investment services, attributed to the Independent acquisition [222]. - Noninterest expense surged by $159.5 million, with a significant portion due to merger-related costs and restructuring expenses from the Independent acquisition [222]. - The efficiency ratio increased to 61.0% in Q1 2025 from 58.5% in Q1 2024, reflecting a 58.2% rise in noninterest expenses [219]. - Return on average assets declined to 0.56% in Q1 2025 from 1.03% in Q1 2024, primarily due to a 22.6% decrease in net income [223]. - The return on average tangible equity (non-GAAP) for the three months ended March 31, 2025, was 8.99%, down from 13.63% in the same period of 2024 [329]. - The net income (GAAP) for the three months ended March 31, 2025, was $89,080 thousand, a decrease from $115,056 thousand in 2024 [329]. Asset and Liability Management - As of March 31, 2025, SouthState Corporation had total assets of $65.1 billion and employed 6,405 full-time equivalent employees [202]. - Total assets increased by approximately $18.8 billion, or 40.4%, to approximately $65.1 billion at March 31, 2025, largely due to the acquisition of Independent [245]. - Total deposits reached $53.3 billion at March 31, 2025, an increase of $15.3 million from $38.1 billion at December 31, 2024, largely attributed to the $15.2 billion in deposits acquired from Independent [300]. - Interest-bearing deposits surged by $11.7 billion, or 170.4% annualized, to $39.6 billion at March 31, 2025, primarily due to the acquisition of Independent [283]. - Noninterest-bearing deposits increased to $13.8 billion at March 31, 2025, up from $10.2 billion at December 31, 2024, with $3.9 billion attributed to the Independent acquisition [285]. - The loan to deposit ratio was 88% at March 31, 2025, down from 89% at December 31, 2024 [245]. - Total loans increased by $12.9 billion to $46.8 billion as of March 31, 2025, with non-acquired loans growing by $642.4 million, or 8.9% annualized [264]. - The acquired loan portfolio rose by $12.2 billion, primarily due to the acquisition of Independent, contributing $13.1 billion [264]. - The average balance of interest-bearing deposits increased by $12.9 billion, contributing to an increase in interest expense by $85.8 million [232]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) reflects management's estimate of uncollectible loans, with significant judgments influenced by macroeconomic forecasts [216]. - As of March 31, 2025, the Allowance for Credit Losses (ACL) was $623.7 million, representing 1.33% of total loans, an increase of $158.4 million from $465.3 million at December 31, 2024 [272]. - The Company recorded a total provision for credit losses of $100.6 million for Q1 2025, including an initial provision of $80.0 million for Non-PCD loans acquired from Independent [270]. - The net charge-offs to total average loans for the three months ended March 31, 2025, were 0.38%, compared to 0.03% for the same period in 2024 [274]. - The ACL provides 2.29 times coverage of nonperforming loans as of March 31, 2025 [274]. - Total nonperforming assets increased to $280.4 million, or 0.60% of total loans and repossessed assets, as of March 31, 2025, representing a 31.4% increase from December 31, 2024 [280]. - Total nonperforming loans rose to $272.2 million, or 0.58% of total loans, marking a 31.4% increase from December 31, 2024 [280]. Acquisition and Integration - The Company completed the acquisition of Independent Bank Group, Inc. on January 1, 2025, in an all-stock transaction valued at $2.5 billion, issuing 24,858,731 shares of its common stock [209]. - The Company has pursued a growth strategy focusing on organic growth and selective acquisitions of financial institutions [204]. - The Company issued $2.5 billion in stock related to the acquisition of Independent during the first quarter of 2025 [287]. - The integration of Independent's operations into SouthState's may be delayed or more costly than expected, with risks of deposit attrition and client loss [330]. - The Company is pursuing an all-stock merger with Independent, which may face risks related to cost savings and revenue synergies not being fully realized [330]. Regulatory and Economic Environment - The Company is evaluating the potential impacts of new regulatory rules from the CFPB, which may affect its operations and data management practices [213]. - Economic volatility risks include potential higher rates and inflation, which could negatively impact credit markets and noninterest expenses [330]. - Regulatory changes may require higher capital levels, impacting the company's ability to pursue acquisition opportunities [334]. - Geopolitical and economic uncertainties could affect consumer confidence and loan payment patterns, potentially leading to increased charge-offs [339]. Investment Portfolio - Investment securities totaled $8.4 billion at March 31, 2025, an increase of $1.6 billion, or 23.5%, with $1.6 billion acquired through the Independent acquisition [246]. - The investment securities portfolio (excluding trading securities) rose by $1.6 billion during the first quarter of 2025, with $1.6 billion acquired through the Independent acquisition [298]. - The company conducted a securities repositioning, selling approximately $1.8 billion in investment securities at a loss of $228.8 million [229]. - The total investment securities amounted to $8.395 billion, with a yield of 3.25% [253]. - Approximately 83.6% of the investment portfolio is comprised of U.S. Treasury securities, U.S. Government agency securities, and U.S. Government Agency Mortgage-backed securities [255]. Risks and Challenges - The company faces interest rate risks that could decrease net interest income, affecting earnings from correspondent and mortgage divisions [330]. - Inflationary pressures may negatively impact profitability and demand for the company's products and services [330]. - The company is exposed to cybersecurity risks due to reliance on internal systems and third-party technology, which could lead to financial losses [333]. - The company is at risk from competition in the financial services industry, which may compress net interest margins [339]. - Catastrophic events and public health crises could disrupt economic activity and impact the company's operations and customer base [339].

SouthState (SSB) Q1 2025 Earnings Call April 25, 2025 10:27 PM ET Company Participants William Matthews - CFO & Executive VPJohn Corbett - CEO and DirectorMichael Rose - Managing DirectorSteven Young - Chief Strategy OfficerCatherine Mealor - Managing DirectorStephen Scouten - Managing DirectorRussell Gunther - Managing DirectorJared Shaw - Managing DirectorChristopher Marinac - Director of Research Conference Call Participants None - Analyst Operator Thank you for standing by. My name is Eric, and I will b ...

SouthState Corporation (SSB) reported first-quarter 2025 adjusted earnings per share of $2.15, which surpassed the Zacks Consensus Estimate of $1.43. The bottom line also increased 36.1% from the prior-year quarter. The results excluded certain notable items.Results benefited from a rise in NII and non-interest income. However, higher expenses and provisions were headwinds.Net income attributable to common shareholders was $89.1 million, down 22.6% year over year.SouthState’s Revenues & ExpensesTotal revenu ...

Core Insights - SouthState (SSB) reported a revenue of $630.64 million for the quarter ended March 2025, marking a 51.8% increase year-over-year and exceeding the Zacks Consensus Estimate by 2.35% [1] - The earnings per share (EPS) for the quarter was $2.15, up from $1.58 in the same quarter last year, resulting in an EPS surprise of 50.35% compared to the consensus estimate of $1.43 [1] Financial Metrics - Net Interest Margin (Non-Tax Equivalent) was reported at 3.8%, slightly above the estimated 3.6% [4] - The Efficiency Ratio stood at 61%, higher than the average estimate of 57% [4] - Total nonperforming assets were $280.44 million, exceeding the estimated $251.43 million [4] - Net charge-offs as a percentage of average loans (annualized) were 0.4%, compared to the estimated 0.1% [4] - Average Balance of Total interest-earning assets was $57.50 billion, below the estimated $58.46 billion [4] - Net Interest Income was reported at $544.55 million, surpassing the average estimate of $516.19 million [4] - Total Noninterest Income was $86.09 million, slightly below the estimated $88.27 million [4] - Net interest income, tax equivalent (Non-GAAP) was $545.33 million, exceeding the average estimate of $528.97 million [4] Stock Performance - SouthState's shares have returned -5.6% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

SouthState (SSB) came out with quarterly earnings of $2.15 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 50.35%. A quarter ago, it was expected that this bank holding company would post earnings of $1.73 per share when it actually produced earnings of $1.93, delivering a surprise of 11.56%. Over the last four quarters, th ...