Group 1 - SouthState Bank Corporation (SSB) has shown significant revenue and dividend growth, making it one of the 20 best stocks to buy and hold for a lifetime [1] - The bank unveiled new quick payment solutions on September 17, 2025, allowing Treasury customers to conduct safe, real-time transactions, enhancing cash flow management [2] - The pilot program for the quick payment solutions involved payroll startup Hourly.io, which completed over 600,000 transactions worth over $400 million, demonstrating the technology's efficiency [2] Group 2 - SouthState Bank Corporation offers a range of financial products including consumer, company, mortgage, and wealth management services across nine states and nationally [3] - The correspondent banking segment of SSB contributes to its diverse service offerings, positioning it as a strong investment option [3]

Group 1 - The article discusses the interest in obscure stocks as well as notable companies like HSBC and Watches of Switzerland [1]

Core Viewpoint - SouthState Corporation (SSB) has shown strong performance with an 11.6% increase in shares over the past three months, outperforming the industry growth of 6.8% and its peers [1][8] Financial Performance - The Federal Reserve's recent interest rate cuts are expected to ease funding pressures and stabilize deposit costs, benefiting banks like SouthState [4] - SouthState's net interest income (NII) has achieved a five-year compound annual growth rate (CAGR) of 22.9% through 2024, with continued improvement in the first half of 2025 [5] - The net interest margin (NIM) improved in the first half of 2025 due to balance sheet optimization, despite a decline in 2024 from elevated funding costs [5][6] - Revenue growth is projected to continue, with estimates suggesting a year-over-year increase of 51.93% for 2025 and 4.76% for 2026 [9][10] Growth Strategies - SouthState has expanded its market presence through acquisitions, including the significant acquisition of Independent Bank in January 2025, which increased total assets to $65.1 billion [10][11] - The company has maintained strong organic growth, with a revenue CAGR of 21.5% over the past five years, continuing into the first half of 2025 [6][7] Liquidity and Shareholder Returns - SouthState has a solid liquidity position, with total debt of $1.2 billion against cash and cash equivalents of $3.5 billion as of June 30, 2025 [12] - The company has consistently raised dividends since 2020, with a recent hike of 11.1% in July 2025, resulting in a payout ratio of 26% and a five-year annualized dividend growth of 3.30% [13][16] Risks and Concerns - Elevated non-interest expenses have shown a CAGR of 16.6% from 2019 to 2024, driven by various operational costs [18] - The loan portfolio is heavily concentrated in real estate, with 72.9% of loans having real estate as collateral, increasing exposure to commercial real estate risks [20][21] Valuation - SouthState's trailing price-to-book (P/B) ratio of 1.15X is below the industry average of 1.88X, indicating that shares are trading at a discount compared to peers [23]

Core Insights - SouthState Bank has launched instant payment solutions for its Treasury customers, allowing them to send and receive payments in real-time [2][3] - Over the past year, the bank processed more than 600,000 instant payment transactions, totaling over $400 million [2][3] Group 1: Instant Payment Solutions - The new instant payment solutions are designed to enhance cash flow management, secure transactions, and improve reconciliation processes for businesses [3] - Instant payments are facilitated through two networks: The Clearing House's Real-Time Payments (RTP) and the Federal Reserve's FedNow, ensuring secure and encrypted transactions [6] - The instant payments adhere to the global ISO 20022 standard, which simplifies data integration into enterprise and accounting systems, leading to increased efficiency [7] Group 2: Customer Impact - Hourly, a payroll startup, participated in the pilot program and highlighted the significant impact of instant payments on employee satisfaction, allowing payments to be made within 15 seconds [4][5] - The bank aims to expand instant payment offerings beyond Treasury customers in the future [7] 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 multiple states [8]

Core Insights - SouthState Bank has expanded its workforce by hiring over 20 experienced bankers to enhance service capabilities across nine states [2][26] - The bank emphasizes the importance of team members as its greatest asset, highlighting the collaborative spirit of the new hires [2] - Several promotions within the bank have been announced, including key positions in Private Wealth and municipal underwriting [3] New Hires - The new hires include professionals with diverse backgrounds and extensive experience in various banking sectors, enhancing SouthState's service offerings [2][5][6] - Notable new hires include Steve Stagg, Blake Freeman, and Frank Cupersmith, each bringing significant industry experience [4][5][6] Promotions - Key promotions include David Kirkpatrick as managing director of Private Wealth and Jason Ware as head of municipal underwriting [3] - Additional promotions in South Carolina include Trent Drafts and Scott Ferguson to commercial market executive roles [3] Market Expansion - SouthState is establishing a presence in Nashville, Tennessee, as part of its strategic expansion efforts [29] - The bank aims to leverage the expertise of its new team in Nashville to enhance its market position in Tennessee [29] Company Overview - SouthState Bank Corporation is headquartered in Winter Haven, Florida, and serves over 1.5 million customers across multiple states [26] - The bank offers a range of financial services, including consumer, commercial, mortgage, and wealth management solutions [26]

Core Viewpoint - SouthState (SSB) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [4]. SouthState's Earnings Outlook - The recent upgrade for SouthState signifies an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. - Analysts have raised their earnings estimates for SouthState, with the Zacks Consensus Estimate increasing by 6.6% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - SouthState's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-12669 SOUTHSTATE CORPORATION (Exact name of registrant as specified in its charter) South Carolina 57-0799315 ( ...

Core Insights - SouthState Corporation (SSB) reported second-quarter 2025 adjusted earnings per share of $2.30, exceeding the Zacks Consensus Estimate of $2.00, and reflecting a 28.5% increase year over year [1][7] - Net income attributable to common shareholders was $215.2 million, up 62.6% year over year [1] Revenue and Expenses - Total revenues for the quarter reached $664.8 million, marking a 56.2% increase year over year and surpassing the Zacks Consensus Estimate by 3.9% [2] - Net interest income (NII) was $577.9 million, up 65% from the prior-year quarter, with the net interest margin rising to 4.02% from 3.44% [2] - Non-interest income was $86.8 million, reflecting a 15.4% increase year over year, driven by most components except for other income and net securities losses [2] - Non-interest expenses surged by 50.8% to $375.1 million, primarily due to merger, branch consolidation, severance-related, and other restructuring expenses [3] Loans and Deposits - As of June 30, 2025, net loans stood at $46.6 billion, up 1.1% from the prior quarter, while total deposits were $53.7 billion, showing a marginal increase [4] Asset Quality - Provision for credit losses was $7.5 million, a significant increase of 92.9% from the prior-year quarter [5] - Allowance for credit losses as a percentage of loans was 1.31%, down 11 basis points year over year [5] - The ratio of annualized net charge-offs to total average loans was 0.21%, up from 0.05% in the year-ago quarter [5] - Non-performing loans to total loans were 0.63%, an increase of 4 basis points from the prior-year quarter [5] Capital Ratios and Profitability Ratios - As of June 30, 2025, the Tier I leverage ratio was 9.2%, down from 9.7% in the year-ago quarter [6] - The Tier 1 common equity ratio decreased to 11.2% from 12.1% in the prior-year quarter [6] - The annualized return on average assets was 1.34%, up from 1.17% in the year-ago period [6] - Return on average common equity was 9.93%, compared to 9.58% in the prior-year quarter [6] Capital Distribution - The company increased its quarterly cash dividend on common stock by 11.1% to 60 cents per share, payable on August 15, 2025, to shareholders of record as of August 8, 2025 [8] Overall Assessment - SSB ended the second quarter positively, with both top and bottom lines rising year over year, supported by increasing NII and non-interest income [9] - Rising loan and deposit balances are encouraging, although high expenses from inorganic expansion efforts may pressure the bottom line [9]

Financial Data and Key Metrics Changes - The bank's earnings accelerated as forecasted, with a significant increase in loan production from approximately $2 billion in Q1 to over $3 billion in Q2, representing a 57% increase [6][11] - Adjusted for merger costs, the return on assets was 1.45% and return on tangible common equity was nearly 20% [9][11] - Net interest income grew by $33 million over Q1, with a cost of deposits at 1.84%, a five basis point improvement from Q1 [12][13] - Non-interest income remained stable at $87 million, with an efficiency ratio of 49.1% [14][15] - Tangible book value per share increased by 8.5% year-over-year to $51.96 [16] Business Line Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 35%, with non-PCD loans growing by about $200 million [6][9] - The bank's retail bank ranks in the top quartile of J.D. Power's Net Promoter Score, indicating a superior customer experience [10] Market Data and Key Metrics Changes - The bank is now established in the fastest-growing markets in the country, specifically Texas and Colorado [8][9] - The loan pipeline increased significantly, with a 45% increase in Q1 and an additional 31% in Q2 [30] Company Strategy and Development Direction - The company aims to build a strong presence in the best geographical areas with a focus on organic growth and shareholder value [7][8] - The management is focused on leveraging the successful integration of Independent Financial to enhance growth opportunities [11][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving yield curve and its potential to accelerate organic growth [11] - The bank's capital position is strong, allowing for an 11% increase in dividends and potential share repurchases [16][85] Other Important Information - The bank's asset quality remains stable, with low credit costs and strong loss absorption capacity [15][16] - The management highlighted the importance of recruiting talent, having added 47 revenue producers in Q2 [50][66] Q&A Session Summary Question: Outlook for margin and deposit costs - Management indicated strong net interest margin performance and expects deposit costs to remain manageable despite growth [20][34] Question: Loan growth and paydowns - Paydowns returned to normal levels in Q2, and management expects continued loan origination funding [36] Question: Interest rate sensitivity - The bank expects a one to two basis point improvement in overall margin for every 25 basis point cut in rates [40] Question: Regulatory environment and growth - Management believes they have time to build infrastructure before facing regulatory changes, with a focus on organic growth [54] Question: Expense outlook and revenue synergies - Management confirmed no change to prior expense guidance and noted positive retention of key talent post-merger [58][65]

Financial Data and Key Metrics Changes - The bank's earnings accelerated as forecasted, with a significant increase in loan production from approximately $2 billion in Q1 to over $3 billion in Q2, representing a 57% increase [5] - Adjusted for merger costs, the return on assets was 1.45% and return on tangible common equity was nearly 20% in Q2 [7][9] - The tangible book value per share increased by 8.5% year-over-year to $51.96, despite the dilutive impacts of the merger [14] Business Line Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 35%, with non-PCD loans growing by about $200 million [5] - Net interest income grew by $33 million over Q1, with a cost of deposits improving to 1.84%, a five basis point improvement [10] - Non-interest income remained stable at $87 million, with improvements in correspondent business offset by a slight decline in mortgage revenue [12] Market Data and Key Metrics Changes - The loan pipeline increased significantly, with a 45% increase in Q1 and an additional 31% in Q2, indicating strong momentum in loan origination [29] - The bank's asset size reached $66 billion, positioning it well for investments in technology and risk management [6] Company Strategy and Development Direction - The company aims to build a strong presence in the fastest-growing markets by focusing on Texas and Colorado, which are seen as key geographies for growth [6] - The management emphasized the importance of organic growth and the potential for share repurchases, given the current capital position [14][85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving yield curve and its potential to accelerate organic growth [9] - The outlook for net interest margin (NIM) is expected to remain between 3.8% and 3.9% for the remainder of the year, with potential for improvement in 2026 [24] Other Important Information - The board approved an 11% increase in dividends, reflecting confidence in earnings growth and capital levels [9][84] - The integration of Independent Financial was completed successfully, allowing the company to focus on growth opportunities [6] Q&A Session Summary Question: Outlook for margin and potential for expansion - Management indicated that the net interest margin was strong at 4.02% and expects it to remain stable with no significant changes to guidance [20][22] Question: Loan growth and paydowns - Paydowns returned to normal levels in Q2, and the company is funding around 60% of loan production, indicating potential for future growth [36] Question: Interest rate sensitivity and NIM guidance - Management expects a 1-2 basis point improvement in overall margin for every 25 basis point cut, with a focus on legacy loan repricing [39][41] Question: Capital allocation and buyback opportunities - The company is considering share repurchases due to its strong capital position and believes in the potential for consistent dividend increases [84][86]