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]

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].

Financial Performance - Consolidated net income for Q2 2025 was $215.2 million, a 62.6% increase from $132.4 million in Q2 2024, with diluted EPS rising to $2.11 from $1.73[241]. - Interest income increased by $309.4 million, driven by a $14.3 billion rise in average loan balances and a 51 basis point increase in yield[241]. - The efficiency ratio improved to 52.7% in Q2 2025 from 57.0% in Q2 2024, attributed to a 56.2% increase in tax-equivalent net interest income and noninterest income[242]. - Non-tax equivalent net interest income rose by $227.7 million, or 65.0%, to $577.9 million in Q2 2025 compared to $350.3 million in Q2 2024[247]. - The return on average assets increased to 1.34% in Q2 2025 from 1.17% in Q2 2024, primarily due to a $82.9 million increase in net income[244]. - For the three months ended June 30, 2025, net income increased by 62.6%, primarily due to higher net interest income from the acquisition of Independent[249]. - The return on average tangible equity (non-GAAP) for Q2 2025 was 18.17%, compared to 15.49% in Q2 2024[367]. - Net income (GAAP) for the first half of 2025 was $304.3 million, up from $247.4 million in the same period of 2024[367]. Acquisition and Growth Strategy - 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[224]. - SouthState's growth strategy focuses on organic growth supplemented by selective acquisitions of financial institutions or branches[217]. - The company assumed $12.0 billion in interest-bearing deposits from the Independent acquisition in Q1 2025, contributing to the increase in average balances[241]. - Total shareholder's equity increased by $2.9 billion, or 49.4%, primarily due to the Independent acquisition[272]. - The merger with Independent is expected to yield cost savings and revenue synergies, although there are risks related to integration and realization of these benefits[368]. Credit Losses and Allowance - The allowance for credit losses (ACL) reflects management's estimate of uncollectible loans, with significant judgments influenced by macroeconomic forecasts[235]. - The Company recorded a total provision for credit losses of $7.5 million for the second quarter of 2025, with $5.1 million for funded loans and $2.4 million for unfunded commitments[301]. - As of June 30, 2025, the balance of the Allowance for Credit Losses (ACL) was $621.0 million, representing 1.31% of total loans, a decrease of $2.7 million from the previous quarter[303]. - The Company experienced net charge-offs to total average loans of 0.06% and 0.05% for the three and six months ended June 30, 2025, respectively, compared to 0.05% and 0.04% for the same periods in 2024[305]. - The expected credit losses allocation as of June 30, 2025, included $165.2 million for Non-Owner-Occupied Commercial Real Estate, which accounted for 27.9% of total expected credit losses[307]. Deposits and Liquidity - Total deposits reached $53.7 billion at June 30, 2025, an increase of $15.6 billion from $38.1 billion at December 31, 2024, mainly due to deposits acquired in the Independent acquisition[334]. - Interest-bearing deposits rose by $12.1 billion to $40.0 billion at June 30, 2025, compared to $27.9 billion at December 31, 2024, primarily due to the acquisition of Independent[317]. - Noninterest-bearing deposits rose to $13.7 billion at June 30, 2025, an increase of $3.5 billion from $10.2 billion at December 31, 2024, with $3.9 billion attributed to the Independent acquisition[319]. - The coverage ratio for uninsured deposits was 100.4%, indicating strong liquidity management[341]. - The total primary sources of liquidity available to the Company amounted to $21.563 billion, including $10.159 billion at the Federal Reserve Bank's discount window[341]. Investment Securities - The total investment securities amounted to $8.43 billion, with a fair value of $7.09 billion as of June 30, 2025[276]. - Approximately 86.7% of the investment portfolio, based on amortized cost, is comprised of U.S. Treasury securities, U.S. Government agency securities, and U.S. Government Agency Mortgage-backed securities[283]. - The investment securities portfolio increased by $1.6 billion in the six months ended June 30, 2025, primarily due to the Independent acquisition and new purchases[332]. - The Company recorded a net loss of $228.8 million on the sales of investment securities during the first quarter of 2025[262]. - The Company recorded a gain of $229.3 million on the sale of bank properties from a sale-leaseback transaction completed in February 2025[262]. Regulatory and Economic Environment - The company is subject to regulatory changes, including a new CFPB rule requiring data providers to make consumer financial data available to authorized third parties by April 1, 2027[229]. - The Company continues to face downside risks due to persistent inflation, high interest rates, and tightening credit conditions, which have moderated optimism in the economic forecast[301]. - The Company is monitoring economic volatility risks, including inflation and interest rate changes, which could impact profitability[368]. Noninterest Income and Expenses - Noninterest income increased by $11.6 million, or 15.4%, during the second quarter of 2025 compared to the same period in 2024, totaling $86.8 million[260]. - Noninterest expense increased by $126.3 million, or 50.8%, in Q2 2025 compared to Q2 2024, totaling $375.1 million[263]. - Salaries and employee benefits rose by $48.7 million, or 32.2%, in Q2 2025, primarily due to the addition of Independent employees[263]. - Occupancy expense surged by $19.1 million, or 84.9%, in Q2 2025, driven by increased lease and maintenance costs[263].