Financial Performance - SouthState Corporation reported diluted Earnings per Share (EPS) of $2.11, with an adjusted diluted EPS (non-GAAP) of $2.30[32] - Pre-Provision Net Revenue (PPNR) reached $314.1 million[32] - Year-over-year PPNR per share growth (non-GAAP) was 29%[32] - Net interest margin, tax equivalent, increased to 4.02%, up 0.17% from the prior quarter[32] Balance Sheet & Loan Portfolio - Loans increased by $501 million, representing a 4% annualized growth[32] - Deposits increased by $359 million, representing a 3% annualized growth[32] - Total loans amounted to $47.3 billion, with investor CRE comprising 36% of the portfolio[44] - Noninterest-bearing checking deposits totaled $13.7 billion[48] Asset Quality & Capital - Net charge-offs to loans stood at 0.06%[54] - Tangible Common Equity (TCE) ratio was 8.5%[63] - Total investment portfolio was $8.1 billion[78] Market & Geographic Expansion - SouthState is ranked as the 5 largest regional bank in the South[7] - The company operates in 12 of the 15 fastest-growing U S MSAs[7] - Top states for net domestic migration include Florida with 872,722 and Texas with 747,730[23]

Core Insights - SouthState (SSB) reported a revenue of $664.77 million for the quarter ended June 2025, marking a 56.2% increase year-over-year and exceeding the Zacks Consensus Estimate by 3.96% [1] - The earnings per share (EPS) for the quarter was $2.30, up from $1.79 in the same quarter last year, representing a 15% surprise over the consensus EPS estimate of $2.00 [1] Financial Performance Metrics - Net charge-offs as a percentage of average loans were 0.2%, higher than the average estimate of 0.1% [4] - The efficiency ratio stood at 52.8%, better than the average estimate of 55.6% [4] - Net interest margin (non-tax equivalent) was reported at 4%, exceeding the average estimate of 3.8% [4] - Average balance of total interest-earning assets was $57.71 billion, slightly below the average estimate of $57.91 billion [4] - Total nonperforming assets amounted to $323.84 million, higher than the average estimate of $277.62 million [4] - Net interest income (tax equivalent, non-GAAP) was $578.62 million, surpassing the average estimate of $552.04 million [4] - Total noninterest income was $86.82 million, slightly below the average estimate of $87.97 million [4] - Net interest income was reported at $577.95 million, compared to the average estimate of $551.17 million [4] - Mortgage banking income was $5.94 million, lower than the average estimate of $8.56 million [4] - Fees on deposit accounts reached $37.87 million, exceeding the average estimate of $36.44 million [4] - Trust and investment services income was $14.42 million, slightly above the average estimate of $14 million [4] - Total correspondent banking and capital market income was $13.77 million, higher than the average estimate of $10.99 million [4] Stock Performance - SouthState shares have returned +9.4% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - SouthState reported quarterly earnings of $2.3 per share, exceeding the Zacks Consensus Estimate of $2 per share, and showing an increase from $1.79 per share a year ago, resulting in an earnings surprise of +15.00% [1] - The company achieved revenues of $664.77 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.96%, and up from $425.48 million year-over-year [2] - SouthState has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 2.3% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $2.05 on revenues of $652.67 million, and for the current fiscal year, it is $8.13 on revenues of $2.59 billion [7] 分组3 - The Zacks Industry Rank places Financial - Miscellaneous Services in the top 38% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for SouthState was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) SouthState reported accelerated growth in Q2 2025, with significant increases in revenue and loan originations, strong financial performance, and an 11% dividend increase, alongside robust capital and asset quality [CEO Statement](index=1&type=section&id=CEO%20Statement) SouthState's CEO, John C. Corbett, highlighted accelerated growth in Q2 2025, with annualized revenue growth of 22% and a 57% quarter-over-quarter increase in loan originations. The successful conversion of the IBTX franchise and strong returns enabled an 11% dividend increase and funded organic growth - Growth accelerated in Q2 2025, with **annualized revenue growth of 22%** and **loan originations up 57% QoQ**[3](index=3&type=chunk) - Successfully completed the conversion of the IBTX franchise[3](index=3&type=chunk) - **Increased quarterly cash dividend by 11% to $0.60 per share**, payable August 15, 2025[3](index=3&type=chunk)[6](index=6&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The second quarter of 2025 saw strong financial performance with diluted EPS of $2.11 ($2.30 adjusted), net income of $215.2 million ($233.8 million adjusted), and robust returns on equity and assets. The company also reported significant loan and deposit growth, improved net interest margin, and a strong capital position Key Financial Performance Indicators (Q2 2025) | Indicator | Value (GAAP) | Value (Adjusted Non-GAAP) | | :----------------------------------- | :----------- | :------------------------ | | Diluted EPS | $2.11 | $2.30 | | Net Income | $215.2 million | $233.8 million | | Return on Average Common Equity | 9.9% | 10.79% (Adjusted) | | Return on Average Tangible Common Equity | 18.2% | 19.6% (Adjusted) | | Return on Average Assets (ROAA) | 1.34% | 1.45% | | Net Interest Income | $578 million | N/A | | Net Interest Margin (NIM) | 4.02% | 4.02% (Tax Equivalent) | | Efficiency Ratio | 53% | 49% | | Book Value per Share | $86.71 | N/A | | Tangible Book Value (TBV) per Share | N/A | $51.96 | | Net Charge-offs (excl. acquisition date) | 0.06% (annualized) | N/A | | Provision for Credit Losses (PCL) | $7.5 million | N/A | | Allowance for Credit Losses (ACL) + UFC | 1.45% of loans | N/A | | Noninterest Income | $87 million | N/A | | Total Loan Yield | 6.33% | N/A | | Total Deposit Cost | 1.84% | N/A | - **Loans increased by $501 million** (4% annualized) and **deposits increased by $359 million** (3% annualized) in Q2 2025, resulting in an **ending loan to deposit ratio of 88%**[6](index=6&type=chunk) - **Total loan yield increased by 0.08% to 6.33%**, while **total deposit cost decreased by 0.05% to 1.84%**[6](index=6&type=chunk) - Completed the issuance of **$350 million** aggregate principal amount of **7% fixed-to-floating rate subordinated notes**[6](index=6&type=chunk) Preliminary Capital Ratios (Q2 2025) | Capital Ratio | Value | | :-------------------------- | :---- | | Tangible Common Equity | 8.5% | | Total Risk-Based Capital | 14.5% | | Tier 1 Leverage | 9.2% | | Tier 1 Common Equity | 11.2% | [Financial Performance](index=2&type=section&id=Financial%20Performance) Q2 2025 saw a substantial increase in net income and improved performance ratios, including a higher return on average assets and common equity, while maintaining strong capital ratios [Income Statement](index=2&type=section&id=Income%20Statement) The income statement for Q2 2025 shows a significant increase in net income to $215.2 million, up from $89.08 million in Q1 2025, driven by higher net interest income and lower provision for credit losses. Adjusted net income also saw a substantial rise Income Statement Highlights (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :--------------------------------------- | :------------ | :------------ | :------------ | | Total Interest Income | $840,504 | $808,566 | $531,124 | | Total Interest Expense | $262,556 | $264,019 | $180,865 | | Net Interest Income | $577,948 | $544,547 | $350,259 | | Provision for Credit Losses | $7,505 | $100,562 | $3,889 | | Total Noninterest Income | $86,817 | $86,088 | $75,225 | | Total Noninterest Expense | $375,061 | $408,826 | $248,747 | | Net Income (GAAP) | $215,224 | $89,080 | $132,370 | | Adjusted Net Income (non-GAAP) | $233,817 | $219,282 | $137,274 | | Diluted EPS (GAAP) | $2.11 | $0.87 | $1.73 | | Adjusted Diluted EPS (non-GAAP) | $2.30 | $2.15 | $1.79 | | Dividends per Common Share | $0.54 | $0.54 | $0.52 | - **Net Interest Income increased by 6.1% QoQ to $577.9 million** in Q2 2025, and significantly from $350.2 million in Q2 2024[7](index=7&type=chunk) - **Provision for Credit Losses decreased substantially from $100.5 million to $7.5 million** in Q2 2025[7](index=7&type=chunk) [Performance and Capital Ratios](index=3&type=section&id=Performance%20and%20Capital%20Ratios) Performance ratios showed strong improvement in Q2 2025, with annualized return on average assets increasing to 1.34% (1.45% adjusted) and return on average common equity reaching 9.93% (10.79% adjusted). Capital ratios remained robust, with total risk-based capital at 14.5% Key Performance and Capital Ratios (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Ratio | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | | Return on average assets (annualized) | 1.34 % | 0.56 % | 1.17 % | | Adjusted return on average assets (annualized) | 1.45 % | 1.38 % | 1.22 % | | Return on average common equity (annualized) | 9.93 % | 4.29 % | 9.58 % | | Adjusted return on average common equity (annualized) | 10.79 % | 10.56 % | 9.94 % | | Return on average tangible common equity (annualized) | 18.17 % | 8.99 % | 15.49 % | | Adjusted return on average tangible common equity (annualized) | 19.61 % | 19.85 % | 16.05 % | | Efficiency ratio (tax equivalent) | 52.75 % | 60.97 % | 57.03 % | | Adjusted efficiency ratio | 49.09 % | 50.24 % | 55.52 % | | Book value per common share | $86.71 | $84.99 | $74.16 | | Tangible book value per common share | $51.96 | $50.07 | $47.90 | | Equity-to-assets | 13.4 % | 13.2 % | 12.4 % | | Tangible equity-to-tangible assets | 8.5 % | 8.2 % | 8.4 % | | Tier 1 leverage | 9.2 % | 8.9 % | 9.7 % | | Total risk-based capital | 14.5 % | 13.7 % | 14.4 % | - **The efficiency ratio improved significantly to 52.75% (49.09% adjusted)** in Q2 2025 from 60.97% (50.24% adjusted) in Q1 2025[9](index=9&type=chunk) [Balance Sheet](index=4&type=section&id=Balance%20Sheet) Total assets grew to $65.89 billion in Q2 2025, driven by increases in cash, investments, and loans, with total deposits also rising to $53.70 billion and shareholders' equity strengthening [Balance Sheet Details](index=4&type=section&id=Balance%20Sheet%20Details) SouthState's total assets grew to $65.89 billion as of June 30, 2025, up from $65.14 billion in the prior quarter. This growth was primarily driven by increases in cash and cash equivalents, and loans, net. Total deposits also increased to $53.70 billion Balance Sheet Summary (Ending Balance) | Asset/Liability | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :------------------------------------ | :------------ | :------------ | :------------ | :------------ | | Cash and cash equivalents | $3,464,106 | $3,299,690 | $1,392,067 | $1,117,166 | | Total investment securities | $8,431,345 | $8,395,044 | $6,798,876 | $7,048,308 | | Loans, net | $46,646,201 | $46,143,042 | $33,437,647 | $32,762,266 | | Goodwill | $3,094,059 | $3,088,059 | $1,923,106 | $1,923,106 | | Total assets | $65,893,322 | $65,135,454 | $46,381,204 | $45,493,970 | | Total deposits | $53,696,961 | $53,337,615 | $38,060,866 | $37,098,402 | | Total liabilities | $57,092,188 | $56,511,093 | $40,490,789 | $39,843,567 | | Total shareholders' equity | $8,801,134 | $8,624,361 | $5,890,415 | $5,650,403 | - **Total assets increased by approximately $757.9 million QoQ**, reflecting growth across various asset categories[10](index=10&type=chunk) - **Shareholders' equity increased to $8.80 billion from $8.62 billion** in the previous quarter[10](index=10&type=chunk) [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin improved in Q2 2025, with the net interest margin rising to 4.02%, primarily due to increased yield on interest-earning assets and a slight decrease in total deposit cost [Yield Analysis](index=5&type=section&id=Yield%20Analysis) SouthState's net interest income and margin improved in Q2 2025, with the net interest margin (non-tax equivalent) rising to 4.02% from 3.84% in Q1 2025. This was driven by an increase in the yield on interest-earning assets, particularly loans, while the total deposit cost slightly decreased Net Interest Income and Margin Analysis (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :------------------------------------------ | :------------ | :------------ | :------------ | | Average Interest-Earning Assets | $57,710,001 | $57,497,453 | $41,011,662 | | Total Interest Income | $840,504 | $808,566 | $531,124 | | Yield on Interest-Earning Assets | 5.84% | 5.70% | 5.21% | | Average Interest-Bearing Liabilities (IBL) | $40,555,703 | $40,753,004 | $27,701,439 | | Total Interest Expense | $262,556 | $264,019 | $180,865 | | Rate on IBL | 2.60% | 2.63% | 2.63% | | Net Interest Income (Non-Tax Equivalent) | $577,948 | $544,547 | $350,259 | | Net Interest Margin (Non-Tax Equivalent) | 4.02% | 3.84% | 3.43% | | Total Deposit Cost | 1.84% | 1.89% | 1.80% | | Overall Cost of Funds | 1.94% | 1.97% | 1.90% | - **Yield on total loans held for investment increased to 6.33%** in Q2 2025 from 6.25% in Q1 2025[11](index=11&type=chunk) - **Total accretion on acquired loans was $63.5 million** in Q2 2025, contributing to loan interest income[11](index=11&type=chunk)[28](index=28&type=chunk) [Noninterest Income and Expense](index=6&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income remained stable at $86.8 million in Q2 2025, while noninterest expense decreased significantly due to reduced merger and consolidation-related costs, improving the efficiency ratio [Noninterest Income](index=6&type=section&id=Noninterest%20Income) Total noninterest income remained stable at $86.8 million in Q2 2025, slightly up from $86.09 million in Q1 2025. Key contributors included fees on deposit accounts, trust and investment services income, and correspondent banking and capital markets income Noninterest Income Breakdown (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Category | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :---------------------------------------- | :------------ | :------------ | :------------ | | Fees on deposit accounts | $37,869 | $35,933 | $33,842 | | Mortgage banking income | $5,936 | $7,737 | $5,912 | | Trust and investment services income | $14,419 | $14,932 | $11,091 | | Correspondent banking and capital markets income | $13,767 | $9,545 | $4,860 | | Bank owned life insurance income | $9,153 | $10,199 | $7,372 | | Total Noninterest Income | $86,817 | $86,088 | $75,225 | - **Correspondent banking and capital markets income saw a significant increase to $13.77 million** in Q2 2025 from $9.55 million in Q1 2025[13](index=13&type=chunk) [Noninterest Expense](index=6&type=section&id=Noninterest%20Expense) Total noninterest expense decreased to $375.06 million in Q2 2025 from $408.83 million in Q1 2025, primarily due to a reduction in merger, branch consolidation, severance related and other expenses Noninterest Expense Breakdown (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Category | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | | Salaries and employee benefits | $200,162 | $195,811 | $151,435 | | Occupancy expense | $41,507 | $35,493 | $22,453 | | Information services expense | $30,155 | $31,362 | $23,144 | | Amortization of intangibles | $24,048 | $23,831 | $5,744 | | Merger, branch consolidation, severance related and other expense | $24,379 | $68,006 | $5,785 | | Total Noninterest Expense | $375,061 | $408,826 | $248,747 | - **Merger, branch consolidation, severance related and other expenses significantly decreased to $24.38 million** in Q2 2025 from $68.01 million in Q1 2025[13](index=13&type=chunk) - **Amortization of intangibles increased substantially year-over-year, reaching $24.05 million** in Q2 2025 compared to $5.74 million in Q2 2024[13](index=13&type=chunk) [Loans and Deposits](index=7&type=section&id=Loans%20and%20Deposits) The total loan portfolio expanded to $47.27 billion in Q2 2025, with growth in investor commercial real estate and commercial and industrial loans, while total deposits increased to $53.70 billion, driven by time deposits [Loan Portfolio Summary](index=7&type=section&id=Loan%20Portfolio%20Summary) The total loan portfolio grew to $47.27 billion as of June 30, 2025, an increase from $46.77 billion in the previous quarter. Growth was observed across most loan categories, with investor commercial real estate and commercial and industrial loans being significant contributors Loan Portfolio by Type (Ending Balance) | Loan Type | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | | Construction and land development | $3,323,923 | $3,497,909 | $2,184,327 | $2,592,307 | | Investor commercial real estate | $16,953,410 | $16,822,119 | $9,991,482 | $9,731,773 | | Commercial owner occupied real estate | $7,497,906 | $7,417,116 | $5,716,376 | $5,522,978 | | Commercial and industrial | $8,445,878 | $8,106,484 | $6,222,876 | $5,769,838 | | Consumer real estate | $10,038,369 | $9,838,952 | $8,714,969 | $8,440,724 | | Consumer/other | $1,007,761 | $1,084,152 | $1,072,897 | $1,176,944 | | Total Loans | $47,267,247 | $46,766,732 | $33,902,927 | $33,234,564 | - **Investor commercial real estate loans increased by $131.29 million QoQ**, and **commercial and industrial loans increased by $339.39 million QoQ**[14](index=14&type=chunk) [Deposit Summary](index=7&type=section&id=Deposit%20Summary) Total deposits increased to $53.70 billion as of June 30, 2025, up from $53.34 billion in the prior quarter. Time deposits showed notable growth, while noninterest-bearing checking deposits remained relatively stable Deposits by Type (Ending Balance) | Deposit Type | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :-------------------------- | :------------ | :------------ | :------------ | :------------ | | Noninterest-bearing checking | $13,719,030 | $13,757,255 | $10,192,116 | $10,374,464 | | Interest-bearing checking | $12,607,205 | $12,034,973 | $8,232,322 | $7,547,406 | | Savings | $2,889,670 | $2,939,407 | $2,414,172 | $2,475,130 | | Money market | $16,772,597 | $17,447,738 | $13,056,534 | $12,122,336 | | Time deposits | $7,708,459 | $7,158,242 | $4,165,722 | $4,579,066 | | Total Deposits | $53,696,961 | $53,337,615 | $38,060,866 | $37,098,402 | | Core Deposits (excl. Time Deposits) | $45,988,502 | $46,179,373 | $33,895,144 | $32,519,336 | - **Time deposits increased by $550.2 million QoQ**, indicating a shift in deposit mix[16](index=16&type=chunk) - **Core deposits (excluding time deposits) slightly decreased QoQ to $45.99 billion from $46.18 billion**[16](index=16&type=chunk) [Asset Quality](index=8&type=section&id=Asset%20Quality) Total nonperforming assets increased to $323.8 million in Q2 2025, mainly due to acquired nonaccrual loans, while asset quality ratios showed a slight increase in net charge-offs and a stable allowance for credit losses [Nonperforming Assets](index=8&type=section&id=Nonperforming%20Assets) Total nonperforming assets increased to $323.84 million as of June 30, 2025, from $280.44 million in the prior quarter, primarily driven by an increase in acquired nonaccrual loans Nonperforming Assets (Ending Balance) | Category | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | | Non-acquired nonaccrual loans and restructured loans | $141,910 | $151,673 | $141,982 | $110,774 | | Non-acquired OREO and other nonperforming assets | $17,288 | $2,290 | $1,182 | $2,876 | | Acquired nonaccrual loans and restructured loans | $151,466 | $116,691 | $65,314 | $78,287 | | Acquired OREO and other nonperforming assets | $8,783 | $5,976 | $1,583 | $598 | | Total nonperforming assets | $323,841 | $280,440 | $213,354 | $199,294 | - **Acquired nonaccrual loans increased by $34.78 million QoQ**, contributing to the rise in total nonperforming assets[17](index=17&type=chunk) [Asset Quality Ratios](index=8&type=section&id=Asset%20Quality%20Ratios) Asset quality ratios showed a slight increase in net charge-offs as a percentage of average loans (excluding acquisition date charge-offs) to 0.06% in Q2 2025. Total nonperforming assets as a percentage of total assets also increased to 0.49% Asset Quality Ratios | Ratio | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :-------------------------------------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | | Allowance for credit losses as a percentage of loans | 1.31% | 1.33% | 1.37% | 1.42% | | Allowance for credit losses, including reserve for unfunded commitments, as a percentage of loans | 1.45% | 1.47% | 1.51% | 1.57% | | Allowance for credit losses as a percentage of nonperforming loans | 208.57% | 229.15% | 220.94% | 241.19% | | Net charge-offs as a percentage of average loans (annualized) | 0.21% | 0.38% | 0.06% | 0.05% | | Net charge-offs, excluding acquisition date charge-offs, as a percentage of average loans (annualized) | 0.06% | 0.04% | 0.06% | 0.05% | | Total nonperforming assets as a percentage of total assets | 0.49% | 0.43% | 0.46% | 0.44% | | Nonperforming loans as a percentage of period end loans | 0.63% | 0.58% | 0.62% | 0.59% | - **Allowance for credit losses as a percentage of loans slightly decreased to 1.31% from 1.33% QoQ**[17](index=17&type=chunk) [Current Expected Credit Losses (CECL)](index=8&type=section&id=Current%20Expected%20Credit%20Losses%20%28CECL%29) The Allowance for Credit Losses (ACL) for non-PCD loans increased, while PCD ACL decreased, resulting in a total ACL of $621.05 million as of June 30, 2025. The provision for credit losses for the quarter was $5.06 million ACL and UFC Roll Forward (Q2 2025) | Category | Non-PCD ACL | PCD ACL | Total ACL | UFC | | :------------------------------------------------- | :---------- | :-------- | :-------- | :---- | | Ending balance 3/31/2025 | $526,615 | $97,075 | $623,690 | $62,253 | | ACL - PCD loans from Independent | — | $16,798 | $16,798 | — | | Acquisition date charge-offs on acquired PCD loans | — | $(17,259) | $(17,259) | — | | Charge offs | $(11,736) | — | $(11,736) | — | | Recoveries | $2,174 | — | $2,174 | — | | Provision for credit losses | $17,582 | $(12,518) | $5,064 | $2,440 | | Ending balance 6/30/2025 | $535,014 | $86,032 | $621,046 | $64,693 | | Allowance for Credit Losses to Loans | 1.22% | 2.52% | 1.31% | N/A | - **Acquisition date charge-offs on acquired PCD loans from Independent totaled $17.26 million** in Q2 2025, recorded to align with company policies[18](index=18&type=chunk)[19](index=19&type=chunk) [Company Information](index=9&type=section&id=Company%20Information) SouthState Corporation, headquartered in Winter Haven, Florida, is a financial services company offering diverse solutions across multiple states and will host a conference call on July 25, 2025, to discuss its Q2 results [Conference Call Details](index=9&type=section&id=Conference%20Call%20Details) SouthState Corporation will host a conference call on July 25, 2025, at 9:00 a.m. Eastern Time to discuss its second-quarter results, with details provided for participation via phone or webcast - **Conference call to discuss Q2 results scheduled for July 25, 2025, at 9:00 a.m. ET**[21](index=21&type=chunk) - Access available via toll-free number (888) 350-3899 (US) or (646) 960-0343 (international), Conference ID: 4200408, or live webcast on SouthStateBank.com[21](index=21&type=chunk) [About SouthState Corporation](index=9&type=section&id=About%20SouthState%20Corporation) SouthState is a financial services company headquartered in Winter Haven, Florida, providing consumer, commercial, mortgage, and wealth management solutions across multiple states and through its correspondent banking division - **SouthState Corporation is a financial services company based in Winter Haven, Florida**[22](index=22&type=chunk) - **SouthState Bank, N.A., offers consumer, commercial, mortgage, and wealth management solutions to over one million customers** in Florida, Alabama, Georgia, the Carolinas, Virginia, Texas, and Colorado[22](index=22&type=chunk) - **The Bank also serves clients nationwide through its correspondent banking division**[22](index=22&type=chunk) [Non-GAAP Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Measures%20Reconciliation) This section provides reconciliations of various non-GAAP financial measures, including adjusted net income, EPS, return on assets, return on equity, efficiency ratio, and tangible book value, to their most directly comparable GAAP measures, highlighting operational performance and capital strength [PPNR (Non-GAAP) Reconciliation](index=9&type=section&id=PPNR%20%28Non-GAAP%29%20Reconciliation) The Pre-Provision Net Revenue (PPNR) for Q2 2025 was $314.08 million, an increase from $289.35 million in Q1 2025, reflecting improved operational profitability before credit loss provisions PPNR (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :---------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Net income (GAAP) | $215,224 | $89,080 | $144,178 | $143,179 | $132,370 | | Provision (recovery) for credit losses | $7,505 | $100,562 | $6,371 | $(6,971) | $3,889 | | Income tax provision | $66,975 | $26,586 | $43,166 | $43,359 | $40,478 | | Merger, branch consolidation, severance related and other expense | $24,379 | $68,006 | $6,531 | $3,304 | $5,785 | | Pre-provision net revenue (PPNR) (Non-GAAP) | $314,083 | $289,347 | $199,675 | $182,871 | $183,141 | [Net Interest Margin (NIM), TE (Non-GAAP) Reconciliation](index=9&type=section&id=Net%20Interest%20Margin%20%28NIM%29%2C%20TE%20%28Non-GAAP%29%20Reconciliation) The tax-equivalent Net Interest Margin (NIM, TE) for Q2 2025 was 4.02%, an improvement from 3.85% in Q1 2025, indicating enhanced profitability from interest-earning assets Net Interest Margin (NIM), TE (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :---------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Net interest income (GAAP) | $577,948 | $544,547 | $369,779 | $351,480 | $350,259 | | Total average interest-earning assets | $57,710,001 | $57,497,453 | $42,295,376 | $41,223,980 | $41,011,662 | | NIM, non-tax equivalent | 4.02 % | 3.84 % | 3.48 % | 3.39 % | 3.43 % | | Tax equivalent adjustment | $672 | $784 | $547 | $486 | $631 | | Net interest income, tax equivalent (Non-GAAP) | $578,620 | $545,331 | $370,326 | $351,966 | $350,890 | | NIM, TE (Non-GAAP) | 4.02 % | 3.85 % | 3.48 % | 3.40 % | 3.44 % | [Adjusted Net Income (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20%28Non-GAAP%29%20Reconciliation) Adjusted Net Income for Q2 2025 was $233.82 million, significantly higher than the GAAP net income, after excluding various non-recurring or non-operational items such as merger-related expenses and securities losses/gains Adjusted Net Income (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Net income (GAAP) | $215,224 | $89,080 | $144,178 | $143,179 | $132,370 | | Securities losses, net of tax | — | $178,639 | $38 | — | — | | Gain on sale leaseback, net of transaction costs and tax | — | $(179,004) | — | — | — | | PCL - Non-PCD loans and UFC, net of tax | — | $71,892 | — | — | — | | Merger, branch consolidation, severance related and other expense, net of tax | $18,593 | $53,094 | $5,026 | $2,536 | $4,430 | | Deferred tax asset remeasurement | — | $5,581 | — | — | — | | FDIC special assessment, net of tax | — | — | $(478) | — | $474 | | Adjusted net income (non-GAAP) | $233,817 | $219,282 | $148,764 | $145,715 | $137,274 | [Adjusted Net Income per Common Share - Basic (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20per%20Common%20Share%20-%20Basic%20%28Non-GAAP%29%20Reconciliation) Adjusted basic EPS for Q2 2025 was $2.30, reflecting a more normalized view of earnings by excluding specific non-recurring items Adjusted Net Income per Common Share - Basic (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Earnings per common share - Basic (GAAP) | $2.12 | $0.88 | $1.89 | $1.88 | $1.74 | | Effect to adjust for securities losses, net of tax | — | $1.76 | $0.00 | — | — | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — | $(1.77) | — | — | — | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — | $0.71 | — | — | — | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | $0.18 | $0.52 | $0.07 | $0.03 | $0.05 | | Effect to adjust for deferred tax asset remeasurement | — | $0.06 | — | — | — | | Effect to adjust for FDIC special assessment, net of tax | — | — | $(0.01) | — | $0.01 | | Adjusted net income per common share - Basic (non-GAAP) | $2.30 | $2.16 | $1.95 | $1.91 | $1.80 | [Adjusted Net Income per Common Share - Diluted (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20per%20Common%20Share%20-%20Diluted%20%28Non-GAAP%29%20Reconciliation) Adjusted diluted EPS for Q2 2025 was $2.30, providing a clearer picture of per-share earnings by excluding specific non-GAAP adjustments Adjusted Net Income per Common Share - Diluted (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Earnings per common share - Diluted (GAAP) | $2.11 | $0.87 | $1.87 | $1.86 | $1.73 | | Effect to adjust for securities losses, net of tax | — | $1.76 | $0.00 | — | — | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — | $(1.76) | — | — | — | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — | $0.71 | — | — | — | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | $0.19 | $0.52 | $0.07 | $0.04 | $0.05 | | Effect to adjust for deferred tax remeasurement | — | $0.05 | — | — | — | | Effect to adjust for FDIC special assessment, net of tax | — | — | $(0.01) | — | $0.01 | | Adjusted net income per common share - Diluted (non-GAAP) | $2.30 | $2.15 | $1.93 | $1.90 | $1.79 | [Adjusted Return on Average Assets (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Return%20on%20Average%20Assets%20%28Non-GAAP%29%20Reconciliation) The adjusted return on average assets (ROAA) for Q2 2025 was 1.45%, demonstrating improved asset utilization and profitability after accounting for non-GAAP adjustments Adjusted Return on Average Assets (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average assets (GAAP) | 1.34 % | 0.56 % | 1.23 % | 1.25 % | 1.17 % | | Effect to adjust for securities losses, net of tax | — % | 1.13 % | 0.00 % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — % | (1.13)% | — % | — % | — % | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — % | 0.45 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | 0.11 % | 0.33 % | 0.04 % | 0.02 % | 0.05 % | | Effect to adjust for deferred tax remeasurement | — % | 0.04 % | — % | — % | — % | | Effect to adjust for FDIC special assessment, net of tax | — % | — % | (0.00)% | — % | 0.00 % | | Adjusted return on average assets (non-GAAP) | 1.45 % | 1.38 % | 1.27 % | 1.27 % | 1.22 % | [Adjusted Return on Average Common Equity (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Return%20on%20Average%20Common%20Equity%20%28Non-GAAP%29%20Reconciliation) The adjusted return on average common equity for Q2 2025 was 10.79%, indicating strong profitability relative to common equity after non-GAAP adjustments Adjusted Return on Average Common Equity (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average common equity (GAAP) | 9.93 % | 4.29 % | 9.72 % | 9.91 % | 9.58 % | | Effect to adjust for securities losses, net of tax | — % | 8.61 % | 0.00 % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — % | (8.63)% | — % | — % | — % | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — % | 3.46 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | 0.86 % | 2.56 % | 0.34 % | 0.17 % | 0.33 % | | Effect to adjust for deferred tax remeasurement | — % | 0.27 % | — % | — % | — % | | Effect to adjust for FDIC special assessment, net of tax | — % | — % | (0.03)% | — % | 0.03 % | | Adjusted return on average common equity (non-GAAP) | 10.79 % | 10.56 % | 10.03 % | 10.08 % | 9.94 % | [Return on Average Common Tangible Equity (Non-GAAP) Reconciliation](index=10&type=section&id=Return%20on%20Average%20Common%20Tangible%20Equity%20%28Non-GAAP%29%20Reconciliation) The return on average tangible common equity for Q2 2025 was 18.17%, reflecting the company's profitability relative to its tangible common equity Return on Average Common Tangible Equity (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average common equity (GAAP) | 9.93 % | 4.29 % | 9.72 % | 9.91 % | 9.58 % | | Effect to adjust for intangible assets | 8.24 % | 4.70 % | 5.37 % | 5.72 % | 5.91 % | | Return on average tangible equity (non-GAAP) | 18.17 % | 8.99 % | 15.09 % | 15.63 % | 15.49 % | [Adjusted Return on Average Common Tangible Equity (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Return%20on%20Average%20Common%20Tangible%20Equity%20%28Non-GAAP%29%20Reconciliation) The adjusted return on average tangible common equity for Q2 2025 was 19.61%, providing a comprehensive view of profitability by excluding both non-GAAP adjustments and the impact of intangible assets Adjusted Return on Average Common Tangible Equity (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average common equity (GAAP) | 9.93 % | 4.29 % | 9.72 % | 9.91 % | 9.58 % | | Effect to adjust for securities losses, net of tax | — % | 8.61 % | 0.00 % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — % | (8.63)% | — % | — % | — % | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — % | 3.46 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | 0.86 % | 2.56 % | 0.34 % | 0.18 % | 0.32 % | | Effect to adjust for deferred tax remeasurement | — % | 0.27 % | — % | — % | — % | | Effect to adjust for FDIC special assessment, net of tax | — % | — % | (0.03)% | — % | 0.03 % | | Effect to adjust for intangible assets, net of tax | 8.82 % | 9.29 % | 5.53 % | 5.80 % | 6.12 % | | Adjusted return on average common tangible equity (non-GAAP) | 19.61 % | 19.85 % | 15.56 % | 15.89 % | 16.05 % | [Adjusted Efficiency Ratio (Non-GAAP) Reconciliation](index=11&type=section&id=Adjusted%20Efficiency%20Ratio%20%28Non-GAAP%29%20Reconciliation) The adjusted efficiency ratio improved to 49.09% in Q2 2025 from 50.24% in Q1 2025, indicating better cost management relative to adjusted revenue Adjusted Efficiency Ratio (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Efficiency ratio | 52.75 % | 60.97 % | 55.73 % | 56.58 % | 57.03 % | | Effect to adjust for securities losses | — % | (13.35)% | — % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs | — % | 13.39 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense | (3.66)% | (10.77)% | (1.45)% | (0.78)% | (1.36)% | | Effect to adjust for FDIC special assessment | — % | — % | 0.14 % | — % | (0.15)% | | Adjusted efficiency ratio | 49.09 % | 50.24 % | 54.42 % | 55.80 % | 55.52 % | [Tangible Book Value Per Common Share (Non-GAAP) Reconciliation](index=11&type=section&id=Tangible%20Book%20Value%20Per%20Common%20Share%20%28Non-GAAP%29%20Reconciliation) Tangible book value per common share increased to $51.96 in Q2 2025 from $50.07 in Q1 2025, reflecting growth in tangible equity Tangible Book Value Per Common Share (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Book value per common share (GAAP) | $86.71 | $84.99 | $77.18 | $77.42 | $74.16 | | Effect to adjust for intangible assets | $(34.75) | $(34.92) | $(26.07) | $(26.16) | $(26.26) | | Tangible book value per common share (non-GAAP) | $51.96 | $50.07 | $51.11 | $51.26 | $47.90 | [Tangible Equity-to-Tangible Assets (Non-GAAP) Reconciliation](index=11&type=section&id=Tangible%20Equity-to-Tangible%20Assets%20%28Non-GAAP%29%20Reconciliation) The tangible equity-to-tangible assets ratio for Q2 2025 was 8.46%, indicating a solid capital position relative to tangible assets Tangible Equity-to-Tangible Assets (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Equity-to-assets (GAAP) | 13.36 % | 13.24 % | 12.70 % | 12.81 % | 12.42 % | | Effect to adjust for intangible assets | (4.90)% | (4.99)% | (3.91)% | (3.94)% | (4.03)% | | Tangible equity-to-tangible assets (non-GAAP) | 8.46 % | 8.25 % | 8.79 % | 8.87 % | 8.39 % | [Cautionary Statement Regarding Forward Looking Statements](index=12&type=section&id=Cautionary%20Statement%20Regarding%20Forward%20Looking%20Statements) This section warns readers that statements in the communication that are not historical facts are forward-looking and subject to various risks and uncertainties, which could cause actual results to differ materially from expectations [Cautionary Statement Regarding Forward Looking Statements](index=12&type=section&id=Cautionary%20Statement%20Regarding%20Forward%20Looking%20Statements) This section warns readers that statements in the communication that are not historical facts are forward-looking and subject to various risks and uncertainties. These risks include economic volatility, integration challenges from mergers, credit risks, interest rate fluctuations, liquidity risks, competition, regulatory changes, cybersecurity threats, and catastrophic events, which could cause actual results to differ materially from expectations - **Forward-looking statements are based on management's beliefs, assumptions, expectations, estimates, and projections, and are subject to risks and uncertainties**[29](index=29&type=chunk) - **Key risks include economic volatility**, **integration risks from mergers**, **credit risks**, **interest rate risk**, **liquidity risk**, **competition**, **regulatory changes**, **cybersecurity risk**, and **catastrophic events**, which could cause actual results to differ materially from expectations[30](index=30&type=chunk) - **Readers are cautioned against undue reliance on forward-looking statements**, which speak only as of their date and are not subject to updates unless required by federal securities laws[31](index=31&type=chunk)

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].