South State (SSB) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights 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 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] - Successfully completed the conversion of the IBTX franchise[3] - Increased quarterly cash dividend by 11% to $0.60 per share, payable August 15, 2025[3][6] Second Quarter 2025 Highlights 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] - Total loan yield increased by 0.08% to 6.33%, while total deposit cost decreased by 0.05% to 1.84%[6] - Completed the issuance of $350 million aggregate principal amount of 7% fixed-to-floating rate subordinated notes[6] 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 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 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] - Provision for Credit Losses decreased substantially from $100.5 million to $7.5 million in Q2 2025[7] Performance and Capital Ratios 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] Balance Sheet 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 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] - Shareholders' equity increased to $8.80 billion from $8.62 billion in the previous quarter[10] Net Interest Income and Margin 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 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] - Total accretion on acquired loans was $63.5 million in Q2 2025, contributing to loan interest income[11][28] Noninterest Income and Expense 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 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] Noninterest Expense 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] - Amortization of intangibles increased substantially year-over-year, reaching $24.05 million in Q2 2025 compared to $5.74 million in Q2 2024[13] Loans and Deposits 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 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] Deposit Summary 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] - Core deposits (excluding time deposits) slightly decreased QoQ to $45.99 billion from $46.18 billion[16] Asset Quality 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 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] Asset Quality Ratios 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] Current Expected Credit Losses (CECL) 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][19] Company Information 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 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] - 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] About SouthState Corporation 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] - 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] - The Bank also serves clients nationwide through its correspondent banking division[22] Non-GAAP Measures Reconciliation 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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] - 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] - 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]