South State (SSB) - 2025 Q4 - Annual Results

Financial Performance - Reported diluted earnings per share (EPS) of $2.46, an increase of 32% year over year; adjusted diluted EPS of $2.47, an increase of 28% year over year[3] - Net income for the fourth quarter reached $247.7 million, with adjusted net income of $248.2 million[3] - The company reported net income of $247,722 thousand in Q4 2025, up from $246,641 thousand in Q3 2025[20] - Adjusted net income (non-GAAP) for the twelve months ended June 30, 2025, was $964,011,000, an increase from $553,079,000 in the previous year[22] - The company reported a total net income (GAAP) of $247,722,000 for the three months ended June 30, 2025, compared to $89,080,000 in the previous quarter, marking a significant increase[22] Asset and Deposit Growth - Loans increased by $931 million, or 8%, and deposits increased by $1.1 billion, or 8%, with an ending loan to deposit ratio of 88%[3] - Total assets increased to $67.2 billion as of December 31, 2025, from $46.4 billion a year earlier[7] - Loans, net, reached $48.0 billion in Q4 2025, up from $33.4 billion in Q4 2024[7] - Total deposits rose to $55.1 billion in Q4 2025, compared to $38.1 billion in Q4 2024[7] - Total Loans increased to $48,598,527 thousand as of December 31, 2025, up from $47,667,911 thousand in the previous quarter[11] - Total Deposits reached $55,145,797 thousand, reflecting an increase from $54,073,269 thousand in the prior quarter[13] Income and Expense Metrics - Net interest income totaled $581 million, a decrease of $19 million, or 3%, compared to the prior quarter[3] - Noninterest income was $105.8 million, up $7 million from the prior quarter, primarily due to increases in correspondent banking and capital markets income[3] - Total Noninterest Expense for the three months ended December 31, 2025, was $364,855 thousand, an increase from $372,342 thousand in the prior quarter[10] - Pre-provision net revenue (PPNR) for Q4 2025 was $322,672 thousand, compared to $347,330 thousand in Q3 2025, a decrease of 7.1%[20] Capital and Equity - Tangible book value per share increased by 10% year over year to $56.27[3] - Return on average common equity was 10.9%, and return on average tangible common equity was 19.1%[3] - The company reported a strong capital position with a tangible common equity ratio of 8.8%[3] - Tier 1 common equity ratio was 11.4% in Q4 2025, down from 12.6% in Q4 2024[6] - Total shareholders' equity reached $9.1 billion as of December 31, 2025, compared to $5.9 billion a year earlier[7] Efficiency and Ratios - Efficiency ratio (tax equivalent) improved to 49.65% in Q4 2025 from 60.97% in Q4 2024[6] - Dividend payout ratio decreased to 24.23% in Q4 2025 from 28.82% in Q4 2024[6] - Adjusted return on average common equity (annualized) for Q4 2025 was 10.92%, compared to 9.41% in Q4 2024[6] - Adjusted efficiency ratio (non-GAAP) for the quarter was 49.56%[23] Dividends and Stock Repurchase - The company declared a quarterly cash dividend of $0.60 per share, payable on February 13, 2026[3] - The board authorized a new stock repurchase plan for up to 5.56 million shares, replacing the previous authorization[3] Risk Factors and Forward-Looking Statements - SouthState warns that forward-looking statements are subject to significant risks and uncertainties, which could lead to actual results differing materially from anticipated results[27] - The company highlights risks related to economic volatility, including potential higher rates and excessive loan losses, which could impact profitability[27] - SouthState identifies interest rate risk as a significant factor affecting earnings, particularly from its correspondent and mortgage divisions[27] - The company notes potential liquidity risks that could impact its ability to meet obligations when due[27] - SouthState acknowledges the impact of increasing digitization in the banking industry, which may affect its operations and customer base[27] - The company is aware of reputational risks arising from negative public opinion and the effects of social media on market perceptions[27] - SouthState highlights the potential for catastrophic events, such as natural disasters or public health crises, to disrupt economic activity and financial markets[27] Conference Call and Future Outlook - The company will host a conference call on January 23, 2026, to discuss its fourth quarter results[17] - The company anticipates continued growth in the financial services industry and expects to maintain its strategic initiatives[26] - Forward-looking statements indicate management's expectations for future performance based on current economic conditions[26]