Southstate Bank Corporation · NYSE:SSB
Southstate Bank — Q2 2025 Earnings Presentation
37 slides from Southstate Bank's earnings presentation, Jul 25, 2025
Slide 1: Earnings Call 2Q 2025
Earnings Call 2Q 2025 July 25, 2025
Slide 2: Cautionary Note Regarding Forward Looking Statements
C A U T I O N A R Y N O T E R E G A R D I N G F O R W A R D L O O K I N G S T AT E M E N T S Statements included in this communication, which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section
Slide 3: SouthState Corporation Overview
(1) S O U T H S T AT E C O R P O R AT I O N O V E R V I E W Enhanced Enhanced ScaleIBTX Scale Through Through Partnership PROJECTED POPULATION GROWTH(2) IBTX Partnership Fastest-growing 20% of $65 B $48 B Assets Loans $47B MSAs highlighted in blue $66B $55 B $7.4 B Assets Deposits Loans Market Cap D
Slide 4: SouthState's Competitive Advantage
S O U T H S T AT E ’ S C O M P E T I T I V E A D V A N T A G E • “Shoot where the ducks are flying” GEOGRAPHY • Fastest growing markets in America • Regulatory sweet spot: $60 – $80 Billion SCALE • True alternative to the largest banks – for bankers and for clients • Large enough to invest in techno
Slide 5: The Why, The What, The How
The WHY To invest in the entrepreneurial spirit, pursue excellence and inspire a greater purpose. The WHAT The HOW Guiding Principles Core Values Local Market Leadership Our business model supports the unique character of the communities we serve and encourages decision making by the banker that is
Slide 6: Positioned for the Future in the Best Growth Markets in America
POSITIONED FOR THE FUTURE IN THE BEST GROWTH MARKETS IN AMERICA Employment Growth in Top 25 Largest MSAs % Change from February 2020 to May 2025 % Loans Rank MSA % Growth 7% % Deposits 1 2 Austin-Round Rock-San Marcos, TX Orlando-Kissimmee-Sanford, FL 20.4% 13.1% 2% 7% 1% 3 Dallas-Fort Worth-Arlingt
Slide 7: Pandemic Accelerates Population Migration to the South
P A N D E M I C A C C E L E R AT E S P O P U L AT I O N M I G R AT I O N T O T H E S O U T H Projected Population Growth (2025-2030) FL 6.0% SC 6.0% TX 5.6% NC 4.8% GA 4.1% CO 3.5% AL 3.5% VA 2.7% U.S. 2.4% Sources: U.S. Census Bureau (Net Domestic Migration) and S&P Global (Projected Population Gro
Slide 8: Quarterly Results
Quarterly Results Gr
Slide 9: PPNR per Diluted Share
P P N R P E R D I L U T E D S H A R E (1) $3.20 $3.08 $2.80 $2.84 $2.59 $2.40 $2.39 $2.38 $2.00 2Q24 3Q24 4Q24 1Q25 2Q25 (1) For end note descriptions, Earnings Presentation End Notes starting on slide 35. 9
Slide 10: Highlights | Linked Quarter
HIGHLIGHTS | LINKED QUARTER 1Q25 2Q25 GAAP Net Income $ 89.1 $ 215.2 EPS (Diluted) $ 0.87 $ 2.11 Return on Average Assets 0.56 % 1.34 % Non-GAAP(1) Return on Average Tangible Common Equity 9.0 % 18.2 % Non-GAAP, Adjusted(1) Net Income $ 219.3 $ 233.8 EPS (Diluted) $ 2.15 $ 2.30 Return on Average Ass
Slide 11: Quarterly Highlights
Q U A R T E R LY H I G H L I G H T S | 2 Q 2 0 2 5 • Reported Diluted Earnings per Share (“EPS”) of $2.11; adjusted Diluted EPS (non-GAAP)(1) of $2.30 • Pre-Provision Net Revenue (“PPNR”)(non-GAAP)(2) of $314.1 million • Year-over-year PPNR/share growth (non-GAAP)(2) of 29% • Loans increased by $501
Slide 12: Net Interest Margin (TE)
N E T I N T E R E S T M A R G I N ( T E ) (1) Net Interest Income Net Interest Margin, TE (1) $700 4.25% 4.02% $600 4.00% 3.85% $500 3.75% 3.48% $400 3.44% 3.50% 3.40% $577.9 $544.5 $300 3.25% $350.3 $351.5 $369.8 $200 3.00% 2Q24 3Q24 4Q24 1Q25 2Q25 Dollars in millions (1) For end note descriptions,
Slide 13: Net Interest Margin (TE) Improvement Quarter-over-Quarter
N E T I N T E R E S T M A R G I N ( T E ) (1) I M P R O V E M E N T Q UA RT E R - O V E R - Q UA RT E R 4.40% 4.30% 4.20% 4.10% 0.05% 0.005% 4.02% 4.00% 0.07% (0.01%) 0.06% 3.90% 3.85% 3.80% 3.70% 3.60% 3.50% 3.40% 1Q25 NIM Loan Coupon Yields Securities Restructuring Cost of Deposits Accretion Other
Slide 14: Loan Production vs Loan Growth
LOAN PRODUCTION VS LOAN GROWTH Loan Production (1) Loan Portfolio Growth(1) $3,500 $3,335 $3,000 $2,500 $2,369 $2,181 $2,124 $2,049 $1,932 $2,000 $1,648 $1,459 $1,500 $1,352 $1,233 $1,000 $841 $500 $519 $568 $501 $480 $372 $279 $314 $355 $— (2) $(263) $(500) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1
Slide 15: Balance Sheet
Balance Sheet Gr
Slide 16: Loan and Deposit Trends
LOAN AND DEPOSIT TRENDS Loans (1) Deposits Noninterest-bearing Checking ("DDA") Interest-bearing Checking MMA & Savings Time Deposits $60 $1.2B $60 $53.3B $53.7B $54 $54 $1.0B $7.2 $7.7 $48 $48 $42 $42 $37.6B $38.1B $0.8B $37.1B $36 $36 $4.7 $4.2 $20.4 $19.7 $4.6 $30 $0.6B $30 $14.6 $15.1 $15.5 $24
Slide 17: Total Loan Portfolio
TOTA L L O A N P O R T F O L I O Loans by Type Cons / Other 2% No. of Avg. Loan Loan Type Loans Balance Balance CDL (1) Investor CRE 11,641 $ 17.0B $ 1,456,400 7% Investor CRE (2) 36% Consumer RE 49,889 10.0B 201,200 Owner-Occupied CRE 9,064 7.5B 827,200 C&I 18% C&I 22,124 8.4B 381,900 Total Loans $
Slide 18: Premium Core Deposit Franchise
PREMIUM CORE† DEPOSIT FRANCHISE Deposits by Type Total Cost of Deposits 2Q25 2.50% Time Noninterest- Deposits bearing $7.7B Checking 2.25% $13.7B 2.00% Total Deposits $53.7 Billion 1.75% Interest- Money bearing Market 2.09% Checking 1.50% $16.8B $12.6B 1.84% Savings $2.9B 1.25% 1.00% SSB Peer Averag
Slide 19: Credit
Credit
Slide 20: Asset Quality Metrics & Loan Loss Reserve
ASSET QUALIT Y METRICS & LOAN LOSS RESERVE Net Charge-Offs to Loans Nonperforming Assets to Loans & OREO 0.50% 1.00% 0.68% 0.75% 0.60% 0.63% 0.60% 0.57% 0.25% 0.50% (1) 0.07% 0.06% (1) 0.06% 0.25% 0.05% 0.04% —% —% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 Criticized & Classified Asset Trend
Slide 21: History of Resilient Credit
H I S TO RY O F R E S I L I E N T C R E D I T Net Charge-offs (“NCO”) / Average Loans (1) : 2015 – 1Q 2025 Average 0.39% 0.30% 0.26% 0.24% 0.25% 0.24% 0.21% 0.22% 0.18% 0.17% 0.16% 0.14% 0.12% 0.12% 0.11% 0.11% 0.11% 0.10% 0.07% 0.05% 0.05% SSB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8
Slide 22: Capital
Capital Gr
Slide 23: Capital Ratios
C A P I T A L R AT I O S 1Q25 2Q25(2) Tangible Common Equity(1) 8.2 % 8.5 % Tier 1 Leverage 8.9 % 9.2 % Tier 1 Common Equity 11.0 % 11.2 % Tier 1 Risk-Based Capital 11.0 % 11.2 % Total Risk-Based Capital 13.7 % 14.5 % Bank CRE Concentration Ratio 283 % 277 % Bank CDL Concentration Ratio 52 % 49 % (1
Slide 24: Appendix
Appendix Gr
Slide 25: Current & Historical - Quarterly Performance
C U R R E N T & H I S TO R I C A L 5 - QT R P E R F O R M A N C E (1) Revenue Composition Net Interest Margin (“NIM”, TE) NIM, TE / Revenue Noninterest Income / Revenue Avg. 10-year UST NIM, TE ($) NIM, TE (%) 4.02% $426M $427M $451M $631M $665M $600 4.1% Total 100% 5.0% 3.85% Revenue 14% 13% 18% 18
Slide 26: Correspondent Banking Division
CORRESPONDENT BANKING DIVISION 1,308 Financial Institution Clients Correspondent Revenue Breakout ARC Revenues, gross Interest on VM FI Revenues Operational Revenues Total Revenues, gross $35 $35.0 $30 $30.0 $25 $20.9 $19.2 $25.0 $20 $16.3 $17.4 $16.7 $20.0 $ in millions $15 $15.0 $10 $10.0 $5 $— $5
Slide 27: High Quality Investment Portfolio
HIGH QUALIT Y INVESTMENT PORTFOLIO Investment Portfolio† Composition Investment Securities Yield(2) 0.3% Agency MBS(1) 3.8% Treasury, Agency & SBA 12% 3.50% Municipal 9% 3.4% Corporates Total Investment 2.99% Portfolio† 3.0% $8.1 Billion 2.6% 2.48% 2.50% 2.42% 79% 2.2% AFS HTM 1.8% Type Duration Dur
Slide 28: Non-GAAP Reconciliations – Return on Avg. Tangible Common Equity
N O N - G A A P R E C O N C I L I AT I O N S – R E T U R N O N A V G . T A N G I B L E COMMON EQUITY Return on Average Tangible Equity 1Q25 2Q25 Net income (GAAP) $ 89,080 $ 215,224 Plus: Amortization of intangibles 23,831 24,048 Effective tax rate 22 % 24 % Amortization of intangibles, net of tax 1
Slide 29: Non-GAAP Reconciliations – Adjusted Net Income & Adjusted EPS
N O N - G A A P R E C O N C I L I AT I O N S – A D J U S T E D N E T I N C O M E & A D J U S T E D EARNINGS PER SHARE (“EPS”) Adjusted Net Income 1Q25 2Q25 Net income (GAAP) $ 89,080 $ 215,224 Plus: Securities losses, net of tax 178,639 — Gain on sale leaseback, net of transaction costs and tax (179
Slide 30: Non-GAAP Reconciliations – Adjusted Return on Avg. Assets & Tangible Common Equity
N O N - G A A P R E C O N C I L I AT I O N S – A D J U S T E D R E T U R N O N A V G . A S S E T S & AV G . TA N G I B L E C O M M O N E Q U I T Y Adjusted Return on Average Assets 1Q25 2Q25 Adjusted net income (non-GAAP) $ 219,282 $ 233,817 Total average assets 64,283,426 64,550,881 Adjusted Return
Slide 31: Non-GAAP Reconciliations – Net Interest Margin
N O N - G A A P R E C O N C I L I AT I O N S – N E T I N T E R E S T M A R G I N Net Interest Margin - Tax Equivalent (Non-GAAP) 2Q24 3Q24 4Q24 1Q25 2Q25 Net interest income (GAAP) $ 350,259 $ 351,480 $ 369,779 $ 544,547 $ 577,948 Tax equivalent adjustments 631 486 547 784 672 Net interest income (t
Slide 32: Non-GAAP Reconciliations – PPNR and Correspondent Income
N O N - G A A P R E C O N C I L I AT I O N S – P P N R , P P N R / W E I G H T E D A V G . C S , A D J U S T E D & C O R R E S P O N D E N T & C A P I TA L M A R K E T S I N C O M E ( U N A U D I T E D ) PPNR, Adjusted (Non-GAAP) 2Q24 3Q24 4Q24 1Q25 2Q25 Net interest income (GAAP) $ 350,259 $ 351,48
Slide 33: Non-GAAP Reconciliations – Efficiency Ratios
N O N - G A A P R E C O N C I L I AT I O N S – C U R R E N T & H I S T O R I C A L : E F F I C I E N C Y R AT I O S ( U N A U D I T E D ) Efficiency Ratio (Non-GAAP) & Adjusted Efficiency Ratio (Non-GAAP) 2Q24 3Q24 4Q24 1Q25 2Q25 Noninterest expense (GAAP) $ 248,747 $ 246,847 $ 256,609 $ 408,826 $ 3
Slide 34: Non-GAAP Reconciliations – Tangible Common Equity Ratio
N O N - G A A P R E C O N C I L I AT I O N S – T A N G I B L E C O M M O N E Q U I T Y R AT I O Tangible Common Equity ("TCE") Ratio 1Q25 2Q25 Tangible common equity (non-GAAP) $ 5,080,859 $ 5,273,617 Total assets (GAAP) 65,135,454 65,893,322 Less: Intangible assets 3,543,502 3,527,517 Tangible asse
Slide 35: Earnings Presentation End Notes
E A R N I N G S P R E S E N TAT I O N E N D N O T E S Slide 3 End Notes (1) Financial metrics as of June 30, 2025; market cap as of July 23, 2025 (2) Projected population growth shown as the percent growth 2025 – projected 2030 (3) Includes MSAs with greater than 1 million in total population in 202
Slide 36: Earnings Presentation End Notes
E A R N I N G S P R E S E N TAT I O N E N D N O T E S Slide 16 End Notes (1) Excludes loans held for sale. Slide 17 End Notes (1) CDL includes residential construction, commercial construction, and all land development loans. (2) Investor CRE includes nonowner-occupied CRE and other income producing
Slide 37: SouthState
S SouthState