Slide 1: Earnings Call 1Q 2025
Earnings Call 1Q 2025 April 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 $65B $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 – $80 Billion SCALE • True alternative to the largest banks – for bankers and for clients • Large enough to invest in techno
Slide 5: The Why, The What, The How
The WHY To invest in the entrepreneurial spirit, pursue excellence and inspire a greater purpose. The WHAT The HOW Guiding Principles Core Values Local Market Leadership Our business model supports the unique character of the communities we serve and encourages decision making by the banker that is
Slide 6: Positioned for the Future in the Best Growth Markets in America
POSITIONED FOR THE FUTURE IN THE BEST GROWTH MARKETS IN AMERICA GDP ($ in trillions) Loans US $29.2 $3.7B Deposits China $18.3 $3.8B $1.0B $0.6B SSB Footprint $8.3 Germany $4.7 The combined GDP of SouthState’s 8 state branch $3.2B Japan $4.1 footprint would represent the $2.1B world’s third largest
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) $3.00 $2.84 $2.59 $2.50 $2.39 $2.38 $2.28 $2.00 1Q24 2Q24 3Q24 4Q24 1Q25 (1) For end note descriptions, Earnings Presentation End Notes starting on slide 36. 9
Slide 10: 1Q25 Reported vs Adjusted Net Income & EPS
1Q25 REPORTED VS ADJUSTED NET INCOME & EPS | RECONCILEMENT Merger & Securities Other Reported Sale-Leaseback Adjusted(1) Restructuring Restructuring Related Net Interest Income $ 544,547 $ 544,547 Plus: Non-Interest Income 86,088 $ (229,279) $ 228,811 85,620 Less: Non-Interest Expense (408,826) $ 68
Slide 11: Key Ratios From IBTX Modeling Projections vs. 1Q25 Actual
K E Y R AT I O S F R O M I B T X M O D E L I N G P R O J E C T I O N S V S . 1 Q 2 5 A C T U A L TBV/Share TCE Ratio 8.2% $50.07 $46.07 7.5% 1Q25 Actual 1Q25 Projection at Merger 1Q25 Actual 1Q25 Projection at Merger Announcement Announcement CET1 Ratio CRE Ratio 11.0% 285.0% 283.0% 10.4% 1Q25 Actua
Slide 12: Highlights | Linked Quarter
HIGHLIGHTS | LINKED QUARTER 4Q24 1Q25 GAAP Net Income $ 144.2 $ 89.1 EPS (Diluted) $ 1.87 $ 0.87 Return on Average Assets 1.23 % 0.56 % Non-GAAP(1) Return on Average Tangible Common Equity 15.1 % 9.0 % Non-GAAP, Adjusted(1) Net Income $ 148.8 $ 219.3 EPS (Diluted) $ 1.93 $ 2.15 Return on Average Ass
Slide 13: Quarterly Highlights
Q U A R T E R LY H I G H L I G H T S | 1 Q 2 0 2 5 • Completed the acquisition of Independent Bank Group, Inc. (“Independent”) on January 1, 2025 • Executed sale leaseback transaction during 1Q25, resulting in a net gain of $229 million • Restructured $1.8 billion of securities during 1Q25, resultin
Slide 14: 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) $600 4.00% 3.85% $550 $500 3.75% $450 3.48% $400 3.44% 3.50% 3.41% 3.40% $544.5 $350 $300 3.25% $369.8 $343.9 $350.3 $351.5 $250 $200 3.00% 1Q24 2Q24 3Q24 4Q24 1Q25 Dollars in millions (1) For end note desc
Slide 15: Loan Production vs Loan Growth
LOAN PRODUCTION VS LOAN GROWTH (1) (1) Loan Production Loan Portfolio Growth $3,500 $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 $480 $568 $372 $279 $314 $355 $— $(263)(2) $(500) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Dollars
Slide 16: Balance Sheet
Balance Sheet Gr
Slide 17: 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 $54 $54 $1.0B $7.2 $48 $48 $42 $42 $37.6B $38.1B $0.8B $37.2B $37.1B $36 $36 $4.3 $4.7 $4.2 $20.4 $4.6 $30 $0.6B $30 $14.5 $14.6 $15.1 $15.5 $24
Slide 18: 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 11,837 $ 16.8B $ 1,448,800 8% Investor CRE (2) 36% Consumer RE 49,453 9.8B 197,900 Owner-Occupied CRE 9,149 7.4B 810,900 C&I C&I 21,860 8.1B 370,200 17% Total Loans $4
Slide 19: 1Q25 Loan Yield Comparison
1 Q 2 5 L O A N Y I E L D C O M PA R I S O N 6.90% • Following purchase accounting marks to bring IBTX loans to market rates, current 6.25% portfolio yield is near peer median 6.11% • 1Q25 new loan production yield exceeds current portfolio yield • Accretion from early payoffs represents 0.06% of 1Q
Slide 20: Premium Core Deposit Franchise
PREMIUM CORE† DEPOSIT FRANCHISE Deposits by Type Total Cost of Deposits 1Q25 2.50% Time Noninterest- Deposits bearing $7.2B Checking 2.25% $13.8B 2.00% Total Deposits $53.3 Billion 1.75% Interest- Money Market bearing 2.16% $17.4B Checking 1.50% $12.0B 1.89% Savings $2.9B 1.25% 1.00% SSB Peer Averag
Slide 21: Credit
Credit
Slide 22: Asset Quality Metrics & Loan Loss Reserve
ASSET QUALIT Y METRICS & LOAN LOSS RESERVE Net Charge-Offs to Loans Nonperforming Assets to Loans & OREO 0.50% 1.00% 0.75% 0.60% 0.63% 0.60% 0.57% 0.53% 0.25% 0.50% 0.07% 0.06% (1) 0.25% 0.05% 0.04% 0.03% —% —% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Criticized & Classified Asset Trends To
Slide 23: Capital
Capital Gr
Slide 24: Capital Ratios
C A P I T A L R AT I O S 4Q24 1Q25(2) Tangible Common Equity(1) 8.8 % 8.2 % Tier 1 Leverage 10.0 % 8.9 % Tier 1 Common Equity 12.6 % 11.0 % Tier 1 Risk-Based Capital 12.6 % 11.0 % Total Risk-Based Capital 15.0 % 13.7 % Bank CRE Concentration Ratio 219 % 283 % Bank CDL Concentration Ratio 41 % 52 % (
Slide 25: Appendix
Appendix Gr
Slide 26: Current & Historical - Quarterly Performance
C U R R E N T & H I S TO R I C A L 5 - QT R P E R F O R M A N C E (1) Revenue Composition Net Interest Margin (“NIM”, TE) NIM, TE / Revenue Noninterest Income / Revenue Avg. 10-year UST NIM, TE ($) NIM, TE (%) 3.85% $416M $426M $427M $451M $631M $600 4.0% Total 100% 5.0% 3.48% Revenue 14% 3.41% 3.44
Slide 27: Correspondent Banking Division
CORRESPONDENT BANKING DIVISION 1,302 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 $25.0 $20 $16.3 $17.4 $16.7 $14.6 $20.0 $ in millions $15 $15.0 $10 $10.0 $5 $— $5
Slide 28: High Quality Investment Portfolio
HIGH QUALIT Y INVESTMENT PORTFOLIO Investment Portfolio† Composition Investment Securities Yield(2) 0.3% Agency MBS(1) 3.40% 2.99% Treasury, Agency & SBA 11% 3.00% Municipal 2.44% 2.48% 2.42% 2.50% 2.60% 9% Corporates 2.20% Total Investment 1.80% Portfolio† 1.40% $8.0 Billion 1.00% 1Q24 2Q24 3Q24 4Q
Slide 29: Non-GAAP Reconciliations - Return on Average 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 4Q24 1Q25 Net income (GAAP) $ 144,178 $ 89,080 Plus: Amortization of intangibles 5,326 23,831 Effective tax rate 23 % 22 % Amortization of intangibles, net of tax 4,
Slide 30: 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 4Q24 1Q25 Net income (GAAP) $ 144,178 $ 89,080 Plus: Securities losses, net of tax 38 178,639 Gain on sale leaseback, net of transaction costs and tax — (
Slide 31: Non-GAAP Reconciliations - Adjusted ROA & ROTCE
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 4Q24 1Q25 Adjusted net income (non-GAAP) $ 148,764 $ 219,282 Total average assets 46,509,766 64,283,426 Adjusted Return
Slide 32: 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) 1Q24 2Q24 3Q24 4Q24 1Q25 Net interest income (GAAP) $ 343,936 $ 350,259 $ 351,480 $ 369,779 $ 544,547 Tax equivalent adjustments 528 631 486 547 784 Net interest income (t
Slide 33: 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) 1Q24 2Q24 3Q24 4Q24 1Q25 Net interest income (GAAP) $ 343,936 $ 350,25
Slide 34: 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) 1Q24 2Q24 3Q24 4Q24 1Q25 Noninterest expense (GAAP) $ 249,290 $ 248,747 $ 246,847 $ 256,609 $ 4
Slide 35: 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 4Q24 1Q25 Tangible common equity (non-GAAP) $ 3,900,851 $ 5,080,859 Total assets (GAAP) 46,381,204 65,135,454 Less: Intangible assets 1,989,564 3,543,502 Tangible asse
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 3 End Notes (1) Financial metrics as of March 31, 2025; market cap as of April 22, 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 2
Slide 37: 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 15 End Notes (1) Excludes loans held for sale; loan production indicates committed balance total; loan portfolio growth indicates quarter-over-quarter loan ending balance growth, excluding loans held for sale. (2) Excludes the effects of th
Slide 38: SouthState
S SouthState