SouthState Corporation Reports Second Quarter 2025 Results Declares an Increase in the Quarterly Cash Dividend
FOR IMMEDIATE RELEASE
Media Contact
Jackie Smith, 803.231.3486
WINTER HAVEN, FL - July 24, 2025 - SouthState Corporation ("SouthState" or the "Company") (NYSE: SSB) today released its unaudited results of operations and other financial information for the three-month and six-month periods ended June 30, 2025.
"Growth accelerated in the second quarter", said John C. Corbett, SouthState's Chief Executive Officer. "Revenue grew 22% annualized and loan originations grew 57% quarter over quarter. Most importantly, we completed the successful conversion of the IBTX franchise and our teams in Texas and Colorado are excited about the future. The strategic moves we've made are generating strong returns that enabled us to increase our dividend by 11% and to fund organic growth."
Highlights of the second quarter of 2025 include:
ReturnsReported Diluted Earnings per Share ("EPS") of $2.11; Adjusted Diluted EPS (Non-GAAP) of $2.30
Net Income of $215.2 million; Adjusted Net Income (Non-GAAP) of $233.8 million
Return on Average Common Equity of 9.9%; Return on Average Tangible Common Equity (Non-GAAP) of 18.2% and Adjusted Return on Average Tangible Common Equity (Non-GAAP) of 19.6%*
Return on Average Assets ("ROAA") of 1.34% and Adjusted ROAA (Non-GAAP) of 1.45%*
Book Value per Share of $86.71; Tangible Book Value ("TBV") per Share (Non-GAAP) of $51.96
PerformanceNet Interest Income of $578 million
Net Interest Margin ("NIM"), non-tax equivalent and tax equivalent (Non-GAAP), of 4.02%
Net charge-offs totaled $7.2 million, or 0.06%*, excluding $17.3 million of acquisition date charge-offs related to measurement period adjustments on PCD loans acquired from Independent Bank Group, Inc. ("Independent"), which were recorded during the quarter to align these loans in accordance with SouthState policies and practices
$7.5 million of Provision for Credit Losses ("PCL"); total Allowance for Credit Losses ("ACL") plus reserve for unfunded commitments of 1.45% of loans
Noninterest Income of $87 million; Noninterest Income represented 0.54% of average assets for the second quarter of 2025*
Efficiency Ratio of 53% and Adjusted Efficiency Ratio (Non-GAAP) of 49%
Balance SheetLoans increased by $501 million, or 4%*, and deposits increased by $359 million, or 3%*; ending loan to deposit ratio of 88%
Total loan yield of 6.33%, up 0.08% from prior quarter
Total deposit cost of 1.84%, down 0.05% from prior quarter
Completed the issuance of $350 million aggregate principal amount of 7% fixed-to-floating rate subordinated notes
Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of 8.5%, 14.5%, 9.2%, and 11.2%, respectively†
Subsequent EventsThe Board of Directors of the Company increased its quarterly cash dividend on its common stock from $0.54 per share to $0.60 per share; the dividend is payable on August 15, 2025 to shareholders of record as of August 8, 2025
∗ Annualized percentages
† Preliminary
Financial PerformanceThree Months Ended Six Months Ended
(Dollars in thousands, except per share data) Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30,
INCOME STATEMENT 2025 | 2025 | 2024 | 2024 | 2024 | 2025 2024 | ||||
Interest Income | |||||||||
Loans, including fees (1) $ 746,448 $ | 724,640 | $ 489,709 $ | 494,082 $ | 478,360 | $ 1,471,088 $ 942,048 | ||||
Investment securities, trading securities, federal funds sold and securities | |||||||||
purchased under agreements to resell | 94,056 | 83,926 | 59,096 | 50,096 | 52,764 | 177,982 | 106,331 | ||
Total interest income | 840,504 | 808,566 | 548,805 | 544,178 | 531,124 | 1,649,070 | 1,048,379 | ||
Interest Expense | |||||||||
Deposits | 241,593 | 245,957 | 168,263 | 177,919 | 165,481 | 487,550 | 325,643 | ||
Federal funds purchased, securities sold under agreements | |||||||||
to repurchase, and other borrowings | 20,963 | 18,062 | 10,763 | 14,779 | 15,384 | 39,025 | 28,541 | ||
Total interest expense | 262,556 | 264,019 | 179,026 | 192,698 | 180,865 | 526,575 | 354,184 | ||
Net Interest Income | 577,948 | 544,547 | 369,779 | 351,480 | 350,259 | 1,122,495 | 694,195 | ||
Provision (recovery) for credit losses | 7,505 | 100,562 | 6,371 | (6,971) | 3,889 | 108,067 | 16,575 | ||
Net Interest Income after Provision (Recovery) for Credit Losses 570,443 | 443,985 | 363,408 | 358,451 | 346,370 | 1,014,428 677,620 | ||||
Noninterest Income | |||||||||
Operating income | 86,817 | 85,620 | 80,595 | 74,934 | 75,225 | 172,437 | 146,783 | ||
Securities losses, net | - | (228,811) | (50) | - | - | (228,811) | - | ||
Gain on sale leaseback, net of transaction costs | - | 229,279 | - | - | - | 229,279 | - | ||
Total noninterest income | 86,817 | 86,088 | 80,545 | 74,934 | 75,225 | 172,905 | 146,783 | ||
Noninterest Expense | |||||||||
Operating expense | 350,682 | 340,820 | 250,699 | 243,543 | 242,343 | 691,502 | 483,266 | ||
Merger, branch consolidation, severance related and other expense (8) | 24,379 | 68,006 | 6,531 | 3,304 | 5,785 | 92,385 | 10,298 | ||
FDIC special assessment | - | - | (621) | - | 619 | - | 4,473 | ||
Total noninterest expense | 375,061 | 408,826 | 256,609 | 246,847 | 248,747 | 783,887 | 498,037 | ||
Income before Income Tax Provision | 282,199 | 121,247 | 187,344 | 186,538 | 172,848 | 403,446 | 326,366 | ||
Income tax provision 66,975 | 32,167 | 43,166 | 43,359 | 40,478 | 99,142 78,940 | ||||
Net Income | $ 215,224 $ | 89,080 | $ 144,178 | $ 143,179 | $ 132,370 | $ 304,304 $ | 247,426 | ||
Adjusted Net Income (non-GAAP) (2) | |||||||||
Net Income (GAAP) | $ 215,224 $ | 89,080 | $ 144,178 | $ 143,179 | $ 132,370 | $ 304,304 $ | 247,426 | ||
Securities losses, net of tax | - | 178,639 | 38 | - | - | 178,639 | - | ||
Gain on sale leaseback, net of transaction costs and tax | - | (179,004) | - | - | - | (179,004) | - | ||
Initial provision for credit losses - Non-PCD loans and UFC from Independent, net of tax | - | 71,892 | - | - | - | 71,892 | - | ||
Merger, branch consolidation, severance related and other expense, net of tax (8) | 18,593 | 53,094 | 5,026 | 2,536 | 4,430 | 71,687 | 7,812 | ||
Deferred tax asset remeasurement | - | 5,581 | - | - | - | 5,581 | - | ||
FDIC special assessment, net of tax | - | - | (478) | - | 474 | - | 3,362 | ||
Adjusted Net Income (non-GAAP) | $ 233,817 $ | 219,282 | $ 148,764 | $ 145,715 | $ 137,274 | $ 453,099 $ | 258,600 | ||
Basic earnings per common share | $ 2.12 $ | 0.88 | $ 1.89 | $ 1.88 | $ 1.74 | $ 3.00 $ | 3.24 | ||
Diluted earnings per common share | $ 2.11 $ | 0.87 | $ 1.87 | $ 1.86 | $ 1.73 | $ 2.99 $ | 3.23 | ||
Adjusted net income per common share - Basic (non-GAAP) (2) | $ 2.30 $ | 2.16 | $ 1.95 | $ 1.91 | $ 1.80 | $ 4.47 $ | 3.39 | ||
Adjusted net income per common share - Diluted (non-GAAP) (2) | $ 2.30 $ | 2.15 | $ 1.93 | $ 1.90 | $ 1.79 | $ 4.45 $ | 3.37 | ||
Dividends per common share | $ 0.54 $ | 0.54 | $ 0.54 | $ 0.54 | $ 0.52 | $ 1.08 $ | 1.04 | ||
Basic weighted-average common shares outstanding | 101,495,456 | 101,409,624 | 76,360,935 | 76,299,069 | 76,251,401 | 101,452,777 | 76,276,406 | ||
Diluted weighted-average common shares outstanding | 101,845,360 | 101,828,600 | 76,957,882 | 76,805,436 | 76,607,281 | 101,835,756 | 76,629,796 | ||
Effective tax rate | 23.73% | 26.53% | 23.04% | 23.24% | 23.42% | 24.57% | 24.19% | ||
Adjusted effective tax rate | 23.73% | 21.93% | 23.04% | 23.24% | 23.42% | 23.19% | 24.19% | ||
2025 | 2025 | 2024 | 2024 | 2024 | 2025 | 2024 | |
PERFORMANCE RATIOS | |||||||
Return on average assets (annualized) | 1.34 % | 0.56 % | 1.23 % | 1.25 % | 1.17 % | 0.95 % | 1.10 % |
Adjusted return on average assets (annualized) (non-GAAP) (2) | 1.45 % | 1.38 % | 1.27 % | 1.27 % | 1.22 % | 1.42 % | 1.15 % |
Return on average common equity (annualized) | 9.93 % | 4.29 % | 9.72 % | 9.91 % | 9.58 % | 7.17 % | 8.97 % |
Adjusted return on average common equity (annualized) (non-GAAP) (2) | 10.79 % | 10.56 % | 10.03 % | 10.08 % | 9.94 % | 10.68 % | 9.38 % |
Return on average tangible common equity (annualized) (non-GAAP) (3) | 18.17 % | 8.99 % | 15.09 % | 15.63 % | 15.49 % | 13.73 % | 14.57 % |
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3) | 19.61 % | 19.85 % | 15.56 % | 15.89 % | 16.05 % | 19.72 % | 15.20 % |
Efficiency ratio (tax equivalent) | 52.75 % | 60.97 % | 55.73 % | 56.58 % | 57.03 % | 56.75 % | 57.75 % |
Adjusted efficiency ratio (non-GAAP) (4) | 49.09 % | 50.24 % | 54.42 % | 55.80 % | 55.52 % | 49.65 % | 55.99 % |
Dividend payout ratio (5) | 25.47 % | 61.45 % | 28.58 % | 28.76 % | 29.93 % | 36.00 % | 32.02 % |
Book value per common share | $ 86.71 | $ 84.99 | $ 77.18 | $ 77.42 | $ 74.16 | ||
Tangible book value per common share (non-GAAP) (3) | $ 51.96 | $ 50.07 | $ 51.11 | $ 51.26 | $ 47.90 | ||
CAPITAL RATIOS | |||||||
Equity-to-assets | 13.4 % | 13.2 % | 12.7 % | 12.8 % | 12.4 % | ||
Tangible equity-to-tangible assets (non-GAAP) (3) | 8.5 % | 8.2 % | 8.8 % | 8.9 % | 8.4 % | ||
Tier 1 leverage (6) | 9.2 % | 8.9 % | 10.0 % | 10.0 % | 9.7 % | ||
Tier 1 common equity (6) | 11.2 % | 11.0 % | 12.6 % | 12.4 % | 12.1 % | ||
Tier 1 risk-based capital (6) | 11.2 % | 11.0 % | 12.6 % | 12.4 % | 12.1 % | ||
Total risk-based capital (6) | 14.5 % | 13.7 % | 15.0 % | 14.7 % | 14.4 % | ||
Balance Sheet | |||||
Ending Balance | |||||
(Dollars in thousands, except per share and share data) | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, |
BALANCE SHEET | 2025 | 2025 | 2024 | 2024 | 2024 |
Assets | |||||
Cash and due from banks | $ 755,798 | $ 688,153 | $ 525,506 | $ 563,887 | $ 507,425 |
Federal funds sold and interest-earning deposits with banks | 2,708,308 | 2,611,537 | 866,561 | 648,792 | 609,741 |
Cash and cash equivalents | 3,464,106 | 3,299,690 | 1,392,067 | 1,212,679 | 1,117,166 |
Trading securities, at fair value | 95,306 | 107,401 | 102,932 | 87,103 | 92,161 |
Investment securities: | |||||
Securities held to maturity | 2,145,991 | 2,195,980 | 2,254,670 | 2,301,307 | 2,348,528 |
Securities available for sale, at fair value | 5,927,867 | 5,853,369 | 4,320,593 | 4,564,363 | 4,498,264 |
Other investments | 357,487 | 345,695 | 223,613 | 211,458 | 201,516 |
Total investment securities | 8,431,345 | 8,395,044 | 6,798,876 | 7,077,128 | 7,048,308 |
Loans held for sale | 318,985 | 357,918 | 279,426 | 287,043 | 100,007 |
Loans: | |||||
Purchased credit deteriorated | 3,409,186 | 3,634,490 | 862,155 | 913,342 | 957,255 |
Purchased non-credit deteriorated | 12,492,553 | 13,084,853 | 3,635,782 | 3,959,028 | 4,253,323 |
Non-acquired | 31,365,508 | 30,047,389 | 29,404,990 | 28,675,822 | 28,023,986 |
Less allowance for credit losses | (621,046) | (623,690) | (465,280) | (467,981) | (472,298) |
Loans, net | 46,646,201 | 46,143,042 | 33,437,647 | 33,080,211 | 32,762,266 |
Premises and equipment, net | 964,878 | 946,334 | 502,559 | 507,452 | 517,382 |
Bank owned life insurance | 1,280,632 | 1,273,472 | 1,013,209 | 1,007,275 | 1,001,998 |
Mortgage servicing rights | 85,836 | 87,742 | 89,795 | 83,512 | 88,904 |
Core deposit and other intangibles | 433,458 | 455,443 | 66,458 | 71,835 | 77,389 |
Goodwill | 3,094,059 | 3,088,059 | 1,923,106 | 1,923,106 | 1,923,106 |
Other assets | 1,078,516 | 981,309 | 775,129 | 745,303 | 765,283 |
Total assets | $ 65,893,322 | $ 65,135,454 | $ 46,381,204 | $ 46,082,647 | $ 45,493,970 |
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing | $ 13,719,030 | $ 13,757,255 | $ 10,192,117 | $ 10,376,531 | $ 10,374,464 |
Interest-bearing | 39,977,931 | 39,580,360 | 27,868,749 | 27,261,664 | 26,723,938 |
Total deposits | 53,696,961 | 53,337,615 | 38,060,866 | 37,638,195 | 37,098,402 |
Federal funds purchased and securities | |||||
sold under agreements to repurchase | 630,558 | 679,337 | 514,912 | 538,322 | 542,403 |
Other borrowings | 1,099,705 | 752,798 | 391,534 | 691,626 | 691,719 |
Reserve for unfunded commitments | 64,693 | 62,253 | 45,327 | 41,515 | 50,248 |
Other liabilities | 1,600,271 | 1,679,090 | 1,478,150 | 1,268,409 | 1,460,795 |
Total liabilities | 57,092,188 | 56,511,093 | 40,490,789 | 40,178,067 | 39,843,567 |
Shareholders' equity: | |||||
Common stock - $2.50 par value; authorized 160,000,000 shares | 253,745 | 253,698 | 190,805 | 190,674 | 190,489 |
Surplus | 6,679,028 | 6,667,277 | 4,259,722 | 4,249,672 | 4,238,192 |
Retained earnings | 2,240,470 | 2,080,053 | 2,046,809 | 1,943,874 | 1,841,933 |
Accumulated other comprehensive loss | (372,109) | (376,667) | (606,921) | (479,640) | (620,211) |
Total shareholders' equity | 8,801,134 | 8,624,361 | 5,890,415 | 5,904,580 | 5,650,403 |
Total liabilities and shareholders' equity | $ 65,893,322 | $ 65,135,454 | $ 46,381,204 | $ 46,082,647 | $ 45,493,970 |
Common shares issued and outstanding | 101,498,000 | 101,479,065 | 76,322,206 | 76,269,577 | 76,195,723 |
Three Months Ended
Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | ||||||||||
(Dollars in thousands) Average Income/ Yield/ YIELD ANALYSIS Balance Expense Rate | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | ||||||
Interest-Earning Assets: | ||||||||||||
Federal funds sold and interest-earning deposits with banks | $ 1,884,133 | $ 19,839 | 4.22% | $ 2,199,800 | $ 22,540 | 4.16% | $ 732,252 | $ 8,248 | 4.53% | |||
Investment securities | 8,513,439 | 74,217 | 3.50% | 8,325,775 | 61,386 | 2.99% | 7,226,582 | 44,516 | 2.48% | |||
Loans held for sale | 283,017 | 4,829 | 6.84% | 174,833 | 3,678 | 8.53% | 63,307 | 1,018 | 6.47% | |||
Total loans held for investment | 47,029,412 | 741,619 | 6.33% | 46,797,045 | 720,962 | 6.25% | 32,989,521 | 477,342 | 5.82% | |||
Total interest-earning assets | 57,710,001 | 840,504 | 5.84% | 57,497,453 | 808,566 | 5.70% | 41,011,662 | 531,124 | 5.21% | |||
Noninterest-earning assets | 6,840,880 | 6,785,973 | 4,416,072 | |||||||||
Total Assets | $ 64,550,881 | $ 64,283,426 | $ 45,427,734 | |||||||||
Interest-Bearing Liabilities ("IBL"): | ||||||||||||
Transaction and money market accounts | $ 28,986,998 | $ 173,481 | 2.40% | $ 29,249,014 | $ 176,949 | 2.45% | $ 19,653,436 | $ 120,722 | 2.47% | |||
Savings deposits | 2,921,780 | 2,012 | 0.28% | 2,904,961 | 1,944 | 0.27% | 2,504,809 | 1,830 | 0.29% | |||
Certificates and other time deposits | 7,177,451 | 66,100 | 3.69% | 7,165,188 | 67,064 | 3.80% | 4,286,950 | 42,929 | 4.03% | |||
Federal funds purchased | 360,588 | 3,943 | 4.39% | 323,400 | 3,479 | 4.36% | 270,028 | 3,621 | 5.39% | |||
Repurchase agreements | 287,341 | 1,462 | 2.04% | 298,305 | 1,430 | 1.94% | 270,815 | 1,362 | 2.02% | |||
Other borrowings | 821,545 | 15,558 | 7.60% | 812,136 | 13,153 | 6.57% | 715,401 | 10,401 | 5.85% | |||
Total interest-bearing liabilities | 40,555,703 | 262,556 | 2.60% | 40,753,004 | 264,019 | 2.63% | 27,701,439 | 180,865 | 2.63% | |||
Noninterest-bearing deposits | 13,643,265 | 13,493,329 | 10,566,529 | |||||||||
Other noninterest-bearing liabilities | 1,659,331 | 1,618,981 | 1,605,296 | |||||||||
Shareholders' equity | 8,692,582 | 8,418,112 | 5,554,470 | |||||||||
Total Non-IBL and shareholders' equity | 23,995,178 | 23,530,422 | 17,726,295 | |||||||||
Total Liabilities and Shareholders' Equity | $ 64,550,881 | $ 64,283,426 | $ 45,427,734 | |||||||||
Net Interest Income and Margin (Non-Tax Equivalent) | $ 577,948 | 4.02% | $ 544,547 | 3.84% | $ 350,259 | 3.43% | ||||||
Net Interest Margin (Tax Equivalent) (non-GAAP) | 4.02% | 3.85% | 3.44% | |||||||||
Total Deposit Cost (without Debt and Other Borrowings) | 1.84% | 1.89% | 1.80% | |||||||||
Overall Cost of Funds (including Demand Deposits) | 1.94% | 1.97% | 1.90% | |||||||||
Total Accretion on Acquired Loans (1) | $ 63,507 | $ 61,798 | $ 4,386 | |||||||||
Tax Equivalent ("TE") Adjustment | $ 672 | $ 784 | $ 631 | |||||||||
The remaining loan discount on acquired loans to be accreted into loan interest income totals $392.8 million as of June 30, 2025.