SouthState Corporation Reports First Quarter 2025 Results, Declares Quarterly Cash Dividend

WINTER HAVEN, Fla., April 24, 2025 /PRNewswire/ --  SouthState Corporation ("SouthState" or the "Company") (NYSE: SSB) today released its unaudited results of operations and other financial information for the three-month period ended March 31, 2025.SouthState Corporation Reports First Quarter 2025 Results

"The first quarter was a strategic reset that took SouthState's earnings profile from good to great", commented John C. Corbett, SouthState's Chief Executive Officer.  "We closed the IBTX acquisition in January and then closed the sale leaseback transaction and securities restructure in March. The securities restructuring and better than expected deposit pricing pushed our net interest margin to 3.85%. SouthState is now positioned with industry-leading profitability and strong liquidity, capital and asset quality for the uncertainties that lie ahead."

Highlights of the first quarter of 2025 include:

Returns

Reported Diluted Earnings per Share ("EPS") of $0.87; Adjusted Diluted EPS (Non-GAAP) of $2.15 Net Income of $89.1 million; Adjusted Net Income (Non-GAAP) of $219.3 million Return on Average Common Equity of 4.3%; Return on Average Tangible Common Equity (Non-GAAP) of 9.0% and Adjusted Return on Average Tangible Common Equity (Non-GAAP) of 19.9%* Return on Average Assets ("ROAA") of 0.56% and Adjusted ROAA (Non-GAAP) of 1.38%* Book Value per Share of $84.99; Tangible Book Value ("TBV") per Share (Non-GAAP) of $50.07

Performance

Net Interest Income of $545 million Net Interest Margin ("NIM"), non-tax equivalent of 3.84%, and tax equivalent (Non-GAAP) of 3.85% $39.4 million of acquisition date charge-offs on PCD loans acquired from Independent Bank Group, Inc. ("Independent") to bring these loans in accordance with SouthState policies and practices; excluding these day one charge-offs on acquired PCD loans, net charge-offs totaled $4.4 million, or 0.04%* $100.6 million of Provision for Credit Losses ("PCL"), including $92.1 million of initial provision for credit losses related to acquired non-PCD loans and unfunded commitments; total Allowance for Credit Losses ("ACL") plus reserve for unfunded commitments of 1.47% of loans Noninterest Income of $86 million; Noninterest Income represented 0.54%, of average assets for the first quarter of 2025* Efficiency Ratio of 61% and Adjusted Efficiency Ratio (Non-GAAP) of 50%

Balance Sheet

Loans decreased by $263 million, or 2%*, and deposits increased by $68 million, or 1%*, excluding the effects of the acquisition date balances acquired from Independent(9); ending loan to deposit ratio of 88% Total loan yield of 6.25% and total deposit cost of 1.89% Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of 8.2%, 13.7%, 8.9%, and 11.0%, respectively†

Story Continues

∗  Annualized percentages
†  Preliminary

Significant Transactions

Closed previously announced acquisition of Independent on January 1, 2025 Executed sale leaseback transaction during 1Q 2025, resulting in a gain of $229 million, net of transaction costs Completed securities portfolio restructuring during 1Q 2025 with a total net loss of $229 million

Subsequent Events

The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.54 per share, payable on May 16, 2025 to shareholders of record as of May 9, 2025

Financial Performance

Three Months Ended  (Dollars in thousands, except per share data)  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  INCOME STATEMENT  2025  2024  2024  2024  2024  Interest Income  Loans, including fees (1)  $ 724,640  $ 489,709  $ 494,082  $ 478,360  $ 463,688  Investment securities, trading securities, federal funds sold and securities  purchased under agreements to resell   83,926   59,096   50,096   52,764   53,567  Total interest income   808,566   548,805   544,178   531,124   517,255  Interest Expense  Deposits   245,957   168,263   177,919   165,481   160,162  Federal funds purchased, securities sold under agreements  to repurchase, and other borrowings   18,062   10,763   14,779   15,384   13,157  Total interest expense   264,019   179,026   192,698   180,865   173,319  Net Interest Income   544,547   369,779   351,480   350,259   343,936  Provision (recovery) for credit losses   100,562   6,371   (6,971)   3,889   12,686  Net Interest Income after Provision (Recovery) for Credit Losses   443,985   363,408   358,451   346,370   331,250  Noninterest Income  Operating income   85,620   80,595   74,934   75,225   71,558  Securities losses, net   (228,811)   (50)   —   —   —  Gain on sale leaseback, net of transaction costs   229,279   —   —   —   —  Total noninterest income   86,088   80,545   74,934   75,225   71,558  Noninterest Expense  Operating expense   340,820   250,699   243,543   242,343   240,923  Merger, branch consolidation, severance related and other restructuring expense (8)   68,006   6,531   3,304   5,785   4,513  FDIC special assessment   —   (621)   —   619   3,854  Total noninterest expense   408,826   256,609   246,847   248,747   249,290  Income before Income Tax Provision   121,247   187,344   186,538   172,848   153,518  Income tax provision   32,167   43,166   43,359   40,478   38,462  Net Income  $ 89,080  $ 144,178  $ 143,179  $ 132,370  $ 115,056   Adjusted Net Income (non-GAAP) (2)  Net Income (GAAP)  $ 89,080  $ 144,178  $ 143,179  $ 132,370  $ 115,056  Securities losses, net of tax   178,639   38   —   —   —  Gain on sale leaseback, net of transaction costs and tax   (179,004)   —   —   —   —  Initial provision for credit losses – Non-PCD loans and UFC from Independent, net of tax   71,892   —   —   —   —  Merger, branch consolidation, severance related and other restructuring expense, net of tax (8)   53,094   5,026   2,536   4,430   3,382  Deferred tax asset remeasurement   5,581   —   —   —   —  FDIC special assessment, net of tax   —   (478)   —   474   2,888  Adjusted Net Income (non-GAAP)  $ 219,282  $ 148,764  $ 145,715  $ 137,274  $ 121,326   Basic earnings per common share  $ 0.88  $ 1.89  $ 1.88  $ 1.74  $ 1.51  Diluted earnings per common share  $ 0.87  $ 1.87  $ 1.86  $ 1.73  $ 1.50  Adjusted net income per common share - Basic (non-GAAP) (2)  $ 2.16  $ 1.95  $ 1.91  $ 1.80  $ 1.59  Adjusted net income per common share - Diluted (non-GAAP) (2)  $ 2.15  $ 1.93  $ 1.90  $ 1.79  $ 1.58  Dividends per common share  $ 0.54  $ 0.54  $ 0.54  $ 0.52  $ 0.52  Basic weighted-average common shares outstanding   101,409,624   76,360,935   76,299,069   76,251,401   76,301,411  Diluted weighted-average common shares outstanding   101,828,600   76,957,882   76,805,436   76,607,281   76,660,081  Effective tax rate   26.53 %   23.04 %   23.24 %   23.42 %   25.05 %  Adjusted effective tax rate   21.93 %   20.92 %   20.06 %   22.42 %   21.83 %

Performance and Capital Ratios

Three Months Ended  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  2025  2024  2024  2024  2024  PERFORMANCE RATIOS  Return on average assets (annualized)   0.56 %  1.23 %  1.25 %  1.17 %  1.03 %  Adjusted return on average assets (annualized) (non-GAAP) (2)   1.38 %  1.27 %  1.27 %  1.22 %  1.08 %  Return on average common equity (annualized)   4.29 %  9.72 %  9.91 %  9.58 %  8.36 %  Adjusted return on average common equity (annualized) (non-GAAP) (2)   10.56 %  10.03 %  10.08 %  9.94 %  8.81 %  Return on average tangible common equity (annualized) (non-GAAP) (3)   8.99 %  15.09 %  15.63 %  15.49 %  13.63 %  Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)   19.85 %  15.56 %  15.89 %  16.05 %  14.35 %  Efficiency ratio (tax equivalent)   60.97 %  55.73 %  56.58 %  57.03 %  58.48 %  Adjusted efficiency ratio (non-GAAP) (4)   50.24 %  54.42 %  55.80 %  55.52 %  56.47 %  Dividend payout ratio (5)   61.45 %  28.58 %  28.76 %  29.93 %  34.42 %  Book value per common share  $ 84.99  $ 77.18  $ 77.42  $ 74.16  $ 72.82  Tangible book value per common share (non-GAAP) (3)  $ 50.07  $ 51.11  $ 51.26  $ 47.90  $ 46.48   CAPITAL RATIOS  Equity-to-assets   13.2 %  12.7 %  12.8 %  12.4 %  12.3 %  Tangible equity-to-tangible assets (non-GAAP) (3)   8.2 %  8.8 %  8.9 %  8.4 %  8.2 %  Tier 1 leverage (6)   8.9 %  10.0 %  10.0 %  9.7 %  9.6 %  Tier 1 common equity (6)   11.0 %  12.6 %  12.4 %  12.1 %  11.9 %  Tier 1 risk-based capital (6)   11.0 %  12.6 %  12.4 %  12.1 %  11.9 %  Total risk-based capital (6)   13.7 %  15.0 %  14.7 %  14.4 %  14.4 %

Balance Sheet

Ending Balance  (Dollars in thousands, except per share and share data)  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  BALANCE SHEET  2025  2024  2024  2024  2024  Assets  Cash and due from banks  $ 688,153  $ 525,506  $ 563,887  $ 507,425  $ 478,271  Federal funds sold and interest-earning deposits with banks   2,611,537   866,561   648,792   609,741   731,186  Cash and cash equivalents   3,299,690   1,392,067   1,212,679   1,117,166   1,209,457   Trading securities, at fair value   107,401   102,932   87,103   92,161   66,188  Investment securities:  Securities held to maturity   2,195,980   2,254,670   2,301,307   2,348,528   2,446,589  Securities available for sale, at fair value   5,853,369   4,320,593   4,564,363   4,498,264   4,598,400  Other investments   345,695   223,613   211,458   201,516   187,285  Total investment securities   8,395,044   6,798,876   7,077,128   7,048,308   7,232,274  Loans held for sale   357,918   279,426   287,043   100,007   56,553  Loans:  Purchased credit deteriorated   3,634,490   862,155   913,342   957,255   1,031,283  Purchased non-credit deteriorated   13,084,853   3,635,782   3,959,028   4,253,323   4,534,583  Non-acquired   30,047,389   29,404,990   28,675,822   28,023,986   27,101,444  Less allowance for credit losses   (623,690)   (465,280)   (467,981)   (472,298)   (469,654)  Loans, net   46,143,042   33,437,647   33,080,211   32,762,266   32,197,656  Premises and equipment, net   946,334   502,559   507,452   517,382   512,635  Bank owned life insurance   1,273,472   1,013,209   1,007,275   1,001,998   997,562  Mortgage servicing rights   87,742   89,795   83,512   88,904   87,970  Core deposit and other intangibles   455,443   66,458   71,835   77,389   83,193  Goodwill   3,088,059   1,923,106   1,923,106   1,923,106   1,923,106  Other assets   981,309   775,129   745,303   765,283   778,244  Total assets  $ 65,135,454  $ 46,381,204  $ 46,082,647  $ 45,493,970  $ 45,144,838   Liabilities and Shareholders' Equity  Deposits:  Noninterest-bearing  $ 13,757,255  $ 10,192,117  $ 10,376,531  $ 10,374,464  $ 10,546,410  Interest-bearing   39,580,360   27,868,749   27,261,664   26,723,938   26,632,024  Total deposits   53,337,615   38,060,866   37,638,195   37,098,402   37,178,434  Federal funds purchased and securities  sold under agreements to repurchase   679,337   514,912   538,322   542,403   554,691  Other borrowings   752,798   391,534   691,626   691,719   391,812  Reserve for unfunded commitments   62,253   45,327   41,515   50,248   53,229  Other liabilities   1,679,090   1,478,150   1,268,409   1,460,795   1,419,663  Total liabilities   56,511,093   40,490,789   40,178,067   39,843,567   39,597,829   Shareholders' equity:  Common stock - $2.50 par value; authorized 160,000,000 shares   253,698   190,805   190,674   190,489   190,443  Surplus   6,667,277   4,259,722   4,249,672   4,238,192   4,230,345  Retained earnings   2,080,053   2,046,809   1,943,874   1,841,933   1,749,215  Accumulated other comprehensive loss   (376,667)   (606,921)   (479,640)   (620,211)   (622,994)  Total shareholders' equity   8,624,361   5,890,415   5,904,580   5,650,403   5,547,009  Total liabilities and shareholders' equity  $ 65,135,454  $ 46,381,204  $ 46,082,647  $ 45,493,970  $ 45,144,838   Common shares issued and outstanding   101,479,065   76,322,206   76,269,577   76,195,723   76,177,163

Net Interest Income and Margin

Three Months Ended  Mar. 31, 2025  Dec. 31, 2024  Mar. 31, 2024  (Dollars in thousands)  Average  Income/  Yield/  Average  Income/  Yield/  Average  Income/  Yield/  YIELD ANALYSIS  Balance  Expense  Rate  Balance  Expense  Rate  Balance  Expense  Rate  Interest-Earning Assets:  Federal funds sold and interest-earning deposits with banks  $ 2,199,800  $ 22,540  4.16 %  $ 1,308,313  $ 14,162  4.31 %  $ 668,349  $ 8,254  4.97 %  Investment securities   8,325,775   61,386  2.99 %   7,144,438   44,934  2.50 %   7,465,735   45,313  2.44 %  Loans held for sale   174,833   3,678  8.53 %   179,803   2,304  5.10 %   42,872   681  6.39 %  Total loans held for investment   46,797,045   720,962  6.25 %   33,662,822   487,405  5.76 %   32,480,220   463,007  5.73 %  Total interest-earning assets   57,497,453   808,566  5.70 %   42,295,376   548,805  5.16 %   40,657,176   517,255  5.12 %  Noninterest-earning assets   6,785,973        4,214,390        4,353,987  Total Assets  $ 64,283,426       $ 46,509,766       $ 45,011,163   Interest-Bearing Liabilities ("IBL"):  Transaction and money market accounts  $ 29,249,014  $ 176,949  2.45 %  $ 20,823,079  $ 121,239  2.32 %  $ 19,544,019  $ 117,292  2.41 %  Savings deposits   2,904,961   1,944  0.27 %   2,427,760   1,741  0.29 %   2,589,251   1,818  0.28 %  Certificates and other time deposits   7,165,188   67,064  3.80 %   4,517,047   45,283  3.99 %   4,282,749   41,052  3.86 %  Federal funds purchased   323,400   3,479  4.36 %   292,626   3,479  4.73 %   256,506   3,369  5.28 %  Repurchase agreements   298,305   1,430  1.94 %   261,373   1,382  2.10 %   280,674   1,358  1.95 %  Other borrowings   812,136   13,153  6.57 %   394,853   5,902  5.95 %   563,848   8,430  6.01 %  Total interest-bearing liabilities   40,753,004   264,019  2.63 %   28,716,738   179,026  2.48 %   27,517,047   173,319  2.53 %  Noninterest-bearing deposits   13,493,329        10,561,382        10,530,597  Other noninterest-bearing liabilities   1,618,981        1,330,020        1,426,968  Shareholders' equity   8,418,112        5,901,626        5,536,551  Total Non-IBL and shareholders' equity   23,530,422        17,793,028        17,494,116  Total Liabilities and Shareholders' Equity  $ 64,283,426       $ 46,509,766       $ 45,011,163  Net Interest Income and Margin (Non-Tax Equivalent)     $ 544,547  3.84 %     $ 369,779  3.48 %     $ 343,936  3.40 %  Net Interest Margin (Tax Equivalent) (non-GAAP)         3.85 %        3.48 %        3.41 %  Total Deposit Cost (without Debt and Other Borrowings)        1.89 %        1.75 %        1.74 %  Overall Cost of Funds (including Demand Deposits)        1.97 %        1.81 %        1.83 %   Total Accretion on Acquired Loans (1)     $ 61,798       $ 2,887       $ 4,287  Tax Equivalent ("TE") Adjustment     $ 784       $ 547       $ 528   •    The remaining loan discount on acquired loans to be accreted into loan interest income totals $457.1 million as of March 31, 2025.

Noninterest Income and Expense

Three Months Ended  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  (Dollars in thousands)  2025  2024  2024  2024  2024  Noninterest Income:  Fees on deposit accounts  $ 35,933  $ 35,121  $ 33,986  $ 33,842  $ 33,145  Mortgage banking income   7,737   4,777   3,189   5,912   6,169  Trust and investment services income   14,932   12,414   11,578   11,091   10,391  Correspondent banking and capital markets income   16,715   20,905   17,381   16,267   14,591  Expense on centrally-cleared variation margin   (7,170)   (7,350)   (7,488)   (11,407)   (10,280)  Total correspondent banking and capital markets income   9,545   13,555   9,893   4,860   4,311  Bank owned life insurance income   10,199   7,944   8,276   7,372   6,892  Other   7,275   6,784   8,012   12,148   10,650  Securities losses, net   (228,811)   (50)   —   —   —  Gain on sale leaseback, net of transaction costs   229,279   —   —   —   —  Total Noninterest Income  $ 86,088  $ 80,545  $ 74,934  $ 75,225  $ 71,558   Noninterest Expense:  Salaries and employee benefits  $ 195,811  $ 154,116  $ 150,865  $ 151,435  $ 150,453  Occupancy expense   35,493   22,831   22,242   22,453   22,577  Information services expense   31,362   23,416   23,280   23,144   22,353  OREO and loan related expense   1,784   1,416   1,358   1,307   606  Business development and staff related   6,510   6,777   5,542   5,942   5,521  Amortization of intangibles   23,831   5,326   5,327   5,744   5,998  Professional fees   4,709   5,366   4,017   3,906   3,115  Supplies and printing expense   3,128   2,729   2,762   2,526   2,540  FDIC assessment and other regulatory charges   11,258   7,365   7,482   7,771   8,534  Advertising and marketing   2,290   2,269   2,296   2,594   1,984  Other operating expenses   24,644   19,088   18,372   15,521   17,242  Merger, branch consolidation, severance related and other restructuring expense (8)   68,006   6,531   3,304   5,785   4,513  FDIC special assessment   —   (621)   —   619   3,854  Total Noninterest Expense  $ 408,826  $ 256,609  $ 246,847  $ 248,747  $ 249,290

Loans and Deposits

The following table presents a summary of the loan portfolio by type:

Ending Balance  (Dollars in thousands)  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  LOAN PORTFOLIO (7)  2025  2024  2024  2024  2024  Construction and land development * †  $ 3,497,909  $ 2,184,327  $ 2,458,151  $ 2,592,307  $ 2,437,343  Investor commercial real estate*   16,822,119   9,991,482   9,856,709   9,731,773   9,752,529  Commercial owner occupied real estate   7,417,116   5,716,376   5,544,716   5,522,978   5,511,855  Commercial and industrial   8,106,484   6,222,876   5,931,187   5,769,838   5,544,131  Consumer real estate *   9,838,952   8,714,969   8,649,714   8,440,724   8,223,066  Consumer/other   1,084,152   1,072,897   1,107,715   1,176,944   1,198,386  Total Loans  $ 46,766,732  $ 33,902,927  $ 33,548,192  $ 33,234,564  $ 32,667,310

* Single family home construction-to-permanent loans originated by the Company's mortgage banking division are included in construction and land development category until completion.  Investor commercial real estate loans include commercial non-owner occupied real estate and other income producing property.  Consumer real estate includes consumer owner occupied real estate and home equity loans. † Includes single family home construction-to-permanent loans of $343.5 million, $386.2 million, $429.8 million, $544.2 million, and $623.9 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

Ending Balance  (Dollars in thousands)  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  DEPOSITS  2025  2024  2024  2024  2024  Noninterest-bearing checking  $ 13,757,255  $ 10,192,116  $ 10,376,531  $ 10,374,464  $ 10,546,410  Interest-bearing checking   12,034,973   8,232,322   7,550,392   7,547,406   7,898,835  Savings   2,939,407   2,414,172   2,442,584   2,475,130   2,557,203  Money market   17,447,738   13,056,534   12,614,046   12,122,336   11,895,385  Time deposits   7,158,242   4,165,722   4,654,642   4,579,066   4,280,601  Total Deposits  $ 53,337,615  $ 38,060,866  $ 37,638,195  $ 37,098,402  $ 37,178,434   Core Deposits (excludes Time Deposits)   $ 46,179,373  $ 33,895,144  $ 32,983,553  $ 32,519,336  $ 32,897,833

Asset Quality

Ending Balance  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  (Dollars in thousands)  2025  2024  2024  2024  2024  NONPERFORMING ASSETS:  Non-acquired  Non-acquired nonaccrual loans and restructured loans on nonaccrual  $ 151,673  $ 141,982  $ 111,240  $ 110,774  $ 106,189  Accruing loans past due 90 days or more   3,273   3,293   6,890   5,843   2,497  Non-acquired OREO and other nonperforming assets   2,290   1,182   1,217   2,876   1,589  Total non-acquired nonperforming assets   157,236   146,457   119,347   119,493   110,275  Acquired  Acquired nonaccrual loans and restructured loans on nonaccrual   116,691   65,314   70,731   78,287   63,451  Accruing loans past due 90 days or more   537   —   389   916   135  Acquired OREO and other nonperforming assets   5,976   1,583   493   598   655  Total acquired nonperforming assets   123,204   66,897   71,613   79,801   64,241  Total nonperforming assets  $ 280,440  $ 213,354  $ 190,960  $ 199,294  $ 174,516   Three Months Ended  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  2025  2024  2024  2024  2024  ASSET QUALITY RATIOS (7):  Allowance for credit losses as a percentage of loans   1.33 %   1.37 %   1.39 %   1.42 %   1.44 %  Allowance for credit losses, including reserve for unfunded commitments,  as a percentage of loans   1.47 %   1.51 %   1.52 %   1.57 %   1.60 %  Allowance for credit losses as a percentage of nonperforming loans   229.15 %   220.94 %   247.28 %   241.19 %   272.62 %  Net charge-offs as a percentage of average loans (annualized)   0.38 %   0.06 %   0.07 %   0.05 %   0.03 %  Net charge-offs, excluding acquisition date charge-offs, as a percentage  of average loans (annualized) *   0.04 %   0.06 %   0.07 %   0.05 %   0.03 %  Total nonperforming assets as a percentage of total assets   0.43 %   0.46 %   0.41 %   0.44 %   0.39 %  Nonperforming loans as a percentage of period end loans   0.58 %   0.62 %   0.56 %   0.59 %   0.53 %   *        Excluding acquisition date charge-offs recorded in connection with the Independent merger.

Current Expected Credit Losses ("CECL")

Below is a table showing the roll forward of the ACL and UFC for the first quarter of 2025:

Allowance for Credit Losses ("ACL") and Unfunded Commitments ("UFC")  (Dollars in thousands)  Non-PCD ACL  PCD ACL  Total ACL  UFC  Ending balance 12/31/2024  $ 444,959  $ 20,321  $ 465,280  $ 45,327  ACL - PCD loans from Independent   —   118,643   118,643   —  Initial provision for credit losses - Independent   79,971   —   79,971   12,112  Acquisition date charge-offs on acquired PCD loans - Independent *   —   (39,429)   (39,429)   —  Charge offs   (6,139)   —   (6,139)   —  Acquired charge offs   (885)   (398)   (1,283)   —  Recoveries   1,345   —   1,345   —  Acquired recoveries   291   1,346   1,637   —  Provision for credit losses   7,073   (3,408)   3,665   4,814  Ending balance 3/31/2025  $ 526,615  $ 97,075  $ 623,690  $ 62,253   Period end loans  $ 43,132,242  $ 3,634,490  $ 46,766,732   N/A  Allowance for Credit Losses to Loans   1.22 %   2.67 %   1.33 %   N/A  Unfunded commitments (off balance sheet) †           $ 10,654,446  Reserve to unfunded commitments (off balance sheet)            0.58 %   *        Acquisition date charge-offs recorded in connection with the Independent merger, to conform with the Company's charge-off policies and practices. †        Unfunded commitments exclude unconditionally cancelable commitments and letters of credit.

Conference Call

The Company will host a conference call to discuss its first quarter results at 9:00 a.m. Eastern Time on April 25, 2025.  Callers wishing to participate may call toll-free by dialing (888) 350-3899 within the US and (646) 960-0343 for all other locations.  The numbers for international participants are listed at https://events.q4irportal.com/custom/access/2324/.  The conference ID number is 4200408.   Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com.  An audio replay of the live webcast is expected to be available by the evening of April 25, 2025 on the Investor Relations section of SouthStateBank.com.

SouthState is a financial services company headquartered in Winter Haven, Florida.  SouthState Bank, N.A. (the "Bank"), the Company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas, Virginia, Texas and Colorado.  The Bank also serves clients coast to coast through its correspondent banking division.  Additional information is available at SouthStateBank.com.

Non-GAAP Measures

Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures.  Although other companies may use calculation methods that differ from those used by SouthState for non-GAAP measures, management believes that these non-GAAP measures provide additional useful information, which allows readers to evaluate the ongoing performance of the Company.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.

(Dollars in thousands)  Three Months Ended  PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP)  Mar. 31, 2025   Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024  Net income (GAAP)  $ 89,080   $ 144,178   $ 143,179   $ 132,370   $ 115,056  Provision (recovery) for credit losses   100,562    6,371    (6,971)    3,889    12,686  Income tax provision   26,586    43,166    43,359    40,478    38,462  Income tax provision - deferred tax asset remeasurement   5,581    —    —    —    —  Securities losses, net   228,811    50    —    —    —  Gain on sale leaseback, net of transaction costs   (229,279)    —    —    —    —  Merger, branch consolidation, severance related and other restructuring expense (8)   68,006    6,531    3,304    5,785    4,513  FDIC special assessment   —    (621)    —    619    3,854  Pre-provision net revenue (PPNR) (Non-GAAP)  $ 289,347   $ 199,675   $ 182,871   $ 183,141   $ 174,571   (Dollars in thousands)  Three Months Ended  NET INTEREST MARGIN ("NIM"), TE (NON-GAAP)  Mar. 31, 2025   Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024  Net interest income (GAAP)  $ 544,547   $ 369,779   $ 351,480   $ 350,259   $ 343,936  Total average interest-earning assets   57,497,453    42,295,376    41,223,980    41,011,662    40,657,176  NIM, non-tax equivalent   3.84 %   3.48 %   3.39 %   3.43 %   3.40 %  Tax equivalent adjustment (included in NIM, TE)   784    547    486    631    528  Net interest income, tax equivalent (Non-GAAP)  $ 545,331   $ 370,326   $ 351,966   $ 350,890   $ 344,464  NIM, TE (Non-GAAP)   3.85 %   3.48 %   3.40 %   3.44 %   3.41 %

Three Months Ended  (Dollars in thousands, except per share data)  Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,  RECONCILIATION OF GAAP TO NON-GAAP   2025   2024   2024   2024   2024  Adjusted Net Income (non-GAAP) (2)  Net income (GAAP)  $ 89,080   $ 144,178   $ 143,179   $ 132,370   $ 115,056  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 restructuring expense, net of tax (8)   53,094    5,026    2,536    4,430    3,382  Deferred tax asset remeasurement   5,581    —    —    —    —  FDIC special assessment, net of tax   —    (478)    —    474    2,888  Adjusted net income (non-GAAP)  $ 219,282   $ 148,764   $ 145,715   $ 137,274   $ 121,326   Adjusted Net Income per Common Share - Basic (non-GAAP) (2)  Earnings per common share - Basic (GAAP)  $ 0.88   $ 1.89   $ 1.88   $ 1.74   $ 1.51  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 restructuring expense, net of tax (8)   0.52    0.07    0.03    0.05    0.04  Effect to adjust for deferred tax asset remeasurement   0.06    —    —    —    —  Effect to adjust for FDIC special assessment, net of tax   —    (0.01)    —    0.01    0.04  Adjusted net income per common share - Basic (non-GAAP)  $ 2.16   $ 1.95   $ 1.91   $ 1.80   $ 1.59   Adjusted Net Income per Common Share - Diluted (non-GAAP) (2)  Earnings per common share - Diluted (GAAP)  $ 0.87   $ 1.87   $ 1.86   $ 1.73   $ 1.50  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 restructuring expense, net of tax (8)   0.52    0.07    0.04    0.05    0.04  Effect to adjust for deferred tax remeasurement   0.05    —    —    —    —  Effect to adjust for FDIC special assessment, net of tax   —    (0.01)    —    0.01    0.04  Adjusted net income per common share - Diluted (non-GAAP)  $ 2.15   $ 1.93   $ 1.90   $ 1.79   $ 1.58   Adjusted Return on Average Assets (non-GAAP) (2)  Return on average assets (GAAP)   0.56 %   1.23 %   1.25 %   1.17 %   1.03 % 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 restructuring expense, net of tax (8)   0.33 %   0.04 %   0.02 %   0.05 %   0.02 % Effect to adjust for deferred tax remeasurement   0.04 %   — %   — %   — %   — % Effect to adjust for FDIC special assessment, net of tax   — %   (0.00) %   — %   0.00 %   0.03 % Adjusted return on average assets (non-GAAP)   1.38 %   1.27 %   1.27 %   1.22 %   1.08 %  Adjusted Return on Average Common Equity (non-GAAP) (2)  Return on average common equity (GAAP)   4.29 %   9.72 %   9.91 %   9.58 %   8.36 % 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 restructuring expense, net of tax (8)   2.56 %   0.34 %   0.17 %   0.33 %   0.24 % Effect to adjust for deferred tax remeasurement   0.27 %   — %   — %   — %   — % Effect to adjust for FDIC special assessment, net of tax   — %   (0.03) %   — %   0.03 %   0.21 % Adjusted return on average common equity (non-GAAP)   10.56 %   10.03 %   10.08 %   9.94 %   8.81 %  Return on Average Common Tangible Equity (non-GAAP) (3)  Return on average common equity (GAAP)   4.29 %   9.72 %   9.91 %   9.58 %   8.36 % Effect to adjust for intangible assets   4.70 %   5.37 %   5.72 %   5.91 %   5.27 % Return on average tangible equity (non-GAAP)   8.99 %   15.09 %   15.63 %   15.49 %   13.63 %  Adjusted Return on Average Common Tangible Equity (non-GAAP) (2) (3)  Return on average common equity (GAAP)   4.29 %   9.72 %   9.91 %   9.58 %   8.36 % 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 restructuring expense, net of tax (8)   2.56 %   0.34 %   0.18 %   0.32 %   0.25 % Effect to adjust for deferred tax remeasurement   0.27 %   — %   — %   — %   — % Effect to adjust for FDIC special assessment, net of tax   — %   (0.03) %   — %   0.03 %   0.21 % Effect to adjust for intangible assets, net of tax   9.29 %   5.53 %   5.80 %   6.12 %   5.53 % Adjusted return on average common tangible equity (non-GAAP)   19.85 %   15.56 %   15.89 %   16.05 %   14.35 %

Three Months Ended  Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,  RECONCILIATION OF GAAP TO NON-GAAP   2025   2024   2024   2024   2024  Adjusted Efficiency Ratio (non-GAAP) (4)  Efficiency ratio   60.97 %   55.73 %   56.58 %   57.03 %   58.48 % 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 restructuring expense (8)   (10.77) %   (1.45) %   (0.78) %   (1.36) %   (1.08) % Effect to adjust for FDIC special assessment   — %   0.14 %   — %   (0.15) %   (0.93) % Adjusted efficiency ratio   50.24 %   54.42 %   55.80 %   55.52 %   56.47 %  Tangible Book Value Per Common Share (non-GAAP) (3)  Book value per common share (GAAP)  $ 84.99   $ 77.18   $ 77.42   $ 74.16   $ 72.82  Effect to adjust for intangible assets   (34.92)    (26.07)    (26.16)    (26.26)    (26.34)  Tangible book value per common share (non-GAAP)  $ 50.07   $ 51.11   $ 51.26   $ 47.90   $ 46.48   Tangible Equity-to-Tangible Assets (non-GAAP) (3)  Equity-to-assets (GAAP)   13.24 %   12.70 %   12.81 %   12.42 %   12.29 % Effect to adjust for intangible assets   (4.99) %   (3.91) %   (3.94) %   (4.03) %   (4.08) % Tangible equity-to-tangible assets (non-GAAP)   8.25 %   8.79 %   8.87 %   8.39 %   8.21 %

Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications have no impact on net income or equity as previously reported.

Footnotes to tables:

(1) Includes loan accretion (interest) income related to the discount on acquired loans of $61.8 million, $2.9 million, $2.9 million, $4.4 million, and $4.3 million during the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. (2) Adjusted earnings, adjusted return on average assets, adjusted EPS, and adjusted return on average equity are non-GAAP measures and exclude the gains or losses on sales of securities, gain on sale leaseback, net of transaction costs, PCL on non-PCD loans and unfunded commitments, deferred tax asset remeasurement, merger, branch consolidation, severance related and other restructuring expense, and FDIC special assessments.  Management believes that non-GAAP adjusted measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.  Adjusted earnings and the related adjusted return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger, branch consolidation, severance related and other restructuring expense of $68.0 million, $6.5 million, $3.3 million, $5.8 million, and $4.5 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively; (b) pre-tax net securities losses of $(228,811) and $(50,000) for the quarters ended March 31, 2025 and December 31, 2024; (c) pre-tax (c) pre-tax gain on sale leaseback, net of transaction costs of $229,279 for the quarter ended March 31, 2025; (d) pre-tax FDIC special assessment of $(621,000), $619,000, and $3.9 million for the quarters ended December 31, 2024, June 30, 2024, and March 31, 2024, respectively; and (e) deferred tax asset remeasurement of $5.6 million for the quarter ended March 31, 2025. (3) The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets.  The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income.  Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of GAAP to Non-GAAP" provide tables that reconcile GAAP measures to non-GAAP. (4) Adjusted efficiency ratio is calculated by taking the noninterest expense excluding transaction costs on sale leaseback, merger, branch consolidation, severance related and other restructuring expenses and amortization of intangible assets, divided by net interest income and noninterest income excluding gains (losses) on sales of securities, net and gain on sale leaseback, net of transaction costs. The pre-tax amortization expenses of intangible assets were $23.8 million, $5.3 million, $5.3 million, $5.7 million, and $6.0 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. (5) The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period. (6) March 31, 2025 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed. (7) Loan data excludes loans held for sale. (8) Includes pre-tax cyber incident costs of $111,000, $329,000, $56,000, $3.5 million and $4.4 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. (9) SouthState acquired $13.1 billion of loans and $15.2 billion of deposits from the Independent acquisition.  The total preliminary mark on the newly acquired loans was approximately $482 million, which included a rate mark of approximately $386 million and a credit mark on non-PCD loans of approximately $96 million.  The preliminary premium for acquired fixed maturity time deposits was approximately $1.7 million.  The Company also added $412.1 million in core deposit intangibles related to the Independent acquisition.

Cautionary Statement Regarding Forward Looking Statements

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 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on, among other things, management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and SouthState. Words and phrases such as "may," "approximately," "continue," "should," "expects," "projects," "anticipates," "is likely," "look ahead," "look forward," "believes," "will," "intends," "estimates," "strategy," "plan," "could," "potential," "possible" and variations of such words and similar expressions are intended to identify such forward-looking statements.

SouthState cautions readers that forward looking statements are subject to certain risks, uncertainties and assumptions that are difficult to predict with regard to, among other things, timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: (1) economic volatility risk, including as a result of monetary, fiscal, and trade law policies, such as tariffs, and inflation, potentially resulting in higher rates, deterioration in the credit markets, greater than expected noninterest expenses, excessive loan losses, or on the other hand lower rates, which also may have other negative consequences, which risks could be exacerbated by potential negative economic developments resulting from federal spending cuts and/or one or more federal budget-related impasses or actions; (2) risks related to the ability of the Company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (3) risks related to the merger and integration of SouthState and Independent including, among others, (i) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized, (ii) the risk that the integration of Independent's operations into SouthState's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate Independent's businesses into SouthState's businesses, (iii) the amount of the costs, fees, expenses and charges related to the merger, and (iv) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (4) risks relating to the ability to retain our culture and attract and retain qualified people as we grow and are located in new markets, and being able to offer competitive salaries and benefits, including flexibility of working remotely or in the office; (5) deposit attrition, client loss or revenue loss following completed mergers or acquisitions that may be greater than anticipated; (6) credit risks associated with an obligor's failure to meet the terms of any contract with the Bank or otherwise fail to perform as agreed under the terms of any loan-related document; (7) interest rate risk primarily resulting from our inability to effectively manage the risk, and their impact on the Bank's earnings, including from the correspondent and mortgage divisions, housing demand, the market value of the Bank's loan and securities portfolios, and the market value of SouthState's equity; (8) a decrease in our net interest income due to the interest rate environment; (9) liquidity risk affecting the Bank's ability to meet its obligations when they come due; (10) unexpected outflows of uninsured deposits may require us to sell investment securities at a loss; (11) potential deterioration in real estate values; (12) the loss of value of our investment portfolio could negatively impact market perceptions of us and could lead to deposit withdrawals; (13) price risk focusing on changes in market factors that may affect the value of traded instruments in "mark-to-market" portfolios; (14) transaction risk arising from problems with service or product delivery; (15) the impact of increasing digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on the Bank's results of operations, customer base, expenses, suppliers and operations; (16) controls and procedures risk, including the potential failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures; (17) volatility in the financial services industry (including failures or rumors of failures of other depository institutions), along with actions taken by governmental agencies to address such turmoil, could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; (18) the impact of competition with other financial institutions, including deposit and loan pricing pressures and the resulting impact, including as a result of compression to net interest margin; (19) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards, and contractual obligations regarding data privacy and cybersecurity; (20) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and including the impact of special FDIC assessments, the Consumer Financial Protection Bureau regulations or other guidance, and the possibility of changes in accounting standards, policies, principles and practices; (21) risks related to the legal, regulatory, and supervisory environment, including changes in financial services legislation, regulation, policies, or government officials or other personnel; (22) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (23) reputation risk that adversely affects earnings or capital arising from negative public opinion including the effects of social media on market perceptions of us and banks generally; (24) cybersecurity risk related to the dependence of SouthState on internal computer systems and the technology of outside service providers, as well as the potential impacts of internal or external security breaches, which may subject the Company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (25) reputational and operational risks associated with environment, social and governance (ESG) matters, including the impact of changes in federal and state laws, regulations and guidance relating to climate change; (26) excessive loan losses; (27) reputational risk and possible higher than estimated reduced revenue from previously announced or proposed regulatory changes in the Bank's consumer programs and products; (28) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash consideration; (29) catastrophic events such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including public health crises and infectious disease outbreaks, as well as any government actions in response to such events, and the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on SouthState and its customers and other constituencies; (30) geopolitical risk from terrorist activities and armed conflicts that may result in economic and supply disruptions, and loss of market and consumer confidence; (31) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (32) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations as well as the discretion of the board of directors of SouthState, SouthState's performance and other factors; (33) ownership dilution risk associated with potential acquisitions in which SouthState's stock may be issued as consideration for an acquired company; and (34) other factors that may affect future results of SouthState, as disclosed in SouthState's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by SouthState with the U.S. Securities and Exchange Commission ("SEC") and available on the SEC's website at http://www.sec.gov, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward-looking statements.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. SouthState does not undertake any obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.Cision

View original content to download multimedia:https://www.prnewswire.com/news-releases/southstate-corporation-reports-first-quarter-2025-results-declares-quarterly-cash-dividend-302437789.html

SOURCE SouthState Corporation

View Comments