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

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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.

"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†

∗  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

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