SouthState Corporation Reports Second Quarter 2025 Results, Declares an Increase in the Quarterly Cash Dividend
WINTER HAVEN, Fla., July 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 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:
Returns
Reported 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
Performance
Net 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 Sheet
Loans 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†
∗ Annualized percentages
† Preliminary
Subsequent Events
The 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
Financial Performance
Three 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 %
Performance and Capital Ratios
Three Months Ended
Six Months Ended
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Jun. 30,
Jun. 30,
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
