SouthState Bank Corporation Reports First Quarter 2026 Results, Declares Quarterly Cash Dividend
"SouthState opened the year with strong momentum, posting solid balance sheet growth, record pipeline activity, and healthy profitability," said John C. Corbett, SouthState's Chief Executive Officer. "On an annualized basis, loans increased 7% and deposits grew 5%, and we continue to attract talented commercial bankers who are helping drive future growth. Asset quality remains strong, with annualized net charge-offs of just 9 basis points. In terms of profitability, we delivered a return on average assets of 1.37%. Over the past year, tangible book value per share increased 14%, even as we repurchased nearly 4% of our shares — underscoring our confidence in SouthState's performance and our commitment to creating long-term value for shareholders."
Highlights of the first quarter of 2026 include:
Returns
Performance
Balance Sheet
Subsequent Events
∗ Annualized percentages
† Preliminary
Financial Performance
Three Months Ended
(Dollars in thousands, except per share data)
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
INCOME STATEMENT
2026
2025
2025
2025
2025
Interest Income
Loans, including fees (1)
$
721,571
$
748,106
$
782,382
$
746,448
$
724,640
Investment securities, trading securities, federal funds sold and securities
purchased under agreements to resell
95,258
100,640
99,300
94,056
83,926
Total interest income
816,829
848,746
881,682
840,504
808,566
Interest Expense
Deposits
238,522
250,189
257,271
241,593
245,957
Federal funds purchased, securities sold under agreements
to repurchase, and other borrowings
16,702
17,442
24,714
20,963
18,062
Total interest expense
255,224
267,631
281,985
262,556
264,019
Net Interest Income
561,605
581,115
599,697
577,948
544,547
Provision for credit losses
10,808
6,605
5,085
7,505
100,562
Net Interest Income after Provision for Credit Losses
550,797
574,510
594,612
570,443
443,985
Noninterest Income
Operating income
100,098
105,753
99,086
86,817
85,620
Securities losses, net
—
—
—
—
(228,811)
Gain on sale leaseback, net of transaction costs
—
—
—
—
229,279
Total noninterest income
100,098
105,753
99,086
86,817
86,088
Noninterest Expense
Operating expense
359,524
364,196
351,453
350,682
340,820
Merger, branch consolidation, severance related, and other expense (8)
—
4,494
20,889
24,379
68,006
FDIC special assessment
—
(3,835)
—
—
—
Total noninterest expense
359,524
364,855
372,342
375,061
408,826
Income before Income Tax Provision
291,371
315,408
321,356
282,199
121,247
Income tax provision
65,551
67,686
74,715
66,975
32,167
Net Income
$
225,820
$
247,722
$
246,641
$
215,224
$
89,080
Adjusted Net Income (non-GAAP) (2)
Net Income (GAAP)
$
225,820
$
247,722
$
246,641
$
215,224
$
89,080
Securities losses, net of tax
—
—
—
—
178,639
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
expense, net of tax (8)
—
3,529
16,032
18,593
53,094
Deferred tax asset remeasurement
—
—
—
—
5,581
FDIC special assessment, net of tax
—
(3,012)
—
—
—
Adjusted Net Income (non-GAAP)
$
225,820
$
248,239
$
262,673
$
233,817
$
219,282
Basic earnings per common share
$
2.29
$
2.48
$
2.44
$
2.12
$
0.88
Diluted earnings per common share
$
2.28
$
2.46
$
2.42
$
2.11
$
0.87
Adjusted net income per common share - Basic (non-GAAP) (2)
$
2.29
$
2.48
$
2.60
$
2.30
$
2.16
Adjusted net income per common share - Diluted (non-GAAP) (2)
$
2.28
$
2.47
$
2.58
$
2.30
$
2.15
Dividends per common share
$
0.60
$
0.60
$
0.60
$
0.54
$
0.54
Basic weighted-average common shares outstanding
98,544,242
100,063,315
101,218,431
101,495,456
101,409,624
Diluted weighted-average common shares outstanding
98,922,258
100,618,796
101,735,095
101,845,360
101,828,600
Effective tax rate
22.50 %
21.46 %
23.25 %
23.73 %
26.53 %
Adjusted effective tax rate
22.50 %
21.46 %
23.25 %
23.73 %
21.93 %
Performance and Capital Ratios
Three Months Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
2026
2025
2025
2025
2025
PERFORMANCE RATIOS
Return on average assets (annualized)
1.37
%
1.47
%
1.49
%
1.34
%
0.56
%
Adjusted return on average assets (annualized) (non-GAAP) (2)
1.37
%
1.48
%
1.59
%
1.45
%
1.38
%
Return on average common equity (annualized)
10.11
%
10.90
%
11.04
%
9.93
%
4.29
%
Adjusted return on average common equity (annualized) (non-GAAP) (2)
10.11
%
10.92
%
11.75
%
10.79
%
10.56
%
Return on average tangible common equity (annualized) (non-GAAP) (3)
17.59
%
19.10
%
19.62
%
18.17
%
8.99
%
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)
17.59
%
19.14
%
20.81
%
19.61
%
19.85
%
Efficiency ratio (tax equivalent)
51.05
%
49.65
%
49.88
%
52.75
%
60.97
%
Adjusted efficiency ratio (non-GAAP) (4)
51.05
%
49.56
%
46.89
%
49.09
%
50.24
%
Dividend payout ratio (5)
26.12
%
24.23
%
24.59
%
25.47
%
61.45
%
Book value per common share
$
92.21
$
91.38
$
89.14
$
86.71
$
84.99
Tangible book value per common share (non-GAAP) (3)
$
56.90
$
56.27
$
54.48
$
51.96
$
50.07
CAPITAL RATIOS
Equity-to-assets
13.3
%
13.5
%
13.6
%
13.4
%
13.2
%
Tangible equity-to-tangible assets (non-GAAP) (3)
8.6
%
8.8
%
8.8
%
8.5
%
8.2
%
Tier 1 leverage (6)
9.4
%
9.3
%
9.4
%
9.2
%
8.9
%
Tier 1 common equity (6)
11.3
%
11.4
%
11.5
%
11.2
%
11.0
%
Tier 1 risk-based capital (6)
11.3
%
11.4
%
11.5
%
11.2
%
11.0
%
Total risk-based capital (6)
13.7
%
13.8
%
14.0
%
14.5
%
13.7
%
Ending Balance
(Dollars in thousands, except per share and share data)
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
BALANCE SHEET
2026
2025
2025
2025
2025
Assets
Cash and due from banks
$
598,218
$
583,375
$
582,792
$
755,798
$
688,153
Federal funds sold and interest-earning deposits with banks
2,268,864
2,589,108
2,561,663
2,708,308
2,611,537
Cash and cash equivalents
2,867,082
3,172,483
3,144,455
3,464,106
3,299,690
Trading securities, at fair value
117,590
110,183
107,519
95,306
107,401
Investment securities:
Securities held to maturity
2,007,249
2,048,030
2,096,727
2,145,991
2,195,980
Securities available for sale, at fair value
6,530,348
6,313,756
6,042,800
5,927,867
5,853,369
Other investments
370,924
353,428
366,218
357,487
345,695
Total investment securities
8,908,521
8,715,214
8,505,745
8,431,345
8,395,044
Loans held for sale
327,935
345,343
346,673
318,985
357,918
Loans:
Purchased credit deteriorated
2,818,360
2,977,499
3,160,359
3,409,186
3,634,490
Purchased non-credit deteriorated
10,714,489
11,232,414
11,877,828
12,492,553
13,084,853
Non-acquired
35,963,934
34,388,614
32,629,724
31,365,508
30,047,389
Less allowance for credit losses
(585,882)
(585,197)
(590,133)
(621,046)
(623,690)
Loans, net
48,910,901
48,013,330
47,077,778
46,646,201
46,143,042
Premises and equipment, net
993,584
994,176
961,510
964,878
946,334
Bank owned life insurance
1,302,382
1,293,574
1,285,532
1,280,632
1,273,472
Mortgage servicing rights
90,018
84,032
84,491
85,836
87,742
Core deposit and other intangibles
364,686
386,326
409,890
433,458
455,443
Goodwill
3,094,059
3,094,059
3,094,059
3,094,059
3,088,059
Other assets
1,002,465
988,692
1,030,558
1,078,516
981,309
Total assets
$
67,979,223
$
67,197,412
$
66,048,210
$
65,893,322
$
65,135,454
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing
$
13,650,799
$
13,375,697
$
13,430,459
$
13,719,030
$
13,757,255
Interest-bearing
42,224,864
41,770,100
40,642,810
39,977,931
39,580,360
Total deposits
55,875,663
55,145,797
54,073,269
53,696,961
53,337,615
Federal funds purchased and securities
sold under agreements to repurchase
643,386
618,215
594,092
630,558
679,337
Other borrowings
696,642
696,536
696,429
1,099,705
752,798
Reserve for unfunded commitments
69,229
69,619
68,538
64,693
62,253
Other liabilities
1,663,387
1,608,137
1,604,756
1,600,271
1,679,090
Total liabilities
58,948,307
58,138,304
57,037,084
57,092,188
56,511,093
Shareholders' equity:
Common stock - $2.50 par value; authorized 160,000,000 shares
244,844
247,845
252,723
253,745
253,698
Surplus
6,332,285
6,480,471
6,647,952
6,679,028
6,667,277
Retained earnings
2,779,896
2,614,173
2,426,463
2,240,470
2,080,053
Accumulated other comprehensive loss
(326,109)
(283,381)
(316,012)
(372,109)
(376,667)
Total shareholders' equity
9,030,916
9,059,108
9,011,126
8,801,134
8,624,361
Total liabilities and shareholders' equity
$
67,979,223
$
67,197,412
$
66,048,210
$
65,893,322
$
65,135,454
Common shares issued and outstanding
97,937,653
99,138,204
101,089,231
101,498,000
101,479,065
Net Interest Income and Margin
Three Months Ended
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
(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
$
1,881,020
$
15,792
3.40 %
$
2,703,627
$
25,580
3.75 %
$
2,199,800
$
22,540
4.16 %
Investment securities
9,221,416
79,466
3.49 %
8,760,360
75,060
3.40 %
8,325,775
61,386
2.99 %
Loans held for sale
223,084
3,732
6.78 %
298,600
5,201
6.91 %
174,833
3,678
8.53 %
Total loans held for investment
48,875,656
717,839
5.96 %
48,109,526
742,905
6.13 %
46,797,045
720,962
6.25 %
Total interest-earning assets
60,201,176
816,829
5.50 %
59,872,113
848,746
5.62 %
57,497,453
808,566
5.70 %
Noninterest-earning assets
6,726,355
6,767,257
6,785,973
Total Assets
$
66,927,531
$
66,639,370
$
64,283,426
Interest-Bearing Liabilities ("IBL"):
Transaction and money market accounts
$
31,499,841
$
172,453
2.22 %
$
30,598,366
$
178,129
2.31 %
$
29,249,015
$
176,949
2.45 %
Savings deposits
2,822,510
1,642
0.24 %
2,834,358
1,827
0.26 %
2,904,961
1,944
0.27 %
Certificates and other time deposits
7,215,388
64,427
3.62 %
7,560,350
70,233
3.69 %
7,165,188
67,064
3.80 %
Federal funds purchased
295,207
2,635
3.62 %
334,401
3,297
3.91 %
323,400
3,479
4.36 %
Repurchase agreements
319,873
1,561
1.98 %
294,259
1,462
1.97 %
298,305
1,430
1.94 %
Other borrowings
696,597
12,506
7.28 %
696,485
12,683
7.22 %
812,136
13,153
6.57 %
Total interest-bearing liabilities
42,849,416
255,224
2.42 %
42,318,219
267,631
2.51 %
40,753,005
264,019
2.63 %
Noninterest-bearing deposits
13,359,214
13,644,784
13,493,329
Other noninterest-bearing liabilities
1,661,672
1,656,851
1,618,980
Shareholders' equity
9,057,229
9,019,516
8,418,112
Total Non-IBL and shareholders' equity
24,078,115
24,321,151
23,530,421
Total Liabilities and Shareholders' Equity
$
66,927,531
$
66,639,370
$
64,283,426
Net Interest Income and Margin (Non-Tax Equivalent)
$
561,605
3.78 %
$
581,115
3.85 %
$
544,547
3.84 %
Net Interest Margin (Tax Equivalent) (non-GAAP)
3.79 %
3.86 %
3.85 %
Total Deposit Cost (without Debt and Other Borrowings)
1.76 %
1.82 %
1.89 %
Overall Cost of Funds (including Demand Deposits)
1.84 %
1.90 %
1.97 %
Total Accretion on Acquired Loans (1)
$
38,786
$
50,327
$
61,798
Tax Equivalent ("TE") Adjustment
$
760
$
800
$
784
• The remaining loan discount on acquired loans to be accreted into loan interest income totals $219.0 million as of March 31, 2026.
Noninterest Income and Expense
Three Months Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
(Dollars in thousands)
2026
2025
2025
2025
2025
Noninterest Income:
Fees on deposit accounts
$
38,699
$
41,950
$
42,572
$
37,869
$
35,933
Mortgage banking income
11,016
5,158
5,462
5,936
7,737
Trust and investment services income
14,471
14,684
14,157
14,419
14,932
Correspondent banking and capital markets income
24,427
30,638
25,522
19,161
16,715
Expense on centrally-cleared variation margin
(3,000)
(3,167)
(4,318)
(5,394)
(7,170)
Total correspondent banking and capital markets income
21,427
27,471
21,204
13,767
9,545
Bank owned life insurance income
9,494
9,633
10,597
9,153
10,199
Other
4,991
6,857
5,094
5,673
7,275
Securities losses, net
—
—
—
—
(228,811)
Gain on sale leaseback, net of transaction costs
—
—
—
—
229,279
Total Noninterest Income
$
100,098
$
105,753
$
99,086
$
86,817
$
86,088
Noninterest Expense:
Salaries and employee benefits
$
205,653
$
202,714
$
199,148
$
200,162
$
195,811
Occupancy expense
42,302
42,567
40,874
41,507
35,493
Information services expense
29,704
30,443
28,988
30,155
31,362
OREO and loan related expense
4,378
867
5,427
2,295
1,784
Business development and staff related
11,362
13,485
8,907
7,182
6,510
Amortization of intangibles
21,304
23,417
23,426
24,048
23,831
Professional fees
5,239
7,410
4,994
4,658
4,709
Supplies and printing expense
3,254
3,594
3,278
3,970
3,128
FDIC assessment and other regulatory charges
10,257
9,884
8,374
11,469
11,258
Advertising and marketing
3,325
4,710
2,980
3,010
2,290
Other operating expenses
22,746
25,105
25,057
22,226
24,644
Merger, branch consolidation, severance related and other expense (8)
—
4,494
20,889
24,379
68,006
FDIC special assessment
—
(3,835)
—
—
—
Total Noninterest Expense
$
359,524
$
364,855
$
372,342
$
375,061
$
408,826
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)
2026
2025
2025
2025
2025
Construction and land development * †
$
2,592,908
$
2,548,360
$
2,678,971
$
3,323,923
$
3,497,909
Investor commercial real estate*
18,298,938
17,883,913
17,603,205
16,953,410
16,822,119
Commercial owner occupied real estate
7,671,535
7,576,991
7,529,075
7,497,906
7,417,116
Commercial and industrial
9,385,926
9,181,408
8,644,636
8,445,878
8,106,484
Consumer real estate *
10,573,897
10,450,223
10,202,026
10,038,369
9,838,952
Consumer/other
973,579
957,632
1,009,998
1,007,761
1,084,152
Total Loans
$
49,496,783
$
48,598,527
$
47,667,911
$
47,267,247
$
46,766,732
* 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 $360.4 million, $342.8 million, $350.2 million, $371.1 million, and $343.5 million for
the quarters ended March 31, 2036, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
Ending Balance
(Dollars in thousands)
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
DEPOSITS
2026
2025
2025
2025
2025
Noninterest-bearing checking
$
13,650,799
$
13,375,697
$
13,430,459
$
13,719,030
$
13,757,255
Interest-bearing checking
14,119,614
13,838,558
12,906,408
12,607,205
12,034,973
Savings
2,841,408
2,820,621
2,853,410
2,889,670
2,939,407
Money market
18,014,140
17,751,688
17,251,469
16,772,597
17,447,738
Time deposits
7,249,702
7,359,233
7,631,523
7,708,459
7,158,242
Total Deposits
$
55,875,663
$
55,145,797
$
54,073,269
$
53,696,961
$
53,337,615
Asset Quality
Ending Balance
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
(Dollars in thousands)
2026
2025
2025
2025
2025
NONPERFORMING ASSETS:
Non-acquired
Non-acquired nonaccrual loans and restructured loans on nonaccrual
$
177,158
$
161,975
$
146,751
$
141,910
$
151,673
Accruing loans past due 90 days or more
6,915
2,997
4,352
3,687
3,273
Non-acquired OREO and other nonperforming assets
8,339
5,273
11,969
17,288
2,290
Total non-acquired nonperforming assets
192,412
170,245
163,072
162,885
157,236
Acquired
Acquired nonaccrual loans and restructured loans on nonaccrual
116,002
135,179
149,695
151,466
116,691
Accruing loans past due 90 days or more
1,986
1,944
891
707
537
Acquired OREO and other nonperforming assets
18,155
3,901
7,147
8,783
5,976
Total acquired nonperforming assets
136,143
141,024
157,733
160,956
123,204
Total nonperforming assets
$
328,555
$
311,269
$
320,805
$
323,841
$
280,440
Three Months Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
2026
2025
2025
2025
2025
ASSET QUALITY RATIOS (7):
Allowance for credit losses as a percentage of loans
1.18 %
1.20 %
1.24 %
1.31 %
1.33 %
Allowance for credit losses, including reserve for unfunded commitments,
as a percentage of loans
1.32 %
1.35 %
1.38 %
1.45 %
1.47 %
Allowance for credit losses as a percentage of nonperforming loans
193.96 %
193.71 %
195.61 %
208.57 %
229.15 %
Net charge-offs as a percentage of average loans (annualized)
0.09 %
0.09 %
0.27 %
0.21 %
0.38 %
Net charge-offs, excluding acquisition date charge-offs, as a percentage
of average loans (annualized) *
0.09 %
0.09 %
0.27 %
0.06 %
0.04 %
Total nonperforming assets as a percentage of total assets
0.48 %
0.46 %
0.49 %
0.49 %
0.43 %
Nonperforming loans as a percentage of period end loans
0.61 %
0.62 %
0.63 %
0.63 %
0.58 %
* 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 2026:
Allowance for Credit Losses ("ACL") and Unfunded Commitments ("UFC")
(Dollars in thousands)
Non-PCD ACL
PCD ACL
Total ACL
UFC
Ending balance 12/31/2025
$
516,041
$
69,156
$
585,197
$
69,619
Charge offs
(12,848)
—
(12,848)
—
Acquired charge offs
(747)
(839)
(1,586)
—
Recoveries
2,805
—
2,805
—
Acquired recoveries
228
888
1,116
—
Provision for credit losses
15,140
(3,942)
11,198
(390)
Ending balance 3/31/2026
$
520,619
$
65,263
$
585,882
$
69,229
Period end loans
$
46,678,423
$
2,818,360
$
49,496,783
N/A
Allowance for Credit Losses to Loans
1.12 %
2.32 %
1.18 %
N/A
Unfunded commitments (off balance sheet) †
$
12,009,859
Reserve to unfunded commitments (off balance sheet)
0.58 %
† 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 24, 2026. 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 24, 2026 on the Investor Relations section of SouthStateBank.com.
SouthState is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than 1.8 million customers throughout Florida, Texas, the Carolinas, Georgia, Colorado, Alabama, Virginia and Tennessee. The bank also serves clients nationwide 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, 2026
Dec. 31, 2025
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Net income (GAAP)
$
225,820
$
247,722
$
246,641
$
215,224
$
89,080
Provision (recovery) for credit losses
10,808
6,605
5,085
7,505
100,562
Income tax provision
65,551
67,686
74,715
66,975
26,586
Income tax provision - deferred tax asset remeasurement
—
—
—
—
5,581
Securities losses, net
—
—
—
—
228,811
Gain on sale leaseback, net of transaction costs
—
—
—
—
(229,279)
Merger, branch consolidation, severance related and other expense (8)
—
4,494
20,889
24,379
68,006
FDIC special assessment
—
(3,835)
—
—
—
Pre-provision net revenue (PPNR) (Non-GAAP)
$
302,179
$
322,672
$
347,330
$
314,083
$
289,347
(Dollars in thousands)
Three Months Ended
NET INTEREST MARGIN ("NIM"), TE (NON-GAAP)
Mar. 31, 2026
Dec. 31, 2025
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Net interest income (GAAP)
$
561,605
$
581,115
$
599,697
$
577,948
$
544,547
Total average interest-earning assets
60,201,176
59,872,113
58,727,110
57,710,001
57,497,453
NIM, non-tax equivalent
3.78
%
3.85
%
4.05
%
4.02
%
3.84
%
Tax equivalent adjustment (included in NIM, TE)
760
800
718
672
784
Net interest income, tax equivalent (Non-GAAP)
$
562,365
$
581,915
$
600,415
$
578,620
$
545,331
NIM, TE (Non-GAAP)
3.79
%
3.86
%
4.06
%
4.02
%
3.85
%
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
2026
2025
2025
2025
2025
Adjusted Net Income (non-GAAP) (2)
Net income (GAAP)
$
225,820
$
247,722
$
246,641
$
215,224
$
89,080
Securities losses, net of tax
—
—
—
—
178,639
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 expense, net of tax (8)
—
3,529
16,032
18,593
53,094
Deferred tax asset remeasurement
—
—
—
—
5,581
FDIC special assessment, net of tax
—
(3,012)
—
—
—
Adjusted net income (non-GAAP)
$
225,820
$
248,239
$
262,673
$
233,817
$
219,282
Adjusted Net Income per Common Share - Basic (non-GAAP) (2)
Earnings per common share - Basic (GAAP)
$
2.29
$
2.48
$
2.44
$
2.12
$
0.88
Effect to adjust for securities losses, net of tax
—
—
—
—
1.76
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 expense, net of tax (8)
—
0.03
0.16
0.18
0.52
Effect to adjust for deferred tax asset remeasurement
—
—
—
—
0.06
Effect to adjust for FDIC special assessment, net of tax
—
(0.03)
—
—
—
Adjusted net income per common share - Basic (non-GAAP)
$
2.29
$
2.48
$
2.60
$
2.30
$
2.16
Adjusted Net Income per Common Share - Diluted (non-GAAP) (2)
Earnings per common share - Diluted (GAAP)
$
2.28
$
2.46
$
2.42
$
2.11
$
0.87
Effect to adjust for securities losses, net of tax
—
—
—
—
1.76
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 expense, net of tax (8)
—
0.04
0.16
0.19
0.52
Effect to adjust for deferred tax remeasurement
—
—
—
—
0.05
Effect to adjust for FDIC special assessment, net of tax
—
(0.03)
—
—
—
Adjusted net income per common share - Diluted (non-GAAP)
$
2.28
$
2.47
$
2.58
$
2.30
$
2.15
Adjusted Return on Average Assets (non-GAAP) (2)
Return on average assets (GAAP)
1.37
%
1.47
%
1.49
%
1.34
%
0.56
%
Effect to adjust for securities losses, net of tax
—
%
—
%
—
%
—
%
1.13
%
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 expense, net of tax (8)
—
%
0.03
%
0.10
%
0.11
%
0.33
%
Effect to adjust for deferred tax remeasurement
—
%
—
%
—
%
—
%
0.04
%
Effect to adjust for FDIC special assessment, net of tax
—
%
(0.02)
%
—
%
—
%
—
%
Adjusted return on average assets (non-GAAP)
1.37
%
1.48
%
1.59
%
1.45
%
1.38
%
Adjusted Return on Average Common Equity (non-GAAP) (2)
Return on average common equity (GAAP)
10.11
%
10.90
%
11.04
%
9.93
%
4.29
%
Effect to adjust for securities losses, net of tax
—
%
—
%
—
%
—
%
8.61
%
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 expense, net of tax (8)
—
%
0.15
%
0.71
%
0.86
%
2.56
%
Effect to adjust for deferred tax remeasurement
—
%
—
%
—
%
—
%
0.27
%
Effect to adjust for FDIC special assessment, net of tax
—
%
(0.13)
%
—
%
—
%
—
%
Adjusted return on average common equity (non-GAAP)
10.11
%
10.92
%
11.75
%
10.79
%
10.56
%
Return on Average Common Tangible Equity (non-GAAP) (3)
Return on average common equity (GAAP)
10.11
%
10.90
%
11.04
%
9.93
%
4.29
%
Effect to adjust for intangible assets
7.48
%
8.20
%
8.58
%
8.24
%
4.70
%
Return on average tangible equity (non-GAAP)
17.59
%
19.10
%
19.62
%
18.17
%
8.99
%
Adjusted Return on Average Common Tangible Equity (non-GAAP) (2) (3)
Return on average common equity (GAAP)
10.11
%
10.90
%
11.04
%
9.93
%
4.29
%
Effect to adjust for securities losses, net of tax
—
%
—
%
—
%
—
%
8.61
%
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 expense, net of tax (8)
—
%
0.15
%
0.71
%
0.86
%
2.56
%
Effect to adjust for deferred tax remeasurement
—
%
—
%
—
%
—
%
0.27
%
Effect to adjust for FDIC special assessment, net of tax
—
%
(0.13)
%
—
%
—
%
—
%
Effect to adjust for intangible assets, net of tax
7.48
%
8.22
%
9.06
%
8.82
%
9.29
%
Adjusted return on average common tangible equity (non-GAAP)
17.59
%
19.14
%
20.81
%
19.61
%
19.85
%
Three Months Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
RECONCILIATION OF GAAP TO NON-GAAP
2026
2025
2025
2025
2025
Adjusted Efficiency Ratio (non-GAAP) (4)
Efficiency ratio
51.05
%
49.65
%
49.88
%
52.75
%
60.97
%
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 expense (8)
—
%
(0.65)
%
(2.99)
%
(3.66)
%
(10.77)
%
Effect to adjust for FDIC special assessment
—
%
0.56
%
—
%
—
%
—
%
Adjusted efficiency ratio
51.05
%
49.56
%
46.89
%
49.09
%
50.24
%
Tangible Book Value Per Common Share (non-GAAP) (3)
Book value per common share (GAAP)
$
92.21
$
91.38
$
89.14
$
86.71
$
84.99
Effect to adjust for intangible assets
(35.31)
(35.11)
(34.66)
(34.75)
(34.92)
Tangible book value per common share (non-GAAP)
$
56.90
$
56.27
$
54.48
$
51.96
$
50.07
Tangible Equity-to-Tangible Assets (non-GAAP) (3)
Equity-to-assets (GAAP)
13.28
%
13.48
%
13.64
%
13.36
%
13.24
%
Effect to adjust for intangible assets
(4.64)
%
(4.72)
%
(4.83)
%
(4.90)
%
(4.99)
%
Tangible equity-to-tangible assets (non-GAAP)
8.64
%
8.76
%
8.81
%
8.46
%
8.25
%
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 $38.8 million, $50.3 million, $83.0 million, $63.5 million, and $61.8 million during the quarters ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, 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 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 expense of $4.5 million, $20.9 million, $24.4 million, and $68.0 million for the quarters ended December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively; (b) pre-tax net securities losses of $(228,811) for the quarter ended March 31, 2025; (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 $(3.8) million for the quarter ended December 31, 2025; 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 expenses, FDIC special assessment, 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 $21.3 million, $23.4 million, $23.4 million, $24.0 million, and $23.8 million for the quarters ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, 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, 2026 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 (net reimbursement)/costs of $3,000, $(3.6) million, and $111,000 for the quarters ended September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
Cautionary Statement Regarding Forward Looking Statements
Statements included in this communication contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of management of SouthState Bank Corporation ("SouthState") and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward looking statements.
Factors that could cause SouthState's actual results to differ materially from those described in the forward looking statements are discussed in SouthState's Annual Report on Form 10 K for the year ended December 31, 2025, filed with the Securities and Exchange Commission and available on SouthState's website ( https://southstatecorporation.q4ir.com/SEC-Filings/Documents/default.aspx), and on the Securities and Exchange Commission's website ( www.sec.gov). SouthState undertakes no obligation to update any forward looking statements.
SOURCE SouthState Bank Corporation