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Key Takeaways SouthState gained 12% in three months, outperforming the industry and key regional bank peers.Loan growth, lower funding costs and balance sheet optimization are supporting SSB's NII momentum.Rising expenses and heavy real estate loan exposure remain key risks to SouthState's growth outlook. Shares of SouthState Bank Corporation (SSB - Free Report) have gained 12% over the past three months, outperforming the industry’s growth of 3.9%. Among its close peers, Regions Financial Corporation (RF - Free Report) shares have gained 5.3%, while shares of Flagstar Bank, National Association (FLG - Free Report) have lost 4.4% over the same period.

Price Performance
Image Source: Zacks Investment Research

Although SSB shares have outperformed the industry and peers over the past three months, the stock has witnessed volatile movements during the period. Can SSB maintain its recent pace? Let’s take a closer look.

What’s Behind SSB Stock’s Strength?Solid Organic Growth: SouthState’s organic growth remains robust, supported by healthy loan expansion and sustained revenue growth. Its loans witnessed a compound annual growth rate (CAGR) of 14.7% over the last five years (2020-2025), supported by expansion in higher-growth markets, strong loan pipelines and low-cost deposits. The uptrend continued in the first half of 2026, with loans increasing year over year. Looking ahead, continued expansion in higher-growth markets, strong loan pipelines and buyout opportunities are likely to support loan growth. Management expects loans to grow in the mid- to upper-single-digit range in 2026, with results potentially near the high end of that range.

The company’s revenues also witnessed a CAGR of 18.7% over the same period, supported by higher loans and solid non-interest income performance. The growth trend continued in the first half of 2026. Going forward, lower funding/deposit costs, along with continued loan growth, are likely to support net interest income (NII) growth, while solid non-interest income performance is expected to drive overall revenue growth.

Analysts also remain optimistic about the company’s revenue prospects. The Zacks Consensus Estimate for 2026 and 2027 revenues is pegged at $2.7 billion and $2.9 billion, respectively, indicating year-over-year growth of 1.8% and 6.1%, respectively.

Revenue Estimates
Image Source: Zacks Investment Research

NII Growth Outlook: SSB has demonstrated strong NII growth, supported by balance sheet optimization, securities restructuring and favorable deposit pricing. Its NII witnessed a 22.7% CAGR over the five years ending 2025. Although net interest margin (NIM) (Tax Equivalent or TE) declined to 3.43% in 2024 from 3.63% in 2023 due to higher funding costs, it improved to 3.95% in 2025 as funding pressures eased and the company optimized its balance sheet through initiatives such as the sale-leaseback transaction and investment portfolio repositioning.

The company continued to maintain NII growth momentum in the first half of 2026, although NIM declined during the period. The Federal Reserve has kept its interest rate steady at 3.5%-3.75% since the beginning of 2026, providing a relatively stable interest-rate environment for SSB. Looking ahead, stable funding costs are expected to support NII and NIM. Further, legacy loan repricing, potential securities restructuring and growth in average earning assets are likely to provide additional support to net interest income and margins. These factors should help SSB strengthen its core spread income and sustain earnings growth.

Strategic Initiatives to Drive Growth: SouthState has been actively expanding through strategic acquisitions, strengthening its presence in high-growth markets and enhancing its competitive positioning. In January 2025, the company acquired Independent Bank, deepening its presence in Texas and expanding into Colorado. The transaction significantly increased its scale, taking total assets to $65.1 billion and expanding its footprint across 12 of the 15 fastest-growing U.S. Metropolitan Statistical Areas. Texas and Colorado are now growing at roughly the same 10-11% pace as the Southeast franchise, excluding specialty lines.

The company has also expanded through earlier acquisitions, including Atlantic Capital in 2022 to strengthen its presence in Atlanta, CenterState Bank Corporation in 2020 and Park Sterling Corporation in 2017. These acquisitions have expanded its asset base, diversified geographic footprint and strengthened its position in attractive, high-growth markets.

Wealth Management Expansion: The company’s wealth management business has been gaining momentum and contributing to non-interest income growth. Over the last five years (ending 2025), its trust and investment services income witnessed a CAGR of 14.6%, with the growth trend continuing in the first half of 2026. The business generates fees from investment management, trust, financial planning and retirement services, while also creating opportunities to deepen client relationships.

Growth was further supported by the acquisition of Independent Bank, which added Private Capital Management (PCM) to SSB’s wealth-management platform. PCM was later merged with SouthState Advisory, strengthening the company’s wealth-management capabilities and expanding its client base. Going forward, higher client assets, new client additions and cross-selling opportunities are expected to support trust and investment services income, driving fee-income growth and further diversifying SSB’s revenue mix.

Strong Liquidity Supports Capital Distribution: SSB maintains a solid liquidity position, with cash and cash equivalents of $2.35 billion as of June 30, 2026, comfortably exceeding its $1.57-billion wholesale borrowings.

Supported by this liquidity cushion, the company has maintained a consistent capital distribution policy, increasing its dividend every year since 2020. In July 2026, the board raised the quarterly dividend by 10% to 66 cents per share. Over the past five years, the company has increased its dividend five times, delivering a five-year annualized dividend growth rate of 4.7%. Further, its current dividend yield of 2.5% compares favorably with the industry's average of 2.3%. Likewise, its peers, Regions Financial and Flagstar Bank, offer dividend yields of 3.5% and 2.3%, respectively.

Dividend Yield
Image Source: Zacks Investment Research

Apart from regular dividend hikes, SouthState also returns capital through share repurchases. In January 2026, the board authorized the repurchase of up to 5.56 million shares, with nearly 3 million shares remaining under the authorization as of June 30, 2026. Management expects the longer-term total payout ratio to remain within 40-60%, balancing dividends and share repurchases. Given its solid liquidity, consistent dividend growth and flexible capital deployment strategy, SSB's shareholder return initiatives appear sustainable and should continue to support long-term shareholder value.

What’s Hurting SSB’s GrowthElevated Expense Base: The company’s non-interest expenses witnessed a CAGR of 13.8% over the last five years through 2025, with the uptrend continuing in the first half of 2026. The higher expenses were driven by higher compensation, occupancy, information services and other operating costs. The company continues to add bankers and invest in technology and artificial intelligence, while its commercial relationship manager base grew more than 10% over three quarters, raising compensation costs. Management expects 2026 expenses to increase 4% to $1.46-$1.47 billion. Hence, rising costs could limit SSB’s operating leverage if revenue growth slows.

Expense Trend
Image Source: Zacks Investment Research

High Real Estate Loan Concentration: Loan concentration is another major hurdle for SSB, as a significant portion of its loan portfolio is tied to real estate. As of June 30, 2026, investor commercial real estate, owner-occupied commercial real estate and consumer real estate loans totaled $37.5 billion, representing nearly 74% of total loans.

SSB’s Loan Portfolio
Image Source: SouthState Bank Corporation

The high concentration exposes the company to weakness in the real estate market. Any deterioration in real estate conditions could increase the likelihood of loan defaults, pressure asset quality and weigh on SSB’s financial performance.

How to Approach SSB Stock NowThe company's solid organic growth prospects, diversified revenue streams and shareholder-friendly capital-return strategy are expected to support its long-term financial performance.

Over the past month, the Zacks Consensus Estimates for 2026 and 2027 earnings have remained unchanged. The estimates imply growth of 0.1% and 8.8% for 2026 and 2027, respectively. This indicates that the company is expected to deliver modest earnings growth in 2026, followed by stronger growth in 2027.

Estimate Revision Trend
Image Source: Zacks Investment Research

However, elevated expenses and significant exposure to real estate loans remain key near-term headwinds. Rising compensation and technology-related costs could limit operating leverage, while high real estate loan concentration increases SSB's sensitivity to weakness in property markets.

From a valuation perspective, SSB stock appears inexpensive relative to the industry. It is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.6X, below the industry's 10.8X. Meanwhile, Regions Financial and Flagstar Bank trade at P/E multiples of 10.8X and 13.7X, respectively.

Price-to-Earnings F12 M
Image Source: Zacks Investment Research

Given the company's growth opportunities, stable earnings outlook and capital-return initiatives, existing investors may consider retaining their positions. Those considering fresh investments may prefer to wait for a more favorable entry point, as it may take time for the company to fully realize these opportunities in the near term.

Currently, SouthState carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Algebris UK Ltd. bought a new position in SouthState Bank Corporation (NYSE:SSB – Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 575,313 shares of the company’s stock, valued at approximately $57,293,000. SouthState Bank comprises 3.8% of Algebris UK Ltd.’s holdings, making the stock its 10th largest holding. Algebris UK Ltd. owned approximately 0.59% of SouthState Bank at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in SouthState Bank in the 2nd quarter valued at $28,000. Root Financial Partners LLC grew its position in SouthState Bank by 100.0% during the first quarter. Root Financial Partners LLC now owns 420 shares of the company’s stock valued at $39,000 after buying an additional 210 shares during the period. FNY Investment Advisers LLC purchased a new stake in SouthState Bank during the second quarter worth about $50,000. Measured Wealth Private Client Group LLC purchased a new stake in SouthState Bank during the third quarter worth about $51,000. Finally, GHP Investment Advisors Inc. bought a new stake in SouthState Bank in the first quarter worth about $52,000. 89.76% of the stock is owned by hedge funds and other institutional investors.

SouthState Bank Trading Down 2.7% NYSE:SSB opened at $107.13 on Thursday. The company has a market cap of $10.39 billion, a P/E ratio of 11.26 and a beta of 0.71. The stock’s fifty day moving average price is $103.02 and its two-hundred day moving average price is $98.97. SouthState Bank Corporation has a 1 year low of $84.47 and a 1 year high of $112.20. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.94 and a quick ratio of 0.93.

SouthState Bank (NYSE:SSB – Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The company reported $2.35 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.04. The company had revenue of $672.67 million during the quarter, compared to analysts’ expectations of $676.83 million. SouthState Bank had a return on equity of 10.67% and a net margin of 25.09%.During the same period in the previous year, the business earned $2.30 earnings per share. As a group, analysts expect that SouthState Bank Corporation will post 9.51 EPS for the current year. SouthState Bank Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, August 7th were given a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 2.5%. This is an increase from SouthState Bank’s previous quarterly dividend of $0.60. The ex-dividend date was Friday, August 7th. SouthState Bank’s dividend payout ratio (DPR) is 27.76%.

Insider Buying and Selling In other SouthState Bank news, Director David R. Brooks sold 24,650 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $110.00, for a total value of $2,711,500.00. Following the sale, the director directly owned 7,900 shares in the company, valued at $869,000. This represents a 75.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO William E. V. Matthews sold 4,000 shares of the firm’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $108.93, for a total transaction of $435,720.00. Following the completion of the transaction, the chief financial officer directly owned 40,568 shares of the company’s stock, valued at approximately $4,419,072.24. The trade was a 8.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 34,831 shares of company stock valued at $3,814,274 over the last 90 days. 1.70% of the stock is owned by company insiders.

Analysts Set New Price Targets A number of research firms have recently weighed in on SSB. TD Cowen increased their target price on shares of SouthState Bank from $114.00 to $120.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. Hovde Group raised their price target on shares of SouthState Bank from $110.00 to $112.00 and gave the stock an “outperform” rating in a research note on Monday, April 27th. Stephens reaffirmed an “overweight” rating and issued a $116.00 price target on shares of SouthState Bank in a report on Monday, July 27th. Fundamental Research set a $120.00 price objective on SouthState Bank in a research note on Wednesday, July 1st. Finally, Truist Financial increased their price objective on SouthState Bank from $108.00 to $118.00 and gave the company a “buy” rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $119.64.

View Our Latest Stock Report on SSB

SouthState Bank Company Profile (Free Report)

SouthState Bank (NYSE: SSB) is a bank holding company headquartered in Winter Haven, Florida, that provides a range of commercial and retail banking services. Through its subsidiary, SouthState Bank, the company serves businesses, institutions and individuals with deposit, lending and treasury management solutions. Its core business lines include commercial and industrial loans, commercial real estate lending, consumer mortgages and home equity loans.

In addition to traditional lending and deposit products, SouthState Bank offers specialized services such as treasury and cash management, merchant services, payment solutions and online banking.

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SouthState Bank NYSE: SSB reported second-quarter 2026 results marked by continued loan growth, stable net interest margin, low credit losses and ongoing investment in banker recruiting and artificial intelligence initiatives.

Chief Executive Officer John Corbett said the company generated a 1.36% return on assets and a 17.6% return on tangible common equity during the quarter. He said results reflected “solid balance sheet growth, stable margins, improving efficiency, and continued strength in credit quality.”

Over the past year, loans increased 8% and deposits rose 5%, both within the company’s previously issued guidance ranges. During the second quarter, loan growth totaled $1.35 billion, representing an 11% annualized rate. Average loan growth also ran at an 11% annualized pace.

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Corbett said growth was broad-based across SouthState’s footprint, with Florida leading the company in loan-growth dollars. Florida, Texas and South Carolina were the largest contributors by dollar amount, while Atlanta, Virginia and Alabama posted strong percentage growth, including commercial and industrial lending gains in Atlanta.

Recruiting Supports Growth Strategy SouthState has expanded its commercial banking sales force by more than 10% over the past three quarters as it seeks to capitalize on disruption in its markets. Corbett said the company had offered division presidents the opportunity to increase their commercial relationship manager teams by 15% to 20% over several years.

The newer hires have generated $600 million of loan production so far and have a $1.5 billion pipeline, according to Corbett. Texas has been the strongest market for sales-force expansion, with its commercial relationship manager count up 25%.

The company expects loan growth to remain in the mid- to upper-single-digit range. Corbett said SouthState sees a potential mix shift in the second half, with commercial and industrial lending expected to increase while planned commercial real estate payoffs, including multifamily projects, rise.

Construction lending increased during the quarter, driven partly by owner-occupied projects for commercial clients and multifamily construction. However, Corbett noted that the overall construction category remained about 10% below its level a year earlier.

Margin Outlook Remains Stable SouthState reported a net interest margin of 3.78%, down 1 basis point from the first quarter and within its 3.75% to 3.80% guidance range. Deposit costs were unchanged from the prior quarter at 1.76%, while loan yields declined 5 basis points to 5.91% due to lower purchase-accounting accretion income.

Excluding accretion, loan yields increased 1 basis point and net interest margin rose 4 basis points, the company said. Net interest income totaled $576 million, up $14 million from the first quarter.

Chief Strategy Officer Steve Young said management’s outlook assumes no interest-rate increases or reductions through 2027 and calls for net interest margin to remain within the 3.75% to 3.80% range. He said deposit costs could rise modestly as the company funds loan growth, but anticipated asset repricing should help support the margin.

SouthState said approximately 76% of quarterly loan production carried floating rates. The share of the overall loan portfolio in floating-rate loans has increased to 38%, from 32% a year earlier.

Management also pointed to future repricing opportunities, including roughly $6 billion of loans expected to reprice over the next year and about $1 billion of securities expected to cash flow and be reinvested. Young said legacy loans with coupons in the 3% to 4% range are being replaced at rates in the 6% range.

Credit Quality and Expenses Credit quality improved during the quarter. Nonperforming assets declined 14%, classified loans also decreased, and net charge-offs were 6 basis points. It was the eighth time in the past nine quarters that SouthState’s net charge-offs were below 10 basis points.

Provision expense was $16 million, primarily reflecting loan growth. Management said it expects modest downward pressure on reserve levels absent meaningful changes in Moody’s economic forecasts and other loss drivers. The company continues to use a more conservative weighting toward Moody’s pessimistic scenario than its traditional model weighting.

Noninterest income was $97 million, or 57 basis points of average assets, within the company’s 55- to 60-basis-point guidance range. The figure was $3 million below the first quarter, as higher deposit fees were offset by lower mortgage revenue. SouthState said it continues to expect correspondent banking revenue of roughly $25 million per quarter.

Noninterest expense totaled $358 million, slightly better than guidance. Management maintained its forecast for 4% noninterest expense growth in 2026. It expects compensation costs to rise in the second half as recently hired employees remain in the run rate and company merit increases take effect July 1.

Capital Returns and Technology Investment SouthState repurchased 1 million shares during the quarter at a weighted average price of $97.62, producing a 68% total payout ratio including dividends. Year-to-date repurchases totaled 2.5 million shares and the total payout ratio was 80%.

Corbett said the company repurchased nearly 5% of its outstanding shares over the past year while increasing its dividend and maintaining a common equity tier 1 capital ratio above 11%. CET1 ended the quarter at 11.1%, tangible common equity was 8.7%, and tangible book value per share was $58.72, up 13% from a year earlier.

Management reiterated its longer-term total capital return framework of 40% to 60%, saying recent higher repurchase activity is not expected to be sustained if the company continues to target mid- to high-single-digit loan growth while maintaining CET1 in an 11% to 12% range.

Corbett also highlighted artificial intelligence as a strategic priority. The company is using the technology in credit operations, fraud management and call-center support, as well as through an internally developed small language model. SouthState is also testing commodity-hedging and foreign-exchange offerings, though Young said those initiatives are expected to launch in 2027 rather than materially affect 2026 results.

About SouthState Bank (NYSE:SSB)SouthState Bank NYSE: SSB is a bank holding company headquartered in Winter Haven, Florida, that provides a range of commercial and retail banking services. Through its subsidiary, SouthState Bank, the company serves businesses, institutions and individuals with deposit, lending and treasury management solutions. Its core business lines include commercial and industrial loans, commercial real estate lending, consumer mortgages and home equity loans.

In addition to traditional lending and deposit products, SouthState Bank offers specialized services such as treasury and cash management, merchant services, payment solutions and online banking.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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, /PRNewswire/ -- SouthState Bank 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, 2026.

SouthState Bank Corporation Reports Second Quarter 2026 Results "We continue to make progress on our priorities of balance sheet growth, opportunistic hiring, active share repurchases and building our artificial intelligence capabilities," said John C. Corbett, SouthState's Chief Executive Officer.  "The second quarter featured solid loan growth, a stable net interest margin, unchanged deposit costs, and improved efficiency.  Asset quality trends also improved, with a decline in non-accruals and charge-offs of just 6 basis points.  Over the past year, we've retired nearly 5% of our share count, raised our dividend by 11% and grown tangible book value by 13%.  We remain focused on delivering for our shareholders."

Highlights of the second quarter of 2026 include:

Returns

Reported diluted Earnings per Share ("EPS") and Adjusted Diluted EPS (Non-GAAP) of $2.35, up 11% year over year on a reported basis and 2% year over year on an adjusted basis Net Income of $230 million Return on Average Common Equity of 10.2%; Return on Average Tangible Common Equity (Non-GAAP) of 17.6%* Return on Average Assets ("ROAA") of 1.36%* Book Value per Share of $94.17 Tangible Book Value ("TBV") per Share (Non-GAAP) of $58.72, an increase of 13% year over year, after raising the dividend by 11%, and repurchasing nearly 5% of the Company's shares over the past year Performance

Net Interest Income of $576 million, an increase of $14 million, or 3%, compared to the prior quarter Noninterest Income of $97 million, a decrease of $3 million compared to the prior quarter primarily due to mortgage banking income; Noninterest Income represented 0.57% of average assets for the second quarter of 2026* Noninterest Expense of $358 million, a decrease of $2 million compared to the prior quarter primarily due to OREO and loan related expense Net Interest Margin ("NIM"), non-tax equivalent and tax equivalent (Non-GAAP), of 3.78% Net charge-offs totaled $8 million, or 0.06%* of average loans $16 million of Provision for Credit Losses ("PCL"); total Allowance for Credit Losses ("ACL") plus reserve for unfunded commitments of 1.30% of loans Efficiency Ratio improved to 50% from the prior quarter Balance Sheet

Loans increased by $1.4 billion, or 11%*, compared to the prior quarter and increased by $3.6 billion, or 8%, year over year; deposits increased by $474 million, or 3%*, and increased by $2.7 billion, or 5%, year over year; ending loan to deposit ratio of 90% Total deposit cost of 1.76%, unchanged from the prior quarter Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of 8.7%, 13.5%, 9.4%, and 11.1%, respectively† Subsequent Events

The Board of Directors of the Company increased its quarterly cash dividend on its common stock from $0.60 per share to $0.66 per share; the dividend is payable on August 14, 2026 to shareholders of record as of August 7, 2026 ∗  Annualized percentages
†  Preliminary 

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

2026

2026

2025

2025

2025

2026

2025

Interest Income

   Loans, including fees (1)

$

744,652

$

721,571

$

748,106

$

782,382

$

746,448

$

1,466,222

$

1,471,088

   Investment securities, trading securities, federal funds sold and securities

      purchased under agreements to resell

93,607

95,258

100,640

99,300

94,056

188,866

177,982

Total interest income

838,259

816,829

848,746

881,682

840,504

1,655,088

1,649,070

Interest Expense

   Deposits

244,216

238,522

250,189

257,271

241,593

482,738

487,550

   Federal funds purchased, securities sold under agreements

      to repurchase, and other borrowings

18,094

16,702

17,442

24,714

20,963

34,796

39,025

Total interest expense

262,310

255,224

267,631

281,985

262,556

517,534

526,575

Net Interest Income

575,949

561,605

581,115

599,697

577,948

1,137,554

1,122,495

  Provision for credit losses

15,919

10,808

6,605

5,085

7,505

26,727

108,067

Net Interest Income after Provision for Credit Losses

560,030

550,797

574,510

594,612

570,443

1,110,827

1,014,428

Noninterest Income

Operating income

96,726

100,098

105,753

99,086

86,817

196,824

172,437

Securities losses, net

—

—

—

—

—

—

(228,811)

Gain on sale leaseback, net of transaction costs

—

—

—

—

—

—

229,279

Total noninterest income

96,726

100,098

105,753

99,086

86,817

196,824

172,905

Noninterest Expense

Operating expense

357,749

359,524

364,196

351,453

350,682

717,273

691,502

Merger, branch consolidation, severance related, and other expense (8)

—

—

4,494

20,889

24,379

—

92,385

FDIC special assessment

—

—

(3,835)

—

—

—

—

Total noninterest expense

357,749

359,524

364,855

372,342

375,061

717,273

783,887

Income before Income Tax Provision

299,007

291,371

315,408

321,356

282,199

590,378

403,446

Income tax provision

68,985

65,551

67,686

74,715

66,975

134,536

99,142

Net Income

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

$

455,842

$

304,304

Adjusted Net Income (non-GAAP) (2)

Net Income (GAAP)

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

$

455,842

$

304,304

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

—

71,687

Deferred tax asset remeasurement

—

—

—

—

—

—

5,581

FDIC special assessment, net of tax

—

—

(3,012)

—

—

—

—

Adjusted Net Income (non-GAAP)

$

230,022

$

225,820

$

248,239

$

262,673

$

233,817

$

455,842

$

453,099

   Basic earnings per common share

$

2.36

$

2.29

$

2.48

$

2.44

$

2.12

$

4.66

$

3.00

   Diluted earnings per common share

$

2.35

$

2.28

$

2.46

$

2.42

$

2.11

$

4.64

$

2.99

   Adjusted net income per common share - Basic (non-GAAP) (2)

$

2.36

$

2.29

$

2.48

$

2.60

$

2.30

$

4.66

$

4.47

   Adjusted net income per common share - Diluted (non-GAAP) (2)

$

2.35

$

2.28

$

2.47

$

2.58

$

2.30

$

4.64

$

4.45

   Dividends per common share

$

0.60

$

0.60

$

0.60

$

0.60

$

0.54

$

1.20

$

1.08

   Basic weighted-average common shares outstanding

97,300,899

98,544,242

100,063,315

101,218,431

101,495,456

97,919,136

101,452,777

   Diluted weighted-average common shares outstanding

97,676,767

98,922,258

100,618,796

101,735,095

101,845,360

98,292,252

101,835,756

   Effective tax rate

23.07 %

22.50 %

21.46 %

23.25 %

23.73 %

22.79 %

24.57 %

   Adjusted effective tax rate

23.07 %

22.50 %

21.46 %

23.25 %

23.73 %

22.79 %

23.19 %

Performance and Capital Ratios

Three Months Ended

Six Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

2026

2026

2025

2025

2025

2026

2025

PERFORMANCE RATIOS

Return on average assets (annualized)

1.36

%

1.37

%

1.47

%

1.49

%

1.34

%

1.36

%

0.95

%

Adjusted return on average assets (annualized) (non-GAAP) (2)

1.36

%

1.37

%

1.48

%

1.59

%

1.45

%

1.36

%

1.42

%

Return on average common equity (annualized)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Adjusted return on average common equity (annualized) (non-GAAP) (2)

10.19

%

10.11

%

10.92

%

11.75

%

10.79

%

10.15

%

10.68

%

Return on average tangible common equity (annualized) (non-GAAP) (3)

17.62

%

17.59

%

19.10

%

19.62

%

18.17

%

17.60

%

13.73

%

Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)

17.62

%

17.59

%

19.14

%

20.81

%

19.61

%

17.60

%

19.72

%

Efficiency ratio (tax equivalent)

50.00

%

51.05

%

49.65

%

49.88

%

52.75

%

50.52

%

56.75

%

Adjusted efficiency ratio (non-GAAP) (4)

50.00

%

51.05

%

49.56

%

46.89

%

49.09

%

50.52

%

49.65

%

Dividend payout ratio (5)

25.31

%

26.12

%

24.23

%

24.59

%

25.47

%

25.71

%

36.00

%

Book value per common share

$

94.17

$

92.21

$

91.38

$

89.14

$

86.71

Tangible book value per common share (non-GAAP) (3)

$

58.72

$

56.90

$

56.27

$

54.48

$

51.96

CAPITAL RATIOS

Equity-to-assets

13.3

%

13.3

%

13.5

%

13.6

%

13.4

%

Tangible equity-to-tangible assets (non-GAAP) (3)

8.7

%

8.6

%

8.8

%

8.8

%

8.5

%

Tier 1 leverage (6)

9.4

%

9.4

%

9.3

%

9.4

%

9.2

%

Tier 1 common equity (6)

11.1

%

11.3

%

11.4

%

11.5

%

11.2

%

Tier 1 risk-based capital (6)

11.1

%

11.3

%

11.4

%

11.5

%

11.2

%

Total risk-based capital (6)

13.5

%

13.7

%

13.8

%

14.0

%

14.5

%

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

2026

2026

2025

2025

2025

Assets

Cash and due from banks

$

649,079

$

598,218

$

583,375

$

582,792

$

755,798

Federal funds sold and interest-earning deposits with banks

1,701,233

2,268,864

2,589,108

2,561,663

2,708,308

         Cash and cash equivalents

2,350,312

2,867,082

3,172,483

3,144,455

3,464,106

Trading securities, at fair value

191,094

117,590

110,183

107,519

95,306

Investment securities:

   Securities held to maturity

1,955,754

2,007,249

2,048,030

2,096,727

2,145,991

   Securities available for sale, at fair value

6,598,177

6,530,348

6,313,756

6,042,800

5,927,867

   Other investments

366,986

370,924

353,428

366,218

357,487

         Total investment securities

8,920,917

8,908,521

8,715,214

8,505,745

8,431,345

Loans held for sale

405,441

327,935

345,343

346,673

318,985

Loans:

Purchased credit deteriorated

2,658,792

2,818,360

2,977,499

3,160,359

3,409,186

Purchased non-credit deteriorated

9,921,791

10,714,489

11,232,414

11,877,828

12,492,553

Non-acquired

38,266,289

35,963,934

34,388,614

32,629,724

31,365,508

   Less allowance for credit losses

(586,664)

(585,882)

(585,197)

(590,133)

(621,046)

         Loans, net

50,260,208

48,910,901

48,013,330

47,077,778

46,646,201

Premises and equipment, net

992,594

993,584

994,176

961,510

964,878

Bank owned life insurance

1,311,197

1,302,382

1,293,574

1,285,532

1,280,632

Mortgage servicing rights

91,442

90,018

84,032

84,491

85,836

Core deposit and other intangibles

343,424

364,686

386,326

409,890

433,458

Goodwill

3,094,059

3,094,059

3,094,059

3,094,059

3,094,059

Other assets

949,340

1,002,465

988,692

1,030,558

1,078,516

              Total assets

$

68,910,028

$

67,979,223

$

67,197,412

$

66,048,210

$

65,893,322

Liabilities and Shareholders' Equity

Deposits:

   Noninterest-bearing

$

13,451,094

$

13,650,799

$

13,375,697

$

13,430,459

$

13,719,030

   Interest-bearing

42,898,716

42,224,864

41,770,100

40,642,810

39,977,931

         Total deposits

56,349,810

55,875,663

55,145,797

54,073,269

53,696,961

Federal funds purchased and securities

   sold under agreements to repurchase

569,486

643,386

618,215

594,092

630,558

Other borrowings

996,749

696,642

696,536

696,429

1,099,705

Reserve for unfunded commitments

76,525

69,229

69,619

68,538

64,693

Other liabilities

1,785,990

1,663,387

1,608,137

1,604,756

1,600,271

              Total liabilities

59,778,560

58,948,307

58,138,304

57,037,084

57,092,188

Shareholders' equity:

   Common stock - $2.50 par value; authorized 160,000,000 shares

242,428

244,844

247,845

252,723

253,745

   Surplus

6,247,484

6,332,285

6,480,471

6,647,952

6,679,028

   Retained earnings

2,951,691

2,779,896

2,614,173

2,426,463

2,240,470

   Accumulated other comprehensive loss

(310,135)

(326,109)

(283,381)

(316,012)

(372,109)

              Total shareholders' equity

9,131,468

9,030,916

9,059,108

9,011,126

8,801,134

              Total liabilities and shareholders' equity

$

68,910,028

$

67,979,223

$

67,197,412

$

66,048,210

$

65,893,322

Common shares issued and outstanding

96,971,142

97,937,653

99,138,204

101,089,231

101,498,000

Net Interest Income and Margin

Three Months Ended

Jun. 30, 2026

Mar. 31, 2026

Jun. 30, 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

$

1,386,864

$

12,236

3.54 %

$

1,881,020

$

15,792

3.40 %

$

1,884,133

$

19,839

4.22 %

Investment securities

9,213,359

81,371

3.54 %

9,221,416

79,466

3.49 %

8,513,439

74,217

3.50 %

Loans held for sale

286,422

4,602

6.44 %

223,084

3,732

6.78 %

283,017

4,829

6.84 %

Total loans held for investment

50,247,114

740,050

5.91 %

48,875,656

717,839

5.96 %

47,029,412

741,619

6.33 %

     Total interest-earning assets

61,133,759

838,259

5.50 %

60,201,176

816,829

5.50 %

57,710,001

840,504

5.84 %

Noninterest-earning assets

6,694,407

6,726,355

6,840,880

     Total Assets

$

67,828,166

$

66,927,531

$

64,550,881

Interest-Bearing Liabilities ("IBL"):

Transaction and money market accounts

$

32,098,340

$

180,220

2.25 %

$

31,499,841

$

172,453

2.22 %

$

28,986,998

$

173,481

2.40 %

Savings deposits

2,817,269

1,638

0.23 %

2,822,510

1,642

0.24 %

2,921,780

2,012

0.28 %

Certificates and other time deposits

7,184,745

62,358

3.48 %

7,215,388

64,427

3.62 %

7,177,451

66,100

3.69 %

Federal funds purchased

289,337

2,616

3.63 %

295,207

2,635

3.62 %

360,588

3,943

4.39 %

Repurchase agreements

293,341

1,477

2.02 %

319,873

1,561

1.98 %

287,341

1,462

2.04 %

Other borrowings

851,660

14,001

6.59 %

696,597

12,506

7.28 %

821,545

15,558

7.60 %

     Total interest-bearing liabilities

43,534,692

262,310

2.42 %

42,849,416

255,224

2.42 %

40,555,703

262,556

2.60 %

Noninterest-bearing deposits

13,521,146

13,359,214

13,643,265

Other noninterest-bearing liabilities

1,719,228

1,661,672

1,659,331

Shareholders' equity

9,053,100

9,057,229

8,692,582

     Total Non-IBL and shareholders' equity

24,293,474

24,078,115

23,995,178

     Total Liabilities and Shareholders' Equity

$

67,828,166

$

66,927,531

$

64,550,881

Net Interest Income and Margin (Non-Tax Equivalent)

$

575,949

3.78 %

$

561,605

3.78 %

$

577,948

4.02 %

Net Interest Margin (Tax Equivalent) (non-GAAP)

3.78 %

3.79 %

4.02 %

Total Deposit Cost (without Debt and Other Borrowings)

1.76 %

1.76 %

1.84 %

Overall Cost of Funds (including Demand Deposits)

1.84 %

1.84 %

1.94 %

Total Accretion on Acquired Loans (1)

$

33,054

$

38,786

$

63,507

Tax Equivalent ("TE") Adjustment

$

751

$

760

$

672

•   The remaining loan discount on acquired loans to be accreted into loan interest income totals $185.9 million as of June 30, 2026.

Noninterest Income and Expense

Three Months Ended

Six Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

(Dollars in thousands)

2026

2026

2025

2025

2025

2026

2025

Noninterest Income:

   Fees on deposit accounts

$

41,568

$

38,699

$

41,950

$

42,572

$

37,869

$

80,267

$

73,802

   Mortgage banking income

4,890

11,016

5,158

5,462

5,936

15,906

13,673

   Trust and investment services income

15,164

14,471

14,684

14,157

14,419

29,635

29,351

   Correspondent banking and capital markets income

24,839

24,427

30,638

25,522

19,161

49,266

35,876

   Expense on centrally-cleared variation margin

(4,028)

(3,000)

(3,167)

(4,318)

(5,394)

(7,028)

(12,564)

   Total correspondent banking and capital markets income

20,811

21,427

27,471

21,204

13,767

42,238

23,312

   Bank owned life insurance income

9,624

9,494

9,633

10,597

9,153

19,118

19,352

   Other

4,669

4,991

6,857

5,094

5,673

9,660

12,947

   Securities losses, net

—

—

—

—

—

—

(228,811)

   Gain on sale leaseback, net of transaction costs

—

—

—

—

—

—

229,279

         Total Noninterest Income

$

96,726

$

100,098

$

105,753

$

99,086

$

86,817

$

196,824

$

172,905

Noninterest Expense:

   Salaries and employee benefits

$

205,377

$

205,653

$

202,714

$

199,148

$

200,162

$

411,030

$

395,973

   Occupancy expense

43,878

42,302

42,567

40,874

41,507

86,180

77,000

   Information services expense

29,136

29,704

30,443

28,988

30,155

58,840

61,517

   OREO and loan related expense

952

4,378

867

5,427

2,295

5,330

4,079

   Business development and staff related

10,639

11,362

13,485

8,907

7,182

22,001

13,692

   Amortization of intangibles

21,041

21,304

23,417

23,426

24,048

42,345

47,879

   Professional fees

5,090

5,239

7,410

4,994

4,658

10,329

9,367

   Supplies and printing expense

3,885

3,254

3,594

3,278

3,970

7,139

7,098

   FDIC assessment and other regulatory charges

10,753

10,257

9,884

8,374

11,469

21,010

22,727

   Advertising and marketing

3,836

3,325

4,710

2,980

3,010

7,161

5,300

   Other operating expenses

23,162

22,746

25,105

25,057

22,226

45,908

46,870

   Merger, branch consolidation, severance related and other expense (8)

—

—

4,494

20,889

24,379

—

92,385

   FDIC special assessment

—

—

(3,835)

—

—

—

—

         Total Noninterest Expense

$

357,749

$

359,524

$

364,855

$

372,342

$

375,061

$

717,273

$

783,887

Loans and Deposits

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

Ending Balance

(Dollars in thousands)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

LOAN PORTFOLIO (7)

2026

2026

2025

2025

2025

Construction and land development * †

$

2,982,968

$

2,592,908

$

2,548,360

$

2,678,971

$

3,323,923

Investor commercial real estate*

18,656,455

18,298,938

17,883,913

17,603,205

16,953,410

Commercial owner occupied real estate

7,852,391

7,671,535

7,576,991

7,529,075

7,497,906

Commercial and industrial

9,378,444

9,385,926

9,181,408

8,644,636

8,445,878

Consumer real estate *

11,034,102

10,573,897

10,450,223

10,202,026

10,038,369

Consumer/other

942,512

973,579

957,632

1,009,998

1,007,761

Total Loans

$

50,846,872

$

49,496,783

$

48,598,527

$

47,667,911

$

47,267,247

*     

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 $358.4 million, $360.4 million, $342.8 million, $350.2 million, and $371.1 million for the quarters ended June 30, 2026, March 31, 2036, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.

Ending Balance

(Dollars in thousands)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

DEPOSITS

2026

2026

2025

2025

2025

Noninterest-bearing checking

$

13,451,094

$

13,650,799

$

13,375,697

$

13,430,459

$

13,719,030

Interest-bearing checking

14,710,312

14,119,614

13,838,558

12,906,408

12,607,205

Savings

2,796,845

2,841,408

2,820,621

2,853,410

2,889,670

Money market

17,531,137

18,014,140

17,751,688

17,251,469

16,772,597

Time deposits

7,860,422

7,249,702

7,359,233

7,631,523

7,708,459

Total Deposits

$

56,349,810

$

55,875,663

$

55,145,797

$

54,073,269

$

53,696,961

Asset Quality

Ending Balance

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

(Dollars in thousands)

2026

2026

2025

2025

2025

NONPERFORMING ASSETS:

Non-acquired

Non-acquired nonaccrual loans and restructured loans on nonaccrual

$

171,264

$

177,158

$

161,975

$

146,751

$

141,910

Accruing loans past due 90 days or more

2,961

6,915

2,997

4,352

3,687

Non-acquired OREO and other nonperforming assets

11,722

8,339

5,273

11,969

17,288

Total non-acquired nonperforming assets

185,947

192,412

170,245

163,072

162,885

Acquired

Acquired nonaccrual loans and restructured loans on nonaccrual

99,352

116,002

135,179

149,695

151,466

Accruing loans past due 90 days or more

835

1,986

1,944

891

707

Acquired OREO and other nonperforming assets

1,254

18,155

3,901

7,147

8,783

Total acquired nonperforming assets

101,441

136,143

141,024

157,733

160,956

Total nonperforming assets

$

287,388

$

328,555

$

311,269

$

320,805

$

323,841

Three Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

2026

2026

2025

2025

2025

ASSET QUALITY RATIOS (7):

Allowance for credit losses as a percentage of loans

1.15 %

1.18 %

1.20 %

1.24 %

1.31 %

Allowance for credit losses, including reserve for unfunded commitments,

as a percentage of loans

1.30 %

1.32 %

1.35 %

1.38 %

1.45 %

Allowance for credit losses as a percentage of nonperforming loans

213.79 %

193.96 %

193.71 %

195.61 %

208.57 %

Net charge-offs as a percentage of average loans (annualized)

0.06 %

0.09 %

0.09 %

0.27 %

0.21 %

Net charge-offs, excluding acquisition date charge-offs, as a percentage

  of average loans (annualized) *

0.06 %

0.09 %

0.09 %

0.27 %

0.06 %

Total nonperforming assets as a percentage of total assets

0.42 %

0.48 %

0.46 %

0.49 %

0.49 %

Nonperforming loans as a percentage of period end loans

0.54 %

0.61 %

0.62 %

0.63 %

0.63 %

*        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 second 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 3/31/2026

$

520,619

$

65,263

$

585,882

$

69,229

Charge offs

(10,335)

—

(10,335)

—

Acquired charge offs

(246)

(1,161)

(1,407)

—

Recoveries

2,150

—

2,150

—

Acquired recoveries

320

1,431

1,751

—

Provision for credit losses

13,984

(5,361)

8,623

7,296

Ending balance 6/30/2026

$

526,492

$

60,172

$

586,664

$

76,525

Period end loans

$

48,188,080

$

2,658,792

$

50,846,872

N/A

Allowance for Credit Losses to Loans

1.09 %

2.26 %

1.15 %

N/A

Unfunded commitments (off balance sheet) †

$

12,824,707

Reserve to unfunded commitments (off balance sheet)

0.60 %

†        Unfunded commitments exclude unconditionally cancelable commitments and letters of credit.

Conference Call

The Company will host a conference call to discuss its second quarter results at 9:00 a.m. Eastern Time on July 24, 2026.  Callers wishing to participate may call toll-free by dialing (833) 461-5787 within the US. The numbers for international participants are listed at https://help.events.q4inc.com/eahc/international-dial-in-numbers.  The conference ID number is 404525610.   Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com.  A replay of the live webcast is expected to be available by the evening of July 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)

Jun. 30, 2026

Mar. 31, 2026

Dec. 31, 2025

Sep. 30, 2025

Jun. 30, 2025

Net income (GAAP)

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

Provision for credit losses

15,919

10,808

6,605

5,085

7,505

Income tax provision

68,985

65,551

67,686

74,715

66,975

Merger, branch consolidation, severance related and other expense (8)

—

—

4,494

20,889

24,379

FDIC special assessment

—

—

(3,835)

—

—

Pre-provision net revenue (PPNR) (Non-GAAP)

$

314,926

$

302,179

$

322,672

$

347,330

$

314,083

(Dollars in thousands)

Three Months Ended

NET INTEREST MARGIN ("NIM"), TE (NON-GAAP)

Jun. 30, 2026

Mar. 31, 2026

Dec. 31, 2025

Sep. 30, 2025

Jun. 30, 2025

Net interest income (GAAP)

$

575,949

$

561,605

$

581,115

$

599,697

$

577,948

Total average interest-earning assets

61,133,759

60,201,176

59,872,113

58,727,110

57,710,001

NIM, non-tax equivalent

3.78

%

3.78

%

3.85

%

4.05

%

4.02

%

Tax equivalent adjustment (included in NIM, TE)

751

760

800

718

672

Net interest income, tax equivalent (Non-GAAP)

$

576,700

$

562,365

$

581,915

$

600,415

$

578,620

NIM, TE (Non-GAAP)

3.78

%

3.79

%

3.86

%

4.06

%

4.02

%

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,

RECONCILIATION OF GAAP TO NON-GAAP

2026

2026

2025

2025

2025

2026

2025

Adjusted Net Income (non-GAAP) (2)

Net income (GAAP)

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

$

455,842

$

304,304

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

—

71,687

Deferred tax asset remeasurement

—

—

—

—

—

—

5,581

FDIC special assessment, net of tax

—

—

(3,012)

—

—

—

—

Adjusted net income (non-GAAP)

$

230,022

$

225,820

$

248,239

$

262,673

$

233,817

$

455,842

$

453,099

Adjusted Net Income per Common Share - Basic (non-GAAP) (2)

Earnings per common share - Basic (GAAP)

$

2.36

$

2.29

$

2.48

$

2.44

$

2.12

$

4.66

$

3.00

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)

—

—

0.03

0.16

0.18

—

0.70

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)

$

2.36

$

2.29

$

2.48

$

2.60

$

2.30

$

4.66

$

4.47

Adjusted Net Income per Common Share - Diluted (non-GAAP) (2)

Earnings per common share - Diluted (GAAP)

$

2.35

$

2.28

$

2.46

$

2.42

$

2.11

$

4.64

$

2.99

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

—

0.70

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)

$

2.35

$

2.28

$

2.47

$

2.58

$

2.30

$

4.64

$

4.45

Adjusted Return on Average Assets (non-GAAP) (2)

Return on average assets (GAAP)

1.36

%

1.37

%

1.47

%

1.49

%

1.34

%

1.36

%

0.95

%

Effect to adjust for securities losses, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

0.56

%

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

%

—

%

—

%

—

%

—

%

—

%

(0.56)

%

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

0.23

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

0.03

%

0.10

%

0.11

%

—

%

0.22

%

Effect to adjust for deferred tax remeasurement

—

%

—

%

—

%

—

%

—

%

—

%

0.02

%

Effect to adjust for FDIC special assessment, net of tax

—

%

—

%

(0.02)

%

—

%

—

%

—

%

—

%

Adjusted return on average assets (non-GAAP)

1.36

%

1.37

%

1.48

%

1.59

%

1.45

%

1.36

%

1.42

%

Adjusted Return on Average Common Equity (non-GAAP) (2)

Return on average common equity (GAAP)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Effect to adjust for securities losses, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

4.21

%

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

%

—

%

—

%

—

%

—

%

—

%

(4.22)

%

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

1.69

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

0.15

%

0.71

%

0.86

%

—

%

1.70

%

Effect to adjust for deferred tax remeasurement

—

%

—

%

—

%

—

%

—

%

—

%

0.13

%

Effect to adjust for FDIC special assessment, net of tax

—

%

—

%

(0.13)

%

—

%

—

%

—

%

—

%

Adjusted return on average common equity (non-GAAP)

10.19

%

10.11

%

10.92

%

11.75

%

10.79

%

10.15

%

10.68

%

Return on Average Common Tangible Equity (non-GAAP) (3)

Return on average common equity (GAAP)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Effect to adjust for intangible assets

7.43

%

7.48

%

8.20

%

8.58

%

8.24

%

7.45

%

6.56

%

Return on average tangible equity (non-GAAP)

17.62

%

17.59

%

19.10

%

19.62

%

18.17

%

17.60

%

13.73

%

Adjusted Return on Average Common Tangible Equity (non-GAAP) (2) (3)

Return on average common equity (GAAP)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Effect to adjust for securities losses, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

4.21

%

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

%

—

%

—

%

—

%

—

%

—

%

(4.22)

%

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

1.69

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

0.15

%

0.71

%

0.86

%

—

%

1.70

%

Effect to adjust for deferred tax remeasurement

—

%

—

%

—

%

—

%

—

%

—

%

0.13

%

Effect to adjust for FDIC special assessment, net of tax

—

%

—

%

(0.13)

%

—

%

—

%

—

%

—

%

Effect to adjust for intangible assets, net of tax

7.43

%

7.48

%

8.22

%

9.06

%

8.82

%

7.45

%

9.04

%

Adjusted return on average common tangible equity (non-GAAP)

17.62

%

17.59

%

19.14

%

20.81

%

19.61

%

17.60

%

19.72

%

Three Months Ended

Six Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

RECONCILIATION OF GAAP TO NON-GAAP

2026

2026

2025

2025

2025

2026

2025

Adjusted Efficiency Ratio (non-GAAP) (4)

Efficiency ratio

50.00

%

51.05

%

49.65

%

49.88

%

52.75

%

50.52

%

56.75

%

Effect to adjust for securities losses

—

%

—

%

—

%

—

%

—

%

—

%

(7.44)

%

Effect to adjust for gain on sale leaseback, net of transaction costs

—

%

—

%

—

%

—

%

—

%

—

%

7.46

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

(0.65)

%

(2.99)

%

(3.66)

%

—

%

(7.12)

%

Effect to adjust for FDIC special assessment

—

%

—

%

0.56

%

—

%

—

%

—

%

—

%

Adjusted efficiency ratio (non-GAAP)

50.00

%

51.05

%

49.56

%

46.89

%

49.09

%

50.52

%

49.65

%

Tangible Book Value Per Common Share (non-GAAP) (3)

Book value per common share (GAAP)

$

94.17

$

92.21

$

91.38

$

89.14

$

86.71

Effect to adjust for intangible assets

(35.45)

(35.31)

(35.11)

(34.66)

(34.75)

Tangible book value per common share (non-GAAP)

$

58.72

$

56.90

$

56.27

$

54.48

$

51.96

Tangible Equity-to-Tangible Assets (non-GAAP) (3)

Equity-to-assets (GAAP)

13.25

%

13.28

%

13.48

%

13.64

%

13.36

%

Effect to adjust for intangible assets

(4.55)

%

(4.64)

%

(4.72)

%

(4.83)

%

(4.90)

%

Tangible equity-to-tangible assets (non-GAAP)

8.70

%

8.64

%

8.76

%

8.81

%

8.46

%

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 $33.1 million, $38.8 million, $50.3 million, $83.0 million, and $63.5 million during the quarters ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $71.8 million and $125.3 million during the six months ended June 30, 2026 and 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, and $24.4 million for the quarters ended December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $92.4 million during the six months ended June 30, 2025; (b) pre-tax net securities losses of $(228.8) million for the six months ended June 30, 2025; (c) pre-tax gain on sale leaseback, net of transaction costs of $229.3 million for the six months ended June 30, 2025; (d) pre-tax PCL on non-PCD loans and unfunded commitments of $92.1 million for the six months ended June 30, 2025; (e) pre-tax FDIC special assessment of $(3.8) million for the quarter ended December 31, 2025; and (f) deferred tax asset remeasurement of $5.6 million for the six months ended June 30, 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 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 $21.0 million, $21.3 million, $23.4 million, $23.4 million, and $24.0 million for the quarters ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $42.3 million and $47.9 million for the six months ended June 30, 2026 and 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)

June 30, 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 of $(3.6) million for the quarters ended June 30, 2025 and $(3.5) million for the six months ended June 30, 2025.

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