SSB — SouthState Corporation

SouthState Bank Corporation (SSB) Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Earnings Per Share (EPS): $2.47 for Q4, with a full-year EPS of $9.50, reflecting over 30% growth year-over-year.
• Pre-Provision Net Revenue (PPNR): $323 million for Q4 and $1.27 billion for the full year.
• Return on Tangible Common Equity: Approximately 20% for the year.
• Net Interest Margin (NIM): 3.86% for Q4, with a target range of 3.80% to 3.90% for 2026.
• Loan Growth: 8% annualized growth in Q4, with total loan growth for the year also at 8%.
• Deposit Growth: 8% annualized growth in Q4.
• Tangible Book Value (TBV) per Share: Grew by 10% for the year, despite Day 1 dilution from the merger.
• Capital Ratios: TCE ratio at 8.8% and CET1 at 11.4%.

2. Strategic Updates and Business Highlights

• Successful integration of the Independent Financial acquisition, with a focus on expanding into Texas and Colorado.
• Increased share repurchase activity, buying back 2 million shares in Q4, with a new authorization for an additional 5.56 million shares.
• Focus on hiring approximately 550 to 600 commercial relationship managers (RMs) to support growth, with plans to increase this by 10-15% over the next year.
• Strong performance in correspondent banking, with Q4 noninterest income of $106 million, driven by the Capital Markets division.

3. Forward Guidance and Outlook

• Loan Growth: Expected mid- to upper single-digit growth for 2026, supported by a growing pipeline which increased to $5 billion.
• Expense Growth: Projected mid-single-digit growth in operating expenses for 2026, with a base of $1.407 billion.
• NIM Guidance: Anticipated to remain between 3.80% and 3.90% for 2026, with potential fluctuations based on loan growth rates.
• Noninterest Income: Expected to stabilize around $100 million per quarter, with a focus on maintaining a full-year average of 55-60 basis points of assets.

4. Bad News, Challenges, or Points of Concern

• Higher Noninterest Expenses: Increased by $6 million in Q4 due to performance-based compensation and marketing efforts, which may impact future profitability.
• Loan Yield Decline: Loan yields decreased by 35 basis points to 6.13%, with new loan origination rates at 6.06%, indicating pressure on margins.
• Substandard Loans Increase: Notable increase in substandard loans, although largely attributed to a few multifamily properties currently in lease-up, which may pose future risks.

5. Notable Q&A Insights

• Net Interest Margin: Management reiterated guidance for NIM based on stable deposit costs and loan accretion expectations.
• Hiring Strategy: Emphasis on opportunistic hiring across various business lines, particularly in commercial RMs to drive organic growth.
• Correspondent Banking: Strength in this segment is expected to continue, but management cautioned that performance may vary quarter-to-quarter based on market conditions.
• Credit Quality: Despite an increase in substandard loans, management expressed confidence in overall credit quality, with low charge-offs and adequate reserves.

This summary encapsulates the key takeaways from SouthState Bank's Q4 2025 earnings call, highlighting both the positive developments and the challenges faced by the bank as it moves into 2026.