SSB — SouthState Bank Corp.

Summary of SSB Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Return on Assets (ROA): 1.36%
• Return on Tangible Common Equity (ROTE): 17.6%
• Net Interest Margin (NIM): 378 basis points, down 1 basis point from Q1, within guidance of 375-380 basis points.
• Net Interest Income: $576 million, up $14 million from Q1.
• Loan Growth: 8% year-over-year; $1.35 billion in new loans, equating to an 11% annualized growth rate.
• Deposits Growth: 5% year-over-year.
• Non-Performing Assets: Declined 14%, with net charge-offs at just 6 basis points.
• CET1 Capital Ratio: 11.1%, TCE at 8.7%, TBV per share at $58.72 (up 13% year-over-year).
• Earnings Per Share (EPS): Excluding accretion income and CDI amortization, EPS was up 13% compared to Q2 2025.

2. Strategic Updates and Business Highlights

• Focus on attracting top talent, with a 10% increase in the commercial banking sales force over the past three quarters.
• Continued investment in artificial intelligence to enhance operational efficiency across various departments.
• Share repurchase program remains active, with nearly 5% of shares repurchased over the last year, maintaining a disciplined capital return strategy.
• Strong performance in loan production, particularly in Florida, Texas, and South Carolina, with a robust pipeline of $1.5 billion.

3. Forward Guidance and Outlook

• Loan Growth Guidance: Anticipated to remain in the mid to high single-digit range for the remainder of 2026.
• NIM Guidance: Expected to stabilize around 375-380 basis points, with no anticipated rate cuts or hikes.
• Non-Interest Expense (NIE) Guidance: Targeting 4% growth year-over-year, consistent with previous guidance.
• Capital Return: Expected to maintain a total payout ratio of 40%-60%, with continued share repurchases aligned with market conditions.

4. Bad News, Challenges, or Points of Concern

• NIM Compression: Despite stable margins, there is a risk of slight NIM compression as loan growth continues, which may impact profitability.
• Deposit Costs: Potential upward pressure on deposit costs as competition increases, particularly in Texas and Colorado markets.
• Economic Uncertainty: A more pessimistic weighting in the economic scenarios used for credit loss modeling indicates a cautious outlook amid broader economic uncertainties.
• Loan Payoffs: Anticipated planned payoffs in commercial real estate could offset some loan growth in the latter half of the year.

5. Notable Q&A Insights

• Management confirmed that while deposit costs may rise slightly, they expect to maintain stable NIM through effective asset repricing strategies.
• The bank's strategy includes a focus on risk-adjusted returns, balancing growth with soundness and profitability.
• New hires have contributed significantly to loan production, with ongoing recruitment efforts expected to bolster growth further.
• The efficiency ratio in correspondent banking is higher than the bank's overall, suggesting that as this segment grows, expenses will also increase, but remain manageable.

Overall, SouthState Bank reported a strong quarter with solid growth metrics, but faces challenges related to margin stability and competitive pressures in deposit pricing. The strategic focus on talent acquisition and technology investment positions the bank well for future growth.