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Mar 31
SouthState Q1 2025 Earnings Report
SouthState reported strong Q1 2025 results with solid net income, boosted by strategic transactions including the IBTX acquisition and a sale-leaseback deal.
Key Takeaways
SouthState delivered a profitable quarter, driven by higher adjusted earnings, improved net interest margin, and successful execution of major strategic transactions.
Adjusted EPS reached $2.15, supported by the IBTX acquisition and sale-leaseback gain.
Net interest income rose significantly to $544.5M with a net interest margin of 3.85%.
Total revenue was $630.64M, including $86.1M in noninterest income.
Net income came in at $89.1M, with adjusted net income at $219.3M.
SouthState
SouthState
SouthState Revenue by Segment
Forward Guidance
SouthState is positioned for strong profitability and resilience, following transformative transactions and strategic realignment in Q1.
Positive Outlook
- Boosted net interest margin to 3.85%
- Strong liquidity and capital positions
- Successful integration of Independent Bank acquisition
- Cost control reflected in 50% adjusted efficiency ratio
- Increased deposit base despite sector volatility
Challenges Ahead
- Significant charge-offs and provisioning related to the Independent acquisition
- Reported net income impacted by securities restructuring loss
- Efficiency ratio still high before adjustments
- Deposit cost increased to 1.89%
- Net charge-offs totalled $39.4M including PCD loan impacts