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.

Total Revenue
$631M
Previous year: $415M
+51.8%
EPS
$2.15
Previous year: $1.58
+36.1%
Efficiency Ratio
60.97%
Previous year: 58%
+5.1%
Adjusted Efficiency Ratio
50.24%
Previous year: 56%
-10.3%
Effective Tax Rate
26.53%
Cash and Equivalents
$3.3B
Previous year: $1.21B
+172.8%
Total Assets
$65.1B
Previous year: $45.1B
+44.3%

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