SouthState Bank Corp (SSB)

SouthState Bank Corporation operates as a financial holding company headquartered in Winter Haven, Florida, providing a wide range of banking services and products through its wholly owned bank subsidiary, SouthState Bank, National Association, from a 342-branch network located throughout Florida, South Carolina, Texas, Georgia, Colorado, North Carolina, Alabama, and Virginia ¹. The company also operates a correspondent banking and capital markets service division for over 1,200 small and medium sized community financial institutions, credit unions, and money managers throughout the United States ². The industry is highly competitive, with competition based on brand recognition, product quality, price, and innovation, and the company faces strong competition from both bank and non-bank competitors, including national banks, super-regional banks, smaller community banks, nontraditional internet-based banks, credit unions, insurance companies, and government sponsored entities ³. The company's operations are materially and significantly influenced by the real estate market, general economic conditions, and by the tax, monetary and fiscal policies of the U.S. and state government and regulatory agencies, including the Federal Reserve ⁴.

The company competes with national banks, super-regional banks, smaller community banks, nontraditional internet-based banks, credit unions, insurance companies and government sponsored entities, as well as mortgage companies, credit card issuers, leasing companies, finance companies, money market mutual funds, brokerage firms, governmental and corporation bonds, and other securities firms ⁵. By emphasizing customer service and providing a wide variety of services, the company believes that its Bank has generally been able to compete successfully with its competitors, regardless of their size ⁶. The company relies upon specialized services, responsive handling of customer needs, and personal contacts by its officers, directors, and staff to compete ⁷.

Revenue is primarily derived from interest on, and fees received in connection with, real estate and other loans, interest and dividends from investment securities and short-term investments, commissions on bond sales, fees from deposit accounts, hedging services, and gains from the sale of residential mortgage loans ⁸. The principal sources of funds for lending activities are customer deposits, repayment of loans, and the sale and maturity of investment securities ⁹. The company's business strategy has been to grow organically within its footprint and adjoining market areas faster than the related economic growth in those markets through existing relationship managers and through targeted hiring of talented officers or teams, and has been enhanced by engaging in strategic mergers and acquisitions or branch expansion either within or contiguous to its existing footprint ¹⁰.

The loan portfolio includes commercial real estate loans, residential real estate loans, commercial and industrial loans, and consumer loans. As of December 31, 2025, $28.0 billion, or 58%, of the loan portfolio consisted of loans secured by commercial real estate (including owner occupied and non-owner occupied commercial real estate, other income producing property and construction and land development lending) ¹¹. As of December 31, 2025, $10.5 billion, or 21%, of the loan portfolio consisted of residential real estate loans including home equity loans ¹². As of December 31, 2025, $9.2 billion, or 19%, of the loan portfolio consisted of commercial and industrial loans ¹³. As of December 31, 2025, $1.0 billion, or 2%, of the loan portfolio consisted of other types of consumer loans ¹⁴. The company offers a variety of deposit products and services, including checking accounts, savings accounts, money market accounts, time deposit accounts, and treasury and merchant services, through multiple channels, including its network of 342 full-service branches as of December 31, 2025, and its online, mobile and telephone banking platforms ¹⁵. As of December 31, 2025, the deposit portfolio was comprised of 24% noninterest-bearing deposits and 76% interest bearing deposits ¹⁶. The correspondent banking and capital markets business division's primary revenue generating activities are related to the capital markets division, which includes commissions earned on fixed income security sales, fees from hedging services, loan brokerage fees and consulting fees for services related to these activities, and its correspondent banking division, which includes spread income earned on correspondent bank deposits and correspondent bank checking account deposits and fees from safe-keeping activities, bond accounting services for correspondents, asset/liability consulting related activities, international wires, and other clearing and corporate checking account services ¹⁷. Through the Bank and SouthState PCM, the company offers wealth management and other fiduciary and private banking services targeted to affluent clients, including individuals, business owners, families, and professional service companies ¹⁸. The mortgage line of business originates single-family home loans and either sells into the secondary market or holds in its portfolio those mortgages, retaining servicing rights for those loans held in the portfolio and for the majority of the loans that are sold ¹⁹.

On January 1, 2025, the Company acquired all of the outstanding common stock of Independent Bank Group, Inc. in a stock transaction, acquiring Independent's 92 branch locations located in Texas and Colorado ²⁰. On January 8, 2025, the Bank entered into an agreement for the purchase and sale of real property with entities affiliated with Blue Owl Real Estate Capital LLC, providing for the sale to entities affiliated with Blue Owl of certain bank branch properties owned and operated by the Bank, located in Florida, South Carolina, Georgia, North Carolina, Alabama, and Virginia, and the Company completed the sale-leaseback transaction on February 28, 2025 ²¹. During 2025, the Company repurchased 2,440,000 shares at a weighted average price of $91.85 per share pursuant to the 2025 Stock Repurchase Program ²². The Board approved a new share repurchase program in January 2026 allowing management to repurchase up to 5,560,000 or approximately 5% of outstanding shares over the next two years ²³. During the third quarter of 2025, the Company was redomiciled to the state of Florida by merging SouthState Corporation, a South Carolina corporation, with and into SouthState Bank Corporation, a Florida corporation ²⁴. The Bank also operates SouthState Private Capital Management LLC, the result of the December 31, 2025 merger of SouthState Advisory, Inc. with and into Private Capital Management LLC, also a wholly-owned registered investment advisor the Bank acquired through the Independent acquisition completed on January 1, 2025 ²⁵. In late 2023, the Bank formed SSB First Street Corporation, an investment subsidiary headquartered in Wilmington, Delaware, to hold tax-exempt municipal investment securities as part of the Bank's investment portfolio ²⁶.

Net income available to common shareholders was $798.7 million, or $7.87 diluted earnings per share, during 2025 compared to $534.8 million, or $6.97 diluted EPS, in 2024, an increase of $263.9 million, or 49.3% ²⁷. Total assets were approximately $67.2 billion at December 31, 2025 compared to approximately $46.4 billion at December 31, 2024 ²⁸. The efficiency ratio was 53.1% for the year ended December 31, 2025 compared to 56.9% for the same period in 2024 ²⁹. Return on average assets was 1.22% in 2025, an increase compared to 1.17% in 2024 ³⁰. Return on average common shareholders' equity decreased to 9.13% in 2025, compared to 9.41% in 2024 ³¹. The dividend payout ratio was 28.82% for 2025 compared with 30.22% in 2024 ³².

The company's current strategic plan contains growth, investment, risk management and efficiency initiatives in order to create a better and more profitable Company and remain competitive with other bank and non-bank financial services providers, including organically growing its business in its core market and surrounding areas, continuing to grow its middle market and larger corporate banking and correspondent divisions, implementing an AI strategy to be able to adopt appropriate AI capabilities internally and from vendors to enhance efficiency with appropriate controls in place to maintain accuracy and reduce or eliminate bias, and building upon its digital banking initiatives by continuing to implement digital banking platforms and expanding its payment capabilities, including by being able to act as a reserve and issuer for stablecoins, continuing to enhance its technology and cybersecurity infrastructure and its risk management framework ³³.

The company expects to continue to assess future opportunities of financial companies using its established criteria, based on market and other conditions, focusing on banking institutions that are consistent with its guiding principles of soundness, profitability and growth, are a good fit with its culture, are strategically attractive by enhancing its footprint, allowing for cost savings and economies of scale, or providing market diversification, or otherwise strategically compelling, have been determined to meet its risk appetite and profile, and meet its financial criteria ³⁴. The company intends to continue to pursue a growth strategy for its business, with its prospects dependent on a variety of factors including economic conditions in the markets in which it operates as well as in the U.S. and globally, geopolitical factors resulting in tariffs or other trade disruptions, continued availability of desirable business opportunities, its ability to successfully recruit relationship managers and other front line business officers, the competitive responses from other financial and non-financial institution competitors in its market areas, the regulatory environment in which it operates, including risk management, capital and liquidity expectations, its ability to continue to implement and improve its operational, credit, financial, management and other risk controls and processes and its reporting systems and procedures to manage a growing number of client relationships, and its ability to integrate any acquisitions and develop consistent policies throughout its various businesses ³⁵.

Management expects to continue to make strategic investments in technology and talent that are expected to improve the client experience and support future growth, which will require an increase in expenditures ³⁶. The company has adopted a formal AI Strategy and is making focused investments in AI tools and automation and other technology solutions to improve both its customer facing and back-office services for internal efficiencies ³⁷. The company has implemented an AI governance function and risk management framework that includes a risk assessment of internal and vendor AI solutions, due diligence, model validation, and controls ³⁸.

The company continues to invest significant resources in its information technology and cybersecurity systems, including by deepening and expanding its use of cloud-based applications, in order to provide enhanced functionality and security at an appropriate level, improve its operating efficiency, and streamline its client experience ³⁹. The company has continued to expand investments in information security and cybersecurity, including providing additional end-user training, using layered defenses, identifying and protecting critical assets, strengthening monitoring and alerting, and engaging third-party cybersecurity experts ⁴⁰. The Bank established a three-year program to enhance and mature its cybersecurity program and is in the third year of that program ⁴¹.

During 2025, the Company repurchased 2,440,000 shares at a weighted average price of $91.85 per share pursuant to the 2025 Stock Repurchase Program ⁴². The Board approved a new share repurchase program in January 2026 allowing management to repurchase up to 5,560,000 or approximately 5% of outstanding shares over the next two years ⁴³. The company paid cash dividends to shareholders of approximately $230.2 million during 2025 ⁴⁴. The company intends to continue to pay comparable quarterly cash dividends on its common stock, subject to approval by its Board of Directors, although it may elect not to pay dividends or to change the amount of such dividends ⁴⁵.

The company faces continued risks related to integration of operations between Independent and the Company, as achieving the anticipated benefits of the Independent Merger is subject to a number of uncertainties, including whether the Company continues to integrate the institutions and its relationship managers in an effective manner, as well as general competitive factors in the marketplace ⁴⁶. The company may not realize the expected benefits from its strategic initiatives, either in whole or in part, which could negatively impact its future profitability, and there is no guarantee that these initiatives will be successful in supporting growth or achieving the expected efficiencies and revenue enhancements that are anticipated ⁴⁷. The company may not be able to adequately anticipate and respond to changes in market interest rates, which are affected by many factors beyond its control including but not limited to inflation, monetary and fiscal policy, money supply, recessionary pressures, unemployment and other changes that affect domestic and foreign financial markets ⁴⁸.

The company's cost of funds may increase as a result of increases in interest rates, competitive pressures, general economic conditions and FDIC insurance assessments ⁴⁹. The cost of resolving the bank failures in early 2023 prompted the FDIC to issue a special assessment to recover costs to the Deposit Insurance Fund, and such special assessments may continue to be imposed, with the total estimated FDIC special assessment allocable to the Bank being approximately $33.5 million ⁵⁰. A slowdown in economic growth or a resumption of recessionary economic conditions could have an adverse effect on the company's business in the future, as the economy is subject to worldwide events such as the COVID-19 pandemic and geopolitical tensions in the Middle East, the Americas, South America, and Europe, as well as domestic events, any or all of which could impact inflationary pressures and interest rates to dampen demand ⁵¹.

Management's message emphasizes that the company's business strategy has been to grow organically within its footprint and adjoining market areas faster than the related economic growth in those markets through existing relationship managers and through targeted hiring of talented officers or teams, and that business growth, profitability and market share have been enhanced by engaging in strategic mergers and acquisitions or branch expansion either within or contiguous to its existing footprint ⁵⁷. The strategic priorities emphasized for the period ahead include continuing to pursue a growth strategy for the business, focusing on organic growth within core markets and possible disruption of competitor financial institutions that are undergoing mergers and acquisitions, and continuing to evaluate merger and acquisition opportunities presented to the company in its core markets, contiguous markets, and beyond ⁵⁸. Management also highlights the focus on technological change and digital transformation of product and service channels, which will impact how the company delivers its products and services in the future as well as make internal processes more efficient, and the adoption of a formal AI Strategy with focused investments in AI tools and automation ⁵⁹.

For the year ended December 31, 2025, total interest income was $3,379,498 thousand compared to $2,141,362 thousand for the year ended December 31, 2024 ⁶⁰. Net interest income (non-taxable equivalent) was $2,303,307 thousand for 2025 compared to $1,415,454 thousand for 2024 ⁶¹. Net income available to common shareholders was $798.7 million for 2025 compared to $534.8 million for 2024 ⁶². Diluted earnings per common share were $7.87 in 2025 compared to $6.97 in 2024 ⁶³. Basic earnings per common share were $7.90 in 2025 compared to $7.01 in 2024 ⁶⁴. The provision for credit losses was $119.8 million in 2025 compared to $16.0 million in 2024 ⁶⁵. Noninterest income increased by $75.5 million in 2025 compared to 2024 ⁶⁶. Noninterest expense increased by $519.6 million in 2025 compared to 2024 ⁶⁷. The efficiency ratio was 53.1% for the year ended December 31, 2025 compared to 56.9% for the same period in 2024 ⁶⁸. Return on average assets was 1.22% in 2025 compared to 1.17% in 2024 ⁶⁹. Return on average common shareholders' equity was 9.13% in 2025 compared to 9.41% in 2024 ⁷⁰. The total risk-based capital ratio was 13.8% as of December 31, 2025 compared to 15.0% as of December 31, 2024 ⁷¹. The Tier 1 leverage ratio was 9.3% as of December 31, 2025 compared to 10.0% as of December 31, 2024 ⁷². The net interest margin (non-taxable equivalent) was 3.94% for 2025 compared to 3.43% for 2024 ⁷³.

The company faces continued risks related to integration of operations between Independent and the Company, as achieving the anticipated benefits of the Independent Merger is subject to uncertainties including whether the Company continues to integrate the institutions and its relationship managers in an effective manner ⁵². A significant portion of the loan portfolio is secured by real estate, with approximately 78.5% of loans having real estate as a primary or secondary component of collateral as of December 31, 2025, and any weakening of the real estate market may increase the likelihood of default ⁵³. The company's commercial industrial, construction and land development and commercial real estate loans were $37.2 billion and $24.1 billion at December 31, 2025 and 2024, respectively, or 77% and 71% of total loans, and these loans generally carry larger loan balances and can involve a greater degree of financial and credit risk ⁵⁴. The company is subject to the risk of default by its clients and counterparties, and if the information or representations provided by counterparties and clients are inaccurate, the ability to assess default risk effectively may be compromised ⁵⁵. The company faces cybersecurity risks from cyber-attacks, information security breaches and other similar incidents that could result in the disclosure of confidential and other information, and experienced a cybersecurity incident in February 2024 involving unauthorized activity in the Company's systems, with a consolidated putative class action pending against the company related to the incident ⁵⁶.