SSB Q4 Earnings Beat on Growth in NII, Fee Revenues, Provisions Rise

SouthState Corporation SSB reported fourth-quarter 2025 adjusted earnings per share of $2.47, which surpassed the Zacks Consensus Estimate of $2.30. Also, the bottom line increased 28% from the prior-year quarter. 

Results were supported by growth in net interest income (NII) and non-interest income. An increase in loans and deposits was another tailwind. However, elevated expenses and provisions were the undermining factors. 

The results excluded certain notable items. After considering these, net income (GAAP basis) was $247.7 million, representing a 71.8% year-over-year jump.

For 2025, adjusted earnings per share of $9.50 beat the Zacks Consensus Estimate of $9.11. The figure represented a rise of 31.8% from the previous year. Net income (GAAP) was $798.7 million, up 49.3% year over year.

SouthState’s Revenues Up, Expenses Rise

Total revenues for the quarter were $686.9 million, representing a 52.5% year-over-year increase. The top line outpaced the Zacks Consensus Estimate by 3%.

For 2025, total revenues were $2.68 billion, up 56.1%. The top line surpassed the Zacks Consensus Estimate of $2.65 billion.

NII was $581.1 million, up 57.2% from the year-ago quarter. The net interest margin rose to 3.86% from 3.48% in the prior-year quarter.

Non-interest income was $105.8 million, up 31.3% from the prior-year quarter. 

Non-interest expenses increased 42.2% to $364.9 million. The rise was mainly due to an increase in all components except OREO and loan-related expenses and merger, branch consolidation, severance-related and other expenses.

The efficiency ratio decreased to 49.65% from 55.73% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.

SSB’s Loans & Deposits Rise

As of Dec. 31, 2025, net loans were $48 billion, up 2% from the prior quarter. Total deposits were $55.1 billion, which rose 2%.

SouthState’s Asset Quality Mixed

In the reported quarter, the company recorded a provision for credit losses of $6.6 million, up 3.7% from the prior-year quarter.

Allowance for credit losses as a percentage of loans was 1.20%, down 17 bps year over year. The ratio of annualized net charge-offs to total average loans was 0.09%, up from 0.06% in the year-ago quarter.

Non-performing loans to total loans were 0.62%, same as of Dec. 31, 2024.

SSB’s Capital Ratios Decline, Profitability Ratios Improve

As of Dec. 31, 2025, the Tier I leverage ratio was 9.3%, down from 10% in the year-ago quarter. Tier 1 common equity ratio decreased to 11.4% from the prior-year quarter’s 12.6%.

At the end of the fourth quarter, the annualized return on average assets was 1.47%, up from the year-ago period’s 1.23%. Return on average common equity was 10.90% compared with 9.72% in the prior-year quarter.

Our Take on SouthState

SouthState’s rising NII and non-interest income are expected to support its top-line growth in the near term. Additionally, decent loan pipelines, strategic buyouts, strong deposit balance and low-cost deposits will further drive the company’s performance. However, rising expenses due to inorganic expansion efforts remain a headwind.

SouthState Bank Corporation Price, Consensus and EPS Surprise

SouthState Bank Corporation price-consensus-eps-surprise-chart | SouthState Bank Corporation Quote

Currently, SSB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Banks

BankUnited, Inc.’s BKU fourth-quarter 2025 adjusted earnings of 94 cents per share surpassed the Zacks Consensus Estimate of 85 cents. Further, the bottom line was up 3.3% from the prior-year quarter.

BKU’s results were aided primarily by a rise in non-interest income and NII. Higher loan balance and improved deposits were the other positives. However, higher expenses and provisions were the undermining factors.

Hancock Whitney Corp.’s HWC fourth-quarter 2025 earnings per share of $1.49 beat the Zacks Consensus Estimate by a penny. Further, the bottom line rose 6.4% from the prior year quarter.

HWC’s results benefited from an increase in non-interest income and NII. Also, higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds. 

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This article originally published on Zacks Investment Research (zacks.com).

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