SouthState Bank (SSB) Q1 2025 earnings summary

Executive summary

• Completed the $2.5B all-stock acquisition of Independent Bank Group on January 1, 2025, adding $18.1B in assets and $13.1B in loans, significantly expanding scale and market presence.

• Executed a $467.2M sale-leaseback of 165 branches, generating a $229M gain, and restructured $1.8B in securities, incurring a $229M loss.

• Net interest margin rose to 3.85%, with adjusted diluted EPS at $2.15 and reported diluted EPS at $0.87, reflecting significant one-time items.

• Net income for Q1 2025 was $89.1M, down 22.6% year-over-year due to acquisition-related costs and higher credit loss provisions.

• Declared a quarterly dividend of $0.54 per share, payable May 16, 2025.

Financial highlights

• Net interest income for Q1 2025 was $544.5M, with net interest margin up 44 bps year-over-year to 3.85%.

• Noninterest income totaled $86M, including a $229M gain on sale-leaseback and a $229M loss from securities restructuring.

• Noninterest expense rose to $408.8M, mainly from $66.5M in merger costs and higher salaries, occupancy, and intangibles amortization.

• Provision for credit losses was $100.6M, including $92.1M for acquired loans and unfunded commitments.

• Efficiency ratio was 61%; adjusted efficiency ratio improved to 50%.

Outlook and guidance

• Management expects further cost savings and business synergies from the Independent acquisition, with integration and systems conversion costs continuing through 2025.

• Net interest margin expected to remain stable, supported by higher-yielding acquired loans and improved investment portfolio yield.

• Loan growth anticipated to continue, with focus on commercial and consumer owner-occupied segments.

• Noninterest expense guidance: $350–$360M for Q2 and Q3, dropping to $345–$350M in Q4 as more cost saves are realized.

• Accretion income expected to be about $50–$55M per quarter for the remainder of the year, barring accelerated paydowns.