SouthState Bank Corp. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. SouthState Bank Corp. is a financial holding company headquartered in Winter Haven, Florida, operating a regional banking footprint across eight states. The company operates as a single reportable segment (General Banking Unit) and is classified as a large accelerated filer. As of April 30, 2026, there were 97,668,043 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Income | $225.8 million | $89.1 million |
| Diluted EPS | $2.28 | $0.87 |
| Total Assets | $67.98 billion | $64.28 billion (Avg) |
| Total Loans (Net) | $48.91 billion | $46.80 billion (Avg) |
| Total Deposits | $55.88 billion | $55.15 billion (End Q4 2025) |
| Net Interest Income | $561.6 million | $544.5 million |
| Net Interest Margin (Non-TE) | 3.78% | 3.84% |
| Provision for Credit Losses | $10.8 million | $100.6 million |
| Allowance for Credit Losses (ACL) | $585.9 million | $623.7 million (End Q1 2025) |
| Return on Average Assets (ROAA) | 1.37% | 0.56% |
| Return on Average Equity (ROAE) | 10.11% | 4.29% |
| Efficiency Ratio | 51.1% | 61.0% |
Material Changes vs. Prior Period
- Profitability Surge: Net income increased 153.5% year-over-year, driven primarily by a significant reduction in the provision for credit losses ($89.8 million decrease) and lower noninterest expenses ($49.3 million decrease). The Q1 2025 results were burdened by $68.0 million in merger-related expenses and a $100.6 million provision for credit losses related to the Independent Bank Group acquisition.
- Net Interest Income: Increased $17.1 million due to a $2.7 billion growth in average interest-earning assets, partially offset by a 6 basis point decline in Net Interest Margin (NIM) to 3.78% caused by lower loan accretion income and a reduced interest rate environment.
- Asset Quality: Nonperforming assets totaled $328.6 million (0.66% of total loans), an increase of $17.3 million from the prior quarter. Net charge-offs were $10.5 million, resulting in a net charge-off ratio of 0.09% annualized, a significant improvement from 0.38% in Q1 2025.
- Investment Portfolio: Investment securities increased to $8.91 billion. The portfolio holds $779.0 million in unrealized losses across 1,135 securities, attributed to market interest rate changes rather than credit deterioration.
Guidance, Outlook, and Risks
- Capital Management: The Board approved a new stock repurchase plan in January 2026 for up to 5.56 million shares. The company repurchased 1.5 million shares in Q1 2026 at a weighted average price of $100.87. A quarterly dividend of $0.60 per share was declared for Q2 2026.
- Regulatory Capital: Both the Company and the Bank remain "well-capitalized" under regulatory standards. Common Equity Tier 1 (CET1) ratios were 11.27% (Company) and 12.33% (Bank) as of March 31, 2026.
- Credit Outlook: Management utilizes a blended macroeconomic forecast (40% baseline, 40% severe, 20% upside) to estimate credit losses, reflecting concerns over geopolitical conflicts (Iran/Middle East) and inflation. The ACL coverage of nonperforming loans is 194%.
- Legal Contingencies: A putative class action lawsuit regarding a February 2024 cybersecurity incident ("Cyber Incident Suit") remains pending. The parties agreed to a settlement in Q1 2026, expected to be covered by cyber insurance.
- Market Risk: Interest rate risk simulations indicate that a 100 basis point increase in rates would increase net interest income by 3.0%, while a 100 basis point decrease would reduce it by 3.2%.
Investor Verification Checklist
- Verify the sustainability of the provision for credit losses reduction, noting the one-time nature of the $100.6 million provision in Q1 2025 related to the Independent acquisition.
- Monitor the runoff of acquired loans and the associated decline in loan accretion income, which is pressuring the Net Interest Margin.
- Review the composition of the $779 million in unrealized losses on investment securities to assess potential liquidity impacts if forced sales occur.
- Track the settlement terms and final costs of the "Cyber Incident Suit" to ensure insurance coverage is sufficient.
- Assess the impact of the new stock repurchase plan on future capital ratios and dividend sustainability.