Back to top

Image: Bigstock

SouthState Q2 Earnings & Revenues Beat Estimates, Expenses Rise

Read MoreHide Full Article

Key Takeaways

  • SSB's Q2 EPS rose 28.5% to $2.30, beating estimates, with net income up 62.6% year over year.
  • Revenue jumped 56.2% to $664.8M on strong NII and non-interest income across most components.
  • Expenses surged 50.8% on merger, consolidation, and restructuring costs, pressuring margins.

SouthState Corporation (SSB - Free Report) reported second-quarter 2025 adjusted earnings per share of $2.30, which surpassed the Zacks Consensus Estimate of $2.00. The bottom line also increased 28.5% from the prior-year quarter. The results excluded certain notable items.

Results benefited from a rise in net interest income (NII) and non-interest income. However, higher expenses and provisions were headwinds.

Net income attributable to common shareholders was $215.2 million, up 62.6% year over year.

SouthState’s Revenues & Expenses

Total revenues in the quarter were $664.8 million, up 56.2% year over year. The top line outpaced the Zacks Consensus Estimate by 3.9%.

NII was $577.9 million, up 65% from the year-ago quarter. The net interest margin rose to 4.02% from 3.44% in the prior-year quarter.

Non-interest income was $86.8 million, up 15.4% from the prior-year quarter. The rise was driven by almost all components except for other income and net securities losses.

Non-interest expenses increased significantly by 50.8% to $375.1 million from the year-ago quarter. The rise was mainly due to an increase in merger, branch consolidation, severance-related, and other restructuring expenses.

The efficiency ratio (TE) increased to 52.75% from 57.03% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.

SSB’s Loans & Deposits

As of June 30, 2025, net loans were $46.6 billion, up 1.1% from the prior-quarter end. Total deposits were $53.7 billion, which rose marginally on a sequential basis.

SouthState’s Asset Quality

Provision for credit losses was $7.5 million, which increased significantly by 92.9% from the prior-year quarter.

Allowance for credit losses as a percentage of loans was 1.31%, down 11 bps year over year. The ratio of annualized net charge-offs to total average loans was 0.21%, up from 0.05% in the year-ago quarter.

Non-performing loans to total loans were 0.63%, up 4 bps from the prior-year quarter.

SSB’s Capital Ratios & Profitability Ratios

As of June 30, 2025, the Tier I leverage ratio was 9.2%, down from 9.7% in the year-ago quarter. Tier 1 common equity ratio decreased to 11.2% from the prior-year quarter’s 12.1%.

At the end of the second quarter, the annualized return on average assets was 1.34%, up from the year-ago period’s 1.17%.

Return on average common equity was 9.93% compared with 9.58% in the prior-year quarter.

SouthState’s Capital Distribution

The company increased its quarterly cash dividend on its common stock by 11.1% to 60 cents per share. The dividend is payable on Aug. 15, to shareholders of record as of Aug. 8, 2025.

Our Take on SouthState

SSB ended the second quarter on a positive note, with the top and bottom lines rising year over year. Rising NII and non-interest income will continue to support its financials in the future. Rising loan and deposit balances look encouraging. However, high expenses due to inorganic expansion efforts will likely hamper its bottom line.

SouthState Corporation Price, Consensus and EPS Surprise

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 Finance Stocks

Capital One’s (COF - Free Report) second-quarter 2025 adjusted earnings of $5.48 per share outpaced the Zacks Consensus Estimate of $3.83. The bottom line also compared favorably with $4.06 in the prior quarter.

COF’s results benefited from higher NII and non-interest income. Also, loans and deposits improved in the quarter. However, the increase in expenses and jump in provisions were undermining factors.

Ally Financial’s (ALLY - Free Report) second-quarter 2025 adjusted earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 78 cents. Further, the bottom line reflected a jump of 35.6% from the year-ago quarter.

Results benefited from a rise in net finance revenues and other revenues. Further, lower non-interest expenses and reduced provision provided support. However, a decline in net finance receivables and loans and deposits was the undermining factor for ALLY.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Capital One Financial Corporation (COF) - free report >>

Ally Financial Inc. (ALLY) - free report >>

SouthState Corporation (SSB) - free report >>

Published in