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SouthState Q3 Earnings Surpass Estimates, NII & Fee Income Rise Y/Y
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Key Takeaways
SouthState posted Q3 2025 EPS of $2.58, beating estimates and rising 35.8% year over year.
Total revenues jumped 63.9% to $698.8 million, fueled by strong NII and non-interest income growth.
Expenses climbed 50.8% due to merger and restructuring costs tied to the Independent Bank deal.
SouthState Corporation (SSB - Free Report) reported third-quarter 2025 adjusted earnings per share of $2.58, which surpassed the Zacks Consensus Estimate of $2.20. The bottom line also increased 35.8% from the prior-year quarter.
Results benefited from a rise in net interest income (NII) and non-interest income. Also, the successful integration of Independent Bank (acquired in January 2025) contributed to overall solid growth in the reported quarter. However, higher expenses and provisions were headwinds.
The results excluded certain notable items. After considering these, net income attributable to common shareholders (GAAP basis) was $246.6 million, representing a 72.3% year-over-year increase.
SouthState’s Revenues & Expenses
Total revenues for the quarter were $698.8 million, representing a 63.9% year-over-year increase. The top line outpaced the Zacks Consensus Estimate by 6.7%.
NII was $599.7 million, up 70.6% from the year-ago quarter. The net interest margin rose to 4.06% from 3.40% in the prior-year quarter.
Non-interest income was $99.1 million, up 32.2% from the prior-year quarter.
Non-interest expenses increased significantly by 50.8% to $372.3 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 decreased to 49.88% from 56.58% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.
SSB’s Loans & Deposits
As of Sept. 30, 2025, net loans were $47.1 billion, up nearly 1% from the prior-quarter end. Total deposits were $54.1 billion, which rose marginally on a sequential basis.
SouthState’s Asset Quality
Provision for credit losses was $5.1 million against provision benefits of $6.9 million reported in the prior-year quarter.
Allowance for credit losses as a percentage of loans was 1.24%, down 15 bps year over year. The ratio of annualized net charge-offs to total average loans was 0.27%, up from 0.07% in the year-ago quarter.
Non-performing loans to total loans were 0.63%, up seven bps from the prior-year quarter.
SSB’s Capital Ratios & Profitability Ratios
As of Sept. 30, 2025, the Tier I leverage ratio was 9.4%, down from 10% in the year-ago quarter. Tier 1 common equity ratio decreased to 11.5% from the prior-year quarter’s 12.4%.
At the end of the third quarter, the annualized return on average assets was 1.49%, up from the year-ago period’s 1.25%.
Return on average common equity was 11.04% compared with 9.91% in the prior-year quarter.
Our Take on SouthState
SSB ended the third 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. Also, the acquisition of Independent Bank enhances SouthState’s footprint across 12 of the 15 fastest-growing U.S. Metropolitan Statistical Areas. However, high expenses due to inorganic expansion efforts will likely hamper its bottom line in the near term.
SouthState Bank Corporation Price, Consensus and EPS Surprise
Capital One (COF - Free Report) reported better-than-expected third-quarter 2025 results. Adjusted earnings of $5.95 per share outpaced the Zacks Consensus Estimate of $4.20 and grew 9% sequentially. Moreover, COF’s total net revenues surged 23% to $15.36 billion and surpassed the consensus estimate of $14.9 billion.
Relatively higher interest rates for most of the reported quarter and resilient consumer card spending amid trade policy and economic uncertainties supported COF’s quarterly performance. CEO Richard Fairbank acknowledged Discover Financial’s contribution to revenue growth and earnings recovery.
Ally Financial’s (ALLY - Free Report) third-quarter 2025 adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported ALLY’s results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
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SouthState Q3 Earnings Surpass Estimates, NII & Fee Income Rise Y/Y
Key Takeaways
SouthState Corporation (SSB - Free Report) reported third-quarter 2025 adjusted earnings per share of $2.58, which surpassed the Zacks Consensus Estimate of $2.20. The bottom line also increased 35.8% from the prior-year quarter.
Results benefited from a rise in net interest income (NII) and non-interest income. Also, the successful integration of Independent Bank (acquired in January 2025) contributed to overall solid growth in the reported quarter. However, higher expenses and provisions were headwinds.
The results excluded certain notable items. After considering these, net income attributable to common shareholders (GAAP basis) was $246.6 million, representing a 72.3% year-over-year increase.
SouthState’s Revenues & Expenses
Total revenues for the quarter were $698.8 million, representing a 63.9% year-over-year increase. The top line outpaced the Zacks Consensus Estimate by 6.7%.
NII was $599.7 million, up 70.6% from the year-ago quarter. The net interest margin rose to 4.06% from 3.40% in the prior-year quarter.
Non-interest income was $99.1 million, up 32.2% from the prior-year quarter.
Non-interest expenses increased significantly by 50.8% to $372.3 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 decreased to 49.88% from 56.58% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.
SSB’s Loans & Deposits
As of Sept. 30, 2025, net loans were $47.1 billion, up nearly 1% from the prior-quarter end. Total deposits were $54.1 billion, which rose marginally on a sequential basis.
SouthState’s Asset Quality
Provision for credit losses was $5.1 million against provision benefits of $6.9 million reported in the prior-year quarter.
Allowance for credit losses as a percentage of loans was 1.24%, down 15 bps year over year. The ratio of annualized net charge-offs to total average loans was 0.27%, up from 0.07% in the year-ago quarter.
Non-performing loans to total loans were 0.63%, up seven bps from the prior-year quarter.
SSB’s Capital Ratios & Profitability Ratios
As of Sept. 30, 2025, the Tier I leverage ratio was 9.4%, down from 10% in the year-ago quarter. Tier 1 common equity ratio decreased to 11.5% from the prior-year quarter’s 12.4%.
At the end of the third quarter, the annualized return on average assets was 1.49%, up from the year-ago period’s 1.25%.
Return on average common equity was 11.04% compared with 9.91% in the prior-year quarter.
Our Take on SouthState
SSB ended the third 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. Also, the acquisition of Independent Bank enhances SouthState’s footprint across 12 of the 15 fastest-growing U.S. Metropolitan Statistical Areas. However, high expenses due to inorganic expansion efforts will likely hamper its bottom line in the near term.
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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Finance Stocks
Capital One (COF - Free Report) reported better-than-expected third-quarter 2025 results. Adjusted earnings of $5.95 per share outpaced the Zacks Consensus Estimate of $4.20 and grew 9% sequentially. Moreover, COF’s total net revenues surged 23% to $15.36 billion and surpassed the consensus estimate of $14.9 billion.
Relatively higher interest rates for most of the reported quarter and resilient consumer card spending amid trade policy and economic uncertainties supported COF’s quarterly performance. CEO Richard Fairbank acknowledged Discover Financial’s contribution to revenue growth and earnings recovery.
Ally Financial’s (ALLY - Free Report) third-quarter 2025 adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported ALLY’s results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.