We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SSB Q1 Earnings Top on Strong NII & Fee Income, Cost & Provisions Dip
Read MoreHide Full Article
Key Takeaways
SSB Q1 EPS of $2.28 beat estimates and rose 6% year over year on higher income.
Revenues grew 4.9% with gains in NII and non-interest income, while expenses fell 12.1%.
Loans and deposits increased, provisions dropped sharply, but NIM declined and NPAs rose.
SouthState Corporation (SSB - Free Report) reported first-quarter 2026 earnings per share of $2.28, which surpassed the Zacks Consensus Estimate of $2.21. Also, the bottom line increased 6% from the prior-year quarter.
Results were supported by growth in net interest income (NII) and non-interest income, along with higher loans and deposits balance. A sharp decline in provisions and lower expenses was another positive. However, a rise in non-performing assets (NPAs) and reduced net interest margin (NIM) acted as headwinds.
Net income (GAAP basis) was $225.8 million, significantly up from $89.1 million in the year-ago quarter.
SouthState’s Revenues Rise, Expenses Fall
Total revenues for the quarter were $661.7 million, representing a 4.9% year-over-year increase. However, the top line missed the Zacks Consensus Estimate of $674.6 million.
NII was $561.6 million, up 3.1% from the year-ago quarter. NIM declined to 3.79% from 3.85% in the prior-year quarter.
Non-interest income was $100.1 million, up 16.3% from the prior-year quarter.
Non-interest expenses declined 12.1% to $359.5 million. The decrease was mainly due to lower information services expense, amortization of intangibles, FDIC assessment and other regulatory charges, and other operating expenses, along with the absence of merger, branch consolidation, severance-related and other expenses.
The efficiency ratio decreased to 51.05% from 60.97% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.
SSB’s Loans & Deposits Rise
As of March 31, 2026, net loans were $48.9 billion, up 1.9% from the prior quarter. Total deposits were $55.9 billion, which rose 1.3%.
SouthState’s Asset Quality Mixed
In the reported quarter, the company recorded a provision for credit losses of $10.8 million, which declined sharply from $100.6 million in the prior year quarter.
Allowance for credit losses as a percentage of loans was 1.18%, down 15 bps year over year. The ratio of annualized net charge-offs to total average loans was 0.09%, down from 0.38% in the year-ago quarter.
Non-performing loans to total loans were 0.61%, up from 0.58% in the previous year quarter.
SSB’s Capital Ratios & Profitability Ratios Improve
As of March 31, 2026, the Tier I leverage ratio was 9.4%, up from 8.9% in the year-ago quarter. Tier 1 common equity ratio increased to 11.3% from the prior-year quarter’s 11%.
At the end of the first quarter, the annualized return on average assets was 1.37%, up from the year-ago period’s 0.56%. Return on average common equity was 10.11% compared with 4.29% in the prior-year quarter.
Our Take on SouthState
SouthState’s steady growth in NII and non-interest income is expected to continue supporting its top-line expansion. Strength in loan and deposit balances further aids its financial performance. Lower expenses and lower provisions are additional positives. However, rising NPAs and margin pressure remain concerns.
SouthState Bank Corporation Price, Consensus and EPS Surprise
BankUnited, Inc. (BKU - Free Report) reported first-quarter 2026 earnings of 83 cents per share, which missed the Zacks Consensus Estimate of 97 cents. The bottom line was up 3.4% from the prior-year quarter.
BKU’s results were primarily hurt by a rise in non-interest expenses and higher provisions for credit losses. A decline in loan balance was also a headwind. However, growth in NII and fee income provided some support. Also, a modest increase in deposit balance acted as a tailwind.
Hancock Whitney Corp.’s (HWC - Free Report) first-quarter 2026 adjusted earnings per share of $1.52 beat the Zacks Consensus Estimate of $1.48. Further, the bottom line rose 10.1% from the prior-year quarter.
HWC’s results were supported by higher NII and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Additionally, higher expenses and increased provisions acted as headwinds.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
SSB Q1 Earnings Top on Strong NII & Fee Income, Cost & Provisions Dip
Key Takeaways
SouthState Corporation (SSB - Free Report) reported first-quarter 2026 earnings per share of $2.28, which surpassed the Zacks Consensus Estimate of $2.21. Also, the bottom line increased 6% from the prior-year quarter.
Results were supported by growth in net interest income (NII) and non-interest income, along with higher loans and deposits balance. A sharp decline in provisions and lower expenses was another positive. However, a rise in non-performing assets (NPAs) and reduced net interest margin (NIM) acted as headwinds.
Net income (GAAP basis) was $225.8 million, significantly up from $89.1 million in the year-ago quarter.
SouthState’s Revenues Rise, Expenses Fall
Total revenues for the quarter were $661.7 million, representing a 4.9% year-over-year increase. However, the top line missed the Zacks Consensus Estimate of $674.6 million.
NII was $561.6 million, up 3.1% from the year-ago quarter. NIM declined to 3.79% from 3.85% in the prior-year quarter.
Non-interest income was $100.1 million, up 16.3% from the prior-year quarter.
Non-interest expenses declined 12.1% to $359.5 million. The decrease was mainly due to lower information services expense, amortization of intangibles, FDIC assessment and other regulatory charges, and other operating expenses, along with the absence of merger, branch consolidation, severance-related and other expenses.
The efficiency ratio decreased to 51.05% from 60.97% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.
SSB’s Loans & Deposits Rise
As of March 31, 2026, net loans were $48.9 billion, up 1.9% from the prior quarter. Total deposits were $55.9 billion, which rose 1.3%.
SouthState’s Asset Quality Mixed
In the reported quarter, the company recorded a provision for credit losses of $10.8 million, which declined sharply from $100.6 million in the prior year quarter.
Allowance for credit losses as a percentage of loans was 1.18%, down 15 bps year over year. The ratio of annualized net charge-offs to total average loans was 0.09%, down from 0.38% in the year-ago quarter.
Non-performing loans to total loans were 0.61%, up from 0.58% in the previous year quarter.
SSB’s Capital Ratios & Profitability Ratios Improve
As of March 31, 2026, the Tier I leverage ratio was 9.4%, up from 8.9% in the year-ago quarter. Tier 1 common equity ratio increased to 11.3% from the prior-year quarter’s 11%.
At the end of the first quarter, the annualized return on average assets was 1.37%, up from the year-ago period’s 0.56%. Return on average common equity was 10.11% compared with 4.29% in the prior-year quarter.
Our Take on SouthState
SouthState’s steady growth in NII and non-interest income is expected to continue supporting its top-line expansion. Strength in loan and deposit balances further aids its financial performance. Lower expenses and lower provisions are additional positives. However, rising NPAs and margin pressure remain concerns.
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 Banks
BankUnited, Inc. (BKU - Free Report) reported first-quarter 2026 earnings of 83 cents per share, which missed the Zacks Consensus Estimate of 97 cents. The bottom line was up 3.4% from the prior-year quarter.
BKU’s results were primarily hurt by a rise in non-interest expenses and higher provisions for credit losses. A decline in loan balance was also a headwind. However, growth in NII and fee income provided some support. Also, a modest increase in deposit balance acted as a tailwind.
Hancock Whitney Corp.’s (HWC - Free Report) first-quarter 2026 adjusted earnings per share of $1.52 beat the Zacks Consensus Estimate of $1.48. Further, the bottom line rose 10.1% from the prior-year quarter.
HWC’s results were supported by higher NII and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Additionally, higher expenses and increased provisions acted as headwinds.