SouthState Corporation Q3 FY2025 earnings call

• Earnings per share are up 30% in the last year, and return on tangible equity is 20%. - Closed Independent Financial acquisition in January, converted systems in May, realizing combined earnings power. - Loan production was nearly $3.4 billion in Q3, with moderate growth in loans and deposits, and payoffs about $100 million higher. - Loan production in Texas and Colorado up 67% since Q1. - Charge-offs were 27 basis points, primarily due to one large C&I credit, but credit metrics stable. - Strategic planning underway, focusing on banking landscape, deregulation, and capitalizing on deposit consolidation in markets.

Earnings per share were up 30% in the last year, and the company generated a return on tangible equity of 20%. Loan production was nearly $3.4 billion in the third quarter. Net interest income was $600 million, up $22 million over Q2. Noninterest income was $99 million, up $12 million. Charge-offs were 27 basis points for the quarter, with year-to-date net charge-offs at 12 basis points. Loan production in Texas and Colorado was up 67% since the first quarter of the year.

• NIM expected to be in the 3.80% to 3.90% range. - Interest-earning assets expected $59 billion in Q4 average, full year 2026 between $61-$62 billion. - Expect 3 rate cuts in 2025 and 3 more in 2026, total 150 basis point cut. - Loan accretion expected $40-$50 million in Q4, $125 million in 2026. - Loan growth mid-single-digit for remainder of 2025, mid- to upper single digits in 2026.

• Charge-off from a specific C&I credit as a learning lesson. - Deposit cost dynamics and potential impact on margin. - Market disruption and competition affecting loan growth.

Q: Hit the margin question, Steve walk through excess accretion...

A: Sure, Michael, yes, just maybe kind of give you some explanation of where -- where we think we're headed on margin...

Q: Michael Rose asked about loan growth environment given market dislocations...

A: Stephen Young said they guided to mid-single-digit growth for remainder of 2025, with C&I growth, and pipelines in Texas, Florida, Atlanta...

Q: Jared Shaw asked about credit and capital...

A: John Corbett said the large charge was from First Brands with no prior reserve, and William Matthews talked about CET1 ratio and capital management...

Q: Catherine Mealor asked about margin accretion quantification...

A: Stephen Young explained about full payoffs, partial prepayments, and how it informs 2026 modeling...

Q: Janet Lee asked about core NIM and deposit beta...

A: Stephen Young discussed deposit beta and how it relates to rate cuts and loan growth...

Q: John McDonald asked about margin outlook and average earning assets...

A: Stephen Young talked about NIM range, accretion, and average earning assets expectations...

Q: Benjamin Gerlinger asked about correspondent banking tailwind...

A: Stephen Young explained about the business's performance with rate changes and its tailwind...

Q: Gary Tenner asked about NIM-related dynamics and NIE guidance...

A: Stephen Young discussed deposit cost dynamics and NIE guidance for Q4...