SouthState Corp Reports Q1 EPS of $0.87, Revenue Hits $612.18 Million, Meeting Expectations

Strategic Moves and Financial Highlights

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Apr 24, 2025
Summary
  • Reported Diluted EPS: $0.87, slightly below the estimated EPS of $0.88.
  • Adjusted Diluted EPS (Non-GAAP): $2.15, showcasing a strong performance when adjusted for specific items.
  • Net Income: $89.1 million, with an adjusted net income of $219.3 million, reflecting strategic financial adjustments.
  • Net Interest Margin: Improved to 3.85%, driven by securities restructuring and favorable deposit pricing.
  • Return on Average Tangible Common Equity (Non-GAAP): 9.0%, with an adjusted return of 19.9%, indicating robust equity performance.
  • Book Value per Share: $84.99, with a tangible book value per share of $50.07, highlighting solid asset backing.
Article's Main Image

On April 24, 2025, SouthState Corp (SSB, Financial) released its 8-K filing detailing its financial performance for the first quarter of 2025. SouthState Corp, a prominent bank holding company in the United States, offers a comprehensive range of financial services through its subsidiary, South State Bank, across several states including Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia.

Performance Overview and Challenges

SouthState Corp reported a diluted earnings per share (EPS) of $0.87, which fell short of the analyst estimate of $0.88. However, the company met revenue expectations, reporting $612.18 million against the estimated $612.18 million. The company's strategic initiatives, including the acquisition of IBTX and a sale leaseback transaction, were pivotal in enhancing its earnings profile and positioning it for future profitability.

Financial Achievements and Industry Implications

SouthState Corp's net interest margin improved to 3.85%, a significant achievement in the banking sector, reflecting effective management of deposit pricing and securities restructuring. This margin is crucial for banks as it indicates the difference between the interest income generated and the amount of interest paid out to lenders, impacting overall profitability.

Key Financial Metrics

The company reported a net income of $89.1 million, with an adjusted net income of $219.3 million. The return on average common equity was 4.3%, while the adjusted return on average tangible common equity stood at 19.9%. These metrics are vital as they provide insights into the company's efficiency in generating profits from shareholders' equity.

Metric Reported Value Adjusted Value (Non-GAAP)
Diluted EPS $0.87 $2.15
Net Income $89.1 million $219.3 million
Return on Average Assets (ROAA) 0.56% 1.38%

Analysis of Financial Statements

SouthState Corp's balance sheet reflects strong liquidity and capital positions, essential for navigating economic uncertainties. The company's strategic transactions, including the securities restructuring, have fortified its asset quality and liquidity, crucial for sustaining operations and growth in the banking industry.

The first quarter was a strategic reset that took SouthState’s earnings profile from good to great," commented John C. Corbett, SouthState’s Chief Executive Officer.

Conclusion

SouthState Corp's first-quarter results highlight its strategic focus on enhancing profitability and maintaining strong financial health. Despite missing the EPS estimate, the company's robust revenue performance and strategic initiatives position it well for future challenges and opportunities in the banking sector. Investors and stakeholders will be keenly observing how these strategies unfold in the coming quarters.

Explore the complete 8-K earnings release (here) from SouthState Corp for further details.