SouthState’s fourth quarter reflected the successful integration of its large-scale acquisition of Independent Bank, with management attributing both earnings and tangible book value growth to smooth operational execution and disciplined expansion. John Corbett, CEO, highlighted that “the SouthState team successfully navigated through that initial period of high risks, the regulatory approvals and the systems conversions, and now we're on the other side, enjoying the rewards of a well-choreographed integration.” Management emphasized that momentum accelerated late in the year, particularly in loan and deposit growth, as pipelines built steadily and new markets contributed to business development.
Is now the time to buy SSB? Find out in our full research report (it’s free for active Edge members).
SouthState (SSB) Q4 CY2025 Highlights:
- Revenue: $686.9 million vs analyst estimates of $662.1 million (52.5% year-on-year growth, 3.7% beat)
- Adjusted EPS: $2.47 vs analyst estimates of $2.28 (8.3% beat)
- Adjusted Operating Income: $316.1 million vs analyst estimates of $317.4 million (46% margin, in line)
- Market Capitalization: $10.01 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From SouthState’s Q4 Earnings Call
- John McDonald (Truist Securities) asked about expectations for net interest margin and deposit costs, with CFO Stephen Young confirming guidance of 3.80% to 3.90% for 2026 and stable deposit betas.
- Stephen Scouten (Piper Sandler) inquired about commercial banker hiring targets, with CEO John Corbett stating a 10-15% increase is planned and already included in expense guidance.
- Michael Pietrini (JPMorgan) questioned Q4’s expense uptick, and CFO William Matthews explained that higher performance-based compensation and increased business development spending were key contributors.
- Catherine Mealor (KBW) asked about loan repricing trends. Stephen Young clarified that fixed-rate legacy loans are expected to reprice higher, supporting stable margins.
- Jonathan Rau (Barclays) asked about technology investments, with Young highlighting ongoing improvements to commercial loan servicing, AI, and the FX platform, all aimed at supporting front-line growth.
Catalysts in Upcoming Quarters
In the upcoming quarters, our analyst team will be closely watching (1) whether SouthState can sustain organic loan and deposit growth in its expanded Texas and Colorado markets, (2) the pace and effectiveness of commercial banker hiring and integration into new business lines, and (3) the ability to maintain expense discipline despite ongoing investments in digital platforms and revenue producers. The trajectory of noninterest income from capital markets will also be a key signal.
SouthState currently trades at $100.97, in line with $100.56 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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