- Credit costs remained low with a $7.5 million provision expense and net charge-offs at 6 basis points; one day 1 PCD charge-off of $17 million was recorded on an acquired relationship.
- Loan production increased 57% from about $2 billion to over $3 billion quarter-over-quarter, contributing to solid loan growth.
- Net interest income increased by $33 million over Q1, driven by loan coupon yields, securities portfolio restructuring, and lower cost of deposits.
- Noninterest expenses were $351 million, at the low end of guidance, resulting in a second quarter efficiency ratio of 49.1%, bringing the year-to-date ratio below 50%.
- Noninterest income remained stable at $87 million, with gains in correspondent business offset by a slight decline in mortgage revenue.
- SouthState reported a strong Q2 2025 with adjusted return on assets at 1.45% and return on tangible common equity near 20%, excluding merger costs.
- Tangible book value per share increased 8.5% year-over-year to $51.96 despite dilution from the IBTX merger; CET1 capital ratio improved compared to June 2024.
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- Adjusted CET1 capital ratio was 9%, at the lower bound of the target range of 9% to 10%.
- Average deposits increased by $1.8 billion (1.1%) sequentially and nearly $10 billion year-over-year, with disciplined deposit pricing.
- Average loans grew by $2.3 billion (1.8%) sequentially and 7.9% year-over-year, driven by commercial loans and new initiatives.
- Credit quality remains strong with net charge-offs at 20 basis points and allowance for credit losses at 1.86%.
- Earnings per common share were $0.34, including a $0.04 impact from securities repositioning and notable items, with adjusted EPS growing 27% year-over-year.
- Net interest income grew 2.9% sequentially and 12% year-over-year, with net interest margin at 3.11%, up 1 basis point sequentially.
- Noninterest expense was $1.2 billion, in line with guidance, with growth driven by incentive compensation and volume-related costs.
- Noninterest income increased 7% year-over-year, with payments, wealth, and capital markets fees growing 11%.
- Return on tangible common equity (ROTCE) was 16.1% reported, 17.6% adjusted for notable items.
- Tangible book value per share increased 16% year-over-year, illustrating strong capital growth and value creation.
- Adjusted EPS was $4.51, a 16% increase year-over-year.
- Client cash revenue was $414 million, up $5 million from Q1; client cash balances ended at $51 billion, down $2 billion sequentially.
- Commission and advisory fees net of payout were $349 million, down $14 million from Q1.
- Core G&A expenses were $426 million, below outlook range; full year 2025 outlook lowered to $1.720 billion to $1.750 billion excluding deals.
- Corporate cash ended Q2 at $3.6 billion, up $3 billion from Q1 due to capital raises; expected to decrease post-Commonwealth close.
- Depreciation and amortization were $96 million, up $4 million sequentially; expected to increase by $5 million in Q3.
- Gross profit was $1.304 billion, up $32 million sequentially.
- ICA yield was 342 basis points, up 5 basis points from Q1; expected to be flat in Q3.
- Including Commonwealth, new core G&A outlook is $1.880 billion to $1.920 billion.
- Interest expense was $102 million, up $22 million sequentially due to April debt issuance; expected to increase by $5 million in Q3.
- Leverage ratio was 1.23x at end of Q2; expected to be 2.25x post-close with a path to 2x by end of 2026.
- Organic net new assets were $21 billion, representing a 5% annualized growth rate.
- Payout rate was 87.3%, up approximately 60 basis points from Q1, with an expected increase to 87.6% in Q3.
- Promotional expense was $164 million, up $12 million from Q1; expected to increase by $35 million in Q3.
- Service and fee revenue was $152 million, up $7 million from Q1; expected to increase by $20 million in Q3.
- Tax rate was approximately 26% in Q2; expected around 27% in Q3.
- Total assets increased to a record $1.9 trillion in Q2, driven by solid organic growth and higher equity markets.
- Transaction revenue was $61 million, down $7 million sequentially; expected to increase by $5 million in Q3.
- Liquidity remained strong at over $1 billion, representing more than 50% of total equity.
- Net interest income increased due to new investments with attractive yields and swaps adding carry value.
- Over $130 million gains realized on the portfolio in Q3 from spread tightening.
- Raised $254 million in new capital in Q3, $776 million year-to-date, growing the portfolio by 10% since Q2 and over 50% since the start of the year.
- Third quarter net interest income did not include the impact of the September FOMC rate cut, expected to boost Q4 margins.
- Total economic return was 10.3% for the quarter and 11.5% year-to-date.
- Year-to-date shareholder returns were 20%, 23% over the last year, and nearly 72% over three years with dividends reinvested.
Dafinchi