Earnings release
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Exhibit 99.1 ∗ Annualized percentages † Preliminary SouthState Corporation Reports First Quarter 2025 Results Declares Quarterly Cash Dividend FOR IMMEDIATE RELEASE Media Contact Jackie Smith, 803.231.3486 WINTER HAVEN, FL – April 24, 2025 – SouthState Corporation (“SouthState” or the “Company”) (NYSE: SSB) today released its unaudited results of operations and other financial information for the three-month period ended March 31, 2025. “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. "We closed the IBTX acquisition in January and then closed the sale leaseback transaction and securities restructure in March. The securities restructuring and better than expected deposit pricing pushed our net interest margin to 3.85%. SouthState is now positioned with industry-leading profitability and strong liquidity, capital and asset quality for the uncertainties that lie ahead." Highlights of the first quarter of 2025 include: Returns ● Reported Diluted Earnings per Share (“EPS”) of $0.87; Adjusted Diluted EPS (Non-GAAP) of $2.15 ● Net Income of $89.1 million; Adjusted Net Income (Non-GAAP) of $219.3 million ● Return on Average Common Equity of 4.3%; Return on Average Tangible Common Equity (Non-GAAP) of 9.0% and Adjusted Return on Average Tangible Common Equity (Non-GAAP) of 19.9%* ● Return on Average Assets (“ROAA”) of 0.56% and Adjusted ROAA (Non-GAAP) of 1.38%* ● Book Value per Share of $84.99; Tangible Book Value (“TBV”) per Share (Non-GAAP) of $50.07 Performance ● Net Interest Income of $545 million ● Net Interest Margin (“NIM”), non-tax equivalent of 3.84%, and tax equivalent (Non-GAAP) of 3.85% ● $39.4 million of acquisition date charge-offs on PCD loans acquired from Independent Bank Group, Inc. (“Independent”) to bring these loans in accordance with SouthState policies and practices; excluding these day one charge-offs on acquired PCD loans, net charge-offs totaled $4.4 million, or 0.04%* ● $100.6 million of Provision for Credit Losses (“PCL”), including $92.1 million of initial provision for credit losses related to acquired non-PCD loans and unfunded commitments; total Allowance for Credit Losses (“ACL”) plus reserve for unfunded commitments of 1.47% of loans ● Noninterest Income of $86 million; Noninterest Income represented 0.54%, of average assets for the first quarter of 2025* ● Efficiency Ratio of 61% and Adjusted Efficiency Ratio (Non-GAAP) of 50% Balance Sheet ● Loans decreased by $263 million, or 2%*, and deposits increased by $68 million, or 1%*, excluding the effects of the acquisition date balances acquired from Independent(9); ending loan to deposit ratio of 88% ● Total loan yield of 6.25% and total deposit cost of 1.89% ● Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of 8.2%, 13.7%, 8.9%, and 11.0%, respectively† Significant Transactions ● Closed previously announced acquisition of Independent on January 1, 2025 ● Executed sale leaseback transaction during 1Q 2025, resulting in a gain of $229 million, net of transaction costs ● Completed securities portfolio restructuring during 1Q 2025 with a total net loss of $229 million Subsequent Events ● The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.54 per share, payable on May 16, 2025 to shareholders of record as of May 9, 2025
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2 Financial Performance Three Months Ended (Dollars in thousands, except per share data) Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, INCOME STATEMENT 2025 2024 2024 2024 2024 Interest Income Loans, including fees (1) $ 724,640 $ 489,709 $ 494,082 $ 478,360 $ 463,688 Investment securities, trading securities, federal funds sold and securities purchased under agreements to resell 83,926 59,096 50,096 52,764 53,567 Total interest income 808,566 548,805 544,178 531,124 517,255 Interest Expense Deposits 245,957 168,263 177,919 165,481 160,162 Federal funds purchased, securities sold under agreements to repurchase, and other borrowings 18,062 10,763 14,779 15,384 13,157 Total interest expense 264,019 179,026 192,698 180,865 173,319 Net Interest Income 544,547 369,779 351,480 350,259 343,936 Provision (recovery) for credit losses 100,562 6,371 (6,971) 3,889 12,686 Net Interest Income after Provision (Recovery) for Credit Losses 443,985 363,408 358,451 346,370 331,250 Noninterest Income Operating income 85,620 80,595 74,934 75,225 71,558 Securities losses, net (228,811) (50) — — — Gain on sale leaseback, net of transaction costs 229,279 — — — — Total noninterest income 86,088 80,545 74,934 75,225 71,558 Noninterest Expense Operating expense 340,820 250,699 243,543 242,343 240,923 Merger, branch consolidation, severance related and other restructuring expense (8) 68,006 6,531 3,304 5,785 4,513 FDIC special assessment — (621) — 619 3,854 Total noninterest expense 408,826 256,609 246,847 248,747 249,290 Income before Income Tax Provision 121,247 187,344 186,538 172,848 153,518 Income tax provision 32,167 43,166 43,359 40,478 38,462 Net Income $ 89,080 $ 144,178 $ 143,179 $ 132,370 $ 115,056 Adjusted Net Income (non-GAAP) (2) Net Income (GAAP) $ 89,080 $ 144,178 $ 143,179 $ 132,370 $ 115,056 Securities losses, net of tax 178,639 38 — — — Gain on sale leaseback, net of transaction costs and tax (179,004) — — — — Initial provision for credit losses – Non-PCD loans and UFC from Independent, net of tax 71,892 — — — — Merger, branch consolidation, severance related and other restructuring expense, net of tax (8) 53,094 5,026 2,536 4,430 3,382 Deferred tax asset remeasurement 5,581 — — — — FDIC special assessment, net of tax — (478) — 474 2,888 Adjusted Net Income (non-GAAP) $ 219,282 $ 148,764 $ 145,715 $ 137,274 $ 121,326 Basic earnings per common share $ 0.88 $ 1.89 $ 1.88 $ 1.74 $ 1.51 Diluted earnings per common share $ 0.87 $ 1.87 $ 1.86 $ 1.73 $ 1.50 Adjusted net income per common share - Basic (non-GAAP) (2) $ 2.16 $ 1.95 $ 1.91 $ 1.80 $ 1.59 Adjusted net income per common share - Diluted (non-GAAP) (2) $ 2.15 $ 1.93 $ 1.90 $ 1.79 $ 1.58 Dividends per common share $ 0.54 $ 0.54 $ 0.54 $ 0.52 $ 0.52 Basic weighted-average common shares outstanding 101,409,624 76,360,935 76,299,069 76,251,401 76,301,411 Diluted weighted-average common shares outstanding 101,828,600 76,957,882 76,805,436 76,607,281 76,660,081 Effective tax rate 26.53% 23.04% 23.24% 23.42% 25.05% Adjusted effective tax rate 21.93% 20.92% 20.06% 22.42% 21.83%
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3 Performance and Capital Ratios Three Months Ended Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, 2025 2024 2024 2024 2024 PERFORMANCE RATIOS Return on average assets (annualized) 0.56% 1.23% 1.25% 1.17% 1.03% Adjusted return on average assets (annualized) (non-GAAP) (2) 1.38% 1.27% 1.27% 1.22% 1.08% Return on average common equity (annualized) 4.29% 9.72% 9.91% 9.58% 8.36% Adjusted return on average common equity (annualized) (non-GAAP) (2) 10.56% 10.03% 10.08% 9.94% 8.81% Return on average tangible common equity (annualized) (non-GAAP) (3) 8.99% 15.09% 15.63% 15.49% 13.63% Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3) 19.85% 15.56% 15.89% 16.05% 14.35% Efficiency ratio (tax equivalent) 60.97% 55.73% 56.58% 57.03% 58.48% Adjusted efficiency ratio (non-GAAP) (4) 50.24% 54.42% 55.80% 55.52% 56.47% Dividend payout ratio (5) 61.45% 28.58% 28.76% 29.93% 34.42% Book value per common share $ 84.99 $ 77.18 $ 77.42 $ 74.16 $ 72.82 Tangible book value per common share (non-GAAP) (3) $ 50.07 $ 51.11 $ 51.26 $ 47.90 $ 46.48 CAPITAL RATIOS Equity-to-assets 13.2% 12.7% 12.8% 12.4% 12.3% Tangible equity-to-tangible assets (non-GAAP) (3) 8.2% 8.8% 8.9% 8.4% 8.2% Tier 1 leverage (6) 8.9% 10.0% 10.0% 9.7% 9.6% Tier 1 common equity (6) 11.0% 12.6% 12.4% 12.1% 11.9% Tier 1 risk-based capital (6) 11.0% 12.6% 12.4% 12.1% 11.9% Total risk-based capital (6) 13.7% 15.0% 14.7% 14.4% 14.4%
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4 Balance Sheet Ending Balance (Dollars in thousands, except per share and share data) Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, BALANCE SHEET 2025 2024 2024 2024 2024 Assets Cash and due from banks $ 688,153 $ 525,506 $ 563,887 $ 507,425 $ 478,271 Federal funds sold and interest-earning deposits with banks 2,611,537 866,561 648,792 609,741 731,186 Cash and cash equivalents 3,299,690 1,392,067 1,212,679 1,117,166 1,209,457 Trading securities, at fair value 107,401 102,932 87,103 92,161 66,188 Investment securities: Securities held to maturity 2,195,980 2,254,670 2,301,307 2,348,528 2,446,589 Securities available for sale, at fair value 5,853,369 4,320,593 4,564,363 4,498,264 4,598,400 Other investments 345,695 223,613 211,458 201,516 187,285 Total investment securities 8,395,044 6,798,876 7,077,128 7,048,308 7,232,274 Loans held for sale 357,918 279,426 287,043 100,007 56,553 Loans: Purchased credit deteriorated 3,634,490 862,155 913,342 957,255 1,031,283 Purchased non-credit deteriorated 13,084,853 3,635,782 3,959,028 4,253,323 4,534,583 Non-acquired 30,047,389 29,404,990 28,675,822 28,023,986 27,101,444 Less allowance for credit losses (623,690) (465,280) (467,981) (472,298) (469,654) Loans, net 46,143,042 33,437,647 33,080,211 32,762,266 32,197,656 Premises and equipment, net 946,334 502,559 507,452 517,382 512,635 Bank owned life insurance 1,273,472 1,013,209 1,007,275 1,001,998 997,562 Mortgage servicing rights 87,742 89,795 83,512 88,904 87,970 Core deposit and other intangibles 455,443 66,458 71,835 77,389 83,193 Goodwill 3,088,059 1,923,106 1,923,106 1,923,106 1,923,106 Other assets 981,309 775,129 745,303 765,283 778,244 Total assets $ 65,135,454 $ 46,381,204 $ 46,082,647 $ 45,493,970 $ 45,144,838 Liabilities and Shareholders' Equity Deposits: Noninterest-bearing $ 13,757,255 $ 10,192,117 $ 10,376,531 $ 10,374,464 $ 10,546,410 Interest-bearing 39,580,360 27,868,749 27,261,664 26,723,938 26,632,024 Total deposits 53,337,615 38,060,866 37,638,195 37,098,402 37,178,434 Federal funds purchased and securities sold under agreements to repurchase 679,337 514,912 538,322 542,403 554,691 Other borrowings 752,798 391,534 691,626 691,719 391,812 Reserve for unfunded commitments 62,253 45,327 41,515 50,248 53,229 Other liabilities 1,679,090 1,478,150 1,268,409 1,460,795 1,419,663 Total liabilities 56,511,093 40,490,789 40,178,067 39,843,567 39,597,829 Shareholders' equity: Common stock - $2.50 par value; authorized 160,000,000 shares 253,698 190,805 190,674 190,489 190,443 Surplus 6,667,277 4,259,722 4,249,672 4,238,192 4,230,345 Retained earnings 2,080,053 2,046,809 1,943,874 1,841,933 1,749,215 Accumulated other comprehensive loss (376,667) (606,921) (479,640) (620,211) (622,994) Total shareholders' equity 8,624,361 5,890,415 5,904,580 5,650,403 5,547,009 Total liabilities and shareholders' equity $ 65,135,454 $ 46,381,204 $ 46,082,647 $ 45,493,970 $ 45,144,838 Common shares issued and outstanding 101,479,065 76,322,206 76,269,577 76,195,723 76,177,163
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5 Net Interest Income and Margin Three Months Ended Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 (Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ YIELD ANALYSIS Balance Expense Rate Balance Expense Rate Balance Expense Rate Interest-Earning Assets: Federal funds sold and interest-earning deposits with banks$ 2,199,800$ 22,540 4.16%$ 1,308,313$ 14,162 4.31%$ 668,349$ 8,254 4.97% Investment securities 8,325,775 61,386 2.99% 7,144,438 44,934 2.50% 7,465,735 45,313 2.44% Loans held for sale 174,833 3,678 8.53% 179,803 2,304 5.10% 42,872 681 6.39% Total loans held for investment 46,797,045 720,962 6.25% 33,662,822 487,405 5.76% 32,480,220 463,007 5.73% Total interest-earning assets 57,497,453 808,566 5.70% 42,295,376 548,805 5.16% 40,657,176 517,255 5.12% Noninterest-earning assets 6,785,973 4,214,390 4,353,987 Total Assets $ 64,283,426 $ 46,509,766 $ 45,011,163 Interest-Bearing Liabilities ("IBL"): Transaction and money market accounts $ 29,249,014$ 176,949 2.45%$ 20,823,079$ 121,239 2.32%$ 19,544,019$ 117,292 2.41% Savings deposits 2,904,961 1,944 0.27% 2,427,760 1,741 0.29% 2,589,251 1,818 0.28% Certificates and other time deposits 7,165,188 67,064 3.80% 4,517,047 45,283 3.99% 4,282,749 41,052 3.86% Federal funds purchased 323,400 3,479 4.36% 292,626 3,479 4.73% 256,506 3,369 5.28% Repurchase agreements 298,305 1,430 1.94% 261,373 1,382 2.10% 280,674 1,358 1.95% Other borrowings 812,136 13,153 6.57% 394,853 5,902 5.95% 563,848 8,430 6.01% Total interest-bearing liabilities 40,753,004 264,019 2.63% 28,716,738 179,026 2.48% 27,517,047 173,319 2.53% Noninterest-bearing deposits 13,493,329 10,561,382 10,530,597 Other noninterest-bearing liabilities 1,618,981 1,330,020 1,426,968 Shareholders' equity 8,418,112 5,901,626 5,536,551 Total Non-IBL and shareholders' equity 23,530,422 17,793,028 17,494,116 Total Liabilities and Shareholders' Equity $ 64,283,426 $ 46,509,766 $ 45,011,163 Net Interest Income and Margin (Non-Tax Equivalent) $ 544,547 3.84% $ 369,779 3.48% $ 343,936 3.40% Net Interest Margin (Tax Equivalent) (non-GAAP) 3.85% 3.48% 3.41% Total Deposit Cost (without Debt and Other Borrowings) 1.89% 1.75% 1.74% Overall Cost of Funds (including Demand Deposits) 1.97% 1.81% 1.83% Total Accretion on Acquired Loans (1) $ 61,798 $ 2,887 $ 4,287 Tax Equivalent ("TE") Adjustment $ 784 $ 547 $ 528 ● The remaining loan discount on acquired loans to be accreted into loan interest income totals $457.1 million as of March 31, 2025.
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6 Noninterest Income and Expense Three Months Ended Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, (Dollars in thousands) 2025 2024 2024 2024 2024 Noninterest Income: Fees on deposit accounts $ 35,933 $ 35,121 $ 33,986 $ 33,842 $ 33,145 Mortgage banking income 7,737 4,777 3,189 5,912 6,169 Trust and investment services income 14,932 12,414 11,578 11,091 10,391 Correspondent banking and capital markets income 16,715 20,905 17,381 16,267 14,591 Expense on centrally-cleared variation margin (7,170) (7,350) (7,488) (11,407) (10,280) Total correspondent banking and capital markets income 9,545 13,555 9,893 4,860 4,311 Bank owned life insurance income 10,199 7,944 8,276 7,372 6,892 Other 7,275 6,784 8,012 12,148 10,650 Securities losses, net (228,811) (50) — — — Gain on sale leaseback, net of transaction costs 229,279 — — — — Total Noninterest Income $ 86,088 $ 80,545 $ 74,934 $ 75,225 $ 71,558 Noninterest Expense: Salaries and employee benefits $ 195,811 $ 154,116 $ 150,865 $ 151,435 $ 150,453 Occupancy expense 35,493 22,831 22,242 22,453 22,577 Information services expense 31,362 23,416 23,280 23,144 22,353 OREO and loan related expense 1,784 1,416 1,358 1,307 606 Business development and staff related 6,510 6,777 5,542 5,942 5,521 Amortization of intangibles 23,831 5,326 5,327 5,744 5,998 Professional fees 4,709 5,366 4,017 3,906 3,115 Supplies and printing expense 3,128 2,729 2,762 2,526 2,540 FDIC assessment and other regulatory charges 11,258 7,365 7,482 7,771 8,534 Advertising and marketing 2,290 2,269 2,296 2,594 1,984 Other operating expenses 24,644 19,088 18,372 15,521 17,242 Merger, branch consolidation, severance related and other restructuring expense (8) 68,006 6,531 3,304 5,785 4,513 FDIC special assessment — (621) — 619 3,854 Total Noninterest Expense $ 408,826 $ 256,609 $ 246,847 $ 248,747 $ 249,290
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7 Loans and Deposits The following table presents a summary of the loan portfolio by type: Ending Balance (Dollars in thousands) Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, LOAN PORTFOLIO (7) 2025 2024 2024 2024 2024 Construction and land development * † $ 3,497,909 $ 2,184,327 $ 2,458,151 $ 2,592,307 $ 2,437,343 Investor commercial real estate* 16,822,119 9,991,482 9,856,709 9,731,773 9,752,529 Commercial owner occupied real estate 7,417,116 5,716,376 5,544,716 5,522,978 5,511,855 Commercial and industrial 8,106,484 6,222,876 5,931,187 5,769,838 5,544,131 Consumer real estate * 9,838,952 8,714,969 8,649,714 8,440,724 8,223,066 Consumer/other 1,084,152 1,072,897 1,107,715 1,176,944 1,198,386 Total Loans $ 46,766,732 $ 33,902,927 $ 33,548,192 $ 33,234,564 $ 32,667,310 * Single family home construction-to-permanent loans originated by the Company’s mortgage banking division are included in construction and land development category until completion. Investor commercial real estate loans include commercial non-owner occupied real estate and other income producing property. Consumer real estate includes consumer owner occupied real estate and home equity loans. † Includes single family home construction-to-permanent loans of $343.5 million, $386.2 million, $429.8 million, $544.2 million, and $623.9 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. Ending Balance (Dollars in thousands) Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, DEPOSITS 2025 2024 2024 2024 2024 Noninterest-bearing checking $ 13,757,255 $ 10,192,116 $ 10,376,531 $ 10,374,464 $ 10,546,410 Interest-bearing checking 12,034,973 8,232,322 7,550,392 7,547,406 7,898,835 Savings 2,939,407 2,414,172 2,442,584 2,475,130 2,557,203 Money market 17,447,738 13,056,534 12,614,046 12,122,336 11,895,385 Time deposits 7,158,242 4,165,722 4,654,642 4,579,066 4,280,601 Total Deposits $ 53,337,615 $ 38,060,866 $ 37,638,195 $ 37,098,402 $ 37,178,434 Core Deposits (excludes Time Deposits) $ 46,179,373 $ 33,895,144 $ 32,983,553 $ 32,519,336 $ 32,897,833
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8 Asset Quality Ending Balance Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, (Dollars in thousands) 2025 2024 2024 2024 2024 NONPERFORMING ASSETS: Non-acquired Non-acquired nonaccrual loans and restructured loans on nonaccrual $ 151,673 $ 141,982 $ 111,240 $ 110,774 $ 106,189 Accruing loans past due 90 days or more 3,273 3,293 6,890 5,843 2,497 Non-acquired OREO and other nonperforming assets 2,290 1,182 1,217 2,876 1,589 Total non-acquired nonperforming assets 157,236 146,457 119,347 119,493 110,275 Acquired Acquired nonaccrual loans and restructured loans on nonaccrual 116,691 65,314 70,731 78,287 63,451 Accruing loans past due 90 days or more 537 — 389 916 135 Acquired OREO and other nonperforming assets 5,976 1,583 493 598 655 Total acquired nonperforming assets 123,204 66,897 71,613 79,801 64,241 Total nonperforming assets $ 280,440 $ 213,354 $ 190,960 $ 199,294 $ 174,516 Three Months Ended Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, 2025 2024 2024 2024 2024 ASSET QUALITY RATIOS (7): Allowance for credit losses as a percentage of loans 1.33% 1.37% 1.39% 1.42% 1.44% Allowance for credit losses, including reserve for unfunded commitments, as a percentage of loans 1.47% 1.51% 1.52% 1.57% 1.60% Allowance for credit losses as a percentage of nonperforming loans 229.15% 220.94% 247.28% 241.19% 272.62% Net charge-offs as a percentage of average loans (annualized) 0.38% 0.06% 0.07% 0.05% 0.03% Net charge-offs, excluding acquisition date charge-offs, as a percentage of average loans (annualized) * 0.04% 0.06% 0.07% 0.05% 0.03% Total nonperforming assets as a percentage of total assets 0.43% 0.46% 0.41% 0.44% 0.39% Nonperforming loans as a percentage of period end loans 0.58% 0.62% 0.56% 0.59% 0.53% * Excluding acquisition date charge-offs recorded in connection with the Independent merger. Current Expected Credit Losses (“CECL”) Below is a table showing the roll forward of the ACL and UFC for the first quarter of 2025: Allowance for Credit Losses ("ACL") and Unfunded Commitments ("UFC") (Dollars in thousands) Non-PCD ACL PCD ACL Total ACL UFC Ending balance 12/31/2024 $ 444,959 $ 20,321 $ 465,280 $ 45,327 ACL - PCD loans from Independent — 118,643 118,643 — Initial provision for credit losses - Independent 79,971 — 79,971 12,112 Acquisition date charge-offs on acquired PCD loans - Independent * — (39,429) (39,429) — Charge offs (6,139) — (6,139) — Acquired charge offs (885) (398) (1,283) — Recoveries 1,345 — 1,345 — Acquired recoveries 291 1,346 1,637 — Provision for credit losses 7,073 (3,408) 3,665 4,814 Ending balance 3/31/2025 $ 526,615 $ 97,075 $ 623,690 $ 62,253 Period end loans $ 43,132,242 $ 3,634,490 $ 46,766,732 N/A Allowance for Credit Losses to Loans 1.22% 2.67% 1.33% N/A Unfunded commitments (off balance sheet) † $ 10,654,446 Reserve to unfunded commitments (off balance sheet) 0.58% * Acquisition date charge-offs recorded in connection with the Independent merger, to conform with the Company’s charge-off policies and practices. † Unfunded commitments exclude unconditionally cancelable commitments and letters of credit.
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9 Conference Call The Company will host a conference call to discuss its first quarter results at 9:00 a.m. Eastern Time on April 25, 2025. Callers wishing to participate may call toll-free by dialing (888) 350-3899 within the US and (646) 960-0343 for all other locations. The numbers for international participants are listed at https://events.q4irportal.com/custom/access/2324/. The conference ID number is 4200408. Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com. An audio replay of the live webcast is expected to be available by the evening of April 25, 2025 on the Investor Relations section of SouthStateBank.com. SouthState is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A. (the “Bank”), the Company’s nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas, Virginia, Texas and Colorado. The Bank also serves clients coast to coast through its correspondent banking division. Additional information is available at SouthStateBank.com. ### Non-GAAP Measures Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures. Although other companies may use calculation methods that differ from those used by SouthState for non-GAAP measures, management believes that these non-GAAP measures provide additional useful information, which allows readers to evaluate the ongoing performance of the Company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. (Dollars in thousands) Three Months Ended PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP) Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Net income (GAAP) $ 89,080 $ 144,178 $ 143,179 $ 132,370 $ 115,056 Provision (recovery) for credit losses 100,562 6,371 (6,971) 3,889 12,686 Income tax provision 26,586 43,166 43,359 40,478 38,462 Income tax provision - deferred tax asset remeasurement 5,581 — — — — Securities losses, net 228,811 50 — — — Gain on sale leaseback, net of transaction costs (229,279) — — — — Merger, branch consolidation, severance related and other restructuring expense (8) 68,006 6,531 3,304 5,785 4,513 FDIC special assessment — (621) — 619 3,854 Pre-provision net revenue (PPNR) (Non-GAAP) $ 289,347 $ 199,675 $ 182,871 $ 183,141 $ 174,571 (Dollars in thousands) Three Months Ended NET INTEREST MARGIN ("NIM"), TE (NON-GAAP) Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Net interest income (GAAP) $ 544,547 $ 369,779 $ 351,480 $ 350,259 $ 343,936 Total average interest-earning assets 57,497,453 42,295,376 41,223,980 41,011,662 40,657,176 NIM, non-tax equivalent 3.84% 3.48% 3.39% 3.43% 3.40% Tax equivalent adjustment (included in NIM, TE) 784 547 486 631 528 Net interest income, tax equivalent (Non-GAAP) $ 545,331 $ 370,326 $ 351,966 $ 350,890 $ 344,464 NIM, TE (Non-GAAP) 3.85% 3.48% 3.40% 3.44% 3.41%
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10 Three Months Ended (Dollars in thousands, except per share data) Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, RECONCILIATION OF GAAP TO NON-GAAP 2025 2024 2024 2024 2024 Adjusted Net Income (non-GAAP) (2) Net income (GAAP) $ 89,080 $ 144,178 $ 143,179 $ 132,370 $ 115,056 Securities losses, net of tax 178,639 38 — — — Gain on sale leaseback, net of transaction costs and tax (179,004) — — — — PCL - Non-PCD loans and UFC, net of tax 71,892 — — — — Merger, branch consolidation, severance related and other restructuring expense, net of tax (8) 53,094 5,026 2,536 4,430 3,382 Deferred tax asset remeasurement 5,581 — — — — FDIC special assessment, net of tax — (478) — 474 2,888 Adjusted net income (non-GAAP) $ 219,282 $ 148,764 $ 145,715 $ 137,274 $ 121,326 Adjusted Net Income per Common Share - Basic (non-GAAP) (2) Earnings per common share - Basic (GAAP) $ 0.88 $ 1.89 $ 1.88 $ 1.74 $ 1.51 Effect to adjust for securities losses, net of tax 1.76 0.00 — — — Effect to adjust for gain on sale leaseback, net of transaction costs and tax (1.77) — — — — Effect to adjust for PCL - Non-PCD loans and UFC, net of tax 0.71 — — — — Effect to adjust for merger, branch consolidation, severance related and other restructuring expense, net of tax (8) 0.52 0.07 0.03 0.05 0.04 Effect to adjust for deferred tax asset remeasurement 0.06 — — — — Effect to adjust for FDIC special assessment, net of tax — (0.01) — 0.01 0.04 Adjusted net income per common share - Basic (non-GAAP) $ 2.16 $ 1.95 $ 1.91 $ 1.80 $ 1.59 Adjusted Net Income per Common Share - Diluted (non-GAAP) (2) Earnings per common share - Diluted (GAAP) $ 0.87 $ 1.87 $ 1.86 $ 1.73 $ 1.50 Effect to adjust for securities losses, net of tax 1.76 0.00 — — — Effect to adjust for gain on sale leaseback, net of transaction costs and tax (1.76) — — — — Effect to adjust for PCL - Non-PCD loans and UFC, net of tax 0.71 — — — — Effect to adjust for merger, branch consolidation, severance related and other restructuring expense, net of tax (8) 0.52 0.07 0.04 0.05 0.04 Effect to adjust for deferred tax remeasurement 0.05 — — — — Effect to adjust for FDIC special assessment, net of tax — (0.01) — 0.01 0.04 Adjusted net income per common share - Diluted (non-GAAP) $ 2.15 $ 1.93 $ 1.90 $ 1.79 $ 1.58 Adjusted Return on Average Assets (non-GAAP) (2) Return on average assets (GAAP) 0.56% 1.23% 1.25% 1.17% 1.03% Effect to adjust for securities losses, net of tax 1.13% 0.00% —% —% —% Effect to adjust for gain on sale leaseback, net of transaction costs and tax (1.13)% —% —% —% —% Effect to adjust for PCL - Non-PCD loans and UFC, net of tax 0.45% —% —% —% —% Effect to adjust for merger, branch consolidation, severance related and other restructuring expense, net of tax (8) 0.33% 0.04% 0.02% 0.05% 0.02% Effect to adjust for deferred tax remeasurement 0.04% —% —% —% —% Effect to adjust for FDIC special assessment, net of tax —% (0.00)% —% 0.00% 0.03% Adjusted return on average assets (non-GAAP) 1.38% 1.27% 1.27% 1.22% 1.08% Adjusted Return on Average Common Equity (non-GAAP) (2) Return on average common equity (GAAP) 4.29% 9.72% 9.91% 9.58% 8.36% Effect to adjust for securities losses, net of tax 8.61% 0.00% —% —% —% Effect to adjust for gain on sale leaseback, net of transaction costs and tax (8.63)% —% —% —% —% Effect to adjust for PCL - Non-PCD loans and UFC, net of tax 3.46% —% —% —% —% Effect to adjust for merger, branch consolidation, severance related and other restructuring expense, net of tax (8) 2.56% 0.34% 0.17% 0.33% 0.24% Effect to adjust for deferred tax remeasurement 0.27% —% —% —% —% Effect to adjust for FDIC special assessment, net of tax —% (0.03)% —% 0.03% 0.21% Adjusted return on average common equity (non-GAAP) 10.56% 10.03% 10.08% 9.94% 8.81% Return on Average Common Tangible Equity (non-GAAP) (3) Return on average common equity (GAAP) 4.29% 9.72% 9.91% 9.58% 8.36% Effect to adjust for intangible assets 4.70% 5.37% 5.72% 5.91% 5.27% Return on average tangible equity (non-GAAP) 8.99% 15.09% 15.63% 15.49% 13.63% Adjusted Return on Average Common Tangible Equity (non-GAAP) (2) (3) Return on average common equity (GAAP) 4.29% 9.72% 9.91% 9.58% 8.36% Effect to adjust for securities losses, net of tax 8.61% 0.00% —% —% —% Effect to adjust for gain on sale leaseback, net of transaction costs and tax (8.63)% —% —% —% —% Effect to adjust for PCL - Non-PCD loans and UFC, net of tax 3.46% —% —% —% —% Effect to adjust for merger, branch consolidation, severance related and other restructuring expense, net of tax (8) 2.56% 0.34% 0.18% 0.32% 0.25% Effect to adjust for deferred tax remeasurement 0.27% —% —% —% —% Effect to adjust for FDIC special assessment, net of tax —% (0.03)% —% 0.03% 0.21% Effect to adjust for intangible assets, net of tax 9.29% 5.53% 5.80% 6.12% 5.53% Adjusted return on average common tangible equity (non-GAAP) 19.85% 15.56% 15.89% 16.05% 14.35%
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11 Three Months Ended Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, RECONCILIATION OF GAAP TO NON-GAAP 2025 2024 2024 2024 2024 Adjusted Efficiency Ratio (non-GAAP) (4) Efficiency ratio 60.97% 55.73% 56.58% 57.03% 58.48% Effect to adjust for securities losses (13.35)% —% —% —% —% Effect to adjust for gain on sale leaseback, net of transaction costs 13.39% —% —% —% —% Effect to adjust for merger, branch consolidation, severance related and other restructuring expense (8)(10.77)% (1.45)% (0.78)% (1.36)% (1.08)% Effect to adjust for FDIC special assessment —% 0.14% —% (0.15)% (0.93)% Adjusted efficiency ratio 50.24% 54.42% 55.80% 55.52% 56.47% Tangible Book Value Per Common Share (non-GAAP) (3) Book value per common share (GAAP) $ 84.99 $ 77.18 $ 77.42 $ 74.16 $ 72.82 Effect to adjust for intangible assets (34.92) (26.07) (26.16) (26.26) (26.34) Tangible book value per common share (non-GAAP) $ 50.07 $ 51.11 $ 51.26 $ 47.90 $ 46.48 Tangible Equity-to-Tangible Assets (non-GAAP) (3) Equity-to-assets (GAAP) 13.24% 12.70% 12.81% 12.42% 12.29% Effect to adjust for intangible assets (4.99)% (3.91)% (3.94)% (4.03)% (4.08)% Tangible equity-to-tangible assets (non-GAAP) 8.25% 8.79% 8.87% 8.39% 8.21% Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications have no impact on net income or equity as previously reported. Footnotes to tables: (1) Includes loan accretion (interest) income related to the discount on acquired loans of $61.8 million, $2.9 million, $2.9 million, $4.4 million, and $4.3 million during the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. (2) Adjusted earnings, adjusted return on average assets, adjusted EPS, and adjusted return on average equity are non-GAAP measures and exclude the gains or losses on sales of securities, gain on sale leaseback, net of transaction costs, PCL on non-PCD loans and unfunded commitments, deferred tax asset remeasurement, merger, branch consolidation, severance related and other restructuring expense, and FDIC special assessments. Management believes that non-GAAP adjusted measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. Adjusted earnings and the related adjusted return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger, branch consolidation, severance related and other restructuring expense of $68.0 million, $6.5 million, $3.3 million, $5.8 million, and $4.5 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively; (b) pre-tax net securities losses of $(228,811) and $(50,000) for the quarters ended March 31, 2025 and December 31, 2024; (c) pre-tax (c) pre-tax gain on sale leaseback, net of transaction costs of $229,279 for the quarter ended March 31, 2025; (d) pre-tax FDIC special assessment of $(621,000), $619,000, and $3.9 million for the quarters ended December 31, 2024, June 30, 2024, and March 31, 2024, respectively; and (e) deferred tax asset remeasurement of $5.6 million for the quarter ended March 31, 2025. (3) The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of GAAP to Non-GAAP" provide tables that reconcile GAAP measures to non-GAAP. (4) Adjusted efficiency ratio is calculated by taking the noninterest expense excluding transaction costs on sale leaseback, merger, branch consolidation, severance related and other restructuring expenses and amortization of intangible assets, divided by net interest income and noninterest income excluding gains (losses) on sales of securities, net and gain on sale leaseback, net of transaction costs. The pre-tax amortization expenses of intangible assets were $23.8 million, $5.3 million, $5.3 million, $5.7 million, and $6.0 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. (5) The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period. (6) March 31, 2025 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed. (7) Loan data excludes loans held for sale. (8) Includes pre-tax cyber incident costs of $111,000, $329,000, $56,000, $3.5 million and $4.4 million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. (9) SouthState acquired $13.1 billion of loans and $15.2 billion of deposits from the Independent acquisition. The total preliminary mark on the newly acquired loans was approximately $482 million, which included a rate mark of approximately $386 million and a credit mark on non-PCD loans of approximately $96 million. The preliminary premium for acquired fixed maturity time deposits was approximately $1.7 million. The Company also added $412.1 million in core deposit intangibles related to the Independent acquisition.
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12 Cautionary Statement Regarding Forward Looking Statements Statements included in this communication, which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on, among other things, management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and SouthState. Words and phrases such as “may,” “approximately,” “continue,” “should,” “expects,” “projects,” “anticipates,” “is likely,” “look ahead,” “look forward,” “believes,” “will,” “intends,” “estimates,” “strategy,” “plan,” “could,” “potential,” “possible” and variations of such words and similar expressions are intended to identify such forward-looking statements. SouthState cautions readers that forward looking statements are subject to certain risks, uncertainties and assumptions that are difficult to predict with regard to, among other things, timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: (1) economic volatility risk, including as a result of monetary, fiscal, and trade law policies, such as tariffs, and inflation, potentially resulting in higher rates, deterioration in the credit markets, greater than expected noninterest expenses, excessive loan losses, or on the other hand lower rates, which also may have other negative consequences, which risks could be exacerbated by potential negative economic developments resulting from federal spending cuts and/or one or more federal budget-related impasses or actions; (2) risks related to the ability of the Company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (3) risks related to the merger and integration of SouthState and Independent including, among others, (i) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized, (ii) the risk that the integration of Independent’s operations into SouthState’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate Independent’s businesses into SouthState’s businesses, (iii) the amount of the costs, fees, expenses and charges related to the merger, and (iv) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (4) risks relating to the ability to retain our culture and attract and retain qualified people as we grow and are located in new markets, and being able to offer competitive salaries and benefits, including flexibility of working remotely or in the office; (5) deposit attrition, client loss or revenue loss following completed mergers or acquisitions that may be greater than anticipated; (6) credit risks associated with an obligor’s failure to meet the terms of any contract with the Bank or otherwise fail to perform as agreed under the terms of any loan-related document; (7) interest rate risk primarily resulting from our inability to effectively manage the risk, and their impact on the Bank’s earnings, including from the correspondent and mortgage divisions, housing demand, the market value of the Bank’s loan and securities portfolios, and the market value of SouthState’s equity; (8) a decrease in our net interest income due to the interest rate environment; (9) liquidity risk affecting the Bank’s ability to meet its obligations when they come due; (10) unexpected outflows of uninsured deposits may require us to sell investment securities at a loss; (11) potential deterioration in real estate values; (12) the loss of value of our investment portfolio could negatively impact market perceptions of us and could lead to deposit withdrawals; (13) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (14) transaction risk arising from problems with service or product delivery; (15) the impact of increasing digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on the Bank’s results of operations, customer base, expenses, suppliers and operations; (16) controls and procedures risk, including the potential failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures; (17) volatility in the financial services industry (including failures or rumors of failures of other depository institutions), along with actions taken by governmental agencies to address such turmoil, could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; (18) the impact of competition with other financial institutions, including deposit and loan pricing pressures and the resulting impact, including as a result of compression to net interest margin; (19) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards, and contractual obligations regarding data privacy and cybersecurity; (20) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and including the impact of special FDIC assessments, the Consumer Financial Protection Bureau regulations or other guidance, and the possibility of changes in accounting standards, policies, principles and practices; (21) risks related to the legal, regulatory, and supervisory environment, including changes in financial services legislation, regulation, policies, or government officials or other personnel; (22) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (23) reputation risk that adversely affects earnings or capital arising from negative public opinion including the effects of social media on market perceptions of us and banks generally; (24) cybersecurity risk related to the dependence of SouthState on internal computer systems and the technology of outside service providers, as well as the potential impacts of internal or external security breaches, which may subject the Company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (25) reputational and operational risks associated with environment, social and governance (ESG) matters, including the impact of changes in federal and state laws, regulations and guidance relating to climate change; (26) excessive loan losses; (27) reputational risk and possible higher than estimated reduced revenue from previously announced or proposed regulatory changes in the Bank’s consumer programs and products; (28) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash consideration; (29) catastrophic events such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including public health crises and infectious disease outbreaks, as well as any government actions in response to such events, and the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on SouthState and its customers and other constituencies; (30) geopolitical risk from terrorist activities and armed conflicts that may result in economic and supply disruptions, and loss of market and consumer confidence; (31) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (32) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations as well as the discretion of the board of directors of SouthState, SouthState’s performance and other factors; (33) ownership dilution risk associated with potential acquisitions in which SouthState’s stock may be issued as consideration for an acquired company; and (34) other factors that may affect future results of SouthState, as disclosed in SouthState’s Annual Report on Form 10- K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by SouthState with the U.S. Securities and Exchange Commission (“SEC”) and available on the SEC’s website at http://www.sec.gov, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward-looking statements. All forward-looking statements speak only as of the date they are made and are based on information available at that time. SouthState does not undertake any obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.