SouthState Bank Corp.

SouthState said Q2 net interest income was $576 million, up $14 million from Q1. Net interest margin was 378 basis points, down 1 bp sequentially; deposit costs were 176 basis points, unchanged; loan yields were 591 basis points, down 5 bps; non-interest income was $97 million, or 57 bps of average assets; non-interest expense was $358 million; provision expense was $16 million; and net charge-offs were 6 bps. Management said Q2 2026 EPS excluding both accretion income and CDI amortization expense was up 13% versus Q2 2025, but did not give reported EPS in the transcript. For the balance of 2026, management left guidance unchanged: NIM should stay in the 375-380 bp range if rates are flat, NII expense growth should be about 4% for the year, and non-interest income should remain around 55-60 bps of average assets. Management also said loan growth should continue in the mid- to upper-single-digit range, deposits should fund that growth in the mid- to upper-single digits, and the loan-to-deposit ratio could rise to about 92% but likely not higher.

John Corbett’s tone was confident and upbeat, framing the quarter as evidence that the strategy is working across talent, growth, capital allocation, and AI. He emphasized that the bank is adding bankers, growing loans and deposits within guidance, preserving strong credit, and using capital opportunistically when valuations are attractive. He also highlighted that loan growth is broad-based across markets and that the company is focused on depth and density rather than new market expansion.

Will Matthews focused on the mechanics behind the margin, expense, and capital outlook. He said accretion income was $33 million, down $6 million from Q1, while CDI amortization was $21 million and likely to cross accretion in the next four to five quarters; he also said the Q2 2026 EPS, excluding accretion and CDI amortization, was up 13% versus Q2 2025. He noted Q2 non-interest expense of $358 million was slightly better than guidance, CET1 ended at 11.1%, TCE was 8.7%, TBV per share was $58.72, and the company repurchased 1 million shares at a weighted average price of $97.62. He reiterated the long-term total payout target of 40%-60% and said cash levels are not a constraint on buybacks.

Analysts focused on whether loan growth can continue without too much NIM pressure, how deposits and deposit costs will behave, and whether expenses can stay near the 4% growth guide while hiring continues. Management said it expects stable NIM in the 375-380 bp range if rates stay flat, with some upward bias if rates rise, and said it is comfortable trading a bit of margin for higher-quality loan growth and NII. On expenses, management said hiring and merit increases will push costs up in the back half, but deferred origination cost offsets and production should help; on capital returns, it said the recent pace of buybacks is not sustainable indefinitely if it wants to keep CET1 around 11%-12% and support loan growth. Analysts also asked about new products and correspondent banking; management pointed to commodity hedging and FX initiatives as 2027 opportunities, while current correspondent revenue is running near the $25 million quarterly guide.