SouthState Bank Corp

For the period ended Jun 30, 2026. Filed Jul 31, 2026.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2026 · Filed Jul 31, 2026

SSB$106.03+1.8%Stored close · as of Nov 9, 2026

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Contents

Notes to consolidated Financial Statements

N****otes to Consolidated Financial Statements (unaudited)

Note 1 — Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, otherwise referred to as GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

The consolidated balance sheet at December 31, 2025, has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for complete financial statements.

Note 2 — Summary of Significant Accounting Policies

The information contained in the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”), as filed with the Securities and Exchange Commission (the “SEC”) on February 20, 2026, should be referenced when reading these unaudited consolidated financial statements. Unless otherwise mentioned or unless the context requires otherwise, references herein to “SouthState,” the “Company,” “we,” “us,” “our” or similar references mean SouthState Bank Corporation and its consolidated subsidiaries. References to the “Bank” or “SouthState Bank” means SouthState Bank Corporation’s wholly owned subsidiary, SouthState Bank, National Association, a national banking association.

The significant accounting policies of the Company are described in Note 1 to the Consolidated Financial Statements in the 2025 Form 10-K. There have been no material changes to those policies during the six months ended June 30, 2026.

Note 3 — Recent Accounting and Regulatory Pronouncements

Accounting Standards Adopted

There were no accounting standards adopted during the six months ended June 30, 2026 that had a material effect on our consolidated financial statements.

Issued But Not Yet Adopted Accounting Standards

Subsequent to the filing of the Company’s 2025 Form 10-K, no accounting standards were issued that are expected to have a material effect on the Company’s consolidated financial statements.

Note 4 — Investment Securities

Investment Securities

The following is the amortized cost and fair value of investment securities held to maturity:


· · · · Gross · · Gross · ·
· · Amortized · · Unrealized · · Unrealized · · Fair
(Dollars in thousands) · · Cost · · Gains · · Losses · · Value
June 30, 2026:
U.S. Government agencies	$132,915	$—	$(16,795)	$116,120
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	1,090,113	—	(175,475)	914,638
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	363,925	—	(57,204)	306,721
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	324,980	—	(57,187)	267,793
Small Business Administration loan-backed securities	43,821	—	(8,051)	35,770
	$1,955,754	$—	$(314,712)	$1,641,042
December 31, 2025:
U.S. Government agencies	$132,913	$—	$(15,767)	$117,146
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	1,153,024	—	(177,101)	975,923
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	379,107	—	(55,232)	323,875
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	336,910	—	(58,332)	278,578
Small Business Administration loan-backed securities	46,076	—	(8,748)	37,328
	$2,048,030	$—	$(315,180)	$1,732,850

The following is the amortized cost and fair value of investment securities available for sale:


· · · · · Gross · · Gross · · · ·
· · Amortized · · Unrealized · · Unrealized · · Fair
(Dollars in thousands) · · Cost · · Gains · · Losses · · Value
June 30, 2026:
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	$2,026,760	$4,562	$(144,756)	$1,886,566
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	2,082,757	5,511	(54,109)	2,034,159
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	1,095,770	1,050	(79,341)	1,017,479
State and municipal obligations	1,240,617	2,484	(128,351)	1,114,750
Small Business Administration loan-backed securities	547,528	433	(24,844)	523,117
Corporate securities	23,000	—	(894)	22,106
	$7,016,432	$14,040	$(432,295)	$6,598,177
December 31, 2025:
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	$1,826,307	$10,108	$(138,307)	$1,698,108
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	2,208,710	23,979	(47,105)	2,185,584
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	903,209	3,282	(74,042)	832,449
State and municipal obligations	1,141,377	1,252	(135,217)	1,007,412
Small Business Administration loan-backed securities	593,973	548	(26,088)	568,433
Corporate securities	23,000	—	(1,230)	21,770
	$6,696,576	$39,169	$(421,989)	$6,313,756

The following is the amortized cost and carrying value of other investment securities:


· · Carrying
(Dollars in thousands)			Value
June 30, 2026:
Federal Home Loan Bank stock			$32,336
Federal Reserve Bank stock			234,374
Investment in unconsolidated subsidiaries			5,287
Other investment securities			94,989
			$366,986
December 31, 2025:
Federal Home Loan Bank stock			$18,086
Federal Reserve Bank stock			234,374
Investment in unconsolidated subsidiaries			5,287
Other investment securities			95,681
			$353,428

The Company’s other investment securities consist of non-marketable equity and other securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of June 30, 2026, the Company has determined that there wasno impairment on its other investment securities.

The amortized cost and fair value of debt securities at June 30, 2026, by contractual maturity are detailed below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.

· · · · · · · · · · · · ·
· · Securities · · Securities
· · Held to Maturity · · Available for Sale
· · Amortized · · Fair · · Amortized · · Fair
(Dollars in thousands) · · Cost · · Value · · Cost · · Value
Due in one year or less	$—	$—	$25,660	$25,525
Due after one year through five years	172,583	160,937	415,952	411,268
Due after five years through ten years	330,479	287,326	1,211,660	1,143,401
Due after ten years	1,452,692	1,192,779	5,363,160	5,017,983
	$1,955,754	$1,641,042	$7,016,432	$6,598,177

During the three and six months ended June 30, 2026, there wereno sales of securities available for sale. During the three months ended June 30, 2025, there wereno sales of securities available for sale. During the first quarter of 2025, the Company sold a portion of the available for sale investment securities acquired from Independent and recognizedno gain or loss on these investment securities as each security was marked to fair value at the acquisition date. During the first quarter of 2025, in addition to the sale of the investment securities acquired from Independent, the Company executed an investment portfolio restructuring and sold$1.8 billion of available for sale investment securities from its existing investment securities portfolio.

The following table provides additional details of the available for sale investment securities sold during the six months ended June 30, 2025:



· · 2025
(Dollars in thousands) · · Sales of Securities Acquired from Independent · · Investment Securities Sales · · Total ·
Sale proceeds	$1,279,717	$1,594,393	$2,874,110
Gross realized gains	—	8,892	8,892
Gross realized losses	—	(237,703)	(237,703)
Net realized losses	$—	$(228,811)	$(228,811)

There wereno sales of held to maturity securities during the three and six months ended June 30, 2026 or June 30, 2025.

The Company had 1,129 securities with gross unrealized losses at June 30, 2026. Information pertaining to our securities with gross unrealized losses at June 30, 2026, and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is as follows:


· · Less Than · · 12 Months
· · 12 Months · · or More
· · Gross Unrealized · · Fair · · Gross Unrealized · · Fair
(Dollars in thousands) · · Losses · · Value · · Losses · · Value
June 30, 2026:
Securities Held to Maturity
U.S. Government agencies	$—	$—	$16,795	$116,120
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	—	—	175,475	914,638
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	—	—	57,204	306,721
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	—	—	57,188	267,793
Small Business Administration loan-backed securities	—	—	8,050	35,770
	$—	$—	$314,712	$1,641,042
Securities Available for Sale
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	$5,882	$694,570	$138,873	$752,869
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	5,713	874,273	48,396	258,069
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	4,740	462,508	74,602	391,176
State and municipal obligations	436	61,086	127,914	864,249
Small Business Administration loan-backed securities	403	126,057	24,442	358,963
Corporate securities	64	9,936	830	12,170
	$17,238	$2,228,430	$415,057	$2,637,496
December 31, 2025:
Securities Held to Maturity
U.S. Government agencies	$—	$—	$15,767	$117,146
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	—	—	177,101	975,923
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	—	—	55,232	323,874
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	—	—	58,332	278,579
Small Business Administration loan-backed securities	—	—	8,748	37,328
	$—	$—	$315,180	$1,732,850
Securities Available for Sale
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	$459	$145,357	$137,848	$803,407
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	46	40,399	47,059	278,620
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	228	152,299	73,814	423,165
State and municipal obligations	572	43,620	134,645	903,784
Small Business Administration loan-backed securities	680	284,036	25,408	202,322
Corporate securities	—	—	1,230	21,769
	$1,985	$665,711	$420,004	$2,633,067

The Company’s valuation methodology for securities impairment is disclosed in Note 1 — Summary of Significant Accounting Policies, under the “Investment Securities” section, of the 2025 Form 10-K. All debt securities in an unrealized loss position as of June 30, 2026, continue to perform as scheduled and management does not believe there is a provision for credit losses is necessary. Management does not currently intend to sell the securities within the portfolio, and it is not more-likely-than-not that the Company will be required to sell the debt securities.

The Company follows its nonaccrual policy by reversing interest income in the income statement when the Company determines the interest for held to maturity securities is uncollectible. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the investment securities and does not record an allowance for credit losses on accrued interest receivable. As of June 30, 2026, and December 31, 2025, the accrued interest receivables for all investment securities recorded in Other Assets were$42.0 million and $38.9 million, respectively.

At June 30, 2026, investment securities with a market value of $5.1 billion and a carrying value of $5.4 billion were pledged to secure public funds deposits and for other purposes required and permitted by law (excluding securities pledged to secure repurchase agreement disclosed in Note 19 — Short-Term Borrowings, under the “Securities Sold Under Agreements to Repurchase (“Repurchase agreements”)” section). Of the$5.4 billion carrying value of investment securities pledged, $5.3 billion were pledged to secure public funds deposits, $23.8 million were pledged to secure FHLB advances, and $78.4 million were pledged to secure interest rate swap positions with correspondent banks. At December 31, 2025, investment securities with a market value of$5.2 billion and a carrying value of$5.5 billion were pledged to secure public funds deposits and for other purposes required and permitted by law. Of the$5.5 billion carrying value of investment securities pledged,$5.2 billion were pledged to secure public funds deposits,$182.2 million were pledged to secure FHLB advances and$83.3 million were pledged to secure interest rate swap positions with correspondent banks.

Trading Securities

At June 30, 2026 and December 31, 2025, trading securities, at estimated fair value, were as follows:


· · June 30, · · December 31, ·
(Dollars in thousands) · · 2026 · 2025 ·
U.S. Government agencies	$9,855	$1,872
Residential mortgage pass-through securities issued or guaranteed by U.S.
government agencies or sponsored enterprises	20,667	9,799
Other residential mortgage issued or guaranteed by U.S. government
agencies or sponsored enterprises	7,705	1,419
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	28,073	5,966
State and municipal obligations	42,131	24,816
Small Business Administration asset-backed securities	82,421	66,173
Other debt securities	242	138
	$191,094	$110,183

Net gains (losses) on trading securities for the three and six months ended June 30, 2026, and 2025, were as follows:


· · Three Months Ended · · Six Months Ended ·
· · June 30, · · June 30, ·
(Dollars in thousands) · · 2026 · 2025 · · 2026 · · 2025 ·
Net gains (losses) on sales transaction	$1,017	$(418)	$1,401	$(56)
Net unrealized gains (losses)	89	291	(487)	412
Net gains (losses) on trading securities	$1,106	$(127)	$914	$356

Note 5 — Loans

The following is a summary of total loans:

· · · · · · ·
	June 30,	December 31,
(Dollars in thousands)	2026	2025
Loans: · · · · · · ·
Construction and land development (1)	$2,982,968	$2,548,360
Commercial non-owner-occupied	17,481,117	16,651,760
Commercial owner-occupied real estate	7,852,391	7,576,991
Consumer owner-occupied (2)	9,125,082	8,618,434
Home equity loans	1,909,020	1,831,789
Commercial and industrial	9,378,444	9,181,408
Other income producing property	1,175,338	1,232,153
Consumer	934,035	955,266
Other loans	8,477	2,366
Total loans	50,846,872	48,598,527
Less: allowance for credit losses	(586,664)	(585,197)
Loans, net	$50,260,208	$48,013,330

(1)	Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family residential construction and lot loans.

(2)	Consumer owner-occupied real estate includes loans on both 1-4 family owner-occupied property, as well as loans collateralized by 1-4 family owner-occupied properties with a business intent.

The above table reflects the loan portfolio at the amortized cost basis for the periods June 30, 2026, and December 31, 2025, to include net deferred costs of $84.1 million and $97.0 million, respectively, and unamortized discount related to loans acquired of $185.9 million and $259.5 million, respectively. Accrued interest receivables of$187.6 million and $186.5 million, respectively, are accounted for separately and reported in other assets for the periods June 30, 2026, and December 31, 2025.

For a description of the Company’s loan risk grading system, including the definitions of Pass, Special Mention, Substandard, and Doubtful, refer to Note 4 to the Consolidated Financial Statements in the 2025 Form 10-K.

The following table presents the credit risk profile by risk grade of commercial loans by origination yearas of and for the period ending June 30, 2026:


(Dollars in thousands) · · · Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2026 · · 2026 · · 2025 · · 2024 · · 2023 · · 2022 · · Prior · · Revolving · · Total
Construction and land development
Risk rating:
Pass	$497,110	$1,084,206	$500,035	$106,149	$89,490	$69,163	$144,237	$2,490,390
Special mention	1,328	3,097	278	25,393	—	550	41,738	72,384
Substandard	2,121	5,764	6,986	31,998	8,693	6,224	—	61,786
Doubtful	—	—	—	—	—	—	—	—
Total Construction and land development	$500,559	$1,093,067	$507,299	$163,540	$98,183	$75,937	$185,975	$2,624,560
Construction and land development
Current-period gross charge-offs	$—	$—	$—	$—	$—	$166	$—	$166

Commercial non-owner-occupied
Risk rating:
Pass	$2,534,850	$2,514,311	$1,079,357	$1,089,654	$3,429,598	$4,552,116	$259,543	$15,459,429
Special mention	26,266	47,961	26,375	42,827	324,787	101,640	1,070	570,926
Substandard	49,745	76,404	31,664	196,749	691,061	404,382	753	1,450,758
Doubtful	—	—	—	—	—	4	—	4
Total Commercial non-owner-occupied	$2,610,861	$2,638,676	$1,137,396	$1,329,230	$4,445,446	$5,058,142	$261,366	$17,481,117
Commercial non-owner-occupied
Current-period gross charge-offs	$—	$—	$—	$969	$—	$—	$—	$969

Commercial Owner-Occupied
Risk rating:
Pass	$871,834	$1,221,181	$692,300	$603,475	$1,088,014	$2,899,012	$110,661	$7,486,477
Special mention	2,704	6,922	2,978	10,136	11,877	17,764	261	52,642
Substandard	6,089	18,510	25,540	49,646	86,756	124,746	1,969	313,256
Doubtful	—	8	4	—	—	4	—	16
Total commercial owner-occupied	$880,627	$1,246,621	$720,822	$663,257	$1,186,647	$3,041,526	$112,891	$7,852,391
Commercial owner-occupied
Current-period gross charge-offs	$—	$—	$11	$134	$188	$38	$—	$371

Commercial and industrial
Risk rating:
Pass	$1,814,574	$1,759,014	$861,689	$494,697	$672,230	$974,791	$2,400,723	$8,977,718
Special mention	735	5,119	4,226	5,712	3,649	7,399	11,854	38,694
Substandard	14,719	26,814	59,029	50,188	47,701	60,314	102,969	361,734
Doubtful	4	8	30	59	69	26	102	298
Total commercial and industrial	$1,830,032	$1,790,955	$924,974	$550,656	$723,649	$1,042,530	$2,515,648	$9,378,444
Commercial and industrial
Current-period gross charge-offs	$1,108	$2,617	$6,266	$3,004	$1,204	$1,399	$1,928	$17,526

Other income producing property
Risk rating:
Pass	$128,579	$143,743	$93,401	$65,554	$239,444	$296,614	$63,941	$1,031,276
Special mention	142	1,811	260	45	1,844	2,051	519	6,672
Substandard	1,409	838	625	1,877	10,602	20,986	221	36,558
Doubtful	—	—	—	—	—	—	—	—
Total other income producing property	$130,130	$146,392	$94,286	$67,476	$251,890	$319,651	$64,681	$1,074,506
Other income producing property
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Consumer owner-occupied
Risk rating:
Pass	$7,167	$14,860	$2,106	$17,596	$10,329	$34,808	$38,819	$125,685
Special mention	—	105	726	128	—	76	95	1,130
Substandard	473	1,251	—	368	—	—	583	2,675
Doubtful	—	—	—	—	—	—	—	—
Total Consumer owner-occupied	$7,640	$16,216	$2,832	$18,092	$10,329	$34,884	$39,497	$129,490
Consumer owner-occupied
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Other loans
Risk rating:
Pass	$8,477	$—	$—	$—	$—	$—	$—	$8,477
Special mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Doubtful	—	—	—	—	—	—	—	—
Total other loans	$8,477	$—	$—	$—	$—	$—	$—	$8,477
Other loans
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Total Commercial Loans
Risk rating:
Pass	$5,862,591	$6,737,315	$3,228,888	$2,377,125	$5,529,105	$8,826,504	$3,017,924	$35,579,452
Special mention	31,175	65,015	34,843	84,241	342,157	129,480	55,537	742,448
Substandard	74,556	129,581	123,844	330,826	844,813	616,652	106,495	2,226,767
Doubtful	4	16	34	59	69	34	102	318
Total Commercial Loans	$5,968,326	$6,931,927	$3,387,609	$2,792,251	$6,716,144	$9,572,670	$3,180,058	$38,548,985
Commercial Loans
Current-period gross charge-offs	$1,108	$2,617	$6,277	$4,107	$1,392	$1,603	$1,928	$19,032

The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending December 31, 2025:


(Dollars in thousands) · · · Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2025 · · 2025 · · 2024 · · 2023 · · 2022 · · 2021 · · Prior · · Revolving · · Total
Construction and land development
Risk rating:
Pass	$862,035	$575,253	$264,370	$175,486	$57,814	$40,977	$147,911	$2,123,846
Special mention	706	137	1,815	20,580	335	510	—	24,083
Substandard	5,292	7,512	32,431	5,898	892	5,564	—	57,589
Doubtful	—	—	—	—	—	—	—	—
Total Construction and land development	$868,033	$582,902	$298,616	$201,964	$59,041	$47,051	$147,911	$2,205,518
Construction and land development
Current-period gross charge-offs	$—	$—	$—	$—	$16	$—	$—	$16

Commercial non-owner-occupied
Risk rating:
Pass	$2,564,868	$1,161,720	$1,304,297	$3,828,512	$2,440,726	$2,996,445	$185,751	$14,482,319
Special mention	51,864	17,084	100,316	383,957	27,680	96,579	10,484	687,964
Substandard	169,713	28,225	100,542	598,777	357,340	226,461	415	1,481,473
Doubtful	—	—	—	—	1	3	—	4
Total Commercial non-owner-occupied	$2,786,445	$1,207,029	$1,505,155	$4,811,246	$2,825,747	$3,319,488	$196,650	$16,651,760
Commercial non-owner-occupied
Current-period gross charge-offs	$—	$—	$4,565	$1,237	$18,033	$9,800	$—	$33,635

Commercial Owner-Occupied
Risk rating:
Pass	$1,210,501	$777,109	$634,593	$1,105,730	$1,110,749	$2,218,753	$102,835	$7,160,270
Special mention	4,609	1,075	12,204	10,424	5,539	17,866	438	52,155
Substandard	19,657	38,394	52,341	115,676	33,813	102,965	1,703	364,549
Doubtful	9	4	—	—	—	4	—	17
Total commercial owner-occupied	$1,234,776	$816,582	$699,138	$1,231,830	$1,150,101	$2,339,588	$104,976	$7,576,991
Commercial owner-occupied
Current-period gross charge-offs	$1,095	$—	$874	$1,628	$184	$1,317	$50	$5,148

Commercial and industrial
Risk rating:
Pass	$2,644,081	$1,056,432	$613,536	$876,480	$410,578	$771,994	$2,396,981	$8,770,082
Special mention	5,089	2,283	20,226	6,023	2,955	2,208	14,387	53,171
Substandard	10,054	50,362	52,210	52,356	37,921	31,469	123,611	357,983
Doubtful	—	3	43	68	50	2	6	172
Total commercial and industrial	$2,659,224	$1,109,080	$686,015	$934,927	$451,504	$805,673	$2,534,985	$9,181,408
Commercial and industrial
Current-period gross charge-offs	$23,240	$2,947	$4,351	$9,157	$12,680	$11,844	$10,007	$74,226

Other income producing property
Risk rating:
Pass	$157,404	$114,264	$88,883	$272,672	$173,188	$210,459	$55,663	$1,072,533
Special mention	2,020	463	145	269	542	2,897	602	6,938
Substandard	1,936	420	1,918	15,540	2,294	17,247	548	39,903
Doubtful	—	—	—	—	—	—	—	—
Total other income producing property	$161,360	$115,147	$90,946	$288,481	$176,024	$230,603	$56,813	$1,119,374
Other income producing property
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Consumer owner-occupied
Risk rating:
Pass	$15,587	$3,687	$20,410	$10,949	$11,145	$25,248	$31,042	$118,068
Special mention	118	745	131	—	—	—	—	994
Substandard	1,376	209	—	—	—	158	588	2,331
Doubtful	—	—	—	—	—	1	—	1
Total Consumer owner-occupied	$17,081	$4,641	$20,541	$10,949	$11,145	$25,407	$31,630	$121,394
Consumer owner-occupied
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Other loans
Risk rating:
Pass	$2,366	$—	$—	$—	$—	$—	$—	$2,366
Special mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Doubtful	—	—	—	—	—	—	—	—
Total other loans	$2,366	$—	$—	$—	$—	$—	$—	$2,366
Other loans
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Total Commercial Loans
Risk rating:
Pass	$7,456,842	$3,688,465	$2,926,089	$6,269,829	$4,204,200	$6,263,876	$2,920,183	$33,729,484
Special mention	64,406	21,787	134,837	421,253	37,051	120,060	25,911	825,305
Substandard	208,028	125,122	239,442	788,247	432,260	383,864	126,865	2,303,828
Doubtful	9	7	43	68	51	10	6	194
Total Commercial Loans	$7,729,285	$3,835,381	$3,300,411	$7,479,397	$4,673,562	$6,767,810	$3,072,965	$36,858,811
Commercial Loans
Current-period gross charge-offs	$24,335	$2,947	$9,790	$12,022	$30,913	$22,961	$10,057	$113,025

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 family residential properties and lots.

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending June 30, 2026:


(Dollars in thousands) · · Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2026 · · 2026 · · 2025 · · 2024 · · 2023 · · 2022 · · Prior · · Revolving · · Total
Consumer owner-occupied
Days past due:
Current	$1,001,713	$1,164,128	$584,617	$896,759	$2,287,256	$2,987,852	$—	$8,922,325
30 days past due	—	5,151	5,785	3,797	2,857	6,777	—	24,367
60 days past due	—	2,887	2,472	2,412	512	5,525	—	13,808
90 days past due	212	2,286	10,324	11,052	3,877	7,341	—	35,092
Total Consumer owner-occupied	$1,001,925	$1,174,452	$603,198	$914,020	$2,294,502	$3,007,495	$—	$8,995,592
Consumer owner-occupied
Current-period gross charge-offs	$—	$385	$1,098	$886	$250	$22	$—	$2,641

Home equity loans
Days past due:
Current	$159	$1,456	$3,162	$1,398	$2,589	$13,586	$1,876,828	$1,899,178
30 days past due	—	—	90	—	70	269	2,888	3,317
60 days past due	—	—	114	—	3	579	1,496	2,192
90 days past due	—	—	666	685	397	1,424	1,161	4,333
Total Home equity loans	$159	$1,456	$4,032	$2,083	$3,059	$15,858	$1,882,373	$1,909,020
Home equity loans
Current-period gross charge-offs	$—	$—	$104	$10	$—	$50	$35	$199

Consumer
Days past due:
Current	$126,474	$155,609	$107,469	$132,304	$129,074	$187,623	$90,568	$929,121
30 days past due	53	161	89	161	264	917	47	1,692
60 days past due	—	66	230	64	213	316	39	928
90 days past due	1	40	261	221	363	1,382	26	2,294
Total consumer	$126,528	$155,876	$108,049	$132,750	$129,914	$190,238	$90,680	$934,035
Consumer
Current-period gross charge-offs	$28	$419	$359	$555	$128	$113	$2,702	$4,304

Construction and land development
Days past due:
Current	$69,597	$144,048	$44,526	$21,646	$38,200	$39,807	$—	$357,824
30 days past due	—	—	—	302	—	10	—	312
60 days past due	—	—	—	—	—	—	—	—
90 days past due	—	—	—	3	269	—	—	272
Total Construction and land development	$69,597	$144,048	$44,526	$21,951	$38,469	$39,817	$—	$358,408
Construction and land development
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Other income producing property
Days past due:
Current	$1,273	$3,936	$1,187	$7,233	$47,121	$39,583	$94	$100,427
30 days past due	—	—	—	—	—	—	—	—
60 days past due	—	—	—	—	—	—	—	—
90 days past due	—	—	3	—	258	144	—	405
Total other income producing property	$1,273	$3,936	$1,190	$7,233	$47,379	$39,727	$94	$100,832
Other income producing property
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Total Consumer Loans
Days past due:
Current	$1,199,216	$1,469,177	$740,961	$1,059,340	$2,504,240	$3,268,451	$1,967,490	$12,208,875
30 days past due	53	5,312	5,964	4,260	3,191	7,973	2,935	29,688
60 days past due	—	2,953	2,816	2,476	728	6,420	1,535	16,928
90 days past due	213	2,326	11,254	11,961	5,164	10,291	1,187	42,396
Total Consumer Loans	$1,199,482	$1,479,768	$760,995	$1,078,037	$2,513,323	$3,293,135	$1,973,147	$12,297,887
Consumer Loans
Current-period gross charge-offs	$28	$804	$1,561	$1,451	$378	$185	$2,737	$7,144

The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending June 30, 2026:


(Dollars in thousands) · · Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2026 · · 2026 · · 2025 · · 2024 · · 2023 · · 2022 · · Prior · · Revolving · · Total
Total Loans	$7,167,808	$8,411,695	$4,148,604	$3,870,288	$9,229,467	$12,865,805	$5,153,205	$50,846,872

Current-period gross charge-offs	$1,136	$3,421	$7,838	$5,558	$1,770	$1,788	$4,665	$26,176

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending December 31, 2025:


(Dollars in thousands) · · Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2025 · · 2025 · · 2024 · · 2023 · · 2022 · · 2021 · · Prior · · Revolving · · Total
Consumer owner-occupied
Days past due:
Current	$1,182,075	$647,315	$1,014,555	$2,407,217	$1,639,720	$1,543,231	$—	$8,434,113
30 days past due	2,060	3,805	5,472	3,232	3,926	3,369	—	21,864
60 days past due	685	2,557	2,670	620	559	1,626	—	8,717
90 days past due	1,156	9,661	8,967	6,584	1,524	4,454	—	32,346
Total Consumer owner-occupied	$1,185,976	$663,338	$1,031,664	$2,417,653	$1,645,729	$1,552,680	$—	$8,497,040
Consumer owner-occupied
Current-period gross charge-offs	$122	$926	$981	$458	$53	$107	$—	$2,647

Home equity loans
Days past due:
Current	$1,627	$5,549	$2,618	$3,463	$1,308	$13,961	$1,794,239	$1,822,765
30 days past due	50	26	160	199	—	502	2,752	3,689
60 days past due	—	50	212	74	—	108	1,615	2,059
90 days past due	—	218	577	886	138	610	847	3,276
Total Home equity loans	$1,677	$5,843	$3,567	$4,622	$1,446	$15,181	$1,799,453	$1,831,789
Home equity loans
Current-period gross charge-offs	$—	$66	$—	$70	$—	$415	$—	$551

Consumer
Days past due:
Current	$193,165	$134,608	$156,266	$154,801	$62,652	$156,314	$91,731	$949,537
30 days past due	55	117	304	271	205	1,295	75	2,322
60 days past due	41	70	427	50	—	268	65	921
90 days past due	67	177	532	365	47	1,288	10	2,486
Total consumer	$193,328	$134,972	$157,529	$155,487	$62,904	$159,165	$91,881	$955,266
Consumer
Current-period gross charge-offs	$390	$912	$910	$776	$114	$2,655	$6,007	$11,764

Construction and land development
Days past due:
Current	$129,749	$80,514	$27,590	$53,698	$26,284	$24,390	$—	$342,225
30 days past due	—	—	—	—	—	—	—	—
60 days past due	—	—	—	—	—	—	—	—
90 days past due	—	—	154	463	—	—	—	617
Total Construction and land development	$129,749	$80,514	$27,744	$54,161	$26,284	$24,390	$—	$342,842
Construction and land development
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Other income producing property
Days past due:
Current	$3,638	$2,037	$7,756	$50,859	$16,477	$31,521	$86	$112,374
30 days past due	—	—	—	—	—	—	—	—
60 days past due	—	—	—	—	—	16	—	16
90 days past due	—	3	—	258	—	128	—	389
Total other income producing property	$3,638	$2,040	$7,756	$51,117	$16,477	$31,665	$86	$112,779
Other income producing property
Current-period gross charge-offs	$—	$—	$—	$—	$—	$—	$—	$—

Total Consumer Loans
Days past due:
Current	$1,510,254	$870,023	$1,208,785	$2,670,038	$1,746,441	$1,769,417	$1,886,056	$11,661,014
30 days past due	2,165	3,948	5,936	3,702	4,131	5,166	2,827	27,875
60 days past due	726	2,677	3,309	744	559	2,018	1,680	11,713
90 days past due	1,223	10,059	10,230	8,556	1,709	6,480	857	39,114
Total Consumer Loans	$1,514,368	$886,707	$1,228,260	$2,683,040	$1,752,840	$1,783,081	$1,891,420	$11,739,716
Consumer Loans
Current-period gross charge-offs	$512	$1,904	$1,891	$1,304	$167	$3,177	$6,007	$14,962

The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending December 31, 2025:


(Dollars in thousands) · · Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2025 · · 2025 · · 2024 · · 2023 · · 2022 · · 2021 · · Prior · · Revolving · · Total
Total Loans	$9,243,653	$4,722,088	$4,528,671	$10,162,437	$6,426,402	$8,550,891	$4,964,385	$48,598,527

Current-period gross charge-offs	$24,847	$4,851	$11,681	$13,326	$31,080	$26,138	$16,064	$127,987

The following table presents an aging analysis of past due accruing loans, segregated by class, as of June 30, 2026 and December 31, 2025:


· · 30 - 59 Days · · 60 - 89 Days · · 90+ Days · · Total · · · · Non- · · Total
(Dollars in thousands) · · Past Due · · Past Due · · Past Due · · Past Due · · Current · · Accruing · · Loans
June 30, 2026
Construction and land development	$2,475	$2,099	$108	$4,682	$2,972,485	$5,801	$2,982,968
Commercial non-owner-occupied	6,994	2,177	—	9,171	17,429,641	42,305	17,481,117
Commercial owner-occupied	11,999	6,207	346	18,552	7,792,320	41,519	7,852,391
Consumer owner-occupied	17,823	1,504	1,063	20,390	9,024,719	79,973	9,125,082
Home equity loans	2,678	1,808	—	4,486	1,895,492	9,042	1,909,020
Commercial and industrial	26,640	7,044	2,251	35,935	9,256,352	86,157	9,378,444
Other income producing property	743	701	28	1,472	1,171,477	2,389	1,175,338
Consumer	1,501	788	—	2,289	928,316	3,430	934,035
Other loans	—	—	—	—	8,477	—	8,477
	$70,853	$22,328	$3,796	$96,977	$50,479,279	$270,616	$50,846,872
December 31, 2025
Construction and land development	$3,018	$472	$139	$3,629	$2,537,171	$7,560	$2,548,360
Commercial non-owner-occupied	8,457	304	408	9,169	16,575,180	67,411	16,651,760
Commercial owner-occupied	14,821	4,651	865	20,337	7,516,697	39,957	7,576,991
Consumer owner-occupied	16,301	901	—	17,202	8,527,681	73,551	8,618,434
Home equity loans	2,739	1,226	1	3,966	1,819,479	8,344	1,831,789
Commercial and industrial	24,890	5,860	2,913	33,663	9,052,979	94,766	9,181,408
Other income producing property	1,582	827	615	3,024	1,227,020	2,109	1,232,153
Consumer	2,002	793	—	2,795	949,014	3,457	955,266
Other loans	—	—	—	—	2,366	—	2,366
	$73,810	$15,034	$4,941	$93,785	$48,207,587	$297,155	$48,598,527

The following table is a summary of information pertaining to nonaccrual loans by class, including loans modified for borrowers with financial difficulty as of June 30, 2026, and December 31, 2025:

· · · · · · · · · · · · ·
· · June 30, · · Greater than · · Non-accrual · · December 31, ·
(Dollars in thousands) · · 2026 · · 90 Days Accruing(1) · · with no allowance(1) · 2025 ·
Construction and land development	$5,801	$108	$3,796	$7,560
Commercial non-owner-occupied	42,305	—	39,945	67,411
Commercial owner-occupied real estate	41,519	346	10,212	39,957
Consumer owner-occupied	79,973	1,063	1,484	73,551
Home equity loans	9,042	—	—	8,344
Commercial and industrial	86,157	2,251	8,360	94,766
Other income producing property	2,389	28	—	2,109
Consumer	3,430	—	—	3,457
Total loans on nonaccrual status	$270,616	$3,796	$63,797	$297,155

(1)	Greater than 90 days accruing and non-accrual with no allowance loans at June 30, 2026.

There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for further detailed descriptions on individually evaluated loans.

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:


· · June 30, · · Collateral · · · December 31, · · Collateral · ·
(Dollars in thousands) · · 2026 · · Coverage · % · · 2025 · · Coverage · % ·
Construction and land development
Other	$3,796	$7,725	204%	$5,778	$7,725	134%
Commercial owner-occupied real estate
Church	3,260	5,288	162%	3,315	6,075	183%
Other	6,952	15,363	221%	6,157	9,549	155%
Commercial non-owner-occupied real estate
Hotel	8,420	9,720	115%	—	—	—
Retail	3,561	4,549	128%	3,451	5,251	152%
Other	2,444	3,438	141%	1,250	1,512	121%
Office	1,860	1,908	103%	12,250	22,015	180%
Multifamily	23,660	29,592	125%	44,860	50,894	113%
Commercial and industrial
Other	37,147	39,213	106%	49,491	46,539	94%
Other income producing property
1-4 family investment property	—	—	—	717	545	76%
Consumer owner-occupied
1st Mtg Residential	1,484	2,250	152%	1,484	2,250	152%
Total collateral dependent loans	$92,584	$119,046		$128,753	$152,355

The Bank designates individually evaluated loans on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL. The Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Bank’s threshold for individually evaluated loans is$1.0 million. The changes above in collateral percentage are generally due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Overall collateral dependent loans decreased $36.2 million during the six months ended June 30, 2026.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual. Loans on accruing status at the date of modification are initially classified as accruing if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the modification agreement. Nonaccrual loans are returned to accruing status when there is economic substance to the modification, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum ofsix months). See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for how such modifications are factored into the determination of the ACL for the periods presented above.

The following tables present loans designated as modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026, and 2025, respectively. The loans are segregated by type of modification and asset class, indicating the financial effect of the modifications. There wereno combination interest rate reduction and payment delay modifications for the three and six months ended June 30, 2026. There were no combination interest rate reduction and payment delay modifications for the three months ended June 30, 2025.


· · Three Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · · · Reduction in Weighted · · · · · · Reduction in Weighted ·
· · Amortized · · % of Total · · Average Contractual · · Amortized · · % of Total · · Average Contractual ·
(Dollars in thousands) · · Cost · · Asset Class · · Interest Rate · · Cost · · Asset Class · · Interest Rate ·
Interest rate reduction
Commercial owner-occupied real estate	$316	0.00%	1.00%	$332	0.00%	1.55%
Commercial and industrial	534	0.01%	1.32%	—	—	—
Total interest rate reductions	$850			$332


· · Six Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · · · Reduction in Weighted · · · · · · Reduction in Weighted ·
· · Amortized · · % of Total · · Average Contractual · · Amortized · · % of Total · · Average Contractual ·
(Dollars in thousands) · · Cost · · Asset Class · · Interest Rate · · Cost · · Asset Class · · Interest Rate ·
Interest rate reduction
Construction and land development	$1,813	0.06%	1.75%	$—	—
Commercial non-owner occupied	1,124	0.01%	0.81%	15,045	0.10%	0.86%
Commercial owner-occupied real estate	316	0.00%	1.00%	332	0.00%	1.55%
Commercial and industrial	808	0.01%	1.00%	378	0.00%	1.75%
Total interest rate reductions	$4,061			$15,755


· · Three Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · · · Increase in · · · · · · Increase in ·
· · Amortized · · % of Total · · Weighted Average · · Amortized · · % of Total · · Weighted Average ·
(Dollars in thousands) · · Cost · · Asset Class · · Life of Loan · · Cost · · Asset Class · · Life of Loan ·
Term extension
Construction and land development	$1,459	0.05%	11 months	$—	—	—
Commercial non-owner occupied	32,962	0.19%	5 months	—	—	—
Commercial owner-occupied real estate	1,215	0.02%	7 months	—	—	—
Consumer owner-occupied	2,751	0.03%	5 months	4,269	0.05%	4 months
Commercial and industrial	16,105	0.17%	4 months	9,245	0.11%	4 months
Other income producing property	2,443	0.21%	3 months	—	—	—
Total term extensions	$56,935			$13,514


· · Six Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · · · Increase in · · · · · · Increase in ·
· · Amortized · · % of Total · · Weighted Average · · Amortized · · % of Total · · Weighted Average ·
(Dollars in thousands) · · Cost · · Asset Class · · Life of Loan · · Cost · · Asset Class · · Life of Loan ·
Term extension
Construction and land development	$1,459	0.05%	11 months	$286	0.01%	9 months
Commercial non-owner-occupied	41,111	0.24%	6 months	—	—	—
Commercial owner-occupied real estate	4,784	0.06%	7 months	—	—	—
Consumer owner-occupied	3,619	0.04%	4 months	4,269	0.05%	4 months
Commercial and industrial	30,924	0.33%	5 months	9,245	0.11%	4 months
Other income producing property	2,443	0.21%	3 months	—	—	—
Total term extensions	$84,340			$13,800


· · Three Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · · · Weighted Average of · · · · · · Weighted Average of ·
· · Amortized · · % of Total · · Months Payments · · Amortized · · % of Total · · Months Payments ·
(Dollars in thousands) · · Cost · · Asset Class · · Were Deferred · · Cost · · Asset Class · · Were Deferred ·
Other-than-insignificant payment delay
Commercial non-owner occupied	$67,136	0.38%	6 months	$—	—	—
Commercial owner-occupied real estate	2,784	0.04%	4 months	5,404	0.07%	6 months
Consumer owner occupied	373	0.00%	2 months	—	—	—
Commercial and industrial	5,928	0.06%	24 months	1,610	0.02%	6 months
Other income producing property	266	0.02%	60 months	—	—	—
Total payment delays	$76,487			$7,014


· · Six Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · · · Weighted Average of · · · · · · Weighted Average of ·
· · Amortized · · % of Total · · Months Payments · · Amortized · · % of Total · · Months Payments ·
(Dollars in thousands) · · Cost · · Asset Class · · Were Deferred · · Cost · · Asset Class · · Were Deferred ·
Other-than-insignificant payment delay
Commercial non-owner-occupied	$135,258	0.77%	7 months	$—	—	—
Commercial owner-occupied real estate	3,840	0.05%	5 months	5,713	0.08%	7 months
Consumer owner-occupied	373	0.00%	2 months	—	—	—
Commercial and industrial	13,128	0.14%	16 months	1,610	0.02%	6 months
Other income producing property	266	0.02%	60 months	—	—
Total payment delays	$152,865			$7,323


· · Three Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · Reduction in · · Increase in · · · · Reduction in · · Increase in ·
· · · · Weighted Average · · Weighted · · · · Weighted Average · · Weighted ·
· · Amortized · · Contractual · · Average · · Amortized · · Contractual · · Average ·
(Dollars in thousands) · · Cost · · Interest Rate · · Life of Loan · · Cost · · Interest Rate · · Life of Loan ·
Combination - Term Extension and Interest Rate Reduction
Commercial non-owner occupied	$24,397	0.57%	36 months	$—	—	—
Consumer owner-occupied	—	—	—	363	1.50%	18 months
Total term extension and interest rate reduction combinations	$24,397			$363


· · Six Months Ended June 30, ·
· · 2026 · · 2025 ·
· · · · Reduction in · · Increase in · · · · Reduction in · · Increase in ·
· · · · Weighted Average · · Weighted · · · · Weighted Average · · Weighted ·
· · Amortized · · Contractual · · Average · · Amortized · · Contractual · · Average ·
(Dollars in thousands) · · Cost · · Interest Rate · · Life of Loan · · Cost · · Interest Rate · · Life of Loan ·
Combination - Term Extension and Interest Rate Reduction
Commercial non-owner occupied	$24,397	0.57%	36 months	$—	—	—
Consumer owner-occupied	1,218	0.54%	37 months	853	3.01%	9 months
Total term extension and interest rate reduction combinations	$25,615			$853

· · · · · · · · · · · · · · ·
· · Six Months Ended June 30, ·
· · 2026 · · 2025 ·
		Reduction in	Increase in			Increase in
		Weighted	Weighted		Reduction in	Weighted
		Average	Average		Average	Average
	Amortized	Contractual	Amortization	Amortized	Contractual	Amortization
(Dollars in thousands)	Cost	Interest Rate	Term	Cost	Interest Rate	Term
Combination - Interest Rate Reduction and Payment Delay · · · · · · · · · · · · · · ·
Commercial and industrial	$—	—	—	$1,177	0.75%	12 months
Total interest rate reduction and payment delay combinations	$—			$1,177

The Bank on occasion will enter into modification agreements which extend the maturity payoff on a loan or reduce the interest rate for borrowers willing to continue to pay, to minimize losses for the Bank. At June 30, 2026, the Company had$6.8 million in remaining commitments to lend additional funds on loans to borrowers experiencing financial difficulty and modified during the current reporting period.

The following table presents the changes in status of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2026 and 2025, by type of modification. The subsequent defaults were all due to past due status greater than 60 days.


· · June 30, ·
· · 2026 · · 2025 ·
· · Paying Under · · · · · · Paying Under · · · · ·
· · Restructured · · Converted to · · Foreclosures · · Restructured · · Converted to · · Foreclosures ·
· · Terms · · Nonaccrual · · and Defaults · · Terms · · Nonaccrual · · and Defaults ·
· · Amortized · · Amortized · · Amortized · · Amortized · · Amortized · · Amortized ·
(Dollars in thousands) · · Cost · · Cost · · Cost · · Cost · · Cost · · Cost ·
Interest rate reduction
Construction and land development	$1,813	$—	$—	$—	$—	$—
Commercial non-owner-occupied	2,058	—	—	15,045	—	—
Commercial owner-occupied real estate	722	—	—	332	—	—
Commercial and industrial	808	—	—	378	—	—
Consumer owner-occupied	—	—	—	—	—	482
Total interest rate reductions	$5,401	$—	$—	$15,755	$—	$482

Term extension
Construction and land development	$5,307	$—	$258	$286	$—	$—
Commercial non-owner-occupied	62,054	—	—	—	—	—
Commercial owner-occupied real estate	5,201	—	—	—	—	—
Commercial and industrial	30,924	—	356	9,245	—	—
Other income producing property	2,443	—	—	—	—	—
Consumer owner-occupied	4,816	265	2,215	5,876	—	298
Total term extensions	$110,745	$265	$2,829	$15,407	$—	$298

Other-than-insignificant payment delay
Commercial non-owner occupied	$143,902	$—	$—	$—	$—	$—
Commercial owner-occupied real estate	3,840	—	—	6,087	—	—
Commercial and industrial	13,128	—	—	1,610	—	—
Other income producing property	266	—	—	—	—	—
Consumer owner-occupied	373	—	—	—	—	—
Total payment delays	$161,509	$—	$—	$7,697	$—	$—

Term Extension and Interest Rate Reduction
Commercial non-owner occupied	$24,397	$—	$—	$—	$—	$—
Consumer owner-occupied	1,733	—	560	1,220	—	—
Total term extension and interest rate combinations	$26,130	$—	$560	$1,220	$—	$—

Term Extension and Payment Delay
Commercial non-owner occupied	$2,005	$—	$—	$—	$—	$—
Commercial and industrial	224	—	—	1,177	—	—
Total term extension and payment delay combinations	$2,229	$—	$—	$1,177	$—	$—

Interest Rate Reduction and Payment Delay
Commercial non-owner occupied	$29,676	$—	$—	$—	$—	$—
Total interest rate reduction and payment delay combinations	$29,676	$—	$—	$—	$—	$—
	$335,690	$265	$3,389	$41,256	$—	$780

The following table depicts the performance of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2026 and 2025:


· · June 30, 2026 · · June 30, 2025 ·
· · Payment Status (Amortized Cost Basis) · · Payment Status (Amortized Cost Basis) ·
· · · · 30-89 Days · · 90+ Days · · · · 30-89 Days · · 90+ Days ·
(Dollars in thousands) · · Current · · Past Due · · Past Due · · Current · · Past Due · · Past Due ·
Construction and land development	$7,120	$258	$—	$286	$—	$—
Commercial non-owner-occupied	262,086	2,005	—	15,045	—	—
Commercial owner-occupied real estate	6,950	2,813	—	6,418	—	—
Commercial and industrial	43,444	1,640	356	12,410	—	—
Other income producing property	2,709	—	—	—	—	—
Consumer owner-occupied	7,188	926	1,849	6,740	655	482
Total	$329,497	$7,642	$2,205	$40,899	$655	$482

Note 6 — Allowance for Credit Losses(ACL)

The following tables present a disaggregated analysis of activity in the allowance for credit losses for the three and six months ended June 30, 2026 and 2025:


· · Residential · · Residential · · · · Residential · · Comm Constr. · · · · · · · · CRE Owner- · · Non-Owner- · · · · ·
(Dollars in thousands) · · Mortgage Sr. · · Mortgage Jr. · · HELOC · · Construction · · & Dev. · · Consumer · · Multifamily · · Municipal · · Occupied · · Occupied CRE · · C & I · · Total
Three Months Ended June 30, 2026
Allowance for credit losses:
Balance at end of period March 31, 2026	$58,959	$1,384	$13,766	$8,182	$46,541	$17,786	$55,862	$1,917	$76,799	$188,146	$116,540	$585,882
Charge-offs	(1,059)	—	(78)	—	—	(2,171)	—	—	(277)	(969)	(7,188)	(11,742)
Recoveries	79	4	75	—	314	829	146	—	172	48	2,234	3,901
Net (charge-offs) recoveries	(980)	4	(3)	—	314	(1,342)	146	—	(105)	(921)	(4,954)	(7,841)
Provision (recovery) (2)	7,650	(255)	322	1,171	8,221	172	3,316	(98)	(4,498)	(8,421)	1,043	8,623
Balance at end of period June 30, 2026	$65,629	$1,133	$14,085	$9,353	$55,076	$16,616	$59,324	$1,819	$72,196	$178,804	$112,629	$586,664

Three Months Ended June 30, 2025
Allowance for credit losses:
Balance at end of period March 31, 2025	$54,326	$793	$14,868	$12,555	$78,541	$16,304	$33,960	$1,107	$101,656	$172,334	$137,246	$623,690
Allowance Adjustment – FMV for Independent Merger	—	—	—	—	—	—	16,798	—	—	—	—	16,798
Independent Day 1 Loan Net Charge-offs PCD (1)	—	—	—	—	—	—	(18,065)	—	286	520	—	(17,259)
Charge-offs	(385)	(1)	—	—	(16)	(2,184)	—	—	(772)	—	(8,607)	(11,965)
Recoveries	194	65	125	—	315	529	—	—	67	247	3,176	4,718
Net (charge-offs) recoveries	(191)	64	125	—	299	(1,655)	(18,065)	—	(419)	767	(5,431)	(24,506)
Provision (recovery) (2)	69	11	(1,109)	(5,405)	(2,543)	4,036	18,395	1,172	(13,014)	(7,908)	11,360	5,064
Balance at end of period June 30, 2025	$54,204	$868	$13,884	$7,150	$76,297	$18,685	$51,088	$2,279	$88,223	$165,193	$143,175	$621,046

(1)	The Day 1 loan charge-offs for Independent loans were recorded to conform with the Company’s charge-off policies and practices.

(2)

A provision for credit losses for unfunded commitments of $7.3 million in the second quarter of 2026, compared to a provision for credit losses of $2.4 million recorded during the second quarter of 2025 for the allowance for credit losses for unfunded commitments that is not included in the above table.


· · Residential · · Residential · · · · Residential · · Comm Constr. · · · · · · · · CRE Owner- · · Non-Owner- · · · · ·
(Dollars in thousands) · · Mortgage Sr. · · Mortgage Jr. · · HELOC · · Construction · · & Dev. · · Consumer · · Multifamily · · Municipal · · Occupied · · Occupied CRE · · C & I · · Total
Six Months Ended June 30, 2026
Allowance for credit losses:
Balance at end of period December 31, 2025	$55,947	$1,356	$14,150	$8,732	$53,494	$19,280	$58,678	$1,799	$73,871	$174,797	$123,093	$585,197
Charge-offs	(2,641)	—	(199)	—	(166)	(4,304)	—	—	(371)	(969)	(17,526)	(26,176)
Recoveries	128	97	429	—	368	1,715	162	—	255	56	4,612	7,822
Net (charge-offs) recoveries	(2,513)	97	230	—	202	(2,589)	162	—	(116)	(913)	(12,914)	(18,354)
Provision (recovery) (2)	12,195	(320)	(295)	621	1,380	(75)	484	20	(1,559)	4,920	2,450	19,821
Balance at end of period June 30, 2026	$65,629	$1,133	$14,085	$9,353	$55,076	$16,616	$59,324	$1,819	$72,196	$178,804	$112,629	$586,664

Six Months Ended June 30, 2025
Allowance for credit losses:
Balance at end of period December 31, 2024	$42,687	$432	$14,845	$9,298	$65,553	$17,484	$22,279	$1,197	$78,753	$111,538	$101,214	$465,280
Allowance Adjustment - FMV for Independent merger	1,852	—	—	—	6,448	114	20,359	—	8,075	93,820	4,773	135,441
Initial Allowance for Non-PCD loans acquired during period	8,910	85	91	4,700	11,751	254	3,805	1,947	3,186	31,557	13,685	79,971
Independent Day 1 Loan Net Charge-offs PCD (1)	(61)	—	—	—	—	(2,323)	(18,065)	—	(1,016)	(13,036)	(22,187)	(56,688)
Charge-offs	(892)	(14)	(229)	—	(16)	(3,989)	—	—	(976)	—	(13,271)	(19,387)
Recoveries	394	89	505	—	413	1,359	—	—	117	343	4,480	7,700
Net recoveries (charge-offs)	(559)	75	276	—	397	(4,953)	(18,065)	—	(1,875)	(12,693)	(30,978)	(68,375)
Provision (recovery) (2)	1,314	276	(1,328)	(6,848)	(7,852)	5,786	22,710	(865)	84	(59,029)	54,481	8,729
Balance at end of period June 30, 2025	$54,204	$868	$13,884	$7,150	$76,297	$18,685	$51,088	$2,279	$88,223	$165,193	$143,175	$621,046

(1)	The Day 1 loan charge-offs for Independent, inclusive of measurement period adjustments, recorded to conform with the Company’s charge-off policies and practices.

(2)

A provision for credit losses of $6.9 million was recorded during the first six months of 2026. This compares to a provision for credit losses of $19.4 million during the first six months of 2025, including $12.1 million for the initial provision for credit losses recorded for unfunded commitments acquired from Independent during the first quarter of 2025, that is not included in the above table.

Note 7 — Leases

As of June 30, 2026, and December 31, 2025, we had operating right-of-use (“ROU”) assets of $503.2 million and $507.1 million, respectively, and operating lease liabilities of $525.2 million and $525.3 million, respectively. We maintain operating leases on land and buildings for some of our operating centers, branch facilities and ATM locations. Most leases include one or more options to renew, with renewal terms extending up to 20 years. The exercise of renewal options is based on the sole judgment of management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.


· · Three Months Ended · · Six Months Ended ·
· · June 30, · · June 30,
(Dollars in thousands) · · 2026 · · 2025 · · 2026 · · 2025
Lease Cost Components:
Amortization of ROU assets – finance leases	$116	$116	$231	$231
Interest on lease liabilities – finance leases	5	7	10	14
Operating lease cost (cost resulting from lease payments)	17,334	15,914	34,065	25,283
Short-term lease cost	195	425	397	780
Variable lease cost (cost excluded from lease payments)	1,395	1,560	2,344	2,315
Total lease cost	$19,045	$18,022	$37,047	$28,623
Supplemental Cash Flow and Other Information Related to Leases:
Finance lease – operating cash flows	$4	$7	$10	$14
Finance lease – financing cash flows	123	121	246	242
Operating lease – operating cash flows (fixed payments)	14,341	14,277	28,979	22,864
Operating lease – operating cash flows (net change asset/liability)	(6,249)	(6,437)	(12,630)	(11,422)
New ROU assets – operating leases	36,501	7,705	38,319	397,318
Weighted – average remaining lease term (years) – finance leases	1.99	2.95	1.99	2.95
Weighted – average remaining lease term (years) – operating leases	12.26	12.80	12.26	12.80
Weighted – average discount rate - finance leases	1.8%	1.7%	1.8%	1.7%
Weighted – average discount rate - operating leases	6.4%	6.4%	6.4%	6.4%

Operating lease payments due:
2026 (excluding 6 months ended June 30, 2026)			$29,067
2027			60,135
2028			61,553
2029			61,078
2030			59,570
Thereafter			518,519
Total undiscounted cash flows			789,922
Discount on cash flows			(264,713)
Total operating lease liabilities			$525,209

Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained. At June 30, 2026, we did not maintain any leases with related parties and determined that the number and dollar amount of our equipment leases was immaterial. As of June 30, 2026, we hadthree operating leases that hadnot yet commenced for approximately$4.4 million.

Equipment Lessor

SouthState has an Equipment Finance Group which does business directly with customers and primarily focuses on serving the construction and utility segments. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at June 30, 2026, and December 31, 2025:


· · ·
· · June 30, · · December 31, ·
(Dollars in thousands) · · 2026 · · 2025
Direct financing leases:
Lease receivables	$205,742	$92,927
Guaranteed residual values	5,697	4,212
Unguaranteed residual values	16,528	11,335
Initial direct costs	7,191	3,502
Less: Unearned income	(35,510)	(17,690)
Total net investment in direct financing leases	$199,648	$94,286

The following table summarizes direct financing lease income recorded for the three and six months ended June 30, 2026, and remaining lease payment receivable for each of the next five years:


· · Three Months Ended · · Six Months Ended
· · June 30, · · June 30,
(Dollars in thousands) · · 2026 · 2025 · · 2026 · · 2025
Direct financing lease income
Interest income	$2,938	$890	$5,167	$1,519
Remaining lease payments receivable:
2026 (excluding 6 months ended June 30, 2026)	$26,626
2027	47,248
2028	39,882
2029	41,177
2030	29,511
Thereafter	26,995
Total undiscounted lease receivable	211,439
Less: unearned interest income	(35,510)
Net lease receivables	$175,929

See Note 1 — Summary of Significant Accounting Policies, under the “Leases” section, of the 2025 Form 10-K, on accounting for leases.

Note 8 — Deposits

Our total deposits as of June 30, 2026, and December 31, 2025, are comprised of the following:


· · June 30, · · December 31, ·
(Dollars in thousands) · · 2026 · · 2025 ·
Noninterest-bearing checking	$13,451,094	$13,375,697
Interest-bearing checking	14,710,312	13,838,558
Savings	2,796,845	2,820,621
Money market	17,531,137	17,751,688
Time deposits	7,860,422	7,359,233
Total deposits	$56,349,810	$55,145,797

At June 30, 2026, and December 31, 2025, we had $2.1 billion in certificates of deposits greater than $250,000.

Note 9 — Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding during each period, excluding non-vested restricted shares. Our diluted earnings per share is based on the weighted-average shares of common stock outstanding during each period plus the maximum dilutive effect of common stock issuable upon exercise of stock options or vesting of restricted stock units. Stock options and unvested restricted stock units are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive.

The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025:


· · Three Months Ended · · Six Months Ended ·
· · June 30, · · June 30, ·
(Dollars and shares in thousands, except for per share amounts) · · 2026 · · 2025 · · 2026 · · 2025
Basic earnings per common share:
Net income	$230,022	$215,224	$455,842	$304,304
Weighted-average basic common shares	97,301	101,495	97,919	101,453
Basic earnings per common share	$2.36	$2.12	$4.66	$3.00
Diluted earnings per common share:
Net income	$230,022	$215,224	$455,842	$304,304
Weighted-average basic common shares	97,301	101,495	97,919	101,453
Effect of dilutive securities	376	350	373	383
Weighted-average dilutive shares	97,677	101,845	98,292	101,836
Diluted earnings per common share	$2.35	$2.11	$4.64	$2.99

The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive under the treasury stock method, as follows:


· · Three Months Ended June 30, · · Six Months Ended June 30, · ·
· · 2026 · · · 2025 · · 2026 · · 2025 ·
Number of shares	—			9,085	—	—
Range of exercise prices	—	$ 91.05	to	$ 91.35	—	—

Note 10 — Share-Based Compensation

For a description of the Company’s share-based compensation plans, including equity plan structure and Restricted Stock Units (“RSUs”) program mechanics, refer to Note 17 to the Consolidated Financial Statements in the 2025 Form 10-K.

Stock Options

Activity in the Company’s stock option plans is summarized in the following table:


· · ·
· · · · ·
· · · · · · Weighted · · ·
· · · · Weighted · · Average · · Aggregate ·
· · · · Average · · Remaining · · Intrinsic ·
· · Shares · · Price · · (Yrs.) · · (000’s)
Outstanding at January 1, 2026	28,815	$61.00
Exercised	(6,018)	50.65
Expired	(278)	44.21
Outstanding at June 30, 2026	22,519	63.97	0.99	$809
Exercisable at June 30, 2026	22,519	63.97	0.99	$809

Restricted Stock Units (“RSUs”)

Outstanding RSUs for the six months ended June 30, 2026, are summarized in the following table:


· · · · Weighted-
· · · · Average
· · · · Grant-Date
Restricted Stock Units · · Shares · · Fair Value
Outstanding at January 1, 2026	820,878	$86.43
Granted	437,648	93.75
Vested	(388,095)	80.35
Forfeited	(5,864)	93.08
Outstanding at June 30, 2026	864,567	$92.82

If maximum performance is achieved pursuant to the 2024, 2025 and 2026 Long Term Incentive performance-based RSU grants, an additional 133,447 shares in total may be issued by the Company at the end of thethree-year performance periods.

As of June 30, 2026, there was $48.8 million of total unrecognized compensation cost at target related to nonvested RSUs granted under the plan. This cost is expected to be recognized over a weighted-average period of 1.44 years as of June 30, 2026. The total fair value of RSUs vested and released during the six months ended June 30, 2026, was$39.6 million.

Note 11 — Commitments and Contingent Liabilities

In the normal course of business, we make various commitments and incur certain contingent liabilities, which are not reflected in the accompanying financial statements. The commitments and contingent liabilities include guarantees, commitments to extend credit, and standby letters of credit. At June 30, 2026, commitments to extend credit and standby letters of credit totaled$14.7 billion. As of June 30, 2026, the liability recorded for expected credit losses on unfunded commitments, excluding unconditionally cancellable exposures and letters of credit, was $76.5 million and recorded on the Balance Sheet. See Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the 2025 Form 10-K for discussion of liability recorded for expected credit losses on unfunded commitments.

For a description of the Company’s commitments and contingencies, including litigation risks arising from our normal business activities and whole bank acquisitions, as well as background related to the previously disclosed cyber incident, refer to Note 20 to the Consolidated Financial Statements in the 2025 Form 10-K. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, as of June 30, 2026, any such liability is not expected to have a material effect on our consolidated financial statements.

Cyber Incident Litigation. On April 3, 2024, a putative class action lawsuit was filed against the Bank in the U.S. District Court for the Middle District of Florida, Tampa Division (the “Original Suit”). The plaintiff, who purported to represent the class of individuals harmed by alleged actions and/or omissions by the Bank in connection with the cybersecurity incident that was detected on February 6, 2024 (the “Cyber Incident”, as previously reported in the Form 8-K filed with the SEC on February 9, 2024), asserted a variety of common law and statutory claims seeking monetary damages, injunctive relief and other related relief related to the potential unauthorized access by third parties to personal identifiable information. While the Original Suit was voluntarily dismissed, the same plaintiffs as well as additional plaintiffs initiated litigation that named the Bank as a defendant. These cases were consolidated into one putative class action against the Bank in the Circuit Court for Polk County, Florida (the “Cyber Incident Suit”).

During the first quarter of 2026, the parties agreed to settle the Cyber Incident Suit, subject to court approval, pursuant to which the Company agreed to fund documented losses and pay attorneys’ fees, administration costs, and credit monitoring fees. On June 24, 2026, the court entered an order granting final approval to the settlement (the “Final Order”). The settlement will be paid from the Company’s cyber insurance coverage in the third quarter of 2026 in accordance with the Final Order.

Other commitments and contingencies were not materially different from those disclosed in the 2025 Form 10-K.

Note 12 — Fair Value

GAAP defines fair value and establishes a framework for measuring and disclosing fair value. Fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. For a detailed description of the Company’s fair value measurement framework, including valuation methodologies and the classification of financial instruments within the fair value hierarchy, refer to Note 23 to the Consolidated Financial Statements in the 2025 Form 10-K.

The tables below present the Company’s fair value measurements as of June 30, 2026 and December 31, 2025, as well as changes in Level 3 instruments, if applicable.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis:


· · · · Quoted Prices · · · · · ·
· · · · · In Active · · Significant · · ·
· · · · · Markets · · Other · · Significant
· · · · · for Identical · · Observable · · Unobservable
· · · · · Assets · · Inputs · · Inputs
(Dollars in thousands) · · Fair Value · · (Level 1) · · (Level 2) · · (Level 3)
June 30, 2026:
Assets
Derivative financial instruments	$148,889	$—	$148,889	$—
Mortgage loans held for sale	68,738	—	68,738	—
Trading securities	191,094	—	191,094	—
Securities available for sale:
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	1,886,566	—	1,886,566	—
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	2,034,159	—	2,034,159	—
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	1,017,479	—	1,017,479	—
State and municipal obligations	1,114,750	—	1,114,750	—
Small Business Administration loan-backed securities	523,117	—	523,117	—
Corporate securities	22,106	—	22,106	—
Total securities available for sale	6,598,177	—	6,598,177	—
Mortgage servicing rights	91,442	—	—	91,442
SBA servicing asset	4,954	—	—	4,954
	$7,103,294	$—	$7,006,898	$96,396
Liabilities
Derivative financial instruments	$606,665	$—	$606,665	$—

December 31, 2025:
Assets
Derivative financial instruments	$222,886	$—	$222,886	$—
Mortgage loans held for sale	61,400	—	61,400	—
Trading securities	110,183	—	110,183	—
Securities available for sale:
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	1,698,108	—	1,698,108	—
Residential collateralized mortgage-obligations issued by U.S. government
agencies or sponsored enterprises	2,185,584	—	2,185,584	—
Commercial mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises	832,449	—	832,449	—
State and municipal obligations	1,007,412	—	1,007,412	—
Small Business Administration loan-backed securities	568,433	—	568,433	—
Corporate securities	21,770	—	21,770	—
Total securities available for sale	6,313,756	—	6,313,756	—
Mortgage servicing rights	84,032	—	—	84,032
SBA servicing asset	5,512	—	—	5,512
	$6,797,769	$—	$6,708,225	$89,544
Liabilities
Derivative financial instruments	$554,748	$—	$554,748	$—

Fair Value Option

The Company has elected the fair value option for mortgage loans held for sale primarily to ease the operational burden required to maintain hedge accounting for these loans. The Company also has opted for the fair value option for the SBA servicing asset, as it is the industry-preferred method for valuing such assets.

The following table summarizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale and the changes in fair value of these loans:


· · June 30, · · December 31, ·
(Dollars in thousands) · · 2026 · 2025 ·
Fair value	$68,738	$61,400
Unpaid principal balance	66,815	59,371
Fair value less aggregated unpaid principal balance	$1,923	$2,029

Changes in Level 1, 2 and 3 Fair Value Measurements

There wereno changes in hierarchy classifications of Level 3 assets or liabilities for the six months ended June 30, 2026. A reconciliation of the beginning and ending balances of the MSRs recorded at fair value on a recurring basis for the six months ended June 30, 2026, is as follows. The changes in fair value of the MSRs are recorded in Mortgage Banking Income on the Consolidated Statements of Income.

· · · ·
(Dollars in thousands) · · MSRs
Fair value, January 1, 2026		$84,032
Servicing assets that resulted from transfers of financial assets		3,517
Changes in fair value due to valuation inputs or assumptions		9,320
Changes in fair value due to decay		(5,427)
Fair value, June 30, 2026		$91,442

A reconciliation of the beginning and ending balances of the SBA servicing asset, a Level 3 asset recorded at fair value on a recurring basis for the period ending June 30, 2026, is as follows. The changes in fair value of the SBA servicing asset are recorded in in SBA Income on the Consolidated Statements of Income.


(Dollars in thousands) · · SBA Servicing Asset
Fair value, January 1, 2026			$5,512
Servicing assets that resulted from transfers of financial assets			231
Changes in fair value due to decay			(858)
Changes in fair value due to valuation inputs or assumptions			69
Fair value, June 30, 2026			$4,954

There wereno unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at June 30, 2026.

See Note 17 — Mortgage Loan Servicing, Obligation, and Loans Held for Sale for information about recurring Level 3 fair value measurements of mortgage servicing rights.

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis:


· · · · · Quoted Prices · · · · · ·
· · · · · In Active · · Significant · · ·
· · · · · Markets · · Other · · Significant
· · · · · for Identical · · Observable · · Unobservable
· · · · · Assets · · Inputs · · Inputs
(Dollars in thousands) · · Fair Value · · (Level 1) · · (Level 2) · · (Level 3)
June 30, 2026:
OREO	$12,396	$—	$—	$12,396
Individually evaluated loans	244,506	—	—	244,506
December 31, 2025:
OREO	$8,771	$—	$—	$8,771
Individually evaluated loans	328,452	—	—	328,452

For an individually evaluated loan, the fair value of collateral is measured based on appraisal or third-party valuation when the loan is placed on nonaccrual. For OREO and bank properties held for sale, the fair value is initially recorded based on external appraisals at the time of transfer. These assets recorded at fair value on a nonrecurring basis are updated on at least an annual basis.

Quantitative Information about Level 3 Fair Value Measurement

· · · · · · · · · ·
				Weighted Average Discount
· · · · · · June 30, · · December 31,
· · Valuation Technique · · Unobservable Input · · 2026 · · 2025
Nonrecurring measurements: · · · · · · · · · ·
Individually evaluated loans	Discounted appraisals and discounted cash flows	Collateral discounts	20%	19%
OREO and Bank properties held for sale	Discounted appraisals	Collateral discounts and estimated costs to sell	6%	2%

Fair Value of Financial Instruments

The estimated fair value, and related carrying amount, of our financial instruments are as follows:


· · Carrying · · Fair · · · · · · · · ·
(Dollars in thousands) · · Amount · · Value · · Level 1 · · Level 2 · · Level 3
June 30, 2026
Financial assets:
Cash and cash equivalents	$2,350,312	$2,350,312	$2,350,312	$—	$—
Trading securities	191,094	191,094	—	191,094	—
Investment securities	8,920,917	8,606,205	287,033	8,239,219	79,953
Loans held for sale	405,441	406,234	—	406,234	—
Loans, net of allowance for credit losses	50,260,208	49,968,238	—	—	49,968,238
Accrued interest receivable	238,893	238,893	—	36,943	201,950
Mortgage servicing rights	91,442	91,442	—	—	91,442
SBA servicing asset	4,954	4,954	—	—	4,954
Interest rate swap – non-designated hedge	147,342	147,342	—	147,342	—
Other derivative financial instruments (mortgage banking related)	1,547	1,547	—	1,547	—
Financial liabilities:
Deposits
Noninterest-bearing	13,451,094	13,451,094	—	13,451,094	—
Interest-bearing other than time deposits	35,038,294	35,038,294	—	35,038,294	—
Time deposits	7,860,422	7,840,476	—	7,840,476	—
Federal funds purchased and securities sold under agreements to repurchase	569,486	569,486	—	569,486	—
Corporate and subordinated debentures	696,749	669,627	—	669,627	—
Other borrowings	300,000	299,995	—	299,995	—
Accrued interest payable	34,948	34,948	—	34,948	—
Interest rate swap – non-designated hedge	606,404	606,404	—	606,404	—
Other derivative financial instruments (mortgage banking related)	261	261	—	261	—
December 31, 2025
Financial assets:
Cash and cash equivalents	$3,172,483	$3,172,483	$3,172,483	$—	$—
Trading securities	110,183	110,183	—	110,183	—
Investment securities	8,715,214	8,400,034	274,730	8,046,606	78,698
Loans held for sale	345,343	348,381	—	348,381	—
Loans, net of allowance for credit losses	48,013,330	47,378,022	—	—	47,378,022
Accrued interest receivable	233,265	233,265	—	35,302	197,963
Mortgage servicing rights	84,032	84,032	—	—	84,032
SBA servicing asset	5,512	5,512	—	—	5,512
Interest rate swap – non-designated hedge	221,835	221,835	—	221,835	—
Other derivative financial instruments (mortgage banking related)	1,051	1,051	—	1,051	—
Financial liabilities:
Deposits
Noninterest-bearing	13,375,697	13,375,697	—	13,375,697	—
Interest-bearing other than time deposits	34,410,867	34,410,867	—	34,410,867	—
Time deposits	7,359,233	7,347,648	—	7,347,648	—
Federal funds purchased and securities sold under agreements to repurchase	618,215	618,215	—	618,215	—
Corporate and subordinated debentures	696,536	683,772	—	683,772	—
Accrued interest payable	48,972	48,972	—	48,972	—
Interest rate swap – non-designated hedge	554,433	554,433	—	554,433	—
Other derivative financial instruments (mortgage banking related)	315	315	—	315	—

Note 13 — Accumulated Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income (losses), net of tax, for the three and six months ended June 30, 2026 and 2025, were as follows:


· · · · · Unrealized Losses · · ·
· · Benefit · · on Securities · · ·
(Dollars in thousands) · · Plans · · Available for Sale · · Total
Three Months Ended June 30, 2026
Balance at March 31, 2026	$565	$(326,674)	$(326,109)
Other comprehensive income before reclassifications	—	15,974	15,974
Net comprehensive income	—	15,974	15,974
Balance at June 30, 2026	$565	$(310,700)	$(310,135)

Three Months Ended June 30, 2025
Balance at March 31, 2025	$578	$(377,245)	$(376,667)
Other comprehensive income before reclassifications	—	4,558	4,558
Net comprehensive income	—	4,558	4,558
Balance at June 30, 2025	$578	$(372,687)	$(372,109)

Six Months Ended June 30, 2026
Balance at December 31, 2025	$565	$(283,946)	$(283,381)
Other comprehensive loss before reclassifications	—	(26,754)	(26,754)
Net comprehensive loss	—	(26,754)	(26,754)
Balance at June 30, 2026	$565	$(310,700)	$(310,135)

Six Months Ended June 30, 2025
Balance at December 31, 2024	$578	$(607,499)	$(606,921)
Other comprehensive income before reclassifications	—	61,144	61,144
Amounts reclassified from accumulated other comprehensive loss	—	173,668	173,668
Net comprehensive income	—	234,812	234,812
Balance at June 30, 2025	$578	$(372,687)	$(372,109)

The table below presents the reclassifications out of accumulated other comprehensive income (loss), net of tax:


· · Amount Reclassified from Other Comprehensive Income (Loss) · · Amount Reclassified from Other Comprehensive Income (Loss) · · ·
(Dollars in thousands) · · For the Three Months Ended June 30, · · For the Six Months Ended June 30, · ·
Accumulated Other Comprehensive Loss Component · · 2026 · · 2025 · · 2026 · · 2025 · · Income StatementLine Item Affected
Loss on sale of available for sale securities:
	$—	$—	$—	$228,811	Securities losses, net
	—	—	—	(55,143)	Provision for income taxes
	—	—	—	173,668	Net income
Total reclassifications for the period	$—	$—	$—	$173,668

Note 14 — Derivative Financial Instruments

The Company uses certain derivative instruments to meet the needs of customers as well as to manage the interest rate risk associated with certain transactions. Additional information regarding our Company’s derivative strategy and related programs are described in Note 26 to the Consolidated Financial Statements included in the 2025 Form 10-K.

The following table summarizes the derivative financial instruments used by the Company as of June 30, 2026, and December 31, 2025:


· · · · · · · June 30, 2026 · · · · · December 31, 2025
· · Balance Sheet · · Notional · · Estimated Fair Value · · Notional · · Estimated Fair Value
(Dollars in thousands) · · Location · · Amount · · Gain · · Loss · · Amount · · Gain · · Loss
Fair value hedge of interest rate risk:
Pay fixed rate swap with counterparty	Other Assets	$2,615	$62	$—	$2,615	$44	$—


Not designated hedges of interest rate risk:
Customer related interest rate contracts:
Matched interest rate swaps with borrowers	Other Assets and Other Liabilities	15,923,186	58,347	606,404	14,912,622	143,879	554,433
Matched interest rate swaps with counterparty (1)	Other Assets	15,575,461	88,952	—	14,719,305	77,799	—

Economic hedges of interest rate risk:
Pay floating rate swap with counterparty	Other Assets	2,812,000	(19)	—	2,519,000	113	—

Not designated hedges of interest rate risk – mortgage banking activities:
Contracts used to hedge mortgage servicing rights	Other Assets	264,000	338	—	192,000	69	—
Contracts used to hedge mortgage pipeline	Other Assets and Other Liabilities	108,500	1,209	261	81,000	982	315
Total derivatives		$34,685,762	$148,889	$606,665	$32,426,542	$222,886	$554,748

(1)	The fair value of the interest rate swap derivative assets was reduced by $461.4 million and $333.7 million at June 30, 2026 and December 31, 2025, respectively, in variation margin payments applicable to swaps centrally cleared through LCH and CME.

The following table summarizes the derivative assets and derivative liabilities related to the counterparties on our interest rate swaps subject to master netting agreements where the Company has elected to net the fair values. The Company has elected to not offset cash collateral against the netted derivative assets and liabilities subject to master netting agreements.


· · · · · June 30, 2026 · · · · · December 31, 2025 ·
· · Notional · · Estimated Fair Value · · Notional · · Estimated Fair Value ·
(Dollars in thousands) · · Amount · · Gain · · Loss · · Amount · · Gain · · Loss ·
Interest rate contracts subject to master netting agreements included in table above
Total gross derivative instruments, before netting	$1,693,908	$86,424	$1,232	$1,844,842	$81,240	$3,781
Less: Netting adjustment	126,791	(1,232)	(1,232)	221,941	(3,781)	(3,781)
Total gross derivative instruments, after netting	1,693,908	$85,192	$—	1,844,842	$77,459	$—

As of June 30, 2026, and December 31, 2025, counterparties provided $29.6 million and $25.9 million, respectively, of cash collateral to the Company to secure swap asset positions that were not centrally cleared, which is included in Interest-bearing Deposits within Total Liabilities on the Consolidated Balance Sheets. Counterparties also pledged $26.5 million and $28.1 million, respectively, as of June 30, 2026, and December 31, 2025 in investment securities to secure swap asset positions that were not centrally cleared. The Company provided $2.4 million and $1.7 million, respectively, to counterparties to secure swap positions that were not centrally cleared as of June 30, 2026, and December 31, 2025.

Balance Sheet Fair Value Hedge

As of June 30, 2026, and December 31, 2025, the Company maintained loan swaps, with an aggregate notional amount of $2.6 million accounted for as fair value hedges. The amortized cost basis of the loans being hedged were$2.6 million as of June 30, 2026, and December 31, 2025.

Non-designated Hedges of Interest Rate Risk

Customer Swap

The Company offers interest rate swaps to certain customers to enable them to convert variable-rate loan payments to fixed-rate and simultaneously enters into an offsetting swap with a third-party counterparty. As these interest rate swaps do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2026, and December 31, 2025, the interest rate swaps had an aggregate notional amount of approximately$31.5 billion and $29.6 billion, respectively. At June 30, 2026, the fair value of the interest rate swap derivatives is recorded in Other Assets at$147.3 million and in Other Liabilities at $606.4 million. The fair value of derivative assets at June 30, 2026, was reduced by$461.4 million in variation margin payments applicable to swaps centrally cleared through LCH and CME. At December 31, 2025, the fair value of the interest rate swap derivatives was recorded in Other Assets at$221.7 million and Other Liabilities at $554.4 million. The fair value of derivative assets at December 31, 2025, was reduced by$333.7 million in variation margin payments applicable to swaps centrally cleared through LCH and CME. All changes in fair value are recorded through earnings within Correspondent and Capital Markets Income, a component of Noninterest Income on the Consolidated Statements of Income. There were net gains of$86,000 and $1.2 million recorded on these derivatives for the three and six months ended June 30, 2026, respectively. There was a net loss of$59,000 and $231,000 recorded on these derivatives for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, we provided$325.8 million of cash collateral on the customer swaps, which is included in Cash and Cash Equivalents on the Consolidated Balance Sheets as Deposits in Other Financial Institutions (Restricted Cash). We also provided$78.4 million in investment securities at market value as collateral on the customer swaps which is included in Investment Securities – available for sale on the Consolidated Balance Sheets. Counterparties provided$29.6 million of cash collateral to the Company to secure swap asset positions that were not centrally cleared, which is included in Interest-bearing Deposits within Total Liabilities on the Consolidated Balance Sheets.

Balance Sheet Economic Hedge

As of June 30, 2026 and December 31, 2025, the Company maintained an aggregate notional amount of $2.8 billion and $2.5 billion, respectively, in short-term interest rate hedges that were accounted for as economic hedges. These derivatives protect the Company from interest rate risk caused by changes in the term and daily SOFR accrual mismatches. The fair value of these hedges is recorded in either Other Assets or in Other Liabilities depending on the position of the hedge with the offset recorded in Correspondent Banking and Capital Market Income, a component of Noninterest Income on the Consolidated Statements of Income. There were no material net income impacts for these derivatives for three and six month ended June 30, 2026 or 2025.

Mortgage Banking

The Company uses certain derivatives in connection with its mortgage banking activities, primarily to manage exposure related to mortgage servicing rights and the mortgage loan pipeline. The Company does not designate these instruments as accounting hedges.

Mortgage Servicing Rights (“MSRs”)

On June 30, 2026, we had derivative financial instruments outstanding with notional amounts totaling $264.0 million related to MSRs, compared to $192.0 million on December 31, 2025. The estimated net fair value of the open contracts related to the MSRs was a gain of$338,000 at June 30, 2026, compared to a gain of $69,000 at December 31, 2025.

Mortgage Pipeline

The following table presents our notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline related to the held for sale portfolio:

· · · · · · ·
(Dollars in thousands)	June 30, 2026	December 31, 2025
Mortgage loan pipeline	$92,055	$55,318
Expected closures	80,637	48,106
Fair value of mortgage loan pipeline commitments	1,209	982
Forward sales commitments	108,500	81,000
Fair value of forward commitments	(261)	(315)

Note 15 — Capital Ratios

The following table presents actual and required capital ratios as of June 30, 2026, and December 31, 2025 for the Company and the Bank under the current capital rules.

The following table presents actual and required capital ratios as of June 30, 2026, and December 31, 2025, for the Company and the Bank under the current capital rules.
· · · · · · · · Required to be
· · · · · · · Minimum Capital · Considered Well
· · Actual · · Required – Basel III · · Capitalized ·
(Dollars in thousands) · · Amount · · Ratio · · Capital Amount · · Ratio · · Capital Amount · · Ratio
June 30, 2026:
Common equity Tier 1 to risk-weighted assets:
Consolidated	$6,096,084	11.12%	$3,836,103	7.00%	$3,562,095	6.50%
SouthState Bank (the Bank)	6,663,891	12.17%	3,834,053	7.00%	3,560,192	6.50%
Tier 1 capital to risk-weighted assets:
Consolidated	6,096,084	11.12%	4,658,125	8.50%	4,384,117	8.00%
SouthState Bank (the Bank)	6,663,891	12.17%	4,655,636	8.50%	4,381,775	8.00%
Total capital to risk-weighted assets:
Consolidated	7,394,701	13.49%	5,754,154	10.50%	5,480,147	10.00%
SouthState Bank (the Bank)	7,266,907	13.27%	5,751,080	10.50%	5,477,219	10.00%
Tier 1 capital to average assets (leverage ratio):
Consolidated	6,096,084	9.39%	2,596,800	4.00%	3,246,000	5.00%
SouthState Bank (the Bank)	6,663,891	10.28%	2,592,383	4.00%	3,240,478	5.00%
December 31, 2025:
Common equity Tier 1 to risk-weighted assets:
Consolidated	$5,885,568	11.36%	$3,625,944	7.00%	$3,366,948	6.50%
SouthState Bank (the Bank)	6,496,379	12.54%	3,625,076	7.00%	3,366,142	6.50%
Tier 1 capital to risk-weighted assets:
Consolidated	5,885,568	11.36%	4,402,932	8.50%	4,143,936	8.00%
SouthState Bank (the Bank)	6,496,379	12.54%	4,401,878	8.50%	4,142,944	8.00%
Total capital to risk-weighted assets:
Consolidated	7,166,829	13.84%	5,438,915	10.50%	5,179,920	10.00%
SouthState Bank (the Bank)	7,082,039	13.68%	5,437,614	10.50%	5,178,680	10.00%
Tier 1 capital to average assets (leverage ratio):
Consolidated	5,885,568	9.26%	2,543,294	4.00%	3,179,117	5.00%
SouthState Bank (the Bank)	6,496,379	10.22%	2,542,489	4.00%	3,178,111	5.00%

As of June 30, 2026, and December 31, 2025, the capital ratios of the Company and the Bank were in excess of the minimum regulatory requirements and exceeded the thresholds for the “well capitalized” regulatory classification. For a description of the Company’s regulatory capital framework, refer to Note 24 and Item 1, “Business,” in the 2025 Form 10-K.

Note 16 — Goodwill and Other Intangible Assets

The carrying amount of goodwill was $3.1 billion, at June 30, 2026, and December 31, 2025. The Company’s other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet.

The Company last completed its annual valuation of the carrying value of its goodwill as of October 31, 2025 and determined it was more likely than not there wasno impairment of the Company’s goodwill. Management continues to monitor the impact of market conditions on the Company’s business, operating results, cash flows and/or financial condition.

The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets:

· · · · · · ·
	June 30,	December 31,
(Dollars in thousands)	2026	2025
Gross carrying amount	$688,862	$689,419
Accumulated amortization	(345,438)	(303,093)
	$343,424	$386,326

Amortization expense totaled $21.0 million and $42.3 million, for the three and six months ended June 30, 2026, respectively, compared to $24.0 million and $47.9 million for the three and six months ended June 30, 2025, respectively. Other intangibles, except for SBA servicing assets which are carried at fair value, are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally betweentwo and 15 years. The SBA servicing assets are carried at fair value and along with goodwill, are not amortized.

Estimated amortization expense for other intangibles for each of the next five quarters is as follows:


(Dollars in thousands)
Quarter ending: · · ·
September 30, 2026			$20,628
December 31, 2026			20,628
March 31, 2027			18,517
June 30, 2027			18,188
September 30, 2027			17,777
Thereafter			242,731
			$338,469

Note 17 — Mortgage Loan Servicing, Origination, and Mortgage Loans Held for Sale

The portfolio of residential mortgages serviced for others, which is not included in the accompanying Consolidated Balance Sheets, was $6.5 billion and $6.6 billion, respectively, as of June 30, 2026, and December 31, 2025. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts and disbursing payments to investors. The amounts of contractually specified servicing fees we earned during the three and six months ended June 30, 2026, and June 30, 2025, were$4.1 million, $8.3 million and $4.2 million, $8.5 million, respectively. Servicing fees are recorded in Mortgage Banking Income in our Consolidated Statements of Income.

At June 30, 2026, and December 31, 2025, MSRs were $91.4 million and $84.0 million on our Consolidated Balance Sheets, respectively. MSRs are recorded at fair value with changes in fair value recorded as a component of Mortgage Banking Income in the Consolidated Statements of Income. The market value adjustments related to MSRs recorded in Mortgage Banking Income for the three and six months ended June 30, 2026, and June 30, 2025, were gains of$2.8 million and $9.3 million compared with losses of $1.7 million and $4.8 million, respectively. The Company has used various free standing derivative instruments to mitigate the income statement effect of changes in fair value resulting from changes in market value adjustments, in addition to changes in valuation inputs and assumptions related to MSRs.

See Note 14 — Fair Value for the changes in fair value of MSRs. The following table presents the changes in the fair value of the MSR and offsetting hedge.


· · Three Months Ended · · Six Months Ended ·
(Dollars in thousands) · · June 30, 2026 · · June 30, 2025 · · June 30, 2026 · · June 30, 2025
Increase/(decrease) in fair value of MSRs	$2,756	$(1,689)	$9,319	$(4,770)
Decay of MSRs	(3,222)	(2,284)	(5,427)	(3,312)
(Loss) gain related to derivatives	(2,203)	1,248	(3,929)	3,588
Net effect on Consolidated Statements of Income	$(2,669)	$(2,725)	$(37)	$(4,494)

The characteristics and sensitivity analysis of the MSRs are included in the following table:


· · June 30, · · · December 31, · ·
(Dollars in thousands) · · 2026 · · · 2025 · ·
Composition of residential loans serviced for others
Fixed-rate mortgage loans	100.0%		100.0%
Adjustable-rate mortgage loans	—%		—%
Total	100.0%		100.0%
Weighted average life	7.6	years	7.5	years
Constant Prepayment rate (CPR)	7.6%		7.9%
Estimated impact on fair value of a 10% increase	$(1,179)		$(1,082)
Estimated impact on fair value of a 20% increase	(2,423)		(2,101)
Estimated impact on fair value of a 10% decrease	1,239		1,142
Estimated impact on fair value of a 20% decrease	2,535		2,333
Weighted average discount rate	9.5%		10.7%
Estimated impact on fair value of a 10% increase	$(3,784)		$(3,140)
Estimated impact on fair value of a 20% increase	(7,268)		(6,208)
Estimated impact on fair value of a 10% decrease	4,120		3,105
Estimated impact on fair value of a 20% decrease	8,620		5,982
Effect on fair value due to change in interest rates
25 basis point increase	$3,303		$2,505
50 basis point increase	6,481		4,822
25 basis point decrease	(3,300)		(2,599)
50 basis point decrease	(6,556)		(5,128)

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the residential MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by the Company would serve to reduce the estimated impacts to fair value included in the table above.

Mortgage loan sales were $218.8 million and $415.3 million for the three and six months ended June 30, 2026, respectively, compared to $262.7 million and $544.0 million for the three and six months ended June 30, 2025, respectively. For the three and six months ended June 30, 2026, the Bank sold$145.4 million and $271.9 million, or 66.5% and 65.5%, respectively, with the servicing rights retained by the Bank, compared to $175.4 million and $340.2 million, or 66.8% and 62.5%, respectively, for the three and six months ended June 30, 2025.

The Bank retains no beneficial interests in these sales but may retain the servicing rights for the loans sold. The risks related to the sold loans with the retained servicing rights due to a representation or warranty violation such as noncompliance with eligibility or servicing requirements, or customer fraud, that should have been identified in a loan file review are disclosed in Note 1 — Summary of Significant Accounting Policies, under the “Loans Held for Sale” section, of the Company’s 2025 Form 10-K.

Mortgage loans held for sale have historically been comprised of residential mortgage loans awaiting sale in the secondary market, which generally settle in 15 to 45 days. Mortgage loans held for sale were$68.7 million and $61.4 million at June 30, 2026, and December 31, 2025, respectively. Please see Note 12 — Fair Value, under the “Fair Value Option”, section in this Quarterly Report on Form 10-Q for summary of the fair value and the unpaid principal balance of loans held for sale and the changes in fair value of these loans.

Note 18 — Small Business Administration (“SBA”) Loans Held for Sale

The Company purchases the guaranteed portions of SBA loans from third-party originators. The guaranteed portions of SBA loans purchased by the Company are aggregated into pools with similar characteristics to create a security representing an interest in those pools through the SBA’s fiscal transfer agent (“FTA”). The individual guaranteed portions of the SBA loans may also be sold prior to pooling into a security. The guaranteed portion of the SBA loans are pooled and securities representing interests in that pool are issued, the Company sells the pooled securities into the secondary market.

At June 30, 2026 and 2025, the Company held approximately $336.7 million and $247.9 million, respectively, of the guaranteed portion of SBA loans for sale. The following table details additional SBA activity for the periods presented.


· · Three Months Ended · · Six Months Ended ·
(Dollars in thousands) · · June 30, 2026 · · June 30, 2025 · · June 30, 2026 · · June 30, 2025 ·
SBA loan purchases - guaranteed portion	$313,008	$235,722	$659,673	$686,586
SBA security pools created - guaranteed portion	233,105	194,255	518,923	507,136
SBA security pools sold into the secondary market	219,145	160,207	513,362	481,197
SBA individual loans sold	3,960	43,411	38,609	58,829

The Company also separately originates SBA loans and sells the guaranteed portions of these loans into the secondary market. The following table details the guaranteed portion of SBA loans for the periods presented.


· · Three Months Ended · · Six Months Ended ·
(Dollars in thousands) · · June 30, 2026 · · June 30, 2025 · · June 30, 2026 · · June 30, 2025 ·
SBA loan originations - guaranteed portion sold	$6,209	$20,010	$14,492	$42,626
Gains recognized on sales	581	1,728	1,329	3,752

Note 19 — Short-Term Borrowings

Securities Sold Under Agreements to Repurchase (“Repurchase agreements”)

Repurchase agreements represent funds received from customers, generally on an overnight or continuous basis, which are collateralized by investment securities owned or, at times, borrowed and re-hypothecated by the Company. At June 30, 2026, and December 31, 2025, our repurchase agreements totaled$283.2 million and $311.4 million, respectively. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a market value of$326.7 million and $331.5 million at June 30, 2026, and December 31, 2025, respectively. Declines in the value of the collateral would require us to increase the amounts of securities pledged.

Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Borrowing

The Company has, from time to time, entered into borrowing agreements with the FHLB and FRB. Borrowings under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, investment securities, and commercial real estate loans under a blanket-floating lien.

As of June 30, 2026, and December 31, 2025, the Company had$300.0 million and$0 outstanding FHLB borrowings, respectively. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at June 30, 2026, were approximately$9.2 billion (collateral value of $5.8 billion) and investment securities and cash pledged were approximately $27.1 million (collateral value of $19.4 million). This allows the Company a total borrowing capacity at the FHLB of approximately$5.8 billion. After accounting for the secured collateral required totaling$17.8 million and $300.0 million in outstanding FHLB advances, the Company had unused net credit available with the FHLB in the amount of approximately $5.5 billion at June 30, 2026. The Company also has a total borrowing capacity at the FRB of$11.7 billion at June 30, 2026, secured by a blanket lien on $15.5 billion (collateral value of $11.7 billion) in net eligible loans of the Company. The Company hadno outstanding borrowings with the FRB at June 30, 2026, or December 31, 2025.

Note 20 — Stock Repurchase Program

On January 21, 2026, the Board of Directors of the Company approved a stock repurchase plan for the repurchase of up to 5,560,000 shares of the Company’s common stock (the “2026 Repurchase Plan”). The 2026 Repurchase Plan replaces the Company’s 2025 Repurchase Plan, under which 560,000 shares remained available for repurchase. The 2025 Repurchase Plan was cancelled in connection with the Board’s approval of the 2026 Repurchase Plan. During the six months ended June 30, 2026, the Company repurchased a total of 2,500,000 shares at a weighted average price of $99.58 per share (including commission paid) pursuant to the 2026 Repurchase Plan. Based on the shares repurchased through the 2026 Repurchase Plan during 2026, the Company accrued an estimated excise tax of approximately$2.2 million at June 30, 2026 to be paid in 2027. This excise tax of 1% on the fair market value of corporate stock repurchased was enacted under the Inflation Reduction Act of 2022 for stock repurchases and is recorded against surplus in shareholders’ equity when accrued. During the six months ended of 2025, the Company did not repurchase any shares pursuant to the 2025 Repurchase Plan.

The Company repurchased 92,609 and 110,797 shares at a cost of $9.4 million and $11.3 million, respectively, during the six months ended June 30, 2026, and 2025 under other arrangements whereby directors or officers surrender shares to the Company to cover the option cost for stock option exercises or tax liabilities resulting from the vesting of restricted stock awards or restricted stock units.

Note 21 — Segment Reporting

The table below provides net income and net interest margin information about the General Banking Unit. The most significant expenses to the General Banking Unit are deposit and other borrowing interest expense as well as employee compensation.** **For a description of the Company’sreportable segments and related framework, refer to Note 29 to the Consolidated Financial Statements in the Company’s 2025 Form 10-K.


· · Three Months Ended · · Six Months Ended
· · June 30, · · June 30,
(Dollars in thousands) · · 2026 · · 2025 · · 2026 · · 2025
Net Income (GAAP)
Interest income	$838,259	$840,504	$1,655,088	$1,649,070
Interest expense	262,310	262,556	517,534	526,575
Net interest income (a)	575,949	577,948	1,137,554	1,122,495
Provision for credit losses	15,919	7,505	26,727	108,067
Net interest income after provision for credit losses	560,030	570,443	1,110,827	1,014,428
Total noninterest income
Securities (losses) gain, net	—	—	—	(228,811)
Gain on sale-leaseback, net of transaction costs	—	—	—	229,279
Other operating noninterest income	96,726	86,817	196,824	172,437
Total noninterest income	96,726	86,817	196,824	172,905
Total noninterest expense
Employee salaries	144,142	135,895	286,612	271,623
Employee commissions	19,221	14,278	35,333	25,554
Employee incentives	34,119	33,623	63,776	62,389
Other salaries and benefits	35,872	36,353	73,442	73,318
Deferred loan costs	(27,977)	(19,987)	(48,133)	(36,911)
Salaries and employee benefits	205,377	200,162	411,030	395,973
Occupancy expense	43,878	41,507	86,180	77,000
Information services expense	29,136	30,155	58,840	61,517
Professional fees	5,090	4,658	10,329	9,367
Amortization of intangibles	21,041	24,048	42,345	47,879
Business development and staff related	10,639	7,182	22,001	13,692
FDIC assessment and other regulatory charges	10,753	11,469	21,010	22,727
Merger and branch consolidation related expense	—	24,379	—	92,385
Other operating expense	31,835	31,501	65,538	63,347
Total noninterest expense	357,749	375,061	717,273	783,887
Income before income tax provision	299,007	282,199	590,378	403,446
Income tax provision	68,985	66,975	134,536	99,142
Net income (GAAP)	$230,022	$215,224	$455,842	$304,304

Net Interest Margin, Non-Tax Equivalent ("Non-TE") (GAAP)
Average interest earning assets (b)	$61,133,759	$57,710,001	$60,670,045	$57,604,313
Net interest margin, non-TE ((a)/(b)) (GAAP)	3.78%	4.02%	3.78%	3.93%

Note 22 — Subsequent Events

On July 23, 2026, the Company announced the Board of Directors of the Company increased its quarterly cash dividend on its common stock from $0.60 per share to $0.66 per share. The dividend is payable on August 14, 2026, to shareholders of record as of August 7, 2026.

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