SouthState Bank Corp
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
View on SEC.govAbout 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.
Sep 30, 2026 · Filed Oct 30, 2026
SSB$104.11-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001104659-26-089026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001193125-26-439976
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 138 previous paragraphs and 229 current paragraphs.
69 unchanged; 67 reworded; 93 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 107 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (93)
Current report
A $16.8 million decrease in interest income, which resulted from a $10.3 million decrease in interest income from loans and loans held for sale and a $13.4 million decrease in interest income on federal funds sold, securities purchased under agreement to resell and interest-bearing deposits, partially offset by a $6.9 million increase in interest income from investment securities. See Net Interest Income and Margin section on page 43 for further discussion.
Current report
An $8.6 million decrease in interest expense, which resulted from a $1.4 million decrease in interest expense in federal funds purchased and securities sold under agreements to repurchase, a $1.2 million decrease in interest expense from deposits and a $6.0 million decrease in interest expense from corporate and subordinated debentures and other borrowings. See Net Interest Income and Margin section on page 43 for further discussion.
Current report
A $15.3 million increase in the provision for credit losses, as the Company recorded a provision for credit losses of $20.3 million in the third quarter of 2026 while recording a provision for credit losses of $5.1 million in the third quarter of 2025. The main reason for the increase in the provision for credit losses was higher loan production and net loan growth in the third quarter of 2026 compared to the same period in 2025. During the third quarter of 2026, the Company had loan production of $4.9 billion and net loan growth of $1.2 billion compared to loan production of $3.4 billion and net loan growth of $400.8 million in the third quarter of 2025.
Current report
A $5.2 million decrease in noninterest income primarily from a decrease in correspondent banking and capital market income of $6.6 million. This decrease was slightly offset by increases in service charges on deposit accounts of $1.0 million and trust and investment services income of $1.7 million. See Noninterest Income section on page 47 for further discussion;
Current report
A $2.4 million increase in noninterest expense, which resulted primarily from an increase in salaries and employee benefits of $18.1 million, occupancy expense of $3.3 million, FDIC assessment and other regulatory charges of $2.5 million and business development expense of $2.0 million. These increases were partially offset by decreases in merger, branch consolidation, severance related and other restructuring expenses of $20.9 million and a reduction in amortization of intangibles of $2.8 million. See Noninterest Expense section on page 48 for further discussion; and
Current report
Lower income tax provision of $8.2 million is mostly due to lower pretax book income between the two quarters. The Company recorded pretax book income of $290.3 million in the third quarter of 2026 compared to pretax book income of $321.4 million in the third quarter of 2025. Our effective tax rate was 22.91% for the three months ended September 30, 2026, compared to 23.25% for the three months ended September 30, 2025. See Income Tax Expense section on page 48 for further discussion.
Current report
Lower non-TE yield on interest-earning assets was primarily driven by lower loan yields, largely attributable to continued runoff of acquired loans and a reduction in loan accretion income of approximately $56.3 million. The average balance of higher-yielding acquired loans decreased by $3.3 billion, while the yield on acquired loans declined by 146 basis points. The non-TE yield on federal funds sold and interest-earning deposits with banks decreased by 98 basis points, and non-TE yield on non-acquired loans slightly decreased by 2 basis points in the comparatively lower interest environment. These effects were partially offset by a change in asset mix, as the average balance of lower-yielding assets, such as federal funds sold and interest-earning deposits with banks, declined while the average balance of higher yielding loans and investment securities increased.
Current report
Funding costs declined during the third quarter of 2026, primarily due to a lower interest rate environment, which reduced rates across all interest-bearing deposits, federal funds purchased, securities sold with agreements to repurchase, and corporate and subordinated debentures categories. Overall, the Company’s cost of funds, including noninterest-bearing deposits, declined by 16 basis points to 1.88% compared to the three months ended September 30, 2025.
Current report
Investment securities (taxable) and (tax-exempt) include trading securities.
Current report
Investment securities (taxable) and (tax-exempt) include trading securities.
Current report
Our non-TE yield on total loans decreased 56 basis points in the third quarter of 2026 compared to the same period in 2025.
Current report
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Current report
The yield on the acquired loan portfolio decreased 146 basis-point in the third quarter of 2026 compared to the same period in 2025.
Current report
The decrease in interest income on acquired loans was primarily attributable to continued paydowns, pay-offs and renewals of acquired loans that were moved to our non-acquired loan portfolio, as well as a decrease in loan accretion of approximately $56.3 million and $109.8 million, respectively for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The loan accretion is primarily related to the loan portfolio acquired from Independent.
Current report
o
Current report
The yield on the non-acquired loan portfolio decreased 2 basis points in the third quarter of 2026 compared to the same period in 2025.
Current report
The decline in the yield on non-acquired loans primarily reflects the impact of new and renewed loans originating at comparatively lower rates in the current rate environment compared to the same period in 2025. The growth in interest income on non-acquired loans was attributable to organic loan growth and renewals of matured acquired loans that were moved to our non-acquired loan portfolio.
Current report
The cost of interest-bearing deposits declined to 2.37% for the third quarter of 2026, compared to 2.56% for the same period in 2025.
Current report
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Current report
Interest expense on interest-bearing deposits decreased, as the effect of lower interest rates paid across all deposit categories outweighed the growth in the average balance of transaction and money market accounts and certificates and other time deposits.
Current report
The average cost and interest expense of federal funds purchased decreased, reflecting both a lower average balance and lower costs in the lower interest rate environment.
Current report
The average cost and interest expense of corporate and subordinated debentures decreased. The decreases reflect the continued net effect of debt redemptions and subsequent subordinated debt issuances following prior-period debt assumed in the Independent acquisition along with the lower interest rate environment.
Current report
The average cost of other borrowings was 3.98% with an average balance of $94.6 million for the third quarter of 2026. The Company had no significant other borrowings during the third quarter of 2025.
Current report
Correspondent banking and capital markets income was lower, primarily attributable to a $4.0 million decrease in income generated from the sale of customer swap ARC hedges, reflecting decreased hedging activity as commercial borrowers showed less demand to convert variable-rate loans to fixed rates. The decrease was also driven by higher expense associated with variation margin payments for centrally cleared swaps where we recorded an expense of $5.6 million in the third quarter of 2026 compared to an expense of $4.3 million in the third quarter of 2025. In addition, other operational revenue was lower by approximately $2.4 million.
Current report
Service charges on deposit accounts were higher mainly attributable to deposit fee income from the growth in deposit accounts.
Current report
Debit, prepaid, ATM and merchant card related income was higher in 2026 compared to 2025 mainly due to higher bank card and ATM related fee income of $4.6 million.
Current report
Mortgage banking income was higher in 2026 compared to 2025, as an increase in mortgage servicing related income was partially offset by a decrease in secondary market mortgage income. Mortgage production increased from $1.7 billion in the first nine months of 2025 to $2.5 billion in the first nine months of 2026. During the first nine months of 2026, we sold 26% of our mortgage production to the secondary market versus 41% during the same period in 2025.
Current report
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Current report
The mortgage servicing related income, net of the hedge, increased mainly due to a $6.0 million increase in the change in fair value of the MSR, including decay. The increase in fair value of the MSR between the comparable periods was primarily due to an increase in the change in fair value from interest rates of $25.8 million, offset by decreases from gains/losses on the MSR hedge of $17.5 million and an increase in MSR decay of $2.3 million.
Current report
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Current report
Mortgage income from the secondary market decreased between the comparable periods resulting from a $2.6 million decrease in gain on sale of mortgage loans, which is net of the commission expense related to mortgage production, and a $3.2 million decrease in the change in fair value of the pipeline and loans held for sale, partially offset by an increase in MBS forward trades of $2.6 million. Mortgage commission expense was $5.6 million in 2026 compared to $6.0 million in 2025.
Current report
Trust and investment services income increased in 2026 compared to 2025, as assets under management have increased by $645.9 million, or 6.3%, in that same time frame.
Current report
During the first quarter of 2025, the Company recorded net losses on the sales of investment securities, excluding the sales of investment securities acquired from Independent, substantially offset by a gain on the sale of bank properties, net of transaction costs, from a sale-leaseback transaction completed in February 2025.
Current report
SBA income was lower primarily attributable to lower gains on the sale of SBA loans of $2.1 million. SBA income includes changes in the fair value of the servicing asset, loan servicing fees and gains on sale of SBA loans.
Current report
Salaries and employee benefits increased primarily due to higher commission and incentive expense of $9.8 million, as well as an increase in salary expense of $7.9 million, resulting primarily from merit increases and an increase in the number of employees due to growth in sales force.
Current report
Occupancy expense increased in the third quarter of 2026 compared to the same period in 2025, due mainly to increases in lease expenses and building occupancy expense, including related depreciation, of $1.3 million and $1.0 million, respectively.
Current report
OREO expense and loan related expense decreased primarily due to a $2.6 million decrease in losses on sales of OREO.
Current report
Amortization of intangibles decreased by $2.8 million, or 11.9%, due to lower amortization expense related to the core deposit intangible recognized in connection with the Independent acquisition, which is subject to accelerated amortization in the earlier periods of its estimated life.
Current report
Business development and staff related expense increased due mainly to higher employee travel and entertainment, and recruitment-related costs of approximately $1.5 million.
Current report
FDIC assessment and other regulatory charges increased primarily due to an increase in the FDIC assessment rate reflecting changes in the Company’s size and complexity along with the effects from the increase in the Company’s total average assets, classified assets and higher-risk assets.
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Removed paragraphs (2)
Previous report
Investment Securities
Previous report
Investment Securities
Reworded paragraphs (67)
Previous wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) relates to the financial statements contained in this Quarterly Report beginning on page 3. For further information, refer to the MD&A appearing in the Annual Report on Form 10-K for the year ended December 31, 2025. The MD&A section in this Form 10-Q discusses updates to the Company’s business since the year ended December 31, 2025. Results for the three and six months ended June 30, 2026, are not necessarily indicative of the results for the year ending December 31, 2026, or any future period.
Current wording
This Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) relates to the financial statements contained in this Quarterly Report beginning on page 3. For further information, refer to the MD&A appearing in the Annual Report on Form 10-K for the year ended December 31, 2025. The MD&A section in this Form 10-Q discusses updates to the Company’s business since the year ended December 31, 2025. Results for the three and nine months ended September 30, 2026, are not necessarily indicative of the results for the year ending December 31, 2026, or any future period.
Previous wording
SouthState Bank Corporation is a financial holding company headquartered in Winter Haven, Florida. We provide a wide range of banking services and products to our customers through our Bank. There have been no material changes to the Company’s business or organizational structure during the six months ended June 30, 2026, except as described below. During the second quarter of 2026, the Company completed the legal dissolution of one of its subsidiaries, SSB Insurance Corp., a captive insurance subsidiary pursuant to Section 831(b) of the U.S. Tax Code. The Company’s business structure remains otherwise unchanged.
Current wording
SouthState Bank Corporation is a financial holding company headquartered in Winter Haven, Florida. We provide a wide range of banking services and products to our customers through our Bank. There have been no material changes to the Company’s business or organizational structure during the nine months ended September 30, 2026, except as described below. During the second quarter of 2026, the Company completed the legal dissolution of one of its subsidiaries, SSB Insurance Corp., a captive insurance subsidiary pursuant to Section 831(b) of the U.S. Tax Code. The Company’s business structure remains otherwise unchanged.
Previous wording
At June 30, 2026, we had approximately $68.9 billion in assets and 6,431 full-time equivalent employees. Through our Bank branches, ATMs and online banking platforms, we provide our customers with a wide range of financial products and services, through an eight (8) state footprint in Alabama, Colorado, Florida, Georgia, North Carolina, South Carolina, Texas, and Virginia.
Current wording
At September 30, 2026, we had approximately $70.4 billion in assets and 6,440 full-time equivalent employees. Through our Bank branches, ATMs and online banking platforms, we provide our customers with a wide range of financial products and services, through an eight (8) state footprint in Alabama, Colorado, Florida, Georgia, North Carolina, South Carolina, Texas, and Virginia.
Previous wording
The following discussion describes our results of operations for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, and also analyzes our financial condition as of June 30, 2026, as compared to December 31, 2025.
Current wording
The following discussion describes our results of operations for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025, and also analyzes our financial condition as of September 30, 2026, as compared to December 31, 2025.
Previous wording
Our consolidated financial statements are prepared based on the application of accounting policies in accordance with GAAP and follow general practices within the banking industry. Our financial position and results of operations are affected by management’s application of accounting policies, including estimates, assumptions and judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues and expenses. Differences in the application of these policies could result in material changes in our consolidated financial position and consolidated results of operations and related disclosures. Understanding our accounting policies is fundamental to understanding our consolidated financial position and consolidated results of operations. There have been no material changes to those policies during the six months ended June 30, 2026, except as described below.
Current wording
Our consolidated financial statements are prepared based on the application of accounting policies in accordance with GAAP and follow general practices within the banking industry. Our financial position and results of operations are affected by management’s application of accounting policies, including estimates, assumptions and judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues and expenses. Differences in the application of these policies could result in material changes in our consolidated financial position and consolidated results of operations and related disclosures. Understanding our accounting policies is fundamental to understanding our consolidated financial position and consolidated results of operations. There have been no material changes to those policies during the nine months ended September 30, 2026, except as described below.
Previous wording
SouthState utilizes economic forecasts provided by a third-party service provider and applies probability weightings to multiple economic scenarios based on management's assessment of economic and market conditions. As a sensitivity analysis, applying a 100% weighting to the adverse scenario would increase the ACL by approximately $176 million, while applying a 100% weighting to the upside scenario would decrease the ACL by approximately $122 million. The adverse scenario reflects recessionary economic conditions, while the upside scenario reflects stronger-than-expected economic performance. This analysis is hypothetical and does not represent management's estimate of expected credit losses as of June 30, 2026.
Current wording
SouthState utilizes economic forecasts provided by a third-party service provider and applies probability weightings to multiple economic scenarios based on management's assessment of economic and market conditions. As a sensitivity analysis, applying a 100% weighting to the adverse scenario would increase the ACL by approximately $207 million, while applying a 100% weighting to the upside scenario would decrease the ACL by approximately $145 million. The adverse scenario reflects recessionary economic conditions, while the upside scenario reflects stronger-than-expected economic performance. This analysis is hypothetical and does not represent management's estimate of expected credit losses as of September 30, 2026.
Previous wording
We reported consolidated net income of $230.0 million, or diluted earnings per share (“EPS”) of $2.35, for the second quarter of 2026 compared to consolidated net income of $215.2 million, or diluted EPS of $2.11, in the comparable period of 2025, a 6.9% increase in consolidated net income and a 11.4% increase in diluted EPS. During the six months ended June 30, 2026, we reported consolidated net income of $455.8 million, or diluted EPS of $4.64, compared to consolidated net income of $304.3 million, or diluted EPS of $2.99, in the comparable period of 2025, a 49.8% increase in consolidated net income and a 55.2% increase in diluted EPS. The $14.8 million increase in consolidated net income for the second quarter of 2026 compared to the same period of 2025 was the net result of the following items:
Current wording
We reported consolidated net income of $223.8 million, or diluted earnings per share (“EPS”) of $2.30, for the third quarter of 2026 compared to consolidated net income of $246.6 million, or diluted EPS of $2.42, in the comparable period of 2025, a 9.3% decrease in consolidated net income and a 5.0% decrease in diluted EPS. During the nine months ended September 30, 2026, we reported consolidated net income of $679.6 million, or diluted EPS of $6.93, compared to consolidated net income of $550.9 million, or diluted EPS of $5.41, in the comparable period of 2025, a 23.4% increase in consolidated net income and a 28.1% increase in diluted EPS. The $22.8 million decrease in consolidated net income for the third quarter of 2026 compared to the same period of 2025 was the net result of the following items:
Previous wording
Our quarterly efficiency ratio improved to 50.0% in the second quarter of 2026 compared to 52.7% in the second quarter of 2025. The improvement in the efficiency ratio compared to the second quarter of 2025 was the result of a 4.1% decrease in noninterest expense (excluding amortization of intangibles) and a 1.2% increase in the total tax-equivalent net interest income and noninterest income. The decrease in noninterest expense was mainly due to a decline in merger related expenses related to the Independent acquisition completed in the first quarter of 2025. The increase in the total of tax-equivalent net interest income and noninterest income was mainly due to an increase in investment securities interest income of $7.2 million, an increase in service charges and fees on deposit accounts of $3.7 million and an increase in correspondent banking and capital markets income of $7.0 million.
Current wording
Our quarterly efficiency ratio increased to 51.6% in the third quarter of 2026 compared to 49.9% in the third quarter of 2025. The increase in the efficiency ratio compared to the third quarter of 2025 was the result of a 1.9% decrease in the total tax-equivalent net interest income and noninterest income and a 1.5% increase in noninterest expense (excluding amortization of intangibles). The increase in noninterest expense was mainly due to an increase in salaries and employee benefits related to regular annual salary increases and an increase in the number of employees as a result of a hiring initiative to expand our sales force. The decrease in the total of tax-equivalent net interest income and noninterest income was mainly due to decreases in interest income from federal funds sold, securities purchased under agreements to resell and interest-bearing deposits with banks, loan interest income and correspondent banking and capital markets income compared to the third quarter of 2025.
Previous wording
Basic and diluted EPS were $2.36 and $2.35, respectively, for the second quarter of 2026, compared to $2.12 and $2.11, respectively, for the second quarter of 2025. The increase in basic and diluted EPS was due to a 6.9% increase in net income in the second quarter of 2026 compared to the same period in 2025 and a decrease in average basic common shares of 4.1%. The increase in net income in the second quarter of 2026 was mainly attributable to an increase in non-interest income of $9.9 million and a $17.3 million decline in non-interest expense. The decrease in average basic common shares was mainly due to the Company repurchasing approximately 4.9 million shares through the Company’s stock buyback plan since June 30, 2025.
Current wording
Basic and diluted EPS were $2.31 and $2.30, respectively, for the third quarter of 2026, compared to $2.44 and $2.42, respectively, for the third quarter of 2025. The decrease in basic and diluted EPS was due to a 9.3% decrease in net income in the third quarter of 2026 compared to the same period in 2025, partially offset by a decrease in average basic common shares of 4.2%. The decrease in net income in the third quarter of 2026 was mainly attributable to a decrease in net interest income of $8.2 million, a decrease in non-interest income of $5.2 million and an increase in the provision for credit losses of $15.3 million. The decrease in average basic common shares was mainly due to the Company repurchasing approximately 4.8 million shares through the Company’s stock repurchase plan since September 30, 2025.
Previous wording
The following table presents selected financial figures and ratios for the three and six months ended June 30, 2026 and 2025:
Current wording
The following table presents selected financial figures and ratios for the three and nine months ended September 30, 2026 and 2025:
Previous wording
Net interest income is the Company’s principal source of income and a key driver of overall financial performance. Net interest income and net interest margin are affected by the level and mix of interest-earning assets and interest-bearing liabilities, as well as changes in long-term and short-term market interest rates. Since the second quarter of 2025, the Federal Reserve reduced the target federal funds rate by a total of 75 basis points, lowering the target federal funds rate range to 3.50% to 3.75% as of June 30, 2026. Accordingly, interest rate conditions during the second quarter of 2026 were lower compared to the second quarter of 2025, impacting both asset yields and funding costs.
Current wording
Net interest income is the Company’s principal source of income and a key driver of overall financial performance. Net interest income and net interest margin are affected by the level and mix of interest-earning assets and interest-bearing liabilities, as well as changes in long-term and short-term market interest rates. On September 16, 2026, the Federal Reserve increased the target federal funds rate by 25 basis points to a range to 3.75% to 4.00%, which remained in effect as of September 30, 2026. This followed reductions totaling 75 basis points in the second half of 2025. Despite the September 2026 increase in the federal funds target range, interest rate conditions during the third quarter of 2026 were lower compared to the third quarter of 2025, impacting both asset yields and funding costs.
Previous wording
The decline in non-tax equivalent and the Tax Equivalent (“TE”) net interest margin of 24 basis points in the second quarter of 2026 compared to the same quarter of 2025 primarily reflected lower yields on interest‑earning assets, driven by reduced loan accretion income and a lower interest rate environment, partially offset by lower funding costs and balance‑sheet mix changes.
Current wording
The decline in non-tax equivalent and the Tax Equivalent (“TE”) net interest margin of 28 basis points in the third quarter of 2026 compared to the same quarter of 2025 primarily reflected lower yields on interest-earning assets, driven by reduced loan accretion income and a lower interest rate environment, partially offset by lower funding costs and balance-sheet mix changes.
Previous wording
The tables below summarize the analysis of changes in interest income and interest expense for the three and six months ended June 30, 2026, and 2025 and net interest margin on a tax equivalent basis:
Current wording
The tables below summarize the analysis of changes in interest income and interest expense for the three and nine months ended September 30, 2026, and 2025 and net interest margin on a tax equivalent basis:
Previous wording
The interest earned on investment securities increased in the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to a higher average balance in investment securities and a modest increase in the yield on the investment portfolio. The average balance of investment securities for the three and six months ended June 30, 2026 increased by approximately $699.9 million and $797.2 million, respectively, compared to the same periods in 2025. The Company has increased the size of the investment securities portfolio commensurate with the growth in the balance sheet. The improvement in the yield, as well as a shortened duration of the investment portfolio is a result of the reinvestment and repositioning strategies executed in the first quarter of 2025.
Current wording
The interest earned on investment securities increased in the three and nine months ended September 30, 2026, compared to the same periods in 2025, primarily due to a higher average balance in investment securities and a modest increase in the yield on the investment portfolio. The average balance of investment securities for the three and nine months ended September 30, 2026 increased by approximately $641.0 million and $744.6 million, respectively, compared to the same periods in 2025. The Company has increased the size of the investment securities portfolio commensurate with the growth in the balance sheet. The improvement in the yield is a result of the reinvestment and repositioning strategies executed in the first quarter of 2025.
Previous wording
Interest earned on loans held for investment decreased slightly during the three and six months ended June 30, 2026, from the comparable periods in 2025. Some key highlights for the quarter ended June 30, 2026, are outlined below:
Current wording
Interest earned on loans held for investment decreased during the three and nine months ended September 30, 2026, from the comparable periods in 2025. Some key highlights for the quarter ended September 30, 2026, are outlined below:
Previous wording
The quarter-to-date average balance of interest-bearing liabilities increased in the second quarter of 2026 compared to the same period in 2025, while the cost of interest-bearing liabilities decreased, reflecting lower market interest rates across most deposit and borrowing categories. Some key highlights for the quarter ended June 30, 2026, compared to the same period in 2025 include:
Current wording
The quarter-to-date average balance of interest-bearing liabilities increased in the third quarter of 2026 compared to the same period in 2025, while the cost of interest-bearing liabilities decreased, reflecting lower market interest rates across most deposit and borrowing categories. Some key highlights for the quarter ended September 30, 2026, compared to the same period in 2025 include:
Previous wording
Noninterest-bearing deposits are transaction accounts that provide our Bank with “interest-free” sources of funds. Average noninterest-bearing deposits decreased $122.1 million, or 0.9%, to $13.5 billion in the second quarter of 2026 compared to $13.6 billion during the same period in 2025. The decrease in the average balance of noninterest bearing deposits primarily reflects a continued shift in customer funds to interest‑bearing transactional and money market deposit accounts.
Current wording
Noninterest-bearing deposits are transaction accounts that provide our Bank with “interest-free” sources of funds. Average noninterest-bearing deposits decreased $41.2 million, or 0.3%, to $13.5 billion in the third quarter of 2026 compared to the same period in 2025. The decrease in the average balance of noninterest bearing deposits primarily reflects a continued shift in customer funds to interest-bearing transactional and money market deposit accounts.
Previous wording
Noninterest income provides us with additional revenues that are significant sources of income. For the three months ended June 30, 2026, and 2025, noninterest income comprised 14.4%, and 13.1%, respectively, of total net interest income and noninterest income. For the six months ended June 30, 2026, and 2025, noninterest income comprised 14.8%, and 13.3%, respectively, of total net interest income and noninterest income.
Current wording
Noninterest income provides us with additional revenues that are significant sources of income. For the three months ended September 30, 2026, and 2025, noninterest income comprised 13.7%, and 14.2%, respectively, of total net interest income and noninterest income. For the nine months ended September 30, 2026, and 2025, noninterest income comprised 14.4%, and 13.6%, respectively, of total net interest income and noninterest income.
Previous wording
Noninterest income increased during the second quarter of 2026 compared to the same period in 2025. This quarterly change in total noninterest income resulted from the following:
Current wording
Noninterest income decreased during the third quarter of 2026 compared to the same period in 2025. This quarterly change in total noninterest income resulted from the following:
Previous wording
Noninterest income increased during the six months ended June 30, 2026 compared to the same period in 2025. The categories and explanations for the fluctuations year-to-date, except the items discussed below, are similar to the ones noted above in the quarterly comparison.
Current wording
Noninterest income increased during the nine months ended September 30, 2026 compared to the same period in 2025. The categories and explanations for the fluctuations year-to-date, except the items discussed below, are similar to the ones noted above in the quarterly comparison.
Previous wording
Noninterest expense decreased by $17.3 million, or 4.6%, in the second quarter of 2026 compared to the same period in 2025, primarily resulted from the following expenses:
Current wording
Noninterest expense increased by $2.4 million, or 0.7%, in the third quarter of 2026 compared to the same period in 2025, primarily resulted from the following expenses:
Previous wording
Noninterest expense decreased by $66.6 million, or 8.5%, during the six months ended June 30, 2026, compared to the same period in 2025. The categories and explanations for the year-to-date fluctuations are generally consistent with those discussed in the quarterly comparison above, except as noted below.
Current wording
Noninterest expense decreased by $64.2 million, or 5.6%, during the nine months ended September 30, 2026, compared to the same period in 2025. The categories and explanations for the year-to-date fluctuations are generally consistent with those discussed in the quarterly comparison above, except as noted below, which slightly offset the total noninterest expense decrease.
Previous wording
Our effective tax rate was 23.07% for the three months ended June 30, 2026, compared to 23.73% for the three months ended June 30, 2025. The decrease in the effective rate for the quarter, when compared to the same period in the prior year, was driven primarily by higher non-deductible executive compensation, as well as non-deductible merger expenses related to the acquisition of Independent in 2025 compared to 2026. In addition, there was an increase in tax-exempt interest income in the current quarter compared to the same period in 2025. This was partially offset by an increase in pre-tax book income in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
Our effective tax rate was 22.91% for the three months ended September 30, 2026, compared to 23.25% for the three months ended September 30, 2025. The decrease in the effective rate for the current quarter, when compared to the same period in the prior year, was driven primarily by lower non-deductible executive compensation during the current quarter, as well as non-deductible merger expenses recognized in the third quarter of 2025 related to the acquisition of Independent completed on January 1, 2025. In addition, there was an increase in tax-exempt interest income in the current quarter compared to the same period in 2025. This was partially offset by a decrease in the cash surrender value of BOLI policies in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Our effective tax rate for the first six months of the year was 22.79% compared to 24.57% for the first six months of 2025. The decrease in the year-to-date effective tax rate compared to the same period of 2025 was due primarily to a reduction in non-deductible executive compensation, an increase in tax-exempt interest income and a decrease in non-deductible FDIC premiums. In addition to these items, there was a $5.6 million remeasurement of the Company’s deferred tax balances resulting from the acquisition of Independent in the first quarter of 2025.
Current wording
Our effective tax rate for the first nine months of the year was 22.83% compared to 23.99% for the first nine months of 2025. The decrease in the year-to-date effective tax rate compared to the same period of 2025 was due primarily to a reduction in non-deductible executive compensation, an increase in tax-exempt interest income and a decrease in non-deductible FDIC premiums. In addition to these items, there was a $5.6 million remeasurement of the Company’s deferred tax balances resulting from the acquisition of Independent in the first quarter of 2025.
Previous wording
As discussed in Note 21 — Segment Reporting, the Company’s operations are managed and financial performance is evaluated on an organization-wide basis, and the Company’s banking and finance operations are considered by management to constitute one reportable operating segment, the General Banking Unit. There have been no material changes to the Company’s segment structure during the six months ended June 30, 2026.
Current wording
As discussed in Note 21 — Segment Reporting, the Company’s operations are managed and financial performance is evaluated on an organization-wide basis, and the Company’s banking and finance operations are considered by management to constitute one reportable operating segment, the General Banking Unit. There have been no material changes to the Company’s segment structure during the nine months ended September 30, 2026.
Previous wording
Our total assets increased approximately $1.7 billion, or 2.5%, from December 31, 2025, to June 30, 2026, to approximately $68.9 billion. Within total assets, cash and cash equivalents decreased by $822.2 million, or 25.9%, and net loans increased $2.2 billion, or 4.7%, while investment securities increased $205.7 million, or 2.4%, during the period. Within total liabilities, deposits grew $1.2 billion, or 2.2%, and federal funds purchased and securities sold under agreements to repurchase decreased by $48.7 million, or 7.9%. Total corporate and subordinated debentures and other borrowings increased by $300.2 million, or 43.1%. Total shareholder’s equity increased $72.4 million, or 0.8%. The decrease in cash and cash equivalents was due to the funding of investment securities and loan growth in the first half of 2026. The increase in deposits was mainly related to an $871.8 million increase in interest-bearing checking accounts and a $501.2 million increase in time deposits. The increase in loans was driven by organic growth. Our loan to deposit ratio was 90% and 88% at June 30, 2026 and December 31, 2025, respectively, while our percentage of noninterest-bearing deposit accounts to total deposits was 24% at both June 30, 2026, and December 31, 2025.
Current wording
Our total assets increased approximately $3.2 billion, or 4.8%, from December 31, 2025, to September 30, 2026, to approximately $70.4 billion. Within total assets, cash and cash equivalents decreased by $197.9 million, or 6.2%, net loans increased $3.5 billion, or 7.2%, while investment securities decreased $9.4 million, or 0.1%, during the period. Within total liabilities, deposits grew $2.5 billion, or 4.5%, and federal funds purchased and securities sold under agreements to repurchase decreased by $120.0 million, or 19.4%. Total corporate and subordinated debentures and other borrowings increased by $300.3 million, or 43.1%. Total shareholder’s equity decreased $11.8 million, or 0.1%. The decrease in cash and cash equivalents was due to the funding of loan growth in the first nine months of 2026. The increase in deposits was related to a $485.2 million increase in interest-bearing checking accounts, a $989.5 million increase in money market accounts and a $992.8 million increase in time deposits, which included a $1.1 billion increase in brokered time deposits. The increase in loans was driven by organic growth. Our loan to deposit ratio was 90% and 88% at September 30, 2026 and December 31, 2025, respectively, while our percentage of noninterest-bearing deposit accounts to total deposits was 23% and 24% at September 30, 2026, and December 31, 2025, respectively.
Previous wording
We use investment securities, our second largest category of earning assets, to generate interest income, provide liquidity, fund loan demand or deposit liquidation, and to pledge as collateral for public funds deposits, repurchase agreements, derivative exposures and to augment borrowing capacity at the Federal Reserve Bank of Atlanta, and the Federal Home Loan Bank of Atlanta. At June 30, 2026, investment securities totaled $8.9 billion, compared to $8.7 billion at December 31, 2025, an increase of $205.7 million, or 2.4%. The Bank purchased $2.4 billion of investment securities during the six months ended June 30, 2026 mostly from reinvesting funds provided by the paydowns, maturities and calls of investment securities. The increases in investment securities were partially offset by reductions from maturities, calls, sales and paydowns of investment securities totaling $2.1 billion and the net amortization of premiums of $5.6 million during the six months ended June 30, 2026. At June 30, 2026, approximately 74.0% of the investment portfolio was classified as available for sale, approximately 21.9% was classified as held to maturity and approximately 4.1% was classified as other investments.
Current wording
We use investment securities, our second largest category of earning assets, to generate interest income, provide liquidity, fund loan demand or deposit liquidation, and to pledge as collateral for public funds deposits, repurchase agreements, derivative exposures and to augment borrowing capacity at the Federal Reserve Bank of Atlanta, and the Federal Home Loan Bank of Atlanta. At September 30, 2026 and December 31, 2025, investment securities totaled $8.7 billion. The Bank purchased $3.4 billion of investment securities during the nine months ended September 30, 2026 mostly from reinvesting funds provided by the paydowns, maturities and calls of investment securities. The increases in investment securities were partially offset by reductions from maturities, calls, sales and paydowns of investment securities totaling $3.1 billion and the net amortization of premiums of $8.4 million during the nine months ended September 30, 2026. At September 30, 2026, approximately 73.4% of the investment portfolio was classified as available for sale, approximately 21.9% was classified as held to maturity and approximately 4.7% was classified as other investments.
Previous wording
At June 30, 2026, the unrealized net losses of the available for sale securities portfolio was $418.3 million, or 6.0%, below its amortized cost basis, compared to an unrealized net loss of $382.8 million, or 5.7%, at December 31, 2025. At June 30, 2026, the unrealized net loss of the held to maturity securities portfolio was $314.7 million, or 16.1%, below its amortized cost basis, compared to an unrealized net loss of $315.2 million, or 15.4%, at December 31, 2025.
Current wording
At September 30, 2026, the unrealized net losses of the available for sale securities portfolio was $718.5 million, or 10.1%, below its amortized cost basis, compared to an unrealized net loss of $382.8 million, or 5.7%, at December 31, 2025. At September 30, 2026, the unrealized net loss of the held to maturity securities portfolio was $386 million, or 20.3%, below its amortized cost basis, compared to an unrealized net loss of $315.2 million, or 15.4%, at December 31, 2025.
Previous wording
At June 30, 2026, we had 1,129 inves tment securities including both available for sale and held to maturity, in an unrealized loss position, which totaled $747.0 million. At December 31, 2025, we had 1,073 investment securities, including both available for sale and held to maturity, in an unrealized loss position, which totaled $737.2 million. The total number of investment securities with an unrealized loss position increased by 56 securities, while the total dollar amount of the unrealized loss increased by $9.8 million. The increase in the number of securities in a loss position and level of unrealized losses during the quarter was mainly due to recent changes in market interest rates and lower expectations of future Federal Reserve Bank rate reductions.
Current wording
At September 30, 2026, we had 1,273 investment securities including both available for sale and held to maturity, in an unrealized loss position, which totaled $1.1 billion. At December 31, 2025, we had 1,073 investment securities, including both available for sale and held to maturity, in an unrealized loss position, which totaled $737.2 million. The total number of investment securities with an unrealized loss position increased by 200 securities, while the total dollar amount of the unrealized loss increased by $367.7 million. The increase in the number of securities in a loss position and level of unrealized losses during the quarter was mainly due to recent changes in market interest rates and expectations of future Federal Reserve Bank rate increases due to inflationary pressures.
Previous wording
Approximately 85.9% (based on amortized cost) of the investment portfolio (excluding other investment securities) is comprised of U.S. Treasury securities, U.S. Government agency securities, and U.S. Government Agency Mortgage-backed securities. These securities may be pledged to the Federal Home Loan Bank of Atlanta or the Federal Reserve Bank of Atlanta Discount Window. Approximately 13.8% (based on amortized cost) of the investment portfolio (excluding other investment securities) is comprised of municipal securities. A portion of the municipal bond portfolio may be pledged to the Federal Home Loan Bank of Atlanta subject to their credit approval. Approximately 99% of the municipal bond portfolio has ratings in the Single A or higher category.
Current wording
Approximately 85.6% (based on amortized cost) of the investment portfolio (excluding other investment securities) is comprised of U.S. Treasury securities, U.S. Government agency securities, and U.S. Government Agency Mortgage-backed securities. These securities may be pledged to the Federal Home Loan Bank of Atlanta or the Federal Reserve Bank of Atlanta Discount Window. Approximately 14.1% (based on amortized cost) of the investment portfolio (excluding other investment securities) is comprised of municipal securities. A portion of the municipal bond portfolio may be pledged to the Federal Home Loan Bank of Atlanta subject to their credit approval. Approximately 99% of the municipal bond portfolio has ratings in the Single A or higher category.
Previous wording
As of June 30, 2026, the portfolio had an effective duration of 4.63 years. We continue to monitor duration risk and seek to align duration within our risk appetite.
Current wording
As of September 30, 2026, the portfolio had an effective duration of 4.99 years. We continue to monitor duration risk and seek to align duration within our risk appetite.
Previous wording
Other investment securities include primarily our investments in FHLB and FRB stock with 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, we determined that there was no impairment on our other investment securities. As of June 30, 2026, other investment securities represented approximately $367.0 million, or 0.53% of total assets, and primarily consists of FHLB and FRB stock which totals $266.7 million, or 0.39% of total assets. There were no gains or losses on the sales of these securities for three and six months ended June 30, 2026, and 2025, respectively.
Current wording
Other investment securities include primarily our investments in FHLB and FRB stock with 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 September 30, 2026, we determined that there was no impairment on our other investment securities. As of September 30, 2026, other investment securities represented approximately $407.2 million, or 0.58% of total assets, and primarily consists of FHLB and FRB stock which totals $266.7 million, or 0.38% of total assets. There were no gains or losses on the sales of these securities for the three and nine months ended September 30, 2026, and 2025, respectively.
Previous wording
We have a trading portfolio associated with our Correspondent Banking Division and its subsidiary SouthState Securities. This portfolio is carried at fair value and realized and unrealized gains and losses are included in trading securities revenue, a component of Correspondent Banking and Capital Markets Income in our Consolidated Statements of Income. Securities purchased for this portfolio have primarily been municipal bonds, treasuries and mortgage-backed agency securities, which are held for short periods of time and totaled $191.1 million and $110.2 million at June 30, 2026, and December 31, 2025.
Current wording
We have a trading portfolio associated with our Correspondent Banking Division and its subsidiary SouthState Securities Corp. This portfolio is carried at fair value and realized and unrealized gains and losses are included in trading securities revenue, a component of Correspondent Banking and Capital Markets Income in our Consolidated Statements of Income. Securities purchased for this portfolio have primarily been municipal bonds, treasuries and mortgage-backed agency securities, which are held for short periods of time and totaled $141.5 million and $110.2 million at September 30, 2026, and December 31, 2025.
Previous wording
The balance of loans held for sale increased $60.1 million from December 31, 2025, to $405.4 million on June 30, 2026. Loans held for sale at June 30, 2026 and December 31, 2025 consisted of mortgage and SBA loans held for sale.
Current wording
The balance of loans held for sale decreased $48.5 million from December 31, 2025, to $296.8 million on September 30, 2026. Loans held for sale at September 30, 2026 and December 31, 2025 consisted of mortgage and SBA loans held for sale.
Previous wording
The Company purchases the guaranteed portions of SBA loans from third-party originators with the intent to aggregate the guaranteed portion of the SBA loans into pools with similar characteristics to create a security representing an interest in those pools through the SBA’s fiscal transfer agent. SBA loans held for sale totaled $336.7 millionat June 30, 2026 compared to $283.9 million at December 31, 2025. See Note 18 – SBA Loans Held for Sale for more information.
Current wording
The Company purchases the guaranteed portions of SBA loans from third-party originators with the intent to aggregate the guaranteed portion of the SBA loans into pools with similar characteristics to create a security representing an interest in those pools through the SBA’s fiscal transfer agent. SBA loans held for sale totaled $247.5 million at September 30, 2026 compared to $283.9 million at December 31, 2025. See Note 18 — Small Business Administration (“SBA”) Loans Held for Sale for more information.
Previous wording
Mortgage loans held for sale totaled $68.7 million at June 30, 2026, an increase of $7.3 million compared to $61.4 million at December 31, 2025. Total mortgage production was $1.0 billion in the second quarter of 2026 compared to $661 million in the first quarter of 2026. The increase in production from the prior quarter was due to both seasonal timing as there is normally more activity in home sales in the spring and summer along with Company production growth initiatives in 2026 and expanding its revenue producers. The percentage of mortgage production sold into the secondary market increased in the second quarter of 2026 to 33% from 28% in the first quarter of 2026. The allocation of mortgage production between portfolio and secondary market depends on the Company’s liquidity, market spreads and rate changes during each period and will fluctuate over time.
Current wording
Mortgage loans held for sale totaled $49.3 million at September 30, 2026, a decrease of $12.1 million compared to $61.4 million at December 31, 2025. Total mortgage production was $818.8 million in the third quarter of 2026 compared to $1.0 billion in the second quarter of 2026. The decrease in production from the prior quarter was mainly due to the increase in mortgage rates in the third quarter of 2026 as the 30 year mortgage fixed rate increased approximately 75 to 85 basis points during the quarter. The percentage of mortgage production sold into the secondary market decreased in the third quarter of 2026 to 28% from 33% in the second quarter of 2026. The allocation of mortgage production between portfolio and secondary market depends on the Company’s liquidity, market spreads and rate changes during each period and will fluctuate over time.
Previous wording
Total loans, net of deferred loan costs and fees (excluding loans held for sale), increased during the first six months of 2026 by $2.2 billion, or 9.3% annualized, to $50.8 billion at June 30, 2026. Our non-acquired loan portfolio increased by $3.9 billion, or 22.7% annualized, mainly driven by organic growth and renewals of acquired loans that are moved to our non-acquired loan portfolio. Commercial non-owner-occupied loans, commercial and industrial loans, consumer owner-occupied loans, construction and land development loans and commercial owner-occupied real estate loans led the way with $1.3 million, $676.9 million, $620.4 million, $605.2 million and $500.7 million in year-to-date loan growth, respectively, or 27.0%, 18.8%, 17.2%, 65.6% and 19.8% annualized growth, respectively. The acquired loan portfolio decreased by $1.6 billion, or 23.1% annualized. This decline in acquired loans was due to paydowns and payoffs in both the PCD and Non-PCD loan categories along with renewals of acquired loans that were moved to our non-acquired loan portfolio. The main categories that decreased were commercial non-owner-occupied loans, commercial and industrial loans, commercial owner-occupied real estate loans, construction and land development loans and consumer owner-occupied loans which decreased by $501.9 million, $479.8 million, $225.3 million, $170.6 million and $113.8 million, respectively, during the first six months of 2026. Acquired loans as a percentage of total loans decreased to 24.7% and non-acquired loans as a percentage of the overall portfolio increased to 75.3% at June 30, 2026. This compares to acquired loans as a percentage of total loans of 29.2% and non-acquired loans as a percentage of total loans of 70.8% at December 31, 2025.
Current wording
Total loans, net of deferred loan costs and fees (excluding loans held for sale), increased during the first nine months of 2026 by $3.5 billion, or 9.5% annualized, to $52.1 billion at September 30, 2026. Our non-acquired loan portfolio increased by $5.9 billion, or 23.0% annualized, mainly driven by organic growth and renewals of acquired loans that are moved to our non-acquired loan portfolio. Commercial non-owner-occupied loans, commercial and industrial loans, consumer owner-occupied loans, commercial owner-occupied real estate loans and construction and land development loans led the way with $2.2 billion, $1.2 billion, $899.5 million, $729.7 million and $609.7 million in year-to-date loan growth, respectively, or 29.2%, 22.9%, 16.6%, 19.1% and 43.8% annualized growth, respectively. The acquired loan portfolio decreased by $2.5 billion, or 23.2% annualized. This decline in acquired loans was due to paydowns and payoffs in both the PCD and Non-PCD loan categories along with renewals of acquired loans that were moved to our non-acquired loan portfolio. The main categories that decreased were commercial non-owner-occupied loans, commercial and industrial loans, commercial owner-occupied real estate loans, construction and land development loans and consumer owner-occupied loans which decreased by $919.7 million, $617.5 million, $354.8 million, $240.9 million and $147.8 million, respectively, during the first nine months of 2026. Acquired loans as a percentage of total loans decreased to 22.6% and non-acquired loans as a percentage of the overall portfolio increased to 77.4% at September 30, 2026. This compares to acquired loans as a percentage of total loans of 29.2% and non-acquired loans as a percentage of total loans of 70.8% at December 31, 2025.
Previous wording
Total commercial non-owner-occupied loans of $17.5 billion, approximately 34.4% of the total loans held for investment, was the largest category of the loan portfolio as of June 30, 2026. As of June 30, 2026, approximately 93% of the commercial non-owner-occupied portfolio was located within the Company’s footprint. Of the $17.5 billion, approximately $1.8 billion, or 4% of the total loans, represented our office segment. Approximately 95% of the office segment was located in the Company’s footprint.
Current wording
Total commercial non-owner-occupied loans of $17.9 billion, approximately 34.4% of the total loans held for investment, was the largest category of the loan portfolio as of September 30, 2026. As of September 30, 2026, approximately 93% of the commercial non-owner-occupied portfolio was located within the Company’s footprint. Of the $17.9 billion, approximately $1.9 billion, or 4% of the total loans, represented our office segment. Approximately 96% of the office segment was located in the Company’s footprint.
Previous wording
Management continues to utilize a probability-weighted blend of baseline, upside, and adverse economic scenarios in estimating expected credit losses. For the quarter ended June 30, 2026, management maintained scenario weightings of 40% baseline, 20% upside, and 40% adverse. Although the June economic forecast reflected increased concern regarding inflation, interest rates, energy prices, and geopolitical developments, forecast assumptions and their impact on modeled losses remained generally consistent with the prior quarter. Management believes a moderate weighting toward adverse conditions remains appropriate given continued economic uncertainty, notwithstanding generally stable credit conditions and macroeconomic forecasts. The Company recorded a total provision for credit losses of $15.9 million for the second quarter of 2026.
Current wording
Management continues to utilize a probability-weighted blend of baseline, upside, and adverse economic scenarios in estimating expected credit losses. For the quarter ended September 30, 2026, management maintained scenario weightings of 40% baseline, 20% upside, and 40% adverse. The September economic forecast reflected more caution regarding inflation, interest rates, energy prices, the labor market, and geopolitical developments. While the macroeconomic variables incorporated within the Company's credit models remained generally stable to favorable and credit conditions remain generally stable, management believes a continued weighting toward adverse economic conditions remains appropriate as uncertainty has not normalized sufficiently to support a reduction in the downside scenario weight. The Company recorded a total provision for credit losses of $20.3 million for the third quarter of 2026.
Previous wording
As of June 30, 2026, the balance of the ACL was $586.7 million or 1.15% of total loans. The ACL increased $0.8 million from the balance of $585.9 million recorded at March 31, 2026 and increased $1.5 million from the balance of $585.2 million recorded at December 31, 2025. The increase during the second quarter of 2026 included $8.6 million in provision for credit losses and $7.8 million in net charge-offs. The increase during the six months ended June 30, 2026 included $19.8 million in provision for credit losses and $18.4 million in net charge-offs.
Current wording
As of September 30, 2026, the balance of the ACL was $588.9 million or 1.13% of total loans. The ACL decreased $2.3 million from the balance of $586.7 million recorded at June 30, 2026 and increased $3.7 million from the balance of $585.2 million recorded at December 31, 2025. The decrease during the third quarter of 2026 included $14.6 million in provision for credit losses and $12.3 million in net charge-offs. The increase during the nine months ended September 30, 2026 included $34.4 million in provision for credit losses and $30.7 million in net charge-offs.
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