Q1 2026 SouthState Bank Corp Earnings Call Transcript
Key Points
- SouthState Bank Corp (SSB) reported a strong return on assets of 1.37% and a return on tangible common equity of 17.6% for the quarter.
- The company achieved significant loan growth, with pipelines increasing by 50% since last summer, resulting in a solid annualized loan growth of 7.5% in the first quarter.
- SouthState Bank Corp (SSB) successfully expanded its commercial banking team by 7% in the last six months, with plans to continue growth in the Southeast markets.
- The company repurchased nearly 4% of its shares outstanding since the beginning of the third quarter, viewing it as an attractive use of excess capital.
- SouthState Bank Corp (SSB) is actively embracing artificial intelligence, deploying AI tools to improve speed, scalability, and efficiency across the organization.
- Net interest margin of 3.79% was slightly below the guidance range of 3.80% to 3.90%, primarily due to higher-than-expected deposit costs.
- Deposit costs increased, with new money market rates rising from 2.40% to 3% during the quarter, indicating a competitive deposit environment.
- The company anticipates a potential slowdown in hiring in Texas and Colorado to ensure proper assimilation of new hires into the credit culture.
- SouthState Bank Corp (SSB) experienced a decrease in net interest income, down $19 million from the previous quarter, partly due to a day count impact.
- The payout ratio was higher than expected, reaching 93% in the first quarter, which may require retaining more capital to support future growth.
Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the SouthState Bank Corporation first quarter 2026 earnings conference call. Today's conference is being recorded. (Operator Instructions)
At this time, I would like to turn the conference over to William Matthews, Chief Financial Officer. Please go ahead.
Good morning. Welcome to SouthState's first quarter 2026 earnings call. This is Will Matthews, and I'm here with John Corbett, Steve Young and Jeremy Lucas. We'll follow our pattern of brief remarks followed by Q&A. I'll refer you to the earnings release and investor presentation under the Investor Relations tab of our website.
Before we begin our remarks, I want to remind you that comments we make may include forward-looking statements within the meaning of the federal securities laws and regulations. Any such forward-looking statements we may make are subject to the safe harbor rules.
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