SouthState Corporation announced its first-quarter 2025 financial results, reporting diluted earnings per common share of $0.87 and adjusted diluted earnings per common share of $2.15. This adjusted EPS significantly exceeded the average analyst estimate of $1.43 per share. Net income for the quarter was $89.080 million, while adjusted net income was $219.282 million.
The first quarter marked a strategic reset for SouthState, with the closing of the Independent Financial (IBTX) acquisition in January, followed by a sale-leaseback transaction and securities restructuring in March. The sale-leaseback generated a net gain of $229.279 million, while the securities restructuring resulted in a net loss of $228.811 million.
The securities restructuring and better-than-expected deposit pricing pushed the net interest margin (tax equivalent) to 3.85%. Total loan yield was 6.25%, and total deposit cost was 1.89%. Loans decreased by $263 million (2%) and deposits increased by $68 million (1%), excluding the effects of the acquisition date balances from Independent.
The company recorded a provision for credit losses of $100.562 million, including $92.1 million for initial credit losses related to acquired non-PCD loans and unfunded commitments from Independent. SouthState's capital position remains strong, with a Tangible Common Equity ratio of 8.2% and a Common Equity Tier 1 ratio of 11.0%.
CEO John C. Corbett stated that SouthState is now positioned with industry-leading profitability and strong liquidity, capital, and asset quality for future uncertainties. The Board of Directors declared a quarterly cash dividend of $0.54 per share, payable on May 16, 2025.
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