On July 24, 2024, SouthState Corp (SSB, Financial) released its 8-K filing detailing its unaudited financial results for the second quarter of 2024. SouthState Corp is a United States-based bank holding company that provides a wide range of banking services and products through its wholly-owned subsidiary, South State Bank. The bank operates in Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia, offering services such as retail and commercial banking, mortgage lending, trust and investment services, and consumer finance loans.
Performance Overview
SouthState Corp (SSB, Financial) reported earnings per share (EPS) of $1.74 for Q2 2024, surpassing the analyst estimate of $1.52. The company also reported revenue of $531.12 million, exceeding the estimated $518.08 million. This performance marks a significant improvement from the previous quarter, with EPS increasing by 15% over Q1 2024.
Key Financial Achievements
SouthState Corp (SSB, Financial) achieved notable financial milestones in Q2 2024:
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $132.37 million | $115.06 million | $123.45 million |
| Net Interest Income | $350.26 million | $343.94 million | $361.74 million |
| Noninterest Income | $75.23 million | $71.56 million | $77.21 million |
| Noninterest Expense | $248.75 million | $249.29 million | $242.63 million |
Income Statement Highlights
SouthState Corp (SSB, Financial) reported total interest income of $531.12 million for Q2 2024, up from $517.26 million in Q1 2024. Interest expense also increased to $180.87 million from $173.32 million in the previous quarter. The net interest income after provision for credit losses was $346.37 million, compared to $331.25 million in Q1 2024.
Balance Sheet and Cash Flow
As of June 30, 2024, SouthState Corp (SSB, Financial) reported total assets of $45.49 billion, up from $45.14 billion at the end of Q1 2024. Total deposits stood at $37.10 billion, slightly down from $37.18 billion in the previous quarter. The company's shareholders' equity increased to $5.65 billion from $5.55 billion in Q1 2024.
Commentary and Analysis
“Both revenue and net interest margin inflected during the second quarter as loans repriced faster than deposits. Loans grew at a 7% annualized pace and earnings per share increased 15% over the first quarter,” commented John C. Corbett, SouthState’s Chief Executive Officer.
SouthState Corp (SSB, Financial) continues to demonstrate strong financial performance, driven by robust loan growth and effective interest rate management. The company's ability to reprice loans faster than deposits has positively impacted its net interest margin, contributing to higher earnings.
Challenges and Future Outlook
Despite the positive performance, SouthState Corp (SSB, Financial) faces challenges such as rising interest expenses and the integration of its recent acquisition of Texas-based Independent Bank Group. Effective management of these challenges will be crucial for sustaining growth and profitability in the coming quarters.
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Explore the complete 8-K earnings release (here) from SouthState Corp for further details.
