SouthState Corporation Reports 2.6% Asset Growth, 15.3% Net Income Increase in Q3 2024

As of September 30, 2024, SouthState Corporation reported total assets of $46.1 billion, reflecting a 2.6% increase from $44.9 billion at the end of 2023. Total cash and cash equivalents rose to $1.2 billion, up 21.4% from $998.9 million, while total deposits increased by $589.3 million, or 1.6%, to $37.6 billion. The company’s total loans, net of deferred costs, reached $33.1 billion, marking a 4.8% annualized growth since December 31, 2023.

In terms of profitability, SouthState's net income for the third quarter of 2024 was $143.2 million, a 15.3% increase from $124.1 million in the same period of 2023. For the nine months ended September 30, 2024, net income was $390.6 million, slightly up from $387.5 million year-over-year. Basic earnings per share for Q3 2024 were $1.88, compared to $1.63 in Q3 2023, while diluted earnings per share increased to $1.86 from $1.62.

Interest income for the third quarter rose by $43.7 million, driven primarily by a $50.3 million increase in interest income from loans, despite a decrease in income from investment securities and federal funds sold. Interest expense also increased by $47.6 million, largely due to higher costs associated with deposits in a rising interest rate environment. The provision for credit losses saw a significant decrease, with a release of $7.0 million in Q3 2024 compared to a provision of $32.7 million in Q3 2023.

Strategically, SouthState announced a merger agreement with Independent Bank Group, Inc. on May 20, 2024, with the transaction expected to close in the first quarter of 2025, pending regulatory approvals. The merger aims to enhance revenues and market position while achieving operational efficiencies. As of September 30, 2024, Independent reported total assets of $18.6 billion, loans of $14.3 billion, and deposits of $16.0 billion.

The company also experienced a notable increase in noninterest income, which rose by $2.1 million in Q3 2024, driven by growth in trust and investment services income. However, noninterest expenses increased by $8.6 million, primarily due to higher salaries and employee benefits, as well as merger-related costs.

Overall, SouthState's financial performance reflects a solid growth trajectory, supported by strategic initiatives and a favorable lending environment, despite challenges posed by rising interest rates and market conditions.