SouthState Bank Corporation Delivers Strong Quarter: Loans and Deposits Rise 9%, Net Interest Margin Remains Stable
The SouthState Bank Corporation has reported a strong third quarter for 2026, with loans and deposits growing by 9% annualized. The company's Chief Financial Officer, Will Matthews, highlighted the robust performance during the earnings conference call on October 22nd.
SouthState's loan growth was driven by commercial and industrial (C&I) loans, which increased by 12%. This growth was led by strong market conditions in the Southeast and Texas, two of the most vibrant markets in the country. The company's efforts to expand its relationship banking team also contributed to this success, with a 10% increase over the past year. These bankers have already originated approximately $1 billion in new loans and possess a healthy pipeline.
Deposits also grew by 9%, without sacrificing net interest margin (NIM) stability. The NIM held flat at 3.78%, reflecting the company's deliberate strategy to shift towards more floating-rate loans, which currently comprise 39% of its portfolio. This move is expected to provide stability in NIM assuming continued rate hikes by the Federal Reserve.
The credit quality of SouthState remains solid, with net charge-offs at a mere 9 basis points. However, capital markets activity experienced a pullback due to higher treasury rates during the quarter. Steve Young will provide an update on this business segment moving forward.
The company's Chief Financial Officer, Will Matthews, emphasized that SouthState shares represent compelling value and the company remains opportunistic with share buybacks, having repurchased roughly 5% of its outstanding shares over the past year.
SouthState's financial performance is reflected in key metrics such as net interest income, which rose by $16 million to $592 million, and non-interest income, which decreased by $3 million to $94 million. Net interest expense per share, excluding accretion income and CDI amortization expense, increased by 10.5% year-over-year.
SouthState's stable net interest margin, healthy loan growth, and solid credit quality make it an attractive value proposition in the banking industry. The company's focus on fundamentals, relationship building, and disciplined credit practices have contributed to its success and will likely continue to drive growth in the future.
