SouthState Bank Q2: Net Income Up, NIM Compresses

SouthState Bank Corp. reported second-quarter net income of $124.3 million, or $1.65 a share, up from $119.8 million, or $1.55 a share, a year earlier. The regional lender's net interest margin narrowed to 3.60% from 3.67% in the prior quarter, reflecting higher deposit costs that outpaced loan yields. Total loans grew 2.1% sequentially to $33.6 billion, led by commercial and industrial lending. Noninterest income rose 4.5% to $71.2 million, helped by higher mortgage banking fees and service charges. The bank added $8.2 million to its provision for credit losses, up from $6.5 million in the first quarter, citing a more cautious outlook on commercial real estate. The efficiency ratio improved to 57.2% from 58.8% in the prior quarter. SouthState's tangible book value per share rose to $53.14 from $50.96 at the end of March, aided by stable credit costs and retained earnings. The bank's management cited steady loan demand across its Southeast footprint but flagged margin pressure from deposit competition through the rest of the year.