SouthState Deposit Growth Rebounds After a Slow Quarter

The Tip Desk · October 26, 2026 · 3 min read

Deposits rose 9% annualized in the third quarter after 3% annualized growth in the second quarter, while net interest income reached $592 million.

SouthState Bank Corporation (SSB), a regional bank with a large acquired loan book, posted $1.3 billion of deposit growth in the third quarter, or 9% annualized, after 3% annualized growth in the second quarter. Loans added $1.2 billion, or 9% annualized, after an $1.4 billion, or 11% annualized, sequential increase. Year-over-year loan growth was 9% and deposit growth 7%.

Chief executive John C. Corbett said loans and deposits each grew at a 9% annualized rate, with growth broad-based across geographies and business lines and boosted by bankers added over the past year. The ending loan-to-deposit ratio was 90%.

Net interest income rose $16 million, or 3%, to $592 million, following a $14 million, or 3%, sequential increase in the second quarter. The non-tax-equivalent net interest margin eased to 3.77% from 3.78%, while the tax-equivalent margin held at 3.78%. Total deposit cost rose to 1.80% from 1.76%.

Average loans of $51.5 billion earned a 5.92% yield. Average interest-earning assets were $62.2 billion. Loan accretion income on acquired loans fell $6 million to $27 million from $33.1 million in the second quarter. Remaining discount on acquired loans to be accreted was $159.3 million at September 30.

Noninterest income declined to $94 million from $97 million. Correspondent banking and capital markets income fell to $14.6 million from $20.8 million as capital markets activity softened, Corbett said. Fees on deposit accounts were $42.8 million. Trust and investment services income was $15.8 million. Mortgage banking income was $5.6 million.

Noninterest expense increased $17 million to $375 million, reversing a $2 million sequential decline in the second quarter. Salaries and employee benefits were $217.2 million. The company attributed the expense increase primarily to July 1 merit increases, execution of a revenue-producer hiring initiative, higher incentive accruals, and a reduction in deferred loan costs. The efficiency ratio widened to 52% from 50%.

Net income was $224 million, or $2.30 a share, versus $230 million, or $2.35 a share, in the second quarter. Return on average common equity was 9.7%. Return on average assets was 1.29%.

Net charge-offs were $12 million, or 0.09% of average loans, versus $8 million, or 0.06%, in the second quarter. The provision for credit losses was $20 million. The allowance for credit losses plus reserve for unfunded commitments was 1.29% of loans. Total nonperforming assets were $310.8 million, or 0.44% of assets.

The company repurchased 250,000 shares at a weighted average price of $104.45. The board declared a quarterly cash dividend of $0.66 a share, matching the rate raised after the second quarter. Tangible book value per share was $58.19. The tangible equity-to-tangible assets ratio was 8.4%. Tier 1 common equity was 11.1%. Total risk-based capital was 13.5%.