SouthState: 3 Key Takeaways for Long-Term Investors
Key Points
Floating-rate loans increased to 39% of SouthState's loan portfolio.
Commercial relationship bankers expanded by 10% over the past year.
SouthState repurchased 5% of its outstanding shares over the last year.
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On its third-quarter 2026 earnings call, held on Oct. 22, 2026, SouthState (NYSE:SSB) reported 9% annualized loan and deposit growth. The bank maintained its net interest margin, which measures the difference between interest earned on assets and paid on deposits, at 3.8%.
Three things management said stand out.
1. Higher Floating-Rate Loan Share Protects Asset Yields
Managing interest rate moves requires flexible balance sheet positioning. Shifting originations into floating-rate loans, where rates adjust periodically with market benchmarks, keeps margins steady during rate changes.
When we announced the independent financial deal in 2024, the percentage of floating rate loans in the combined portfolio was only 28%. Today, we have moved the floating rate loan percentage up to 39% of the portfolio.
-- John C. Corbett, Chief Executive Officer
2. Commercial Banker Hiring Drive Delivers New Loans
Expanding the sales force across vibrant Southeastern markets gives the bank a direct channel to new commercial relationships. Adding commercial relationship managers generated immediate origination volume and deepened market coverage.
As planned, we have grown our commercial relationship bankers by 10% over the last year. These bankers have already originated about $1 billion in new loans and have a healthy pipeline.
-- John C. Corbett, Chief Executive Officer
3. Low Credit Losses Reflect Consistent Underwriting
Maintaining credit discipline across cycles protects capital and secures steady earnings. Low net charge-offs, which represent uncollectible loans written off as losses, highlight ongoing balance sheet strength.
The third quarter's 9 basis points of net charge offs makes 9 out of the last 10 quarters at a level below 10 basis points.
-- William E. Matthews, Chief Financial Officer
Looking Ahead
SouthState is shifting capital toward expanding its commercial sales team while loan repricing provides structural tailwinds.
For several years, we have been focused on investing in technology and infrastructure, but now we are investing in people and expanding the sales team and that is a lot more fun and rewarding.
-- John C. Corbett, Chief Executive Officer
Expanding sales coverage in high-growth markets supports long-term profitability.
As you have seen in our balance sheet growth, it is working and our net interest margin is stable, and it is headed in the right direction with the back book repricing or floating rate assets, which gives us confidence headed into 2027.
-- John C. Corbett, Chief Executive Officer
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