The following is a summary of the SouthState Corporation (SSB) Q1 2024 Earnings Call Transcript:

Financial Performance:

• SouthState Corporation reported modest growth in loans and deposits for Q1 2024.

• The corporation's net interest margin ended lower, but is expected to stabilize.

• Their loan portfolio quality improved, with declines in past dues, non-accruals and charge-offs.

• CET1 capital ratios were on the higher end of the peer group and improved quarterly year-over-year.

• Total revenue met expectations with net interest income at 3.41% and non-interest income at 64 basis points.

• Deposit costs grew by 14 basis points, a slower growth than the previous quarter.

• Predicted rate cuts in 2024 have decreased from four to two.

Business Progress:

• Commercial loan pipelines experienced a drop but have returned to pre-turmoil levels.

• Noteworthy growth observed in the C&I portfolio while commercial real estate activity slowed.

• Net migration benefited the South region disproportionately, increasing commercial real estate rental rates.

• Fee income raised due to improvements in mortgage and contributions from the wealth division.

• The expansion of the correspondent division included a team specializing in SBA loans.

• Possessing high levels of capital and reserves, the company is prepared to navigate anticipated economic fluctuations.

• The company plans to maintain liability-sensitive practices and achieve a balance in loan yield and deposit costs to stabilize the net interest margin.

• The projected loan growth for the full year is around mid-single digits percent and deposit growth of 2%-3%.

• SouthState Corporation will expand their SBA team in Houston with significant impact expected in 2025.

More details: SouthState IR

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