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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