Regional banking company SouthState (NYSE: SSB) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 56.2% year on year to $664.8 million. Its non-GAAP profit of $2.30 per share was 13.6% above analysts’ consensus estimates.

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"Growth accelerated in the second quarter," said John C. Corbett, SouthState's Chief Executive Officer.

Company Overview

With roots dating back to the Great Depression era of 1933, SouthState (NYSE: SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income.

Over the last five years, SouthState grew its revenue at an incredible 24.8% compounded annual growth rate. Its growth beat the average bank company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. SouthState’s annualized revenue growth of 10.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, SouthState reported magnificent year-on-year revenue growth of 56.2%, and its $664.8 million of revenue beat Wall Street’s estimates by 3.8%.

Net interest income made up 80.1% of the company’s total revenue during the last five years, meaning SouthState barely relies on non-interest income to drive its overall growth.

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.

SouthState’s TBVPS grew at a solid 6.3% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 10% annually over the last two years from $42.98 to $51.96 per share.

Over the next 12 months, Consensus estimates call for SouthState’s TBVPS to grow by 12.4% to $58.42, top-notch growth rate.

Key Takeaways from SouthState’s Q2 Results

We enjoyed seeing SouthState beat analysts’ revenue expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $98.05 immediately after reporting.

SouthState put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.