Regional banking company SouthState (NYSE: SSB) missed Wall Street’s revenue expectations in Q3 2026, with sales falling 1.9% year on year to $685.4 million. Its non-GAAP profit of $2.30 per share was 4.2% below analysts’ consensus estimates.

Is now the time to buy SSB? Find out in our full research report (it’s free for active Edge members).

StockStory’s take

SouthState’s third quarter was marked by broad-based loan and deposit growth, with management highlighting a 9% annualized increase in both categories. The company maintained a stable net interest margin despite competitive pressures and higher deposit costs, benefitting from its ongoing shift to floating rate loans and its growing presence in fast-growing markets like Texas and the Southeast. CEO John Corbett noted, “We have grown our commercial relationship bankers by 10% over the last year,” which has already contributed to a healthy loan pipeline. The positive market reaction came as management emphasized strong credit quality and disciplined cost management.

Looking ahead, SouthState’s guidance is shaped by its continued focus on recruiting new revenue producers, managing expense growth, and maintaining discipline in credit quality. Management expects net interest margin stability to persist, supported by the repricing of fixed rate assets and further growth in floating rate loans. CFO William Matthews stated, “We expect NIM to be between 3.75% and 3.85%... and this range is 5 basis points higher than last quarter,” suggesting confidence in margin sustainability even as the rate environment remains uncertain. The company remains cautious on capital deployment, prioritizing organic growth, dividends, and selective buybacks over M&A.

Key insights from management’s remarks

Management attributed Q3 performance to successful hiring of commercial bankers, steady net interest margin, and disciplined deposit cost management, while noninterest income was pressured by weaker capital markets activity.

• Loan growth from new hires: SouthState’s expansion of its commercial relationship banker team drove a 9% annualized loan increase, with new hires responsible for originating roughly $1 billion in new loans and a notable uptick in commercial and industrial (C&I) production.
• Deposit growth and cost discipline: Deposits also grew at a 9% annualized rate, with management emphasizing stable cost of funds due to a focus on treasury management accounts and the expansion into newer markets like Texas and Colorado. Slight tweaks to banker incentives further prioritized deposit growth.
• Stable net interest margin: The net interest margin (NIM) held steady at 3.78%, supported by an intentional shift toward a higher proportion of floating rate loans—now 39% of the portfolio—helping insulate earnings against rate volatility.
• Noninterest income decline: Noninterest income declined due to reduced capital markets activity as treasury rates rose, especially impacting correspondent and swap business lines, which management expects to remain muted until rates stabilize.
• Share repurchases elevated: The company continued to repurchase shares opportunistically, repurchasing roughly 5% of shares outstanding over the past year, resulting in payout ratios above long-term targets, though management expects to moderate buybacks in coming quarters.

Drivers of future performance

SouthState’s outlook is anchored by ongoing loan and deposit growth, stable margins, and careful expense control, with external rate movements and hiring success shaping results.

• Recruiting and loan pipeline: Management expects continued loan growth in the mid- to high-single digit range, driven by further hiring of relationship bankers and strong pipelines in C&I lending, though commercial real estate demand may soften due to higher rates.
• Margin stability from asset repricing: The repricing of fixed rate assets and increased floating rate loan originations are projected to help maintain or slightly expand net interest margin, offsetting potential headwinds from rising deposit costs and competitive pressures.
• Expense growth and capital deployment: The company anticipates noninterest expense growth of 3.5% to 4% next year, reflecting both inflation and the cost of new hires. While capital return remains a focus, management plans to keep payout ratios at the lower end of historical guidance, favoring organic growth and dividends over aggressive buybacks or M&A.

Catalysts in upcoming quarters

Our analysts will be closely watching (1) the pace of loan and deposit growth in key Southeast and Texas markets, (2) the stability of net interest margin as fixed and floating rate assets reprice, and (3) any improvement in noninterest income as new FX and commodities products launch in capital markets. The trajectory of hiring and retention of commercial bankers will also be a critical driver of results.

SouthState currently trades at $104.90, up from $102.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

Now could be the perfect time to invest in these stocks

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.