SouthState: 3 Key Takeaways for Long-Term Investors
Net charge-offs stayed below 10 basis points for nine of the last ten quarters, signaling durable credit discipline through market cycles.
SouthState reported a 9% annualized growth in loans and deposits during the third quarter of 2026, maintaining its net interest margin at 3.8%. The bank's CEO, John C. Corbett, explained that by shifting originations into floating-rate loans, they can keep margins stable during interest rate fluctuations. Additionally, expanding the sales force across Southeastern markets has enhanced the bank's ability to form new commercial relationships, resulting in a 39% increase of floating rate loans in their portfolio.
Maintaining credit discipline and growing the commercial relationship bankers by 10% in the past year has helped preserve capital and secure steady earnings, with only 9 basis points of net charge-offs in the last ten quarters. Looking ahead, SouthState plans to invest in its commercial sales team, which is proving to be an enjoyable and rewarding endeavor, as it aligns with the bank's focus on expanding in high-growth markets and maintaining stable net interest margins.
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