Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-12669
SOUTHSTATE BANK CORPORATION
(Exact name of registrant as specified in its charter)
Florida
39-3424417
(State or other jurisdiction of incorporation)
(I.R.S. Employer Identification No.)
1101 First Street South, Suite 202
Winter Haven, Florida
33880
(Address of principal executive offices)
(Zip Code)
(863) 293-4710
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading Symbol
Name of each exchange on which registered:
Common Stock, $2.50 par value
SSB
The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☒
Accelerated Filer ☐
Non-Accelerated Filer ☐
Smaller Reporting Company ☐
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of issuer’s classes of common stock, as of the latest practicable date:
Class
Outstanding as of July 30, 2026
96,974,534
SouthState Bank Corporation and Subsidiaries
June 30, 2026 Form 10-Q
INDEX
Page
PART I — FINANCIAL INFORMATION
Item 1.
Financial Statements
Consolidated Balance Sheets at June 30, 2026 and December 31, 2025
3
Consolidated Statements of Income for the Three and Six Months Ended June 30, 2026 and 2025
4
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025
5
Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended June 30, 2026 and 2025
6
Consolidated Statements of Changes in Shareholders’ Equity for the Six Months Ended June 30, 2026 and 2025
7
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025
8
Notes to consolidated Financial Statements
10
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
41
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
66
Item 4.
Controls and Procedures
PART II — OTHER INFORMATION
Legal Proceedings
Item 1A.
Risk Factors
67
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
68
Item 5.
Other Information
Item 6.
Exhibits
2
Item 1. FINANCIAL STATEMENTS
Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except par value)
June 30,
December 31,
2026
2025
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
649,079
583,375
Federal funds sold and interest-earning deposits with banks
1,374,970
2,286,928
Deposits in other financial institutions (restricted cash)
326,263
302,180
Total cash and cash equivalents
2,350,312
3,172,483
Trading securities, at fair value
191,094
110,183
Investment securities:
Securities held to maturity (fair value of $1,641,042 and $1,732,850)
1,955,754
2,048,030
Securities available for sale, at fair value
6,598,177
6,313,756
Other investments
366,986
353,428
Total investment securities
8,920,917
8,715,214
Loans held for sale
405,441
345,343
Loans:
Acquired - non-purchased credit deteriorated loans
9,921,791
11,232,414
Acquired - purchased credit deteriorated loans
2,658,792
2,977,499
Non-acquired loans
38,266,289
34,388,614
Less allowance for credit losses
(586,664)
(585,197)
Loans, net
50,260,208
48,013,330
Goodwill
3,094,059
Premises and equipment, net
992,594
994,176
Bank owned life insurance (“BOLI”)
1,311,197
1,293,574
Deferred tax assets
93,840
112,578
Derivatives assets
148,889
222,886
Core deposit and other intangibles
343,424
386,326
Mortgage servicing rights
91,442
84,032
Other assets
706,611
653,228
Total assets
68,910,028
67,197,412
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing
13,451,094
13,375,697
Interest-bearing
42,898,716
41,770,100
Total deposits
56,349,810
55,145,797
Federal funds purchased
286,301
306,841
Securities sold under agreements to repurchase
283,185
311,374
Corporate and subordinated debentures
696,749
696,536
Other borrowings
300,000
—
Reserve for unfunded commitments
76,525
69,619
Derivative liabilities
606,665
554,748
Other liabilities
1,179,325
1,053,389
Total liabilities
59,778,560
58,138,304
Shareholders’ equity:
Common stock - $2.50 par value; authorized 160,000,000 shares;
96,971,142 and 99,138,204 shares issued and outstanding, respectively
242,428
247,845
Surplus
6,247,484
6,480,471
Retained earnings
2,951,691
2,614,173
Accumulated other comprehensive loss
(310,135)
(283,381)
Total shareholders’ equity
9,131,468
9,059,108
Total liabilities and shareholders’ equity
The Accompanying Notes are an Integral Part of the Financial Statements.
Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Six Months Ended
Interest income:
Loans, including fees
744,652
746,448
1,466,222
1,471,088
Taxable
73,078
68,081
145,332
121,951
Tax-exempt
8,293
6,136
15,505
13,652
Federal funds sold, securities purchased under agreements to resell
and interest-bearing deposits with banks
12,236
19,839
28,029
42,379
Total interest income
838,259
840,504
1,655,088
1,649,070
Interest expense:
Deposits
244,216
241,593
482,738
487,550
Federal funds purchased and securities sold under agreements to
repurchase
4,093
5,405
8,288
10,314
12,516
15,558
25,023
28,063
1,485
648
Total interest expense
262,310
262,556
517,534
526,575
Net interest income
575,949
577,948
1,137,554
1,122,495
Provision for credit losses
15,919
7,505
26,727
108,067
Net interest income after provision for credit losses
560,030
570,443
1,110,827
1,014,428
Noninterest income:
Fees on deposit accounts
41,568
37,869
80,267
73,802
Mortgage banking income
4,890
5,936
15,906
13,673
Trust and investment services income
15,164
14,419
29,635
29,351
Correspondent banking and capital markets income
20,811
13,767
42,238
23,312
SBA income
1,264
2,430
2,764
5,662
Securities losses, net
(228,811)
Gain on sale-leaseback, net of transaction costs
229,279
Other income
13,029
12,396
26,014
26,637
Total noninterest income
96,726
86,817
196,824
172,905
Noninterest expense:
Salaries and employee benefits
205,377
200,162
411,030
395,973
Information services expense
29,136
30,155
58,840
61,517
OREO and loan related expense
952
2,295
5,330
4,079
Occupancy expense
43,878
41,507
86,180
77,000
Merger, branch consolidation, severance-related, and other expense
24,379
92,385
FDIC assessment and other regulatory charges
10,753
11,469
21,010
22,727
Supplies, printing and postage expense
3,885
3,970
7,139
7,098
Amortization of intangibles
21,041
24,048
42,345
47,879
Professional fees
5,090
4,658
10,329
9,367
Advertising and marketing
3,836
3,010
7,161
5,300
Other expense
33,801
29,408
67,909
60,562
Total noninterest expense
357,749
375,061
717,273
783,887
Earnings:
Income before provision for income taxes
299,007
282,199
590,378
403,446
Provision for income taxes
68,985
66,975
134,536
99,142
Net income
230,022
215,224
455,842
304,304
Earnings per common share:
Basic
2.36
2.12
4.66
3.00
Diluted
2.35
2.11
4.64
2.99
Weighted average common shares outstanding:
97,301
101,495
97,919
101,453
97,677
101,845
98,292
101,836
Consolidated Statements of Comprehensive Income (unaudited)
(Dollars in thousands)
Other comprehensive income (loss):
Unrealized holding gains (losses) on available for sale securities:
Unrealized holding gains (losses) arising during period
20,580
6,222
(35,434)
80,976
Tax effect
(4,606)
(1,664)
8,680
(19,832)
Reclassification adjustment for net loss included in net income
228,811
(55,143)
Net of tax amount
15,974
4,558
(26,754)
234,812
Other comprehensive income (loss), net of tax
Comprehensive income
245,996
219,782
429,088
539,116
Consolidated Statements of Changes in Shareholders’ Equity (unaudited)
Three months ended June 30, 2026 and 2025
(Dollars in thousands, except for share data)
Accumulated
Other
Common Stock
Retained
Comprehensive
Shares
Amount
Earnings
Loss
Total
Balance, March 31, 2025
101,479,065
253,698
6,667,277
2,080,053
(376,667)
8,624,361
Comprehensive income:
Other comprehensive income, net of tax effects
Total comprehensive income
Cash dividends declared on common stock at $0.54 per share
(54,807)
Employee stock purchases
12,615
31
1,081
1,112
Stock options exercised
71
1
Stock issued pursuant to restricted stock units
5,930
15
(15)
Stock issued in lieu of cash - directors fees
1,404
122
125
Common stock repurchased - equity plans
(1,085)
(3)
(94)
(97)
Share-based compensation expense
10,655
Balance, June 30, 2025
101,498,000
253,745
6,679,028
2,240,470
(372,109)
8,801,134
Balance, March 31, 2026
97,937,653
244,844
6,332,285
2,779,896
(326,109)
9,030,916
Cash dividends declared on common stock at $0.60 per share
(58,227)
14,431
36
1,248
1,284
20,883
52
(52)
1,338
129
Common stock repurchased - buyback plan
(1,000,000)
(2,500)
(95,148)
(97,648)
(3,163)
(8)
(301)
(309)
9,701
Excise tax on repurchase of common stock
(374)
Balance, June 30, 2026
96,971,142
Six Months Ended June 30, 2026 and 2025
Accumulated Other
Balance, December 31, 2024
76,322,206
190,805
4,259,722
2,046,809
(606,921)
5,890,415
Cash dividends declared on common stock at $1.08 per share
(109,543)
Cash dividend equivalents paid on restricted stock units
(1,100)
7,047
19
314
333
405,891
1,015
(1,015)
2,307
213
218
(110,797)
(277)
(10,996)
(11,273)
18,909
Common stock issued for Independent Bank Group, Inc. (“Independent”) acquisition
24,858,731
62,147
2,410,800
2,472,947
Balance, December 31, 2025
99,138,204
Other comprehensive loss, net of tax effects
Cash dividends declared on common stock at $1.20 per share
(117,218)
(1,106)
28,844
72
2,478
2,550
6,018
290
305
388,095
970
(970)
2,590
251
258
(2,500,000)
(6,250)
(242,702)
(248,952)
(92,609)
(231)
(9,210)
(9,441)
19,045
(2,169)
Consolidated Statements of Cash Flows (unaudited)
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
75,725
75,001
Deferred income taxes
27,244
83,833
Losses on sale of securities, net
Accretion of discount related to acquired loans
(71,841)
(125,305)
Losses (gains) on disposal of premises and equipment
845
(115)
Gains on sale of bank properties held for sale and repossessed real estate
(2,244)
(229,810)
Net amortization of premiums and discounts on investment securities
5,594
5,437
Bank properties held for sale and repossessed real estate write downs
4,591
266
Fair value adjustment for loans held for sale
247
433
Originations and purchases of loans held for sale
(1,098,723)
(1,235,565)
Proceeds from sales of loans held for sale
478,309
658,553
Gains on sales of loans held for sale
(5,734)
(11,462)
Increase in cash surrender value of BOLI
(18,885)
(17,527)
Net change in:
Accrued interest receivable
(5,627)
(3,830)
Prepaid assets
(1,772)
6,992
Operating leases
3,904
2,817
Bank owned life insurance
(245)
(1,427)
Trading securities
471,364
514,762
Derivative assets
73,997
(46,679)
Miscellaneous other assets
(64,826)
16,915
Accrued interest payable
(14,024)
(26,808)
Accrued income taxes
41,802
(64,074)
51,918
(275,258)
Miscellaneous other liabilities
119,920
(40,891)
Net cash provided by (used in) operating activities
573,153
(53,651)
Cash flows from investing activities:
Proceeds from sales of investment securities available for sale
2,874,110
Proceeds from maturities and calls of investment securities held to maturity
90,315
106,692
Proceeds from maturities and calls of investment securities available for sale
2,072,790
674,993
Proceeds from redemption of other investment securities
21
Proceeds from sales and redemptions of other investment securities
1,942
45,302
Purchases of investment securities available for sale
(2,396,277)
(3,503,942)
Purchases of other investment securities
(14,267)
(117,363)
Net increase in loans
(2,234,124)
(209,675)
Net cash received from acquisitions
1,040,765
Net cash paid for acquisition of customer list
(279)
Recoveries of loans previously charged off
7,822
7,700
Purchases of premises and equipment
(29,900)
(32,933)
Proceeds from redemption and payout of bank owned life insurance policies
1,506
3,532
Proceeds from sale of bank properties held for sale and repossessed real estate
25,511
464,751
Proceeds from sale of premises and equipment
65
972
Net cash (used in) provided by investing activities
(2,474,596)
1,354,625
Cash flows from financing activities:
Net increase in deposits
1,203,774
430,633
Net (decrease) increase in federal funds purchased and securities sold under
agreements to repurchase and other short-term borrowings
(48,729)
115,646
Proceeds from borrowings
600,000
1,045,039
Repayment of borrowings
(300,000)
(700,000)
Common stock issuance
2,808
1,330
Common stock repurchases
(258,393)
Dividends paid
(118,324)
(110,643)
Excise tax paid on repurchases of common stock
Net cash provided by financing activities
1,079,272
771,065
Net (decrease) increase in cash and cash equivalents
(822,171)
2,072,039
Cash and cash equivalents at beginning of period
1,392,067
Cash and cash equivalents at end of period
3,464,106
Supplemental Disclosures:
Cash Flow Information:
Cash paid for:
Interest
531,558
553,383
Income taxes
56,283
72,267
Recognition of operating lease assets in exchange for lease liabilities
38,319
397,318
Schedule of Noncash Operating Transactions:
Pooling of interest only strips into trading securities
33,352
Creation of interest only strips from pooling of SBA loans held for sale
46,881
Pooling of SBA loans held for sale into trading securities
518,923
507,136
Schedule of Noncash Investing Transactions:
Acquisitions:
Fair value of tangible assets acquired
16,553,467
Other intangible assets acquired
414,553
Liabilities assumed
15,665,912
Net identifiable assets acquired over liabilities assumed
1,170,953
Common stock issued in acquisition
Real estate transferred from premises and equipment to premises held for sale
related to the sale-leaseback transaction
230,143
Real estate acquired in full or in partial settlement of loans
31,442
21,584
9
Notes to Consolidated Financial Statements (unaudited)
Note 1 — Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, otherwise referred to as GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.
The consolidated balance sheet at December 31, 2025, has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for complete financial statements.
Note 2 — Summary of Significant Accounting Policies
The information contained in the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”), as filed with the Securities and Exchange Commission (the “SEC”) on February 20, 2026, should be referenced when reading these unaudited consolidated financial statements. Unless otherwise mentioned or unless the context requires otherwise, references herein to “SouthState,” the “Company,” “we,” “us,” “our” or similar references mean SouthState Bank Corporation and its consolidated subsidiaries. References to the “Bank” or “SouthState Bank” means SouthState Bank Corporation’s wholly owned subsidiary, SouthState Bank, National Association, a national banking association.
The significant accounting policies of the Company are described in Note 1 to the Consolidated Financial Statements in the 2025 Form 10-K. There have been no material changes to those policies during the six months ended June 30, 2026.
Note 3 — Recent Accounting and Regulatory Pronouncements
Accounting Standards Adopted
There were no accounting standards adopted during the six months ended June 30, 2026 that had a material effect on our consolidated financial statements.
Issued But Not Yet Adopted Accounting Standards
Subsequent to the filing of the Company’s 2025 Form 10-K, no accounting standards were issued that are expected to have a material effect on the Company’s consolidated financial statements.
Note 4 — Investment Securities
Investment Securities
The following is the amortized cost and fair value of investment securities held to maturity:
Gross
Amortized
Unrealized
Fair
Cost
Gains
Losses
Value
June 30, 2026:
U.S. Government agencies
132,915
(16,795)
116,120
Residential mortgage-backed securities issued by U.S. government
agencies or sponsored enterprises
1,090,113
(175,475)
914,638
Residential collateralized mortgage-obligations issued by U.S. government
363,925
(57,204)
306,721
Commercial mortgage-backed securities issued by U.S. government
324,980
(57,187)
267,793
Small Business Administration loan-backed securities
43,821
(8,051)
35,770
(314,712)
1,641,042
December 31, 2025:
132,913
(15,767)
117,146
1,153,024
(177,101)
975,923
379,107
(55,232)
323,875
336,910
(58,332)
278,578
46,076
(8,748)
37,328
(315,180)
1,732,850
The following is the amortized cost and fair value of investment securities available for sale:
2,026,760
4,562
(144,756)
1,886,566
2,082,757
5,511
(54,109)
2,034,159
1,095,770
1,050
(79,341)
1,017,479
State and municipal obligations
1,240,617
2,484
(128,351)
1,114,750
547,528
(24,844)
523,117
Corporate securities
23,000
(894)
22,106
7,016,432
14,040
(432,295)
1,826,307
10,108
(138,307)
1,698,108
2,208,710
23,979
(47,105)
2,185,584
903,209
3,282
(74,042)
832,449
1,141,377
1,252
(135,217)
1,007,412
593,973
548
(26,088)
568,433
(1,230)
21,770
6,696,576
39,169
(421,989)
11
The following is the amortized cost and carrying value of other investment securities:
Carrying
Federal Home Loan Bank stock
32,336
Federal Reserve Bank stock
234,374
Investment in unconsolidated subsidiaries
5,287
Other investment securities
94,989
18,086
95,681
The Company’s other investment securities consist of non-marketable equity and other securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of June 30, 2026, the Company has determined that there was no impairment on its other investment securities.
The amortized cost and fair value of debt securities at June 30, 2026, by contractual maturity are detailed below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.
Securities
Held to Maturity
Available for Sale
Due in one year or less
25,660
25,525
Due after one year through five years
172,583
160,937
415,952
411,268
Due after five years through ten years
330,479
287,326
1,211,660
1,143,401
Due after ten years
1,452,692
1,192,779
5,363,160
5,017,983
During the three and six months ended June 30, 2026, there were no sales of securities available for sale. During the three months ended June 30, 2025, there were no sales of securities available for sale. During the first quarter of 2025, the Company sold a portion of the available for sale investment securities acquired from Independent and recognized no gain or loss on these investment securities as each security was marked to fair value at the acquisition date. During the first quarter of 2025, in addition to the sale of the investment securities acquired from Independent, the Company executed an investment portfolio restructuring and sold $1.8 billion of available for sale investment securities from its existing investment securities portfolio.
The following table provides additional details of the available for sale investment securities sold during the six months ended June 30, 2025:
Sales of Securities Acquired from Independent
Investment Securities Sales
Sale proceeds
1,279,717
1,594,393
Gross realized gains
8,892
Gross realized losses
(237,703)
Net realized losses
There were no sales of held to maturity securities during the three and six months ended June 30, 2026 or June 30, 2025.
12
The Company had 1,129 securities with gross unrealized losses at June 30, 2026. Information pertaining to our securities with gross unrealized losses at June 30, 2026, and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is as follows:
Less Than
12 Months
or More
Gross Unrealized
Securities Held to Maturity
16,795
175,475
57,204
57,188
8,050
314,712
Securities Available for Sale
5,882
694,570
138,873
752,869
5,713
874,273
48,396
258,069
4,740
462,508
74,602
391,176
436
61,086
127,914
864,249
403
126,057
24,442
358,963
64
9,936
830
12,170
17,238
2,228,430
415,057
2,637,496
15,767
177,101
55,232
323,874
58,332
278,579
8,748
315,180
459
145,357
137,848
803,407
46
40,399
47,059
278,620
228
152,299
73,814
423,165
572
43,620
134,645
903,784
680
284,036
25,408
202,322
1,230
21,769
1,985
665,711
420,004
2,633,067
The Company’s valuation methodology for securities impairment is disclosed in Note 1 — Summary of Significant Accounting Policies, under the “Investment Securities” section, of the 2025 Form 10-K. All debt securities in an unrealized loss position as of June 30, 2026, continue to perform as scheduled and management does not believe there is a provision for credit losses is necessary. Management does not currently intend to sell the securities within the portfolio, and it is not more-likely-than-not that the Company will be required to sell the debt securities.
13
The Company follows its nonaccrual policy by reversing interest income in the income statement when the Company determines the interest for held to maturity securities is uncollectible. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the investment securities and does not record an allowance for credit losses on accrued interest receivable. As of June 30, 2026, and December 31, 2025, the accrued interest receivables for all investment securities recorded in Other Assets were $42.0 million and $38.9 million, respectively.
At June 30, 2026, investment securities with a market value of $5.1 billion and a carrying value of $5.4 billion were pledged to secure public funds deposits and for other purposes required and permitted by law (excluding securities pledged to secure repurchase agreement disclosed in Note 19 — Short-Term Borrowings, under the “Securities Sold Under Agreements to Repurchase (“Repurchase agreements”)” section). Of the $5.4 billion carrying value of investment securities pledged, $5.3 billion were pledged to secure public funds deposits, $23.8 million were pledged to secure FHLB advances, and $78.4 million were pledged to secure interest rate swap positions with correspondent banks. At December 31, 2025, investment securities with a market value of $5.2 billion and a carrying value of $5.5 billion were pledged to secure public funds deposits and for other purposes required and permitted by law. Of the $5.5 billion carrying value of investment securities pledged, $5.2 billion were pledged to secure public funds deposits, $182.2 million were pledged to secure FHLB advances and $83.3 million were pledged to secure interest rate swap positions with correspondent banks.
Trading Securities
At June 30, 2026 and December 31, 2025, trading securities, at estimated fair value, were as follows:
9,855
1,872
Residential mortgage pass-through securities issued or guaranteed by U.S.
government agencies or sponsored enterprises
20,667
9,799
Other residential mortgage issued or guaranteed by U.S. government
7,705
1,419
28,073
5,966
42,131
24,816
Small Business Administration asset-backed securities
82,421
66,173
Other debt securities
242
138
Net gains (losses) on trading securities for the three and six months ended June 30, 2026, and 2025, were as follows:
Net gains (losses) on sales transaction
1,017
(418)
1,401
(56)
Net unrealized gains (losses)
89
291
(487)
412
Net gains (losses) on trading securities
1,106
(127)
914
356
14
Note 5 — Loans
The following is a summary of total loans:
Construction and land development (1)
2,982,968
2,548,360
Commercial non-owner-occupied
17,481,117
16,651,760
Commercial owner-occupied real estate
7,852,391
7,576,991
Consumer owner-occupied (2)
9,125,082
8,618,434
Home equity loans
1,909,020
1,831,789
Commercial and industrial
9,378,444
9,181,408
Other income producing property
1,175,338
1,232,153
Consumer
934,035
955,266
Other loans
8,477
2,366
Total loans
50,846,872
48,598,527
Less: allowance for credit losses
The above table reflects the loan portfolio at the amortized cost basis for the periods June 30, 2026, and December 31, 2025, to include net deferred costs of $84.1 million and $97.0 million, respectively, and unamortized discount related to loans acquired of $185.9 million and $259.5 million, respectively. Accrued interest receivables of $187.6 million and $186.5 million, respectively, are accounted for separately and reported in other assets for the periods June 30, 2026, and December 31, 2025.
For a description of the Company’s loan risk grading system, including the definitions of Pass, Special Mention, Substandard, and Doubtful, refer to Note 4 to the Consolidated Financial Statements in the 2025 Form 10-K.
The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending June 30, 2026:
Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2026
2024
2023
2022
Prior
Revolving
Construction and land development
Risk rating:
Pass
497,110
1,084,206
500,035
106,149
89,490
69,163
144,237
2,490,390
Special mention
1,328
3,097
278
25,393
550
41,738
72,384
Substandard
2,121
5,764
6,986
31,998
8,693
6,224
61,786
Doubtful
Total Construction and land development
500,559
1,093,067
507,299
163,540
98,183
75,937
185,975
2,624,560
Current-period gross charge-offs
166
2,534,850
2,514,311
1,079,357
1,089,654
3,429,598
4,552,116
259,543
15,459,429
26,266
47,961
26,375
42,827
324,787
101,640
1,070
570,926
49,745
76,404
31,664
196,749
691,061
404,382
753
1,450,758
Total Commercial non-owner-occupied
2,610,861
2,638,676
1,137,396
1,329,230
4,445,446
5,058,142
261,366
969
Commercial Owner-Occupied
871,834
1,221,181
692,300
603,475
1,088,014
2,899,012
110,661
7,486,477
2,704
6,922
2,978
10,136
11,877
17,764
261
52,642
6,089
18,510
25,540
49,646
86,756
124,746
1,969
313,256
16
Total commercial owner-occupied
880,627
1,246,621
720,822
663,257
1,186,647
3,041,526
112,891
Commercial owner-occupied
134
188
38
371
1,814,574
1,759,014
861,689
494,697
672,230
974,791
2,400,723
8,977,718
735
5,119
4,226
5,712
3,649
7,399
11,854
38,694
14,719
26,814
59,029
50,188
47,701
60,314
102,969
361,734
30
59
69
26
102
298
Total commercial and industrial
1,830,032
1,790,955
924,974
550,656
723,649
1,042,530
2,515,648
1,108
2,617
6,266
3,004
1,204
1,399
1,928
17,526
128,579
143,743
93,401
65,554
239,444
296,614
63,941
1,031,276
142
1,811
260
45
1,844
2,051
519
6,672
1,409
838
625
1,877
10,602
20,986
221
36,558
Total other income producing property
130,130
146,392
94,286
67,476
251,890
319,651
64,681
1,074,506
Consumer owner-occupied
7,167
14,860
2,106
17,596
34,808
38,819
125,685
105
726
128
76
95
1,130
473
1,251
368
583
2,675
Total Consumer owner-occupied
7,640
16,216
2,832
18,092
34,884
39,497
129,490
Total other loans
Total Commercial Loans
5,862,591
6,737,315
3,228,888
2,377,125
5,529,105
8,826,504
3,017,924
35,579,452
31,175
65,015
34,843
84,241
342,157
129,480
55,537
742,448
74,556
129,581
123,844
330,826
844,813
616,652
106,495
2,226,767
34
318
5,968,326
6,931,927
3,387,609
2,792,251
6,716,144
9,572,670
3,180,058
38,548,985
Commercial Loans
6,277
4,107
1,392
1,603
19,032
The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending December 31, 2025:
As of December 31, 2025
2021
862,035
575,253
264,370
175,486
57,814
40,977
147,911
2,123,846
706
137
1,815
335
510
24,083
5,292
7,512
32,431
5,898
892
5,564
57,589
868,033
582,902
298,616
201,964
59,041
47,051
2,205,518
2,564,868
1,161,720
1,304,297
3,828,512
2,440,726
2,996,445
185,751
14,482,319
51,864
17,084
100,316
383,957
27,680
96,579
10,484
687,964
169,713
28,225
100,542
598,777
357,340
226,461
415
1,481,473
2,786,445
1,207,029
1,505,155
4,811,246
2,825,747
3,319,488
196,650
4,565
1,237
18,033
9,800
33,635
1,210,501
777,109
634,593
1,105,730
1,110,749
2,218,753
102,835
7,160,270
4,609
1,075
12,204
10,424
5,539
17,866
438
52,155
19,657
38,394
52,341
115,676
33,813
102,965
1,703
364,549
17
1,234,776
816,582
699,138
1,231,830
1,150,101
2,339,588
104,976
1,095
874
1,628
184
1,317
50
5,148
2,644,081
1,056,432
613,536
876,480
410,578
771,994
2,396,981
8,770,082
5,089
2,283
20,226
6,023
2,955
2,208
14,387
53,171
10,054
50,362
52,210
52,356
37,921
31,469
123,611
357,983
43
172
2,659,224
1,109,080
686,015
934,927
451,504
805,673
2,534,985
23,240
2,947
4,351
9,157
12,680
11,844
10,007
74,226
157,404
114,264
88,883
272,672
173,188
210,459
55,663
1,072,533
2,020
463
145
269
542
2,897
602
6,938
1,936
420
1,918
15,540
2,294
17,247
39,903
161,360
115,147
90,946
288,481
176,024
230,603
56,813
1,119,374
15,587
3,687
20,410
10,949
11,145
25,248
31,042
118,068
118
745
131
994
1,376
209
158
588
2,331
17,081
4,641
20,541
25,407
31,630
121,394
7,456,842
3,688,465
2,926,089
6,269,829
4,204,200
6,263,876
2,920,183
33,729,484
64,406
21,787
134,837
421,253
37,051
120,060
25,911
825,305
208,028
125,122
239,442
788,247
432,260
383,864
126,865
2,303,828
51
194
7,729,285
3,835,381
3,300,411
7,479,397
4,673,562
6,767,810
3,072,965
36,858,811
24,335
9,790
12,022
30,913
22,961
10,057
113,025
For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 family residential properties and lots.
The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending June 30, 2026:
Days past due:
Current
1,001,713
1,164,128
584,617
896,759
2,287,256
2,987,852
8,922,325
30 days past due
5,151
5,785
3,797
2,857
6,777
24,367
60 days past due
2,887
2,472
2,412
512
5,525
13,808
90 days past due
212
2,286
10,324
11,052
3,877
7,341
35,092
1,001,925
1,174,452
603,198
914,020
2,294,502
3,007,495
8,995,592
385
1,098
886
250
22
2,641
159
1,456
3,162
1,398
2,589
13,586
1,876,828
1,899,178
90
70
2,888
3,317
114
579
1,496
2,192
666
685
397
1,424
1,161
4,333
Total Home equity loans
4,032
2,083
3,059
15,858
1,882,373
104
35
199
126,474
155,609
107,469
132,304
129,074
187,623
90,568
929,121
53
161
264
917
47
1,692
230
316
39
928
40
363
1,382
Total consumer
126,528
155,876
108,049
132,750
129,914
190,238
90,680
28
419
359
555
113
2,702
4,304
69,597
144,048
44,526
21,646
38,200
39,807
357,824
302
312
272
21,951
38,469
39,817
358,408
1,273
3,936
1,187
7,233
47,121
39,583
94
100,427
144
405
1,190
47,379
39,727
100,832
Total Consumer Loans
1,199,216
1,469,177
740,961
1,059,340
2,504,240
3,268,451
1,967,490
12,208,875
5,312
5,964
4,260
3,191
7,973
2,935
29,688
2,953
2,816
2,476
728
6,420
1,535
16,928
2,326
11,254
11,961
5,164
10,291
42,396
1,199,482
1,479,768
760,995
1,078,037
2,513,323
3,293,135
1,973,147
12,297,887
Consumer Loans
804
1,561
1,451
378
185
2,737
7,144
The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending June 30, 2026:
Total Loans
7,167,808
8,411,695
4,148,604
3,870,288
9,229,467
12,865,805
5,153,205
1,136
3,421
7,838
5,558
1,770
1,788
4,665
26,176
18
The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending December 31, 2025:
1,182,075
647,315
1,014,555
2,407,217
1,639,720
1,543,231
8,434,113
2,060
3,805
5,472
3,232
3,926
3,369
21,864
2,557
2,670
620
559
1,626
8,717
1,156
9,661
8,967
6,584
1,524
4,454
32,346
1,185,976
663,338
1,031,664
2,417,653
1,645,729
1,552,680
8,497,040
926
981
458
107
2,647
1,627
5,549
2,618
3,463
1,308
13,961
1,794,239
1,822,765
160
502
2,752
3,689
74
108
1,615
2,059
577
610
847
3,276
1,677
5,843
3,567
4,622
1,446
15,181
1,799,453
551
193,165
134,608
156,266
154,801
62,652
156,314
91,731
949,537
55
117
304
271
205
1,295
75
2,322
427
268
921
177
532
365
1,288
2,486
193,328
134,972
157,529
155,487
62,904
159,165
91,881
390
912
910
776
2,655
6,007
11,764
129,749
80,514
27,590
53,698
26,284
24,390
342,225
154
617
27,744
54,161
342,842
3,638
2,037
7,756
50,859
16,477
31,521
86
112,374
389
2,040
51,117
31,665
112,779
1,510,254
870,023
1,208,785
2,670,038
1,746,441
1,769,417
1,886,056
11,661,014
2,165
3,948
3,702
4,131
5,166
2,827
27,875
2,677
3,309
744
2,018
1,680
11,713
1,223
10,059
10,230
8,556
1,709
6,480
857
39,114
1,514,368
886,707
1,228,260
2,683,040
1,752,840
1,783,081
1,891,420
11,739,716
1,904
1,891
1,304
167
3,177
14,962
The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending December 31, 2025:
9,243,653
4,722,088
4,528,671
10,162,437
6,426,402
8,550,891
4,964,385
24,847
4,851
11,681
13,326
31,080
26,138
16,064
127,987
The following table presents an aging analysis of past due accruing loans, segregated by class, as of June 30, 2026 and December 31, 2025:
30 - 59 Days
60 - 89 Days
90+ Days
Non-
Past Due
Accruing
Loans
June 30, 2026
2,475
2,099
4,682
2,972,485
5,801
6,994
2,177
9,171
17,429,641
42,305
11,999
6,207
346
18,552
7,792,320
41,519
17,823
1,504
1,063
20,390
9,024,719
79,973
2,678
1,808
4,486
1,895,492
9,042
26,640
7,044
2,251
35,935
9,256,352
86,157
743
701
1,472
1,171,477
2,389
1,501
788
2,289
928,316
3,430
70,853
22,328
3,796
96,977
50,479,279
270,616
December 31, 2025
3,018
472
139
3,629
2,537,171
7,560
8,457
408
9,169
16,575,180
67,411
14,821
4,651
865
20,337
7,516,697
39,957
16,301
901
17,202
8,527,681
73,551
2,739
1,226
3,966
1,819,479
8,344
24,890
5,860
2,913
33,663
9,052,979
94,766
1,582
827
615
3,024
1,227,020
2,109
2,002
793
2,795
949,014
3,457
73,810
15,034
4,941
93,785
48,207,587
297,155
The following table is a summary of information pertaining to nonaccrual loans by class, including loans modified for borrowers with financial difficulty as of June 30, 2026, and December 31, 2025:
Greater than
Non-accrual
90 Days Accruing(1)
with no allowance(1)
39,945
10,212
1,484
8,360
Total loans on nonaccrual status
63,797
There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for further detailed descriptions on individually evaluated loans.
20
The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:
Collateral
Coverage
%
7,725
204%
5,778
134%
Church
3,260
5,288
162%
3,315
6,075
183%
6,952
15,363
221%
6,157
9,549
155%
Commercial non-owner-occupied real estate
Hotel
8,420
9,720
115%
Retail
3,561
4,549
128%
3,451
5,251
152%
2,444
3,438
141%
1,250
1,512
121%
Office
1,860
1,908
103%
12,250
22,015
180%
Multifamily
23,660
29,592
125%
44,860
50,894
113%
37,147
39,213
106%
49,491
46,539
94%
1-4 family investment property
717
545
76%
1st Mtg Residential
2,250
Total collateral dependent loans
92,584
119,046
128,753
152,355
The Bank designates individually evaluated loans on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL. The Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Bank’s threshold for individually evaluated loans is $1.0 million. The changes above in collateral percentage are generally due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Overall collateral dependent loans decreased $36.2 million during the six months ended June 30, 2026.
Loans on nonaccrual status at the date of modification are initially classified as nonaccrual. Loans on accruing status at the date of modification are initially classified as accruing if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the modification agreement. Nonaccrual loans are returned to accruing status when there is economic substance to the modification, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for how such modifications are factored into the determination of the ACL for the periods presented above.
The following tables present loans designated as modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026, and 2025, respectively. The loans are segregated by type of modification and asset class, indicating the financial effect of the modifications. There were no combination interest rate reduction and payment delay modifications for the three and six months ended June 30, 2026. There were no combination interest rate reduction and payment delay modifications for the three months ended June 30, 2025.
Three Months Ended June 30,
Reduction in Weighted
% of Total
Average Contractual
Asset Class
Interest Rate
Interest rate reduction
0.00%
1.00%
332
1.55%
534
0.01%
1.32%
Total interest rate reductions
850
Six Months Ended June 30,
1,813
0.06%
1.75%
Commercial non-owner occupied
1,124
0.81%
15,045
0.10%
0.86%
808
4,061
15,755
Increase in
Weighted Average
Life of Loan
Term extension
1,459
0.05%
11 months
32,962
0.19%
5 months
1,215
0.02%
7 months
2,751
0.03%
4,269
4 months
16,105
0.17%
9,245
0.11%
2,443
0.21%
3 months
Total term extensions
56,935
13,514
286
9 months
41,111
0.24%
6 months
4,784
3,619
0.04%
30,924
0.33%
84,340
13,800
Weighted Average of
Months Payments
Were Deferred
Other-than-insignificant payment delay
67,136
0.38%
2,784
5,404
0.07%
Consumer owner occupied
373
2 months
5,928
24 months
1,610
60 months
Total payment delays
76,487
7,014
135,258
0.77%
3,840
0.08%
13,128
0.14%
16 months
152,865
7,323
Reduction in
Weighted
Contractual
Average
Combination - Term Extension and Interest Rate Reduction
24,397
0.57%
36 months
1.50%
18 months
Total term extension and interest rate reduction combinations
1,218
0.54%
37 months
853
3.01%
25,615
Amortization
Term
Combination - Interest Rate Reduction and Payment Delay
1,177
0.75%
12 months
Total interest rate reduction and payment delay combinations
The Bank on occasion will enter into modification agreements which extend the maturity payoff on a loan or reduce the interest rate for borrowers willing to continue to pay, to minimize losses for the Bank. At June 30, 2026, the Company had $6.8 million in remaining commitments to lend additional funds on loans to borrowers experiencing financial difficulty and modified during the current reporting period.
23
The following table presents the changes in status of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2026 and 2025, by type of modification. The subsequent defaults were all due to past due status greater than 60 days.
Paying Under
Restructured
Converted to
Foreclosures
Terms
Nonaccrual
and Defaults
2,058
722
482
5,401
5,307
62,054
5,201
4,816
265
2,215
5,876
110,745
2,829
15,407
143,902
6,087
161,509
7,697
Term Extension and Interest Rate Reduction
1,733
560
1,220
Total term extension and interest rate combinations
26,130
Term Extension and Payment Delay
2,005
224
Total term extension and payment delay combinations
2,229
Interest Rate Reduction and Payment Delay
29,676
335,690
3,389
41,256
780
The following table depicts the performance of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2026 and 2025:
June 30, 2025
Payment Status (Amortized Cost Basis)
30-89 Days
7,120
262,086
6,950
2,813
6,418
43,444
1,640
12,410
2,709
7,188
1,849
6,740
655
329,497
7,642
2,205
40,899
24
Note 6 — Allowance for Credit Losses (ACL)
The following tables present a disaggregated analysis of activity in the allowance for credit losses for the three and six months ended June 30, 2026 and 2025:
Residential
Comm Constr.
CRE Owner-
Non-Owner-
Mortgage Sr.
Mortgage Jr.
HELOC
Construction
& Dev.
Municipal
Occupied
Occupied CRE
C & I
Three Months Ended June 30, 2026
Allowance for credit losses:
Balance at end of period March 31, 2026
58,959
1,384
13,766
8,182
46,541
17,786
55,862
1,917
76,799
188,146
116,540
585,882
Charge-offs
(1,059)
(78)
(2,171)
(969)
(7,188)
(11,742)
Recoveries
79
829
146
48
2,234
3,901
Net (charge-offs) recoveries
(980)
(1,342)
(105)
(921)
(4,954)
(7,841)
Provision (recovery) (2)
7,650
(255)
322
1,171
8,221
3,316
(98)
(4,498)
(8,421)
1,043
8,623
Balance at end of period June 30, 2026
65,629
1,133
14,085
9,353
55,076
16,616
59,324
1,819
72,196
178,804
112,629
586,664
Three Months Ended June 30, 2025
Balance at end of period March 31, 2025
54,326
14,868
12,555
78,541
16,304
33,960
1,107
101,656
172,334
137,246
623,690
Allowance Adjustment – FMV for Independent Merger
16,798
Independent Day 1 Loan Net Charge-offs PCD (1)
(18,065)
520
(17,259)
(385)
(1)
(16)
(2,184)
(772)
(8,607)
(11,965)
315
529
3,176
4,718
(191)
299
(1,655)
(419)
767
(5,431)
(24,506)
(1,109)
(5,405)
(2,543)
4,036
18,395
1,172
(13,014)
(7,908)
11,360
5,064
Balance at end of period June 30, 2025
54,204
868
13,884
7,150
76,297
18,685
51,088
2,279
88,223
165,193
143,175
621,046
Six Months Ended June 30, 2026
Balance at end of period December 31, 2025
55,947
1,356
14,150
8,732
53,494
19,280
58,678
1,799
73,871
174,797
123,093
585,197
(2,641)
(199)
(166)
(4,304)
(371)
(17,526)
(26,176)
97
429
1,715
162
255
56
4,612
(2,513)
202
(2,589)
(116)
(913)
(12,914)
(18,354)
12,195
(320)
(295)
621
1,380
(75)
484
(1,559)
4,920
2,450
19,821
Six Months Ended June 30, 2025
Balance at end of period December 31, 2024
42,687
432
14,845
9,298
65,553
17,484
22,279
1,197
78,753
111,538
101,214
465,280
Allowance Adjustment - FMV for Independent merger
1,852
6,448
20,359
8,075
93,820
4,773
135,441
Initial Allowance for Non-PCD loans acquired during period
8,910
85
91
4,700
11,751
254
1,947
3,186
31,557
13,685
79,971
(61)
(2,323)
(1,016)
(13,036)
(22,187)
(56,688)
(892)
(14)
(229)
(3,989)
(976)
(13,271)
(19,387)
394
505
413
1,359
343
4,480
Net recoveries (charge-offs)
(559)
276
(4,953)
(1,875)
(12,693)
(30,978)
(68,375)
1,314
(1,328)
(6,848)
(7,852)
5,786
22,710
(865)
84
(59,029)
54,481
8,729
25
Note 7 — Leases
As of June 30, 2026, and December 31, 2025, we had operating right-of-use (“ROU”) assets of $503.2 million and $507.1 million, respectively, and operating lease liabilities of $525.2 million and $525.3 million, respectively. We maintain operating leases on land and buildings for some of our operating centers, branch facilities and ATM locations. Most leases include one or more options to renew, with renewal terms extending up to 20 years. The exercise of renewal options is based on the sole judgment of management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.
Lease Cost Components:
Amortization of ROU assets – finance leases
116
231
Interest on lease liabilities – finance leases
Operating lease cost (cost resulting from lease payments)
17,334
15,914
34,065
25,283
Short-term lease cost
195
425
Variable lease cost (cost excluded from lease payments)
1,395
1,560
2,344
2,315
Total lease cost
18,022
37,047
28,623
Supplemental Cash Flow and Other Information Related to Leases:
Finance lease – operating cash flows
Finance lease – financing cash flows
123
121
246
Operating lease – operating cash flows (fixed payments)
14,341
14,277
28,979
22,864
Operating lease – operating cash flows (net change asset/liability)
(6,249)
(6,437)
(12,630)
(11,422)
New ROU assets – operating leases
36,501
Weighted – average remaining lease term (years) – finance leases
1.99
2.95
Weighted – average remaining lease term (years) – operating leases
12.26
12.80
Weighted – average discount rate - finance leases
1.8%
1.7%
Weighted – average discount rate - operating leases
6.4%
Operating lease payments due:
2026 (excluding 6 months ended June 30, 2026)
29,067
2027
60,135
2028
61,553
2029
61,078
2030
59,570
Thereafter
518,519
Total undiscounted cash flows
789,922
Discount on cash flows
(264,713)
Total operating lease liabilities
525,209
Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained. At June 30, 2026, we did not maintain any leases with related parties and determined that the number and dollar amount of our equipment leases was immaterial. As of June 30, 2026, we had three operating leases that had not yet commenced for approximately $4.4 million.
Equipment Lessor
SouthState has an Equipment Finance Group which does business directly with customers and primarily focuses on serving the construction and utility segments. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at June 30, 2026, and December 31, 2025:
Direct financing leases:
Lease receivables
205,742
92,927
Guaranteed residual values
5,697
4,212
Unguaranteed residual values
16,528
11,335
Initial direct costs
7,191
3,502
Less: Unearned income
(35,510)
(17,690)
Total net investment in direct financing leases
199,648
The following table summarizes direct financing lease income recorded for the three and six months ended June 30, 2026, and remaining lease payment receivable for each of the next five years:
Direct financing lease income
Interest income
2,938
890
5,167
1,519
Remaining lease payments receivable:
26,626
47,248
39,882
41,177
29,511
26,995
Total undiscounted lease receivable
211,439
Less: unearned interest income
Net lease receivables
175,929
See Note 1 — Summary of Significant Accounting Policies, under the “Leases” section, of the 2025 Form 10-K, on accounting for leases.
Note 8 — Deposits
Our total deposits as of June 30, 2026, and December 31, 2025, are comprised of the following:
Noninterest-bearing checking
Interest-bearing checking
14,710,312
13,838,558
Savings
2,796,845
2,820,621
Money market
17,531,137
17,751,688
Time deposits
7,860,422
7,359,233
At June 30, 2026, and December 31, 2025, we had $2.1 billion in certificates of deposits greater than $250,000.
Note 9 — Earnings Per Share
Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding during each period, excluding non-vested restricted shares. Our diluted earnings per share is based on the weighted-average shares of common stock outstanding during each period plus the maximum dilutive effect of common stock issuable upon exercise of stock options or vesting of restricted stock units. Stock options and unvested restricted stock units are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive.
The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025:
(Dollars and shares in thousands, except for per share amounts)
Basic earnings per common share:
Weighted-average basic common shares
Basic earnings per common share
Diluted earnings per common share:
Effect of dilutive securities
376
350
383
Weighted-average dilutive shares
Diluted earnings per common share
27
The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive under the treasury stock method, as follows:
Number of shares
9,085
Range of exercise prices
$ 91.05
to
$ 91.35
Note 10 — Share-Based Compensation
For a description of the Company’s share-based compensation plans, including equity plan structure and Restricted Stock Units (“RSUs”) program mechanics, refer to Note 17 to the Consolidated Financial Statements in the 2025 Form 10-K.
Stock Options
Activity in the Company’s stock option plans is summarized in the following table:
Aggregate
Remaining
Intrinsic
Price
(Yrs.)
(000’s)
Outstanding at January 1, 2026
28,815
61.00
Exercised
(6,018)
50.65
Expired
(278)
44.21
Outstanding at June 30, 2026
22,519
63.97
0.99
809
Exercisable at June 30, 2026
Restricted Stock Units (“RSUs”)
Outstanding RSUs for the six months ended June 30, 2026, are summarized in the following table:
Weighted-
Grant-Date
Restricted Stock Units
Fair Value
820,878
86.43
Granted
437,648
93.75
Vested
(388,095)
80.35
Forfeited
(5,864)
93.08
864,567
92.82
If maximum performance is achieved pursuant to the 2024, 2025 and 2026 Long Term Incentive performance-based RSU grants, an additional 133,447 shares in total may be issued by the Company at the end of the three-year performance periods.
As of June 30, 2026, there was $48.8 million of total unrecognized compensation cost at target related to nonvested RSUs granted under the plan. This cost is expected to be recognized over a weighted-average period of 1.44 years as of June 30, 2026. The total fair value of RSUs vested and released during the six months ended June 30, 2026, was $39.6 million.
Note 11 — Commitments and Contingent Liabilities
In the normal course of business, we make various commitments and incur certain contingent liabilities, which are not reflected in the accompanying financial statements. The commitments and contingent liabilities include guarantees, commitments to extend credit, and standby letters of credit. At June 30, 2026, commitments to extend credit and standby letters of credit totaled $14.7 billion. As of June 30, 2026, the liability recorded for expected credit losses on unfunded commitments, excluding unconditionally cancellable exposures and letters of credit, was $76.5 million and recorded on the Balance Sheet. See Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the 2025 Form 10-K for discussion of liability recorded for expected credit losses on unfunded commitments.
For a description of the Company’s commitments and contingencies, including litigation risks arising from our normal business activities and whole bank acquisitions, as well as background related to the previously disclosed cyber incident, refer to Note 20 to the Consolidated Financial Statements in the 2025 Form 10-K. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, as of June 30, 2026, any such liability is not expected to have a material effect on our consolidated financial statements.
Cyber Incident Litigation. On April 3, 2024, a putative class action lawsuit was filed against the Bank in the U.S. District Court for the Middle District of Florida, Tampa Division (the “Original Suit”). The plaintiff, who purported to represent the class of individuals harmed by alleged actions and/or omissions by the Bank in connection with the cybersecurity incident that was detected on February 6, 2024 (the “Cyber Incident”, as previously reported in the Form 8-K filed with the SEC on February 9, 2024), asserted a variety of common law and statutory claims seeking monetary damages, injunctive relief and other related relief related to the potential unauthorized access by third parties to personal identifiable information. While the Original Suit was voluntarily dismissed, the same plaintiffs as well as additional plaintiffs initiated litigation that named the Bank as a defendant. These cases were consolidated into one putative class action against the Bank in the Circuit Court for Polk County, Florida (the “Cyber Incident Suit”).
During the first quarter of 2026, the parties agreed to settle the Cyber Incident Suit, subject to court approval, pursuant to which the Company agreed to fund documented losses and pay attorneys’ fees, administration costs, and credit monitoring fees. On June 24, 2026, the court entered an order granting final approval to the settlement (the “Final Order”). The settlement will be paid from the Company’s cyber insurance coverage in the third quarter of 2026 in accordance with the Final Order.
Other commitments and contingencies were not materially different from those disclosed in the 2025 Form 10-K.
Note 12 — Fair Value
GAAP defines fair value and establishes a framework for measuring and disclosing fair value. Fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. For a detailed description of the Company’s fair value measurement framework, including valuation methodologies and the classification of financial instruments within the fair value hierarchy, refer to Note 23 to the Consolidated Financial Statements in the 2025 Form 10-K.
29
The tables below present the Company’s fair value measurements as of June 30, 2026 and December 31, 2025, as well as changes in Level 3 instruments, if applicable.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis:
Quoted Prices
In Active
Significant
Markets
for Identical
Observable
Unobservable
Assets
Inputs
(Level 1)
(Level 2)
(Level 3)
Derivative financial instruments
Mortgage loans held for sale
68,738
Securities available for sale:
Total securities available for sale
SBA servicing asset
4,954
7,103,294
7,006,898
96,396
Liabilities
61,400
5,512
6,797,769
6,708,225
89,544
Fair Value Option
The Company has elected the fair value option for mortgage loans held for sale primarily to ease the operational burden required to maintain hedge accounting for these loans. The Company also has opted for the fair value option for the SBA servicing asset, as it is the industry-preferred method for valuing such assets.
The following table summarizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale and the changes in fair value of these loans:
Fair value
Unpaid principal balance
66,815
59,371
Fair value less aggregated unpaid principal balance
1,923
2,029
Changes in Level 1, 2 and 3 Fair Value Measurements
There were no changes in hierarchy classifications of Level 3 assets or liabilities for the six months ended June 30, 2026. A reconciliation of the beginning and ending balances of the MSRs recorded at fair value on a recurring basis for the six months ended June 30, 2026, is as follows. The changes in fair value of the MSRs are recorded in Mortgage Banking Income on the Consolidated Statements of Income.
MSRs
Fair value, January 1, 2026
Servicing assets that resulted from transfers of financial assets
3,517
Changes in fair value due to valuation inputs or assumptions
9,320
Changes in fair value due to decay
(5,427)
Fair value, June 30, 2026
A reconciliation of the beginning and ending balances of the SBA servicing asset, a Level 3 asset recorded at fair value on a recurring basis for the period ending June 30, 2026, is as follows. The changes in fair value of the SBA servicing asset are recorded in in SBA Income on the Consolidated Statements of Income.
SBA Servicing Asset
(858)
There were no unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at June 30, 2026.
See Note 17 — Mortgage Loan Servicing, Obligation, and Loans Held for Sale for information about recurring Level 3 fair value measurements of mortgage servicing rights.
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis
The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis:
OREO
Individually evaluated loans
244,506
8,771
328,452
For an individually evaluated loan, the fair value of collateral is measured based on appraisal or third-party valuation when the loan is placed on nonaccrual. For OREO and bank properties held for sale, the fair value is initially recorded based on external appraisals at the time of transfer. These assets recorded at fair value on a nonrecurring basis are updated on at least an annual basis.
Quantitative Information about Level 3 Fair Value Measurement
Weighted Average Discount
Valuation Technique
Unobservable Input
Nonrecurring measurements:
Discounted appraisals and discounted cash flows
Collateral discounts
OREO and Bank properties held for sale
Discounted appraisals
Collateral discounts and estimated costs to sell
Fair Value of Financial Instruments
The estimated fair value, and related carrying amount, of our financial instruments are as follows:
Level 1
Level 2
Level 3
Financial assets:
Cash and cash equivalents
Investment securities
8,606,205
287,033
8,239,219
79,953
406,234
Loans, net of allowance for credit losses
49,968,238
238,893
36,943
201,950
Interest rate swap – non-designated hedge
147,342
Other derivative financial instruments (mortgage banking related)
1,547
Financial liabilities:
Interest-bearing other than time deposits
35,038,294
7,840,476
Federal funds purchased and securities sold under agreements to repurchase
569,486
669,627
299,995
34,948
606,404
8,400,034
274,730
8,046,606
78,698
348,381
47,378,022
233,265
35,302
197,963
221,835
1,051
34,410,867
7,347,648
618,215
683,772
48,972
554,433
32
Note 13 — Accumulated Other Comprehensive Income (Loss)
The changes in each component of accumulated other comprehensive income (losses), net of tax, for the three and six months ended June 30, 2026 and 2025, were as follows:
Unrealized Losses
Benefit
on Securities
Plans
Balance at March 31, 2026
565
(326,674)
Other comprehensive income before reclassifications
Net comprehensive income
Balance at June 30, 2026
(310,700)
Balance at March 31, 2025
578
(377,245)
Balance at June 30, 2025
(372,687)
Balance at December 31, 2025
(283,946)
Other comprehensive loss before reclassifications
Net comprehensive loss
Balance at December 31, 2024
(607,499)
61,144
Amounts reclassified from accumulated other comprehensive loss
173,668
The table below presents the reclassifications out of accumulated other comprehensive income (loss), net of tax:
Amount Reclassified from Other Comprehensive Income (Loss)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
Accumulated Other Comprehensive Loss Component
Income StatementLine Item Affected
Loss on sale of available for sale securities:
Total reclassifications for the period
33
Note 14 — Derivative Financial Instruments
The Company uses certain derivative instruments to meet the needs of customers as well as to manage the interest rate risk associated with certain transactions. Additional information regarding our Company’s derivative strategy and related programs are described in Note 26 to the Consolidated Financial Statements included in the 2025 Form 10-K.
The following table summarizes the derivative financial instruments used by the Company as of June 30, 2026, and December 31, 2025:
Balance Sheet
Notional
Estimated Fair Value
Location
Gain
Fair value hedge of interest rate risk:
Pay fixed rate swap with counterparty
Other Assets
2,615
62
44
Not designated hedges of interest rate risk:
Customer related interest rate contracts:
Matched interest rate swaps with borrowers
Other Assets and Other Liabilities
15,923,186
58,347
14,912,622
143,879
Matched interest rate swaps with counterparty (1)
15,575,461
88,952
14,719,305
77,799
Economic hedges of interest rate risk:
Pay floating rate swap with counterparty
2,812,000
(19)
2,519,000
Not designated hedges of interest rate risk – mortgage banking activities:
Contracts used to hedge mortgage servicing rights
264,000
338
192,000
Contracts used to hedge mortgage pipeline
108,500
1,209
81,000
982
Total derivatives
34,685,762
32,426,542
The following table summarizes the derivative assets and derivative liabilities related to the counterparties on our interest rate swaps subject to master netting agreements where the Company has elected to net the fair values. The Company has elected to not offset cash collateral against the netted derivative assets and liabilities subject to master netting agreements.
Interest rate contracts subject to master netting agreements included in table above
Total gross derivative instruments, before netting
1,693,908
86,424
1,232
1,844,842
81,240
3,781
Less: Netting adjustment
126,791
(1,232)
221,941
(3,781)
Total gross derivative instruments, after netting
85,192
77,459
Balance Sheet Fair Value Hedge
As of June 30, 2026, and December 31, 2025, the Company maintained loan swaps, with an aggregate notional amount of $2.6 million accounted for as fair value hedges. The amortized cost basis of the loans being hedged were $2.6 million as of June 30, 2026, and December 31, 2025.
Non-designated Hedges of Interest Rate Risk
Customer Swap
The Company offers interest rate swaps to certain customers to enable them to convert variable-rate loan payments to fixed-rate and simultaneously enters into an offsetting swap with a third-party counterparty. As these interest rate swaps do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2026, and December 31, 2025, the interest rate swaps had an aggregate notional amount of approximately $31.5 billion and $29.6 billion, respectively. At June 30, 2026, the fair value of the interest rate swap derivatives is recorded in Other Assets at $147.3 million and in Other Liabilities at $606.4 million. The fair value of derivative assets at June 30, 2026, was reduced by $461.4 million in variation margin payments applicable to swaps centrally cleared through LCH and CME. At December 31, 2025, the fair value of the interest rate swap derivatives was recorded in Other Assets at $221.7 million and Other Liabilities at $554.4 million. The fair value of derivative assets at December 31, 2025, was reduced by $333.7 million in variation margin payments applicable to swaps centrally cleared through LCH and CME. All changes in fair value are recorded through earnings within Correspondent and Capital Markets Income, a component of Noninterest Income on the Consolidated Statements of Income. There were net gains of $86,000 and $1.2 million recorded on these derivatives for the three and six months ended June 30, 2026, respectively. There was a net loss of $59,000 and $231,000 recorded on these derivatives for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, we provided $325.8 million of cash collateral on the customer swaps, which is included in Cash and Cash Equivalents on the Consolidated Balance Sheets as Deposits in Other Financial Institutions (Restricted Cash). We also provided $78.4 million in investment securities at market value as collateral on the customer swaps which is included in Investment Securities – available for sale on the Consolidated Balance Sheets. Counterparties provided $29.6 million of cash collateral to the Company to secure swap asset positions that were not centrally cleared, which is included in Interest-bearing Deposits within Total Liabilities on the Consolidated Balance Sheets.
Balance Sheet Economic Hedge
As of June 30, 2026 and December 31, 2025, the Company maintained an aggregate notional amount of $2.8 billion and $2.5 billion, respectively, in short-term interest rate hedges that were accounted for as economic hedges. These derivatives protect the Company from interest rate risk caused by changes in the term and daily SOFR accrual mismatches. The fair value of these hedges is recorded in either Other Assets or in Other Liabilities depending on the position of the hedge with the offset recorded in Correspondent Banking and Capital Market Income, a component of Noninterest Income on the Consolidated Statements of Income. There were no material net income impacts for these derivatives for three and six month ended June 30, 2026 or 2025.
Mortgage Banking
The Company uses certain derivatives in connection with its mortgage banking activities, primarily to manage exposure related to mortgage servicing rights and the mortgage loan pipeline. The Company does not designate these instruments as accounting hedges.
Mortgage Servicing Rights (“MSRs”)
On June 30, 2026, we had derivative financial instruments outstanding with notional amounts totaling $264.0 million related to MSRs, compared to $192.0 million on December 31, 2025. The estimated net fair value of the open contracts related to the MSRs was a gain of $338,000 at June 30, 2026, compared to a gain of $69,000 at December 31, 2025.
Mortgage Pipeline
The following table presents our notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline related to the held for sale portfolio:
Mortgage loan pipeline
92,055
55,318
Expected closures
80,637
48,106
Fair value of mortgage loan pipeline commitments
Forward sales commitments
Fair value of forward commitments
(261)
(315)
Note 15 — Capital Ratios
The following table presents actual and required capital ratios as of June 30, 2026, and December 31, 2025 for the Company and the Bank under the current capital rules.
The following table presents actual and required capital ratios as of June 30, 2026, and December 31, 2025, for the Company and the Bank under the current capital rules.
Required to be
Minimum Capital
Considered Well
Actual
Required – Basel III
Capitalized
Ratio
Capital Amount
Common equity Tier 1 to risk-weighted assets:
Consolidated
6,096,084
11.12
3,836,103
7.00
3,562,095
6.50
SouthState Bank (the Bank)
6,663,891
12.17
3,834,053
3,560,192
Tier 1 capital to risk-weighted assets:
4,658,125
8.50
4,384,117
8.00
4,655,636
4,381,775
Total capital to risk-weighted assets:
7,394,701
13.49
5,754,154
10.50
5,480,147
10.00
7,266,907
13.27
5,751,080
5,477,219
Tier 1 capital to average assets (leverage ratio):
9.39
2,596,800
4.00
3,246,000
5.00
10.28
2,592,383
3,240,478
5,885,568
11.36
3,625,944
3,366,948
6,496,379
12.54
3,625,076
3,366,142
4,402,932
4,143,936
4,401,878
4,142,944
7,166,829
13.84
5,438,915
5,179,920
7,082,039
13.68
5,437,614
5,178,680
9.26
2,543,294
3,179,117
10.22
2,542,489
3,178,111
As of June 30, 2026, and December 31, 2025, the capital ratios of the Company and the Bank were in excess of the minimum regulatory requirements and exceeded the thresholds for the “well capitalized” regulatory classification. For a description of the Company’s regulatory capital framework, refer to Note 24 and Item 1, “Business,” in the 2025 Form 10-K.
Note 16 — Goodwill and Other Intangible Assets
The carrying amount of goodwill was $3.1 billion, at June 30, 2026, and December 31, 2025. The Company’s other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet.
The Company last completed its annual valuation of the carrying value of its goodwill as of October 31, 2025 and determined it was more likely than not there was no impairment of the Company’s goodwill. Management continues to monitor the impact of market conditions on the Company’s business, operating results, cash flows and/or financial condition.
The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets:
Gross carrying amount
688,862
689,419
Accumulated amortization
(345,438)
(303,093)
Amortization expense totaled $21.0 million and $42.3 million, for the three and six months ended June 30, 2026, respectively, compared to $24.0 million and $47.9 million for the three and six months ended June 30, 2025, respectively. Other intangibles, except for SBA servicing assets which are carried at fair value, are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between two and 15 years. The SBA servicing assets are carried at fair value and along with goodwill, are not amortized.
Estimated amortization expense for other intangibles for each of the next five quarters is as follows:
Quarter ending:
September 30, 2026
20,628
December 31, 2026
March 31, 2027
18,517
June 30, 2027
18,188
September 30, 2027
17,777
242,731
338,469
Note 17 — Mortgage Loan Servicing, Origination, and Mortgage Loans Held for Sale
The portfolio of residential mortgages serviced for others, which is not included in the accompanying Consolidated Balance Sheets, was $6.5 billion and $6.6 billion, respectively, as of June 30, 2026, and December 31, 2025. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts and disbursing payments to investors. The amounts of contractually specified servicing fees we earned during the three and six months ended June 30, 2026, and June 30, 2025, were $4.1 million, $8.3 million and $4.2 million, $8.5 million, respectively. Servicing fees are recorded in Mortgage Banking Income in our Consolidated Statements of Income.
At June 30, 2026, and December 31, 2025, MSRs were $91.4 million and $84.0 million on our Consolidated Balance Sheets, respectively. MSRs are recorded at fair value with changes in fair value recorded as a component of Mortgage Banking Income in the Consolidated Statements of Income. The market value adjustments related to MSRs recorded in Mortgage Banking Income for the three and six months ended June 30, 2026, and June 30, 2025, were gains of $2.8 million and $9.3 million compared with losses of $1.7 million and $4.8 million, respectively. The Company has used various free standing derivative instruments to mitigate the income statement effect of changes in fair value resulting from changes in market value adjustments, in addition to changes in valuation inputs and assumptions related to MSRs.
See Note 14 — Fair Value for the changes in fair value of MSRs. The following table presents the changes in the fair value of the MSR and offsetting hedge.
Increase/(decrease) in fair value of MSRs
2,756
(1,689)
9,319
(4,770)
Decay of MSRs
(3,222)
(2,284)
(3,312)
(Loss) gain related to derivatives
(2,203)
(3,929)
3,588
Net effect on Consolidated Statements of Income
(2,669)
(2,725)
(37)
(4,494)
The characteristics and sensitivity analysis of the MSRs are included in the following table:
Composition of residential loans serviced for others
Fixed-rate mortgage loans
100.0
Adjustable-rate mortgage loans
Weighted average life
7.6
years
7.5
Constant Prepayment rate (CPR)
7.9
Estimated impact on fair value of a 10% increase
(1,179)
(1,082)
Estimated impact on fair value of a 20% increase
(2,423)
(2,101)
Estimated impact on fair value of a 10% decrease
1,239
1,142
Estimated impact on fair value of a 20% decrease
2,535
2,333
Weighted average discount rate
9.5
10.7
(3,784)
(3,140)
(7,268)
(6,208)
4,120
3,105
8,620
5,982
Effect on fair value due to change in interest rates
25 basis point increase
3,303
2,505
50 basis point increase
6,481
4,822
25 basis point decrease
(3,300)
(2,599)
50 basis point decrease
(6,556)
(5,128)
37
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the residential MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by the Company would serve to reduce the estimated impacts to fair value included in the table above.
Mortgage loan sales were $218.8 million and $415.3 million for the three and six months ended June 30, 2026, respectively, compared to $262.7 million and $544.0 million for the three and six months ended June 30, 2025, respectively. For the three and six months ended June 30, 2026, the Bank sold $145.4 million and $271.9 million, or 66.5% and 65.5%, respectively, with the servicing rights retained by the Bank, compared to $175.4 million and $340.2 million, or 66.8% and 62.5%, respectively, for the three and six months ended June 30, 2025.
The Bank retains no beneficial interests in these sales but may retain the servicing rights for the loans sold. The risks related to the sold loans with the retained servicing rights due to a representation or warranty violation such as noncompliance with eligibility or servicing requirements, or customer fraud, that should have been identified in a loan file review are disclosed in Note 1 — Summary of Significant Accounting Policies, under the “Loans Held for Sale” section, of the Company’s 2025 Form 10-K.
Mortgage loans held for sale have historically been comprised of residential mortgage loans awaiting sale in the secondary market, which generally settle in 15 to 45 days. Mortgage loans held for sale were $68.7 million and $61.4 million at June 30, 2026, and December 31, 2025, respectively. Please see Note 12 — Fair Value, under the “Fair Value Option”, section in this Quarterly Report on Form 10-Q for summary of the fair value and the unpaid principal balance of loans held for sale and the changes in fair value of these loans.
Note 18 — Small Business Administration (“SBA”) Loans Held for Sale
The Company purchases the guaranteed portions of SBA loans from third-party originators. The guaranteed portions of SBA loans purchased by the Company are aggregated into pools with similar characteristics to create a security representing an interest in those pools through the SBA’s fiscal transfer agent (“FTA”). The individual guaranteed portions of the SBA loans may also be sold prior to pooling into a security. The guaranteed portion of the SBA loans are pooled and securities representing interests in that pool are issued, the Company sells the pooled securities into the secondary market.
At June 30, 2026 and 2025, the Company held approximately $336.7 million and $247.9 million, respectively, of the guaranteed portion of SBA loans for sale. The following table details additional SBA activity for the periods presented.
SBA loan purchases - guaranteed portion
313,008
235,722
659,673
686,586
SBA security pools created - guaranteed portion
233,105
194,255
SBA security pools sold into the secondary market
219,145
160,207
513,362
481,197
SBA individual loans sold
3,960
43,411
38,609
58,829
The Company also separately originates SBA loans and sells the guaranteed portions of these loans into the secondary market. The following table details the guaranteed portion of SBA loans for the periods presented.
SBA loan originations - guaranteed portion sold
6,209
20,010
14,492
42,626
Gains recognized on sales
581
1,728
1,329
3,752
Note 19 — Short-Term Borrowings
Securities Sold Under Agreements to Repurchase (“Repurchase agreements”)
Repurchase agreements represent funds received from customers, generally on an overnight or continuous basis, which are collateralized by investment securities owned or, at times, borrowed and re-hypothecated by the Company. At June 30, 2026, and December 31, 2025, our repurchase agreements totaled $283.2 million and $311.4 million, respectively. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a market value of $326.7 million and $331.5 million at June 30, 2026, and December 31, 2025, respectively. Declines in the value of the collateral would require us to increase the amounts of securities pledged.
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Borrowing
The Company has, from time to time, entered into borrowing agreements with the FHLB and FRB. Borrowings under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, investment securities, and commercial real estate loans under a blanket-floating lien.
As of June 30, 2026, and December 31, 2025, the Company had $300.0 million and $0 outstanding FHLB borrowings, respectively. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at June 30, 2026, were approximately $9.2 billion (collateral value of $5.8 billion) and investment securities and cash pledged were approximately $27.1 million (collateral value of $19.4 million). This allows the Company a total borrowing capacity at the FHLB of approximately $5.8 billion. After accounting for the secured collateral required totaling $17.8 million and $300.0 million in outstanding FHLB advances, the Company had unused net credit available with the FHLB in the amount of approximately $5.5 billion at June 30, 2026. The Company also has a total borrowing capacity at the FRB of $11.7 billion at June 30, 2026, secured by a blanket lien on $15.5 billion (collateral value of $11.7 billion) in net eligible loans of the Company. The Company had no outstanding borrowings with the FRB at June 30, 2026, or December 31, 2025.
Note 20 — Stock Repurchase Program
On January 21, 2026, the Board of Directors of the Company approved a stock repurchase plan for the repurchase of up to 5,560,000 shares of the Company’s common stock (the “2026 Repurchase Plan”). The 2026 Repurchase Plan replaces the Company’s 2025 Repurchase Plan, under which 560,000 shares remained available for repurchase. The 2025 Repurchase Plan was cancelled in connection with the Board’s approval of the 2026 Repurchase Plan. During the six months ended June 30, 2026, the Company repurchased a total of 2,500,000 shares at a weighted average price of $99.58 per share (including commission paid) pursuant to the 2026 Repurchase Plan. Based on the shares repurchased through the 2026 Repurchase Plan during 2026, the Company accrued an estimated excise tax of approximately $2.2 million at June 30, 2026 to be paid in 2027. This excise tax of 1% on the fair market value of corporate stock repurchased was enacted under the Inflation Reduction Act of 2022 for stock repurchases and is recorded against surplus in shareholders’ equity when accrued. During the six months ended of 2025, the Company did not repurchase any shares pursuant to the 2025 Repurchase Plan.
The Company repurchased 92,609 and 110,797 shares at a cost of $9.4 million and $11.3 million, respectively, during the six months ended June 30, 2026, and 2025 under other arrangements whereby directors or officers surrender shares to the Company to cover the option cost for stock option exercises or tax liabilities resulting from the vesting of restricted stock awards or restricted stock units.
Note 21 — Segment Reporting
The table below provides net income and net interest margin information about the General Banking Unit. The most significant expenses to the General Banking Unit are deposit and other borrowing interest expense as well as employee compensation. For a description of the Company’s reportable segments and related framework, refer to Note 29 to the Consolidated Financial Statements in the Company’s 2025 Form 10-K.
Net Income (GAAP)
Interest expense
Net interest income (a)
Securities (losses) gain, net
Other operating noninterest income
172,437
Employee salaries
144,142
135,895
286,612
271,623
Employee commissions
19,221
14,278
35,333
25,554
Employee incentives
34,119
33,623
63,776
62,389
Other salaries and benefits
35,872
36,353
73,442
73,318
Deferred loan costs
(27,977)
(19,987)
(48,133)
(36,911)
Business development and staff related
10,639
7,182
22,001
13,692
Merger and branch consolidation related expense
Other operating expense
31,835
31,501
65,538
63,347
Income before income tax provision
Income tax provision
Net income (GAAP)
Net Interest Margin, Non-Tax Equivalent ("Non-TE") (GAAP)
Average interest earning assets (b)
61,133,759
57,710,001
60,670,045
57,604,313
Net interest margin, non-TE ((a)/(b)) (GAAP)
3.78%
4.02%
3.93%
Note 22 — Subsequent Events
On July 23, 2026, the Company announced the Board of Directors of the Company increased its quarterly cash dividend on its common stock from $0.60 per share to $0.66 per share. The dividend is payable on August 14, 2026, to shareholders of record as of August 7, 2026.
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) relates to the financial statements contained in this Quarterly Report beginning on page 3. For further information, refer to the MD&A appearing in the Annual Report on Form 10-K for the year ended December 31, 2025. The MD&A section in this Form 10-Q discusses updates to the Company’s business since the year ended December 31, 2025. Results for the three and six months ended June 30, 2026, are not necessarily indicative of the results for the year ending December 31, 2026, or any future period.
Unless otherwise mentioned or unless the context requires otherwise, references to “SouthState,” the “Company,” “we,” “us,” “our” or similar references mean SouthState Bank Corporation and its consolidated subsidiaries. References to the “Bank” means SouthState Bank Corporation’s wholly owned subsidiary, SouthState Bank, National Association, a national banking association.
Overview
SouthState Bank Corporation is a financial holding company headquartered in Winter Haven, Florida. We provide a wide range of banking services and products to our customers through our Bank. There have been no material changes to the Company’s business or organizational structure during the six months ended June 30, 2026, except as described below. During the second quarter of 2026, the Company completed the legal dissolution of one of its subsidiaries, SSB Insurance Corp., a captive insurance subsidiary pursuant to Section 831(b) of the U.S. Tax Code. The Company’s business structure remains otherwise unchanged.
At June 30, 2026, we had approximately $68.9 billion in assets and 6,431 full-time equivalent employees. Through our Bank branches, ATMs and online banking platforms, we provide our customers with a wide range of financial products and services, through an eight (8) state footprint in Alabama, Colorado, Florida, Georgia, North Carolina, South Carolina, Texas, and Virginia.
The following discussion describes our results of operations for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, and also analyzes our financial condition as of June 30, 2026, as compared to December 31, 2025.
Recent Events
Governmental and Regulatory Environment
We continue to assess regulatory and other changes being made by the Trump Administration and its impact on our business. This includes the impact of the Iran conflict, immigration reform, tariff changes and changes in regulation and supervision, including the proposal, modification, rescission, or withdrawal of regulation or guidance, or changes in supervisory approaches and enforcement of rules and guidance applicable to us, including those described below.
On March 19, 2026, the Federal Reserve, OCC and FDIC jointly issued two joint notices of proposed rulemaking to modernize the U.S. regulatory capital framework. The proposals include a new expanded risk-based approach to calculating risk-weighted assets, which applies to the largest and most internationally active banks, and revisions to the existing standardized approach to calculating risk-based assets, which applies to Category III and IV institutions and smaller banking organizations, such as the Bank (the “Standardized Approach Proposal”). The Standardized Approach Proposal would improve the calibration and risk sensitivity of risk weights. The timing and content of any final rules, and the potential effects of any final rules on the Bank, remain uncertain.
Critical Accounting Policies
Our consolidated financial statements are prepared based on the application of accounting policies in accordance with GAAP and follow general practices within the banking industry. Our financial position and results of operations are affected by management’s application of accounting policies, including estimates, assumptions and judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues and expenses. Differences in the application of these policies could result in material changes in our consolidated financial position and consolidated results of operations and related disclosures. Understanding our accounting policies is fundamental to understanding our consolidated financial position and consolidated results of operations. There have been no material changes to those policies during the six months ended June 30, 2026, except as described below.
Allowance for Credit Losses (ACL)
SouthState utilizes economic forecasts provided by a third-party service provider and applies probability weightings to multiple economic scenarios based on management's assessment of economic and market conditions. As a sensitivity analysis, applying a 100% weighting to the adverse scenario would increase the ACL by approximately $176 million, while applying a 100% weighting to the upside scenario would decrease the ACL by approximately $122 million. The adverse scenario reflects recessionary economic conditions, while the upside scenario reflects stronger-than-expected economic performance. This analysis is hypothetical and does not represent management's estimate of expected credit losses as of June 30, 2026.
Results of Operations
We reported consolidated net income of $230.0 million, or diluted earnings per share (“EPS”) of $2.35, for the second quarter of 2026 compared to consolidated net income of $215.2 million, or diluted EPS of $2.11, in the comparable period of 2025, a 6.9% increase in consolidated net income and a 11.4% increase in diluted EPS. During the six months ended June 30, 2026, we reported consolidated net income of $455.8 million, or diluted EPS of $4.64, compared to consolidated net income of $304.3 million, or diluted EPS of $2.99, in the comparable period of 2025, a 49.8% increase in consolidated net income and a 55.2% increase in diluted EPS. The $14.8 million increase in consolidated net income for the second quarter of 2026 compared to the same period of 2025 was the net result of the following items:
42
Our quarterly efficiency ratio improved to 50.0% in the second quarter of 2026 compared to 52.7% in the second quarter of 2025. The improvement in the efficiency ratio compared to the second quarter of 2025 was the result of a 4.1% decrease in noninterest expense (excluding amortization of intangibles) and a 1.2% increase in the total tax-equivalent net interest income and noninterest income. The decrease in noninterest expense was mainly due to a decline in merger related expenses related to the Independent acquisition completed in the first quarter of 2025. The increase in the total of tax-equivalent net interest income and noninterest income was mainly due to an increase in investment securities interest income of $7.2 million, an increase in service charges and fees on deposit accounts of $3.7 million and an increase in correspondent banking and capital markets income of $7.0 million.
Basic and diluted EPS were $2.36 and $2.35, respectively, for the second quarter of 2026, compared to $2.12 and $2.11, respectively, for the second quarter of 2025. The increase in basic and diluted EPS was due to a 6.9% increase in net income in the second quarter of 2026 compared to the same period in 2025 and a decrease in average basic common shares of 4.1%. The increase in net income in the second quarter of 2026 was mainly attributable to an increase in non-interest income of $9.9 million and a $17.3 million decline in non-interest expense. The decrease in average basic common shares was mainly due to the Company repurchasing approximately 4.9 million shares through the Company’s stock buyback plan since June 30, 2025.
Selected Figures and Ratios
The following table presents selected financial figures and ratios for the three and six months ended June 30, 2026 and 2025:
Return on average assets (annualized)
1.36
1.34
0.95
Return on average equity (annualized)
10.19
9.93
10.15
7.17
Return on average tangible equity (annualized)*
17.62
18.17
17.60
13.73
Dividend payout ratio
25.31
25.47
25.71
36.00
Equity to assets ratio
13.25
13.36
Average shareholders’ equity
9,053,100
8,692,582
9,055,153
8,556,105
Net Interest Income and Margin
Net interest income is the Company’s principal source of income and a key driver of overall financial performance. Net interest income and net interest margin are affected by the level and mix of interest-earning assets and interest-bearing liabilities, as well as changes in long-term and short-term market interest rates. Since the second quarter of 2025, the Federal Reserve reduced the target federal funds rate by a total of 75 basis points, lowering the target federal funds rate range to 3.50% to 3.75% as of June 30, 2026. Accordingly, interest rate conditions during the second quarter of 2026 were lower compared to the second quarter of 2025, impacting both asset yields and funding costs.
The decline in non-tax equivalent and the Tax Equivalent (“TE”) net interest margin of 24 basis points in the second quarter of 2026 compared to the same quarter of 2025 primarily reflected lower yields on interest‑earning assets, driven by reduced loan accretion income and a lower interest rate environment, partially offset by lower funding costs and balance‑sheet mix changes.
The tables below summarize the analysis of changes in interest income and interest expense for the three and six months ended June 30, 2026, and 2025 and net interest margin on a tax equivalent basis:
Balance
Earned/Paid
Yield/Rate
Interest-Earning Assets:
1,386,864
3.54
1,884,133
4.22
Investment securities (taxable) (1)
8,212,365
3.57
7,680,130
3.56
Investment securities (tax-exempt) (1)
1,000,994
3.32
833,309
286,422
4,602
6.44
283,017
4,829
6.84
Acquired loans, net
13,058,669
217,584
6.68
16,585,942
302,259
7.31
37,188,445
522,466
5.64
30,443,470
439,360
5.79
Total interest-earning assets
5.50
5.84
Noninterest-Earning Assets:
560,843
585,975
6,719,415
6,882,510
Allowance for credit losses
(585,851)
(627,605)
Total noninterest-earning assets
6,694,407
6,840,880
Total Assets
67,828,166
64,550,881
Interest-Bearing Liabilities:
Transaction and money market accounts
32,098,340
180,220
2.25
28,986,998
173,481
2.40
Savings deposits
2,817,269
1,638
0.23
2,921,780
2,012
0.28
Certificates and other time deposits
7,184,745
62,358
3.48
7,177,451
66,100
3.69
289,337
2,616
3.63
360,588
3,943
4.39
Securities sold with agreements to repurchase
293,341
1,477
2.02
287,341
1,462
2.04
696,713
7.21
821,542
7.60
154,947
3.84
Total interest-bearing liabilities
43,534,692
2.42
40,555,703
2.60
Noninterest-Bearing Liabilities:
Demand deposits
13,521,146
13,643,265
1,719,228
1,659,331
Total noninterest-bearing liabilities (“Non-IBL”)
15,240,374
15,302,596
Shareholders’ equity
Total Non-IBL and shareholders’ equity
24,293,474
23,995,178
Total Liabilities and Shareholders’ Equity
Net Interest Income and Margin (Non-Tax Equivalent)
3.78
4.02
Net Interest Margin (Tax Equivalent)
Total Deposit Cost (without debt and other borrowings)
1.76
1.84
Overall Cost of Funds (including demand deposits)
1.94
1,632,577
3.46
2,041,094
4.19
8,235,859
7,533,730
3.26
981,507
3.19
886,395
3.11
254,928
8,333
6.59
229,224
8,507
7.48
13,460,345
449,855
6.74
16,911,413
614,318
7.33
36,104,829
1,008,034
5.63
30,002,457
848,263
5.70
5.77
546,326
584,462
6,748,249
6,840,917
(584,284)
(611,799)
6,710,291
6,813,580
67,380,336
64,417,893
31,800,744
352,673
2.24
29,117,282
350,430
2.43
2,819,875
3,280
2,913,417
3,956
0.27
7,199,982
126,785
3.55
7,171,354
133,164
3.74
292,256
3.62
342,096
7,422
4.38
306,533
3,037
2.00
292,793
2,892
696,655
7.24
787,166
7.19
77,902
29,701
4.40
43,193,947
40,653,809
2.61
13,440,627
13,568,711
1,690,609
1,639,268
15,131,236
15,207,979
24,186,389
23,764,084
3.93
3.79
Total deposit cost (without debt and other borrowings)
1.86
1.96
The interest earned on investment securities increased in the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to a higher average balance in investment securities and a modest increase in the yield on the investment portfolio. The average balance of investment securities for the three and six months ended June 30, 2026 increased by approximately $699.9 million and $797.2 million, respectively, compared to the same periods in 2025. The Company has increased the size of the investment securities portfolio commensurate with the growth in the balance sheet. The improvement in the yield, as well as a shortened duration of the investment portfolio is a result of the reinvestment and repositioning strategies executed in the first quarter of 2025.
Interest earned on loans held for investment decreased slightly during the three and six months ended June 30, 2026, from the comparable periods in 2025. Some key highlights for the quarter ended June 30, 2026, are outlined below:
Interest-Bearing Liabilities
The quarter-to-date average balance of interest-bearing liabilities increased in the second quarter of 2026 compared to the same period in 2025, while the cost of interest-bearing liabilities decreased, reflecting lower market interest rates across most deposit and borrowing categories. Some key highlights for the quarter ended June 30, 2026, compared to the same period in 2025 include:
We continue to monitor and adjust rates paid on deposit products as part of our strategy to manage our net interest margin. Interest-bearing liabilities include interest-bearing transaction accounts, savings deposits, CDs, other time deposits, federal funds purchased, and other borrowings. Interest-bearing transaction accounts include NOW, HSA, Interest on Lawyers’ Trust Accounts (“IOLTA”), and Market Rate checking accounts.
Noninterest-Bearing Deposits
Noninterest-bearing deposits are transaction accounts that provide our Bank with “interest-free” sources of funds. Average noninterest-bearing deposits decreased $122.1 million, or 0.9%, to $13.5 billion in the second quarter of 2026 compared to $13.6 billion during the same period in 2025. The decrease in the average balance of noninterest bearing deposits primarily reflects a continued shift in customer funds to interest‑bearing transactional and money market deposit accounts.
Noninterest Income
Noninterest income provides us with additional revenues that are significant sources of income. For the three months ended June 30, 2026, and 2025, noninterest income comprised 14.4%, and 13.1%, respectively, of total net interest income and noninterest income. For the six months ended June 30, 2026, and 2025, noninterest income comprised 14.8%, and 13.3%, respectively, of total net interest income and noninterest income.
Service charges on deposit accounts
26,838
24,667
52,578
49,619
Debit, prepaid, ATM and merchant card related income
14,730
13,202
27,689
24,183
Bank owned life insurance income
9,624
9,153
19,118
19,352
3,405
3,243
6,896
7,285
Noninterest income increased during the second quarter of 2026 compared to the same period in 2025. This quarterly change in total noninterest income resulted from the following:
Noninterest income increased during the six months ended June 30, 2026 compared to the same period in 2025. The categories and explanations for the fluctuations year-to-date, except the items discussed below, are similar to the ones noted above in the quarterly comparison.
Noninterest Expense
Business development and staff related expense
23,162
22,226
45,908
46,870
Noninterest expense decreased by $17.3 million, or 4.6%, in the second quarter of 2026 compared to the same period in 2025, primarily resulted from the following expenses:
Noninterest expense decreased by $66.6 million, or 8.5%, during the six months ended June 30, 2026, compared to the same period in 2025. The categories and explanations for the year-to-date fluctuations are generally consistent with those discussed in the quarterly comparison above, except as noted below.
Income Tax Expense
Our effective tax rate was 23.07% for the three months ended June 30, 2026, compared to 23.73% for the three months ended June 30, 2025. The decrease in the effective rate for the quarter, when compared to the same period in the prior year, was driven primarily by higher non-deductible executive compensation, as well as non-deductible merger expenses related to the acquisition of Independent in 2025 compared to 2026. In addition, there was an increase in tax-exempt interest income in the current quarter compared to the same period in 2025. This was partially offset by an increase in pre-tax book income in the second quarter of 2026 compared to the second quarter of 2025.
Our effective tax rate for the first six months of the year was 22.79% compared to 24.57% for the first six months of 2025. The decrease in the year-to-date effective tax rate compared to the same period of 2025 was due primarily to a reduction in non-deductible executive compensation, an increase in tax-exempt interest income and a decrease in non-deductible FDIC premiums. In addition to these items, there was a $5.6 million remeasurement of the Company’s deferred tax balances resulting from the acquisition of Independent in the first quarter of 2025.
Segment Reporting
As discussed in Note 21 — Segment Reporting, the Company’s operations are managed and financial performance is evaluated on an organization-wide basis, and the Company’s banking and finance operations are considered by management to constitute one reportable operating segment, the General Banking Unit. There have been no material changes to the Company’s segment structure during the six months ended June 30, 2026.
The table below provides PPNR and TE NIM information of the General Banking Unit.
Pre-Provision Net Revenue and Tax Equivalent Net Interest Margin
(Dollars and shares in thousands except for per share amounts)
PPNR (Non-GAAP)
Net Income (GAAP) (a)
Plus:
PPNR (Non-GAAP) (b)
314,926
289,704
617,105
511,513
PPNR, Adjusted (Non-GAAP)
Less:
Gain on sale leaseback, net of transaction costs
(229,279)
PPNR, adjusted (Non-GAAP) (d)
314,083
603,430
PPNR per Share (Non-GAAP)
Diluted weighted-average common share outstanding (c)
Earnings per common share - Diluted ((a)/(c)) (GAAP)
PPNR per share ((b)/(c)) (Non-GAAP)
3.22
2.84
6.28
5.02
Adjusted PPNR per Share (Non-GAAP)
Adjusted PPNR per share ((d)/(c)) (Non-GAAP)
3.08
5.93
Net Interest Margin, Tax Equivalent ("TE") (Non-GAAP)
Average interest earning assets (e)
Net interest income (f)
Net interest margin, non-TE ((f)*/(e)) (GAAP)
TE adjustment (g)
751
672
1,511
Net interest margin, TE (((f)+(g))*/(e)) (Non-GAAP)
3.79%
49
Analysis of Financial Condition
Summary
Our total assets increased approximately $1.7 billion, or 2.5%, from December 31, 2025, to June 30, 2026, to approximately $68.9 billion. Within total assets, cash and cash equivalents decreased by $822.2 million, or 25.9%, and net loans increased $2.2 billion, or 4.7%, while investment securities increased $205.7 million, or 2.4%, during the period. Within total liabilities, deposits grew $1.2 billion, or 2.2%, and federal funds purchased and securities sold under agreements to repurchase decreased by $48.7 million, or 7.9%. Total corporate and subordinated debentures and other borrowings increased by $300.2 million, or 43.1%. Total shareholder’s equity increased $72.4 million, or 0.8%. The decrease in cash and cash equivalents was due to the funding of investment securities and loan growth in the first half of 2026. The increase in deposits was mainly related to an $871.8 million increase in interest-bearing checking accounts and a $501.2 million increase in time deposits. The increase in loans was driven by organic growth. Our loan to deposit ratio was 90% and 88% at June 30, 2026 and December 31, 2025, respectively, while our percentage of noninterest-bearing deposit accounts to total deposits was 24% at both June 30, 2026, and December 31, 2025.
We use investment securities, our second largest category of earning assets, to generate interest income, provide liquidity, fund loan demand or deposit liquidation, and to pledge as collateral for public funds deposits, repurchase agreements, derivative exposures and to augment borrowing capacity at the Federal Reserve Bank of Atlanta, and the Federal Home Loan Bank of Atlanta. At June 30, 2026, investment securities totaled $8.9 billion, compared to $8.7 billion at December 31, 2025, an increase of $205.7 million, or 2.4%. The Bank purchased $2.4 billion of investment securities during the six months ended June 30, 2026 mostly from reinvesting funds provided by the paydowns, maturities and calls of investment securities. The increases in investment securities were partially offset by reductions from maturities, calls, sales and paydowns of investment securities totaling $2.1 billion and the net amortization of premiums of $5.6 million during the six months ended June 30, 2026. At June 30, 2026, approximately 74.0% of the investment portfolio was classified as available for sale, approximately 21.9% was classified as held to maturity and approximately 4.1% was classified as other investments.
At June 30, 2026, the unrealized net losses of the available for sale securities portfolio was $418.3 million, or 6.0%, below its amortized cost basis, compared to an unrealized net loss of $382.8 million, or 5.7%, at December 31, 2025. At June 30, 2026, the unrealized net loss of the held to maturity securities portfolio was $314.7 million, or 16.1%, below its amortized cost basis, compared to an unrealized net loss of $315.2 million, or 15.4%, at December 31, 2025.
The following is the combined amortized cost and fair value of investment securities available for sale and held for maturity, aggregated by credit quality indicator:
Net Loss
AAA – A
Not Rated
agencies or sponsored enterprises *
3,116,873
2,801,204
(315,669)
3,116,784
2,446,682
2,340,880
(105,802)
1,420,750
1,285,272
(135,478)
117,132
1,303,618
(125,867)
1,232,655
7,962
591,349
558,887
(32,462)
8,972,186
(732,967)
2,074,140
6,898,046
* Agency mortgage-backed securities (“MBS”), agency collateralized mortgage-obligations (“CMO”) and agency commercial mortgage-backed securities (“CMBS”) are guaranteed by the issuing government-sponsored enterprise (“GSE”) as to the timely payments of principal and interest. Except for Government National Mortgage Association securities, which have the full faith and credit backing of the United States Government, the GSE alone is responsible for making payments on this guaranty. While the rating agencies have not rated any of the MBS, CMO and CMBS issued, senior debt securities issued by GSEs are rated consistently as “Triple-A.” Most market participants consider agency MBS, CMOs and CMBSs as carrying an implied Aaa rating (S&P rating of AA+) because of the guarantees of timely payments and selection criteria of mortgages backing the securities. We do not own any private label mortgage-backed securities. The balances presented under the ratings above reflect the amortized cost of the investment securities.
At June 30, 2026, we had 1,129 investment securities including both available for sale and held to maturity, in an unrealized loss position, which totaled $747.0 million. At December 31, 2025, we had 1,073 investment securities, including both available for sale and held to maturity, in an unrealized loss position, which totaled $737.2 million. The total number of investment securities with an unrealized loss position increased by 56 securities, while the total dollar amount of the unrealized loss increased by $9.8 million. The increase in the number of securities in a loss position and level of unrealized losses during the quarter was mainly due to recent changes in market interest rates and lower expectations of future Federal Reserve Bank rate reductions.
All investment securities in an unrealized loss position as of June 30, 2026, continue to perform as scheduled. We have evaluated the securities and have determined that the decline in fair value, relative to its amortized cost, is not due to credit-related factors. In addition, we have the ability and intent to hold these securities within the portfolio until maturity or until the value recovers, and we believe that it is more likely than not that we will not be required to sell these securities prior to recovery. We continue to monitor all of our securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of our securities may be sold or would require a charge to earnings as a provision for credit losses in such periods. Any charges as a provision for credit losses related to investment securities could impact cash flow, tangible capital or liquidity.
As securities held for investment are purchased, they are designated as held to maturity or available for sale based upon our intent, which incorporates liquidity needs, interest rate expectations, asset/liability management strategies, and capital requirements. Although securities classified as available for sale may be sold from time to time to meet liquidity or other needs, it is not our normal practice to trade this segment of the investment securities portfolio. While management generally holds these assets on a long-term basis or until maturity, any short-term investments or securities available for sale could be converted at an earlier point, depending partly on changes in interest rates and alternative investment opportunities.
The following table presents a summary of our investment portfolio by contractual maturity and related yield as of June 30, 2026:
Due In
Due After
1 Year or Less
1 Thru 5 Years
5 Thru 10 Years
10 Years
Yield
Held to Maturity (amortized cost)
32,929
1.89
99,986
1.68
1.73
51,625
2.09
114,648
1.24
923,840
1.91
1.80
2.51
88,029
1.05
115,845
1.08
121,106
1.61
1.27
1.28
Total held to maturity
1.52
1.32
1.98
1.83
Available for Sale (fair value)
96
2.49
6,888
2.17
163,915
3.05
1,715,667
3.66
3.61
170
15,496
4.47
88,475
4.86
1,930,018
4.54
4.56
8,703
2.78
341,664
4.01
475,076
3.39
192,036
2.18
3.29
7,996
29,473
3.12
227,292
2.74
849,989
3.52
3.35
8,560
2.16
7,811
4.50
176,473
4.28
330,273
3.13
3.53
6.70
4.29
5.31
Total available for sale
2.76
3.47
3.88
3.81
Total other investments
583,851
3.27
1,473,880
6,837,661
3.40
3.31
Percent of total
81
Cumulative percent of total
100
Yields on tax exempt income have been presented on a taxable equivalent basis in the table above.
(2)
FRB, FHLB and other non-marketable equity securities have no set maturity date and are classified in “Due after 10 Years.”
The total values presented in the table above represent total fair value for available for sale and amortized cost for held to maturity.
Approximately 85.9% (based on amortized cost) of the investment portfolio (excluding other investment securities) is comprised of U.S. Treasury securities, U.S. Government agency securities, and U.S. Government Agency Mortgage-backed securities. These securities may be pledged to the Federal Home Loan Bank of Atlanta or the Federal Reserve Bank of Atlanta Discount Window. Approximately 13.8% (based on amortized cost) of the investment portfolio (excluding other investment securities) is comprised of municipal securities. A portion of the municipal bond portfolio may be pledged to the Federal Home Loan Bank of Atlanta subject to their credit approval. Approximately 99% of the municipal bond portfolio has ratings in the Single A or higher category.
As of June 30, 2026, the portfolio had an effective duration of 4.63 years. We continue to monitor duration risk and seek to align duration within our risk appetite.
The following table presents a summary of our investment portfolio duration for the periods presented:
(Dollars in thousands, duration in years)
Duration
5.19
5.62
5.98
6.06
6.63
4.78
5.05
5.76
5.99
5.97
4.30
4.43
2.85
2.54
4.55
7.73
7.79
2.22
2.19
0.39
0.51
Other Investments
Other investment securities include primarily our investments in FHLB and FRB stock with no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of June 30, 2026, we determined that there was no impairment on our other investment securities. As of June 30, 2026, other investment securities represented approximately $367.0 million, or 0.53% of total assets, and primarily consists of FHLB and FRB stock which totals $266.7 million, or 0.39% of total assets. There were no gains or losses on the sales of these securities for three and six months ended June 30, 2026, and 2025, respectively.
We have a trading portfolio associated with our Correspondent Banking Division and its subsidiary SouthState Securities. This portfolio is carried at fair value and realized and unrealized gains and losses are included in trading securities revenue, a component of Correspondent Banking and Capital Markets Income in our Consolidated Statements of Income. Securities purchased for this portfolio have primarily been municipal bonds, treasuries and mortgage-backed agency securities, which are held for short periods of time and totaled $191.1 million and $110.2 million at June 30, 2026, and December 31, 2025.
Loans Held for Sale
The balance of loans held for sale increased $60.1 million from December 31, 2025, to $405.4 million on June 30, 2026. Loans held for sale at June 30, 2026 and December 31, 2025 consisted of mortgage and SBA loans held for sale.
The Company purchases the guaranteed portions of SBA loans from third-party originators with the intent to aggregate the guaranteed portion of the SBA loans into pools with similar characteristics to create a security representing an interest in those pools through the SBA’s fiscal transfer agent. SBA loans held for sale totaled $336.7 million at June 30, 2026 compared to $283.9 million at December 31, 2025. See Note 18 – SBA Loans Held for Sale for more information.
Mortgage loans held for sale totaled $68.7 million at June 30, 2026, an increase of $7.3 million compared to $61.4 million at December 31, 2025. Total mortgage production was $1.0 billion in the second quarter of 2026 compared to $661 million in the first quarter of 2026. The increase in production from the prior quarter was due to both seasonal timing as there is normally more activity in home sales in the spring and summer along with Company production growth initiatives in 2026 and expanding its revenue producers. The percentage of mortgage production sold into the secondary market increased in the second quarter of 2026 to 33% from 28% in the first quarter of 2026. The allocation of mortgage production between portfolio and secondary market depends on the Company’s liquidity, market spreads and rate changes during each period and will fluctuate over time.
The following table presents a summary of the loan portfolio by category (excludes loans held for sale):
LOAN PORTFOLIO
% of
Acquired loans:
Acquired - non-purchased credit deteriorated loans:
447,548
0.9
580,657
1.2
4,400,751
8.7
4,766,211
9.9
1,820,206
3.6
1,982,641
4.1
1,072,946
2.1
1,171,043
2.4
182,759
0.4
209,048
0.5
1,366,381
2.7
1,789,588
3.7
581,378
1.1
672,593
1.4
Consumer non real estate
49,718
0.1
60,528
Total acquired - non-purchased credit deteriorated loans
19.6
23.1
Acquired - purchased credit deteriorated loans (PCD):
69,288
106,815
0.2
1,823,671
1,960,076
4.0
423,285
0.8
486,118
1.0
171,224
0.3
186,905
17,360
18,797
91,453
148,089
43,348
49,090
19,163
21,609
Total acquired - purchased credit deteriorated loans (PCD)
5.1
6.1
Total acquired loans
12,580,583
24.7
14,209,913
29.2
Non-acquired loans:
2,466,132
4.9
1,860,888
3.8
11,256,695
22.1
9,925,473
20.4
5,608,900
11.0
5,108,232
10.5
7,880,912
15.5
7,260,486
14.9
1,708,901
3.4
1,603,944
3.3
7,920,610
15.6
7,243,731
550,612
510,470
865,154
1.7
873,129
1.8
8,373
2,261
Total non-acquired loans
75.3
70.8
Total loans (net of unearned income)
Total loans, net of deferred loan costs and fees (excluding loans held for sale), increased during the first six months of 2026 by $2.2 billion, or 9.3% annualized, to $50.8 billion at June 30, 2026. Our non-acquired loan portfolio increased by $3.9 billion, or 22.7% annualized, mainly driven by organic growth and renewals of acquired loans that are moved to our non-acquired loan portfolio. Commercial non-owner-occupied loans, commercial and industrial loans, consumer owner-occupied loans, construction and land development loans and commercial owner-occupied real estate loans led the way with $1.3 million, $676.9 million, $620.4 million, $605.2 million and $500.7 million in year-to-date loan growth, respectively, or 27.0%, 18.8%, 17.2%, 65.6% and 19.8% annualized growth, respectively. The acquired loan portfolio decreased by $1.6 billion, or 23.1% annualized. This decline in acquired loans was due to paydowns and payoffs in both the PCD and Non-PCD loan categories along with renewals of acquired loans that were moved to our non-acquired loan portfolio. The main categories that decreased were commercial non-owner-occupied loans, commercial and industrial loans, commercial owner-occupied real estate loans, construction and land development loans and consumer owner-occupied loans which decreased by $501.9 million, $479.8 million, $225.3 million, $170.6 million and $113.8 million, respectively, during the first six months of 2026. Acquired loans as a percentage of total loans decreased to 24.7% and non-acquired loans as a percentage of the overall portfolio increased to 75.3% at June 30, 2026. This compares to acquired loans as a percentage of total loans of 29.2% and non-acquired loans as a percentage of total loans of 70.8% at December 31, 2025.
Total commercial non-owner-occupied loans of $17.5 billion, approximately 34.4% of the total loans held for investment, was the largest category of the loan portfolio as of June 30, 2026. As of June 30, 2026, approximately 93% of the commercial non-owner-occupied portfolio was located within the Company’s footprint. Of the $17.5 billion, approximately $1.8 billion, or 4% of the total loans, represented our office segment. Approximately 95% of the office segment was located in the Company’s footprint.
The following table presents the top eight loan segments of the commercial non-owner-occupied loan category (excluding loans held for sale). The loan segments in the table below are determined by the call code, used for the Bank’s regulatory reporting requirements issued by the FDIC for the FFIEC 041, also referred to as the Call Report.
Commercial Non-Owner-Occupied Loans
Net Book
Weighted-Average
% of Substandard &
Balance (1)
Loan Size
Loan-to-Value (3)
Non-Accrual
Special Mention
Loan Type:
4,847,183
2,410
57
0.10
0.80
2,739,256
4,022
54
0.97
28.33
10.92
Warehouse/Industrial
2,673,245
2,281
6.52
2.57
1,795,993
1,649
0.11
6.23
2.34
1,548,077
5,886
0.54
1.72
1,034,806
1,797
0.12
6.37
2.48
Medical
1,023,815
2,188
60
1.33
0.60
Self Storage
707,850
3,522
11.29
7.97
Allowance for Credit Losses (ACL) on Loans and Certain Off-Balance-Sheet Credit Exposures
The ACL reflects management’s estimate of losses that will result from the inability of our borrowers to make required loan payments. The Company records loans charged off against the ACL and subsequent recoveries, if any, increase the ACL when they are recognized. In addition, the Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit.
Management continues to utilize a probability-weighted blend of baseline, upside, and adverse economic scenarios in estimating expected credit losses. For the quarter ended June 30, 2026, management maintained scenario weightings of 40% baseline, 20% upside, and 40% adverse. Although the June economic forecast reflected increased concern regarding inflation, interest rates, energy prices, and geopolitical developments, forecast assumptions and their impact on modeled losses remained generally consistent with the prior quarter. Management believes a moderate weighting toward adverse conditions remains appropriate given continued economic uncertainty, notwithstanding generally stable credit conditions and macroeconomic forecasts. The Company recorded a total provision for credit losses of $15.9 million for the second quarter of 2026.
As of June 30, 2026, the balance of the ACL was $586.7 million or 1.15% of total loans. The ACL increased $0.8 million from the balance of $585.9 million recorded at March 31, 2026 and increased $1.5 million from the balance of $585.2 million recorded at December 31, 2025. The increase during the second quarter of 2026 included $8.6 million in provision for credit losses and $7.8 million in net charge-offs. The increase during the six months ended June 30, 2026 included $19.8 million in provision for credit losses and $18.4 million in net charge-offs.
At June 30, 2026, the Company had a reserve on unfunded commitments of $76.5 million, which was recorded as a liability on the Consolidated Balance Sheet, compared to $69.2 million at March 31, 2026, and $69.6 million at December 31, 2025. During the three and six months ended June 30, 2026, the Company recorded an increase in the reserve for unfunded commitments of $7.3 million and $6.9 million, respectively. For the prior comparative period, the Company recorded an increase in the reserve for unfunded commitments of $2.4 million and $19.4 million, respectively. Of the $19.4 million of provision for credit losses recorded for unfunded commitments during the six months ended June 30, 2025, $12.1 million was related to the initial provision for unfunded commitments acquired from Independent and $7.3 million was for all other unfunded commitments.
The Company did not have an allowance for credit losses or record a provision for credit losses on investment securities or other financial asset during the six months ended June 30, 2026.
The ACL provides 2.14 times coverage of nonperforming loans at June 30, 2026. Net charge-offs to total average loans during the three and six months ended June 30, 2026, were 0.06% and 0.07%, respectively. Net charge-offs, excluding acquisition date charge-offs recorded for PCD loans acquired from Independent, to total average loans during the three and six months ended June 30, 2025, were 0.06% and 0.05%, respectively. We continue to experience solid and stable asset quality numbers and ratios as of June 30, 2026.
The following table provides the allocation for expected credit losses by loan segment and each loan segment as a percentage of total loans as of June 30, 2026:
%*
Residential Mortgage Senior
19.8
Residential Mortgage Junior
Revolving Mortgage
3.9
Residential Construction
Other Construction and Development
4.5
5.4
1.9
Owner-Occupied Commercial Real Estate
15.4
Non-Owner-Occupied Commercial Real Estate
29.1
Commercial and Industrial
16.9
* Loan balance in each category expressed as a percentage of total loans.
The following table presents a summary of net charge off ratios (annualized) by loan segment, for the three and six months ended June 30, 2026, and 2025:
Net Recovery (Charge-Off)
Average Balance
Net Recovery (Charge-Off) Ratio
9,900,402
(0.04)
9,276,546
(0.01)
44,828
0.04
50,429
1,977,323
(0.00)
1,768,088
0.03
625,527
680,839
2,105,899
0.06
2,714,334
930,493
(0.58)
1,034,608
(0.64)
2,695,938
0.02
2,488,133
(2.91)
941,235
844,717
7,750,422
7,445,999
(0.02)
14,611,377
(0.03)
13,119,321
8,663,670
(0.23)
7,606,398
(0.29)
50,247,114
(0.06)
47,029,412
(0.21)
9,778,083
(0.05)
9,253,756
45,492
0.43
50,304
0.30
1,949,247
1,763,744
607,779
679,166
2,036,644
2,707,665
936,484
(0.56)
1,032,067
(0.97)
2,732,796
0.01
2,482,020
(1.47)
932,956
842,642
7,664,942
7,427,706
14,316,052
13,087,090
(0.20)
8,564,699
(0.30)
7,587,710
(0.82)
49,565,174
(0.07)
46,913,870
The following tables present summary of ACL for the three and six months ended June 30, 2026, and 2025:
Non-PCD
PCD
Balance at beginning of period
520,619
65,263
526,615
97,075
Allowance adjustment - FMV for Independent acquisition
Independent Day 1 PCD loan net charge-offs
Loans charged off
(10,581)
(1,161)
(11,923)
(42)
2,470
1,431
2,740
1,978
(8,111)
270
(9,183)
(15,323)
Provision (recovery) for credit losses
13,984
(5,361)
17,582
(12,518)
Balance at end of period
526,492
60,172
535,014
86,032
Total loans, net of unearned income:
At period end
47,267,247
Net charge-offs as a percentage of average loans (annualized)
0.21
Allowance for credit losses as a percentage of period end loans
1.15
1.31
Allowance for credit losses as a percentage of period end non-performing loans (“NPLs”)
213.79
208.57
Allowance for credit losses at January 1
516,041
69,156
444,959
20,321
Loans charged-off
(24,176)
(2,000)
(18,947)
(440)
5,503
2,319
4,376
3,324
(18,673)
319
(14,571)
(53,804)
29,124
(9,303)
24,655
(15,926)
0.07
0.29
Nonperforming Assets (“NPAs”)
The following table summarizes our nonperforming assets for the past five quarters:
March 31,
September 30,
Non-acquired:
Nonaccrual loans
152,908
159,011
157,662
141,409
132,313
Accruing loans past due 90 days or more
2,961
6,915
2,997
4,352
Modified loans to a borrower experiencing financial difficulty - nonaccrual
18,356
18,147
4,313
5,342
9,597
Total non-acquired nonperforming loans
174,225
184,073
164,972
151,103
145,597
Other real estate owned (“OREO”) (1) (6)
11,175
7,971
4,961
11,404
16,842
Other nonperforming assets (2)
547
566
446
Total nonperforming assets excluding acquired assets
185,947
192,412
170,245
163,073
162,885
Acquired:
Nonaccrual loans (3)
66,143
106,922
129,402
143,839
145,423
835
1,986
1,944
891
707
33,209
9,080
5,856
6,043
Total acquired nonperforming loans
100,187
117,988
137,124
150,586
152,173
Acquired OREO (1) (7)
18,090
3,810
7,015
8,728
Other acquired nonperforming assets (2)
132
Total acquired nonperforming assets
101,441
136,143
141,025
157,733
160,956
Total nonperforming assets
287,388
328,555
311,270
320,806
323,841
Excluding Acquired Assets
Total nonperforming assets as a percentage of total loans and repossessed assets (4)
0.49
0.53
0.50
0.52
Total nonperforming assets as a percentage of total assets (5)
0.25
Nonperforming loans as a percentage of period end loans (4)
0.46
0.48
Including Acquired Assets
0.57
0.66
0.64
0.67
0.68
0.42
0.61
0.62
0.63
Total nonperforming assets were $287.4 million, or 0.57% of total loans and repossessed assets, at June 30, 2026, a decrease of $23.9 million, or 7.7%, from December 31, 2025. Total nonperforming loans were $274.4 million, or 0.54%, of total loans, at June 30, 2026, a decrease of $27.7 million, or 9.2%, from December 31, 2025. Non-acquired nonperforming loans increased by $9.3 million from December 31, 2025. The increase in non-acquired nonperforming loans was driven primarily by an increase in modified loans to a borrower experiencing financial difficulty of $14.0 million, an increase in consumer nonaccrual loans of $5.7 million, offset by a decline in commercial nonaccrual loans of $10.4 million. Acquired nonperforming loans decreased $36.9 million from December 31, 2025. The decrease in the acquired nonperforming loan balances was due primarily to an decrease in commercial nonaccrual loans of $66.6 million, a decrease in accruing loans past due 90 days or more of $1.2 million, offset by an increase in modified loans to a borrower experiencing financial difficulty of $27.4 million and an increase in consumer nonaccrual loans of $3.4 million. Approximately $20.0 million of the decrease in acquired commercial nonaccrual loans was due to one commercial non-owner occupied loan moving to OREO during the first quarter of 2026.
Interest-bearing liabilities include interest-bearing transaction accounts, savings deposits, CDs, other time deposits, federal funds purchased, securities sold under agreements to repurchase and other borrowings. Interest-bearing transaction accounts include NOW, HSA, Interest on Layers’ Trust Accounts (“IOLTA”), and Market Rate checking accounts.
Total interest-bearing deposits increased $1.1 billion to $42.9 billion at June 30, 2026, from $41.8 billion at December 31, 2025. Interest-bearing checking accounts increased $871.8 million and time deposits increased by $501.2 billion while money market accounts decreased by $220.6 million during the first half of 2026. The growth in interest-bearing checking accounts was mainly through an increase in reciprocal and brokered checking accounts of $870.0 million while the growth in time deposits was mainly through an increase in brokered accounts of $525.0 million. The Company has allowed some higher costing local deposits run off in 2026, replacing them with brokered deposits at lower interest rates. Average interest-bearing deposits increased $1.1 billion to $42.1 billion for the quarter ended June 30, 2026 compared to the quarter ended December 31, 2025. The increase in average interest-bearing deposits from the fourth quarter of 2025 was due to a $1.5 billion increase in interest-bearing checking accounts and money market accounts including $917.2 million in brokered interest-bearing checking accounts. For more information on the composition of our total deposits, see Note 8 — Deposits. Due to the competitive nature for in-market deposits and higher costs, the Company has allowed some higher costing local deposits to run-off in 2026 and increased its use of brokered deposits to fund loan growth in 2026.
Federal funds purchases related to the Correspondent Banking Division and securities sold under agreements to repurchase were $569.5 million at June 30, 2026, a $48.7 million decrease from December 31, 2025. Corporate and subordinated debentures increased by $213,000 to $696.7 million. The Company borrowed $300.0 million in short term FHLB borrowings in the second quarter of 2026 which made up the balance in other borrowings at June 30, 2026. The Company had no FHLB borrowings at December 31, 2025.
Noninterest-bearing deposits are transaction accounts that provide our Bank with “interest-free” sources of funds. At June 30, 2026, the period end balance of noninterest-bearing deposits was $13.5 billion, an increase of $75.4 million compared to the balance at December 31, 2025 of $13.4 billion. Average noninterest-bearing deposits were $13.5 billion for the second quarter of 2026 compared to $13.6 billion during the fourth quarter of 2025. Noninterest-bearing deposits have remained steady over the first half of 2026.
Uninsured Deposits
The Company had estimated approximately 37.8% and 39.8%, respectively, of uninsured deposits over total deposits at June 30, 2026, and December 31, 2025. The amounts above are estimates and are based on the same methodologies and assumptions used for the Bank’s regulatory reporting requirements issued by the FDIC for the FFIEC 041, also referred to as the Call Report.
Capital Resources
Our ongoing capital requirements have been met primarily through retained earnings, less the payment of cash dividends. As of June 30, 2026, shareholders’ equity was $9.1 billion, an increase of $72.4 billion, or 0.8%, from December 31, 2025. The increase in equity in the first half of 2026 was mainly related to net income of $455.8 million offset by dividends paid to shareholders of $117.2 million and the repurchase of common shares on the open market of $249.0 million.
On January 21, 2026, the Board of Directors of the Company approved a stock repurchase plan for the repurchase of up to 5,560,000 shares of the Company’s common stock. The 2026 Repurchase Plan replaced the Company’s 2025 Repurchase Plan, under which 560,000 shares remained available for repurchase. During the first half of 2026, the Company repurchased a total of 2,500,000 shares at a weighted average price of $99.58 per share (including commission paid) pursuant to the 2026 Repurchase Plan. The number of shares to be purchased and the timing of the purchases are based on a variety of factors, including, but not limited to, the level of cash balances, general business conditions, regulatory requirements, the market price of our common stock, and the availability of alternative investment opportunities. As of June 30, 2026, the Company may repurchase up to an additional 3,060,000 shares of common stock under the 2026 Repurchase Plan.
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The well-capitalized minimums and the Company’s and the Bank’s regulatory capital ratios for the following periods are reflected below:
Well-Capitalized
Minimums
SouthState Bank Corporation:
Common equity Tier 1 risk-based capital
N/A
Tier 1 risk-based capital
6.00
Total risk-based capital
Tier 1 leverage
SouthState Bank:
The Company’s and Bank’s Common equity Tier 1 risk-based capital, Tier 1 risk-based capital and total risk-based capital as of June 30, 2026 all declined compared to December 31, 2025. The capital ratios declined due mainly to the Company repurchasing 2,500,000 shares through its 2026 Repurchase Plan in the first six months of 2026. The common stock repurchases at the Company were funded through dividends from the Bank. Tier 1 capital increased by 3.6% and 2.6% at both the Company and Bank, respectively, while total risk-based capital increased by 3.2% and 2.6% at both the Company and Bank, respectively. The increases in capital were mainly due to net income during the first six months of 2026, net of the effects of dividends paid and stock repurchases. Both regulatory risk-based assets and quarterly average assets increased in the six of 2026 when compared to the fourth quarter with average assets for both the Company and Bank increasing approximately by 2.1% and 2.0%, respectively, and risk-based assets increasing by 5.8%. The Tier 1 leverage ratio for the Company and the Bank both slightly increased in the first half of 2026 as quarterly average assets only increased approximately 2.1% and 2.0%, respectively, which is less than the increase in Tier 1 capital at both the Company and the Bank. Our capital ratios are currently well in excess of the minimum standards and continue to be in the “well capitalized” regulatory classification.
Liquidity
Liquidity refers to our ability to generate sufficient cash to meet our financial obligations, which arise primarily from the withdrawal of deposits, extension of credit and payment of operating expenses. Liquidity risk is the risk that the Bank’s financial condition or overall safety and soundness is adversely affected by an inability (or perceived inability) to meet its obligations. Our ongoing philosophy is to remain in a liquid position, as reflected by such indicators as the composition of our earning assets, typically including some level of reverse repurchase agreements; federal funds sold; balances at the Federal Reserve Bank; and/or other short-term investments; asset quality; well-capitalized position; and profitable operating results. Our Asset Liability Management Committee (“ALCO”) is charged with the responsibility of monitoring policies designed to ensure acceptable composition of our asset/liability mix. We have employed our funds in a manner to provide liquidity from both assets and liabilities sufficient to meet our cash needs. The Company also continues to monitor liquidity conditions and maintains a contingency funding plan and performs specific procedures, including scenario analyses and stress testing, to evaluate and maintain appropriate levels of available liquidity in alignment with liquidity risk.
During the six months ended June 30, 2026, the Company continued to operate within its established liquidity risk limits. At June 30, 2026, key internal liquidity metrics, including the loan-to-deposit ratio and reliance on noncore funding, remained within policy limits and consistent with expectations. Total available borrowing capacity, including access to the Federal Home Loan Bank, Federal Reserve facilities, and unsecured federal funds lines, remained stable compared with December 31, 2025.
Total cash and cash equivalents were $2.4 billion at June 30, 2026 compared to $3.2 billion at December 31, 2025. The decrease in cash and cash equivalents was due to funding growth in the loan portfolio of $2.3 billion and the investment securities portfolio of $205.7 million during the first half of 2026.
Liquidity was also provided by growth in deposits and short term FHLB advances. Total deposits were $56.3 billion at June 30, 2026, an increase of $1.2 billion from $55.1 billion at December 31, 2025. Included in total deposits as of June 30, 2026 and December 31, 2025, we had $2.3 billion and $1.7 billion, respectively, of traditional, out–of–market brokered time deposits, $2.6 billion and $2.0 billion, respectively, in brokered interest-bearing checking and money market accounts and $4.3 billion and $4.0 billion, respectively, of reciprocal deposits. For more information on changes in deposits, see Interest-Bearing Liabilities and Noninterest-Bearing Deposits sections of the MD&A.
Along with the growth in deposits, the Company borrowed $300 million in short-term FHLB advances during the second quarter of 2026 to provide funding for interest-earning asset growth. To the extent that we employ other types of non-deposit funding sources, typically to accommodate retail and correspondent customers, we continue to take in shorter maturities of such funds. Our current approach may provide an opportunity to sustain a low funding rate or possibly lower our cost of funds but could also increase our cost of funds if interest rates rise. Deposit flows are significantly influenced by general and local economic conditions, changes in prevailing interest rates, internal pricing decisions, and competition. Our deposits are primarily obtained from depositors located around our branch footprint, and we believe that we have attractive opportunities to capture additional retail and commercial deposits in our markets, in addition to having access to brokered deposits.
The investment securities portfolio serves as a primary source liquidity. Proceeds from maturities and principal and interest payments of securities provide a continual flow of funds available for cash needs. Furthermore, both the available for sale and held to maturity securities portfolio can be readily used as a source of cash through various secured borrowing arrangements. The Bank pledges a portion of its available for sale and held to maturity investment portfolios for a variety of purposes, including, but not limited to, collateral for public funds and credit with the Federal Home Loan Bank of Atlanta. As of June 30, 2026, the Bank pledged 65.8% of the market value of its available for sale and held to maturity investment portfolios. As of June 30, 2026, the Bank had unpledged securities with a market value of $2.8 billion. These securities included Agency, Agency MBS, Municipals and Corporate securities.
The table and discussion below describes our Primary Funding Sources and their relationship to uninsured deposits as of June 30, 2026.
(Dollars in millions)
Available Capacity
Federal Home Loan Bank of Atlanta
5,505
Federal Reserve Bank of Atlanta Discount Window
11,670
Liquid cash and cash equivalents
2,224
Fair value of securities that can be pledged
2,673
Total primary sources
22,072
Uninsured and uncollateralized deposits
16,481
Uninsured and collateralized deposits
21,292
Coverage ratio, uninsured deposits
103.7
Coverage ratio, uninsured and uncollateralized deposits
133.9
Ratio of uninsured and collateralized deposits to total deposits
37.8
At June 30, 2026, the Bank had a total FHLB credit facility of $5.8 billion, with $300.0 million outstanding borrowings in short-term FHLB advances and $17.8 million in secured credit exposure at quarter-end, leaving $5.5 billion in availability on the FHLB credit facility. At June 30, 2026, the Bank had $11.7 billion of credit available at the Federal Reserve Bank’s discount window and federal funds credit lines of $300.0 million with no balances outstanding at June 30, 2026. The Bank has $2.8 billion in market value of unpledged securities at June 30, 2026, that can be pledged to attain additional funds if necessary. The Bank also has an internal limit on brokered deposits of 15% of total bank deposits, which would allow capacity of $8.5 billion at June 30, 2026. The Bank had $4.9 billion of outstanding brokered deposits at the end of the quarter-end leaving $3.6 billion in available capacity as per the internal policy limit of 15% of total bank deposits. All of the primary sources noted in the table above and the brokered deposit remaining available capacity would provide an additional $25.7 billion in funding if we needed additional liquidity. We can also consider actions such as deposit promotions to increase core deposits. The Company has a $100.0 million unsecured line of credit with U.S. Bank National Association with no balance outstanding at June 30, 2026. We believe that our liquidity position continues to be adequate and readily available.
Asset-Liability Management and Market Risk Sensitivity
Our earnings and the economic value of equity vary in relation to the behavior of interest rates and the accompanying fluctuations in market prices of certain of our financial instruments. There have been no material changes to the Company’s interest rate risk management methodologies or underlying assumptions during the six months ended June 30, 2026.
The Company’s primary interest rate risk exposures continue to include repricing risk, option risk, basis risk, and yield curve risk. During the six months ended June 30, 2026, changes in earnings at risk and EVE sensitivity measures were primarily driven by loan and deposit growth, changes in deposit mix or betas, securities portfolio activity, or shifts in funding.
Management uses deposit beta assumptions in its interest rate risk models and may apply overlays to reflect current market conditions. Based On the Company’s deposit mix at June 30, 2026, the assumed deposit beta was 38.7%.
The updated interest rate sensitivity analysis is presented below. Overall, the Company’s exposure to changes in interest rates remains within internal policy limits/consistent with risk appetite, and management continues to monitor and manage interest rate risk in accordance with the framework described in the 2025 Form 10-K.
The following interest rate risk metrics are derived from analysis using the Moody’s Baseline Scenario published in July 2026 as the Base Case Scenario. As of June 30, 2026, the earnings simulations indicated that the year 1 impact of an instantaneous 100 basis point parallel increase / decrease in rates would result in an estimated 2.8% increase (up 100) and 2.9% decrease (down 100) in net interest income.
We use EVE analysis as an indicator of the extent to which the present value of our capital could change, given potential changes in interest rates. At June 30, 2026, the percentage change in EVE due to a 100-basis point increase or decrease in interest rates was 2.9% decrease and 2.0% increase, respectively. The percentage changes in EVE due to a 200-basis point increase or decrease in interest rates were 6.8% decrease and 3.4% increase, respectively. Downward shocks are constrained on various balance sheet categories due to the inability to price products below floors or zero. This is particularly meaningful given the cost of deposits as of June 30, 2026.
The analysis below reflects a Base Case and shocked scenarios that assume a static balance sheet projection where volume is added to maintain balances consistent with current levels. Base Case assumes new and repricing volumes reference forward rates derived from the Moody’s Baseline rate forecast. Instantaneous, parallel, and sustained interest rate shocks are applied to the Base Case scenario over a one-year time horizon.
Percentage Change in Net Interest Income over One Year
Up 300 basis points
Up 200 basis points
5.3
Up 100 basis points
2.8
Base Case
Down 100 basis points
(2.9)
Down 200 basis points
(6.0)
Down 300 basis points
(9.1)
Deposit Concentrations
As of June 30, 2026, and December 31, 2025, we have no material concentration of deposits from any single customer or group of customers. We have no significant portion of our deposits concentrated within a single industry or group of related industries. We do not believe there are any material seasonal factors that would have a material adverse effect on us. The total deposit balances held by top 10 and 20 deposit holders were below 4% and 6%, respectively, of the Company’s quarterly average total deposit balances at June 30, 2026. We do not have any foreign deposits.
61
Concentration of Credit Risk
Each category of earning assets has a certain degree of credit risk. We use various techniques to measure credit risk. Credit risk in the investment portfolio can be measured through bond ratings published by independent agencies. In the investment securities portfolio, the investments consist of U.S. government-sponsored entity securities, tax-free securities, or other securities having ratings of “AAA” to “Not Rated”. All securities, with the exception of those that are not rated, were rated by at least one of the nationally recognized statistical rating organizations. The credit risk of the loan portfolio can be measured by historical experience. We maintain our loan portfolio in accordance with credit policies that we have established. Although the Bank has a diversified loan portfolio, a substantial portion of our borrowers’ abilities to honor their contracts is dependent upon economic conditions within our geographic footprint and the surrounding regions.
We consider concentrations of credit to exist when, pursuant to regulatory guidelines, the amounts loaned to a multiple number of borrowers engaged in similar business activities which would cause them to be similarly impacted by general economic conditions represents 25% of total Tier 1 capital plus regulatory adjusted allowance for credit losses of the Company, or $1.7 billion at June 30, 2026. Based on this criteria, we had eight such credit concentrations at June 30, 2026, including loans to lessors of nonresidential buildings (except mini-warehouses) of $11.4 billion, loans secured by owner-occupied office buildings (including medical office buildings) of $2.4 billion, loans secured by owner-occupied nonresidential buildings (excluding office buildings) of $3.1 billion, loans to lessors of residential buildings (investment properties and multi-family) of $4.5 billion, loans secured by 1st mortgage 1-4 family owner-occupied residential property (including condos and home equity lines) of $11.6 billion, loans secured by jumbo loans (original loans greater than limit) of $3.5 billion, and loans secured by business assets including accounts receivable, inventory and equipment of $3.6 billion. The Company also has purchased commercial and industrial syndication and participation loans of $1.8 billion, some of which are also included in the business assets loans noted above. The risk for these loans and for all loans is managed collectively through the use of credit underwriting practices developed and updated over time. The loss estimate for these loans is determined using our standard ACL methodology.
Banking regulators have established guidelines for calculating credit concentrations. Banking regulators set the guidelines for construction, land development and other land loans to total less than 100% of total Tier 1 capital less modified CECL transitional amount plus ACL (CDL concentration ratio) and for total commercial real estate loans (construction, land development and other land loans along with other non-owner-occupied commercial real estate and multifamily loans) to total less than 300% of total Tier 1 capital less modified CECL transitional amount plus ACL (CRE concentration ratio). Both ratios are calculated by dividing certain types of loan balances for each of the two categories by the Bank’s total Tier 1 capital less modified CECL transitional amount plus ACL. At June 30, 2026, and December 31, 2025, the Bank’s CDL concentration ratio was 40.4% and 35.2%, respectively, and its CRE concentration ratio was 282.6% and 271.8%, respectively. As of June 30, 2026, the Bank was below the established regulatory guidelines. When a bank’s ratios are in excess of one or both of these loan concentration ratios guidelines, banking regulators generally require an increased level of monitoring in these lending areas by bank management. Therefore, we monitor these two ratios as part of our concentration management processes.
Reconciliation of GAAP to Non-GAAP
The return on average tangible equity is a non-GAAP financial measure that excludes the effect of the average balance of intangible assets and adds back the after-tax amortization of intangibles to GAAP basis net income. Management believes these non-GAAP financial measures provide additional information that is useful to investors in evaluating our performance and capital and may facilitate comparisons with other institutions in the banking industry as well as period-to-period comparisons. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, are not audited, and may not be comparable to other similarly titled financial measures used by other companies. Investors should not consider non-GAAP measures in isolation or as a substitute for analysis of the Company’s results or financial condition as reported under GAAP.
Return on average equity (GAAP)
Effect to adjust for intangible assets
7.43
8.24
7.45
6.56
Return on average tangible equity (non-GAAP)
Average shareholders’ equity (GAAP)
Average intangible assets
(3,447,492)
(3,535,410)
(3,458,310)
(3,546,831)
Adjusted average shareholders’ equity (non-GAAP)
5,605,608
5,157,172
5,596,843
5,009,274
(4,854)
(5,707)
(9,650)
(11,103)
Net income excluding the after-tax effect of amortization of intangibles (non-GAAP)
246,209
233,565
488,537
341,080
Cautionary Note Regarding Any Forward-Looking Statements
Statements included in this report, which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements are based on, among other things, management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and our acquisition of Independent in all-stock merger transaction. Words and phrases such as “may,” “approximately,” “continue,” “should,” “expects,” “projects,” “anticipates,” “is likely,” “look ahead,” “look forward,” “believes,” “will,” “intends,” “estimates,” “strategy,” “plan,” “could,” “potential,” “possible” and variations of such words and similar expressions are intended to identify such forward-looking statements. We caution readers that forward-looking statements are subject to certain risks, uncertainties and assumptions that are difficult to predict with regard to, among other things, timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. There have been no material changes to the risk factors previously disclosed in the 2025 Form 10-K, except as described below.
Risks relating to our Business and Business Strategy
63
Risks relating to the Regulatory Environment
Risks relating to our Common Stock
Risks relating to Economic Conditions and Other Outside Forces
For any forward-looking statements made in this report or in any documents incorporated by reference into this Report, we claim the protection of the safe harbor for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. All forward-looking statements speak only as of the date they are made and are based on information available at that time. We do not undertake any obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. All subsequent written and oral forward-looking statements by us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Report.
Additional information with respect to factors that may cause actual results to differ materially from those contemplated by our forward-looking statements may also be included in other reports that we file with the SEC. We caution that the foregoing list of risk factors is not exclusive and not to place undue reliance on forward-looking statements.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in our quantitative and qualitative disclosures about market risk as of June 30, 2026, from those disclosures presented in our Annual Report on Form 10-K for the year ended 2025.
Item 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
SouthState’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of SouthState’s disclosure controls and procedures as of June 30, 2026, in accordance with Rule 13a-15 of the Securities Exchange Act of 1934. We applied our judgment in the process of reviewing these controls and procedures, which, by their nature, can provide only reasonable assurance regarding our control objectives. Based upon that evaluation, our Chief Executive Officer and the Chief Financial Officer concluded that SouthState’s disclosure controls and procedures as of June 30, 2026, were effective to provide reasonable assurance regarding our control objectives.
The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.
Changes in Internal Control over Financial Reporting
There has been no change in our internal control over financial reporting during the six months ended June 30, 2026, that has materially affected, or is likely to materially affect, our internal control over financial reporting.
Item 1. LEGAL PROCEEDINGS
We and our Bank subsidiary are periodically party to or otherwise involved in legal proceedings arising in the normal course of business, such as claims to enforce liens, claims involving the making and servicing of real property loans, and other issues incident to our products and services and our businesses. We do not believe any pending or threatened legal proceedings in the ordinary course against the Bank would have a material adverse effect on our consolidated results of operations or consolidated financial position.
Other than the Cyber Incident Suit (as discussed in Note 11 — Commitments and Contingent Liabilities), as of June 30, 2026, and as of the date of this Quarterly Report on Form 10-Q, we believe that we are not party to, nor is any of our property the subject of, any pending material legal proceeding other than those that may occur in the ordinary course of our business.
On April 3, 2024, a putative class action lawsuit (the “Original Suit”) was filed against the Bank purportedly on behalf of a class consisting of those persons impacted by the Cyber Incident (as defined in Note 11 — Commitments and Contingent Liabilities). While the Original Suit was voluntarily dismissed, the same plaintiffs, as well as additional plaintiffs, initiated litigation that named the Bank as a defendant. These cases were consolidated into one putative class action against the Bank in the Circuit Court for Polk County, Florida (the “Cyber Incident Suit”). During the first quarter of 2026, the parties agreed to settle the Cyber Incident Suit, subject to court approval, pursuant to which the Company agreed to fund documented losses and pay attorneys’ fees, administration costs, and credit monitoring fees. On June 24, 2026, the court entered an order granting final approval to the settlement (the “Final Order”). The settlement will be paid from the Company’s cyber insurance coverage in the third quarter of 2026 in accordance with the Final Order. For more information, please refer to Note 11 — Commitments and Contingent Liabilities, in the Notes to Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q.
Item 1A. RISK FACTORS
Investing in shares of our common stock involves certain risks, including those identified and described in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as cautionary statements contained in this Quarterly Report on Form 10-Q, including those under the caption “Cautionary Note Regarding Any Forward-Looking Statements” set forth in Part I, Item 2. of this Quarterly Report on Form 10-Q, risks and matters described elsewhere in this Quarterly Report on Form 10-Q and in our other filings with the SEC.
There have been no material changes to the risk factors disclosed in Item 1A. of Part I in our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On January 21, 2026, the Board of Directors of the Company approved a stock repurchase plan for the repurchase of up to 5,560,000 shares of the Company’s common stock. The 2026 Repurchase Plan replaces the Company’s 2025 Repurchase Plan, under which 560,000 shares remained available for repurchase. The 2025 Repurchase Plan was cancelled in connection with the Board’s approval of the 2026 Repurchase Plan. Repurchases under the 2026 Repurchase Plan will be made from time to time by the Company as conditions allow. The 2026 Repurchase Plan will be made available until December 31, 2027, unless shortened or extended by the Company’s Board of Directors.
During the six months ended June 30, 2026, the Company repurchased a total of 2,500,000 shares at a weighted average price of $99.58 per share (including commission paid) pursuant to the 2026 Repurchase Plan. The number of shares to be purchased and the timing of the purchases are based on a variety of factors, including, but not limited to, the level of cash balances, general business conditions, regulatory requirements, the market price of our common stock, and the availability of alternative investment opportunities. As of June 30, 2026, the Company may repurchase up to an additional 3,060,000 shares of common stock under the 2026 Repurchase Plan. During the first half of 2025, the Company did not repurchase any shares pursuant to the 2025 Repurchase Plan.
The following table reflects share repurchase activity during the second quarter of 2026:
(d) Maximum
(c) Total
Number (or
Number of
Approximate
Shares (or
Dollar Value) of
Units)
(a) Total
Purchased as
Units) that May
Part of Publicly
Yet Be
(b) Average
Announced
Purchased
Price Paid per
Plans or
Under the Plans
Period
Share (or Unit)
Programs
or Programs
April 1 ‑ April 30
282,818
*
97.72
281,008
3,778,992
May 1 ‑ May 31
719,509
97.58
718,992
3,060,000
June 1 ‑ June 30
836
95.83
1,003,163
1,000,000
For the three months ended June 30, 2026, monthly totals include 1,810; 517; and 836 shares, respectively, that were repurchased under arrangements, authorized by our stock based compensation plans and Board of Directors, whereby officers or directors may sell previously owned shares to the Company in order to pay for the exercise of stock options or for income taxes owed on vesting shares of restricted stock. These shares were not repurchased under the 2025 Repurchase Program.
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
Item 4. MINE SAFETY DISCLOSURES
Item 5. OTHER INFORMATION
None.
Item 6. EXHIBITS
The exhibits required to be filed as part of this Quarterly Report on Form 10-Q are listed in the Exhibit Index attached hereto and are incorporated by reference.
Exhibit Index
Incorporated by Reference
Exhibit No.
Description
Form
Commission File No.
Exhibit
Filing Date
Filed Herewith
31.1
Rule 13a-14(a) Certification of Principal Executive Officer
X
31.2
Rule 13a-14(a) Certification of Principal Financial Officer
Section 1350 Certifications of Principal Executive Officer and Principal Financial Officer
101
The following financial statements from the Quarterly Report on Form 10-Q of SouthState Bank Corporation for the quarter ended June 30, 2026, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statement of Cash Flows and (vi) Notes to consolidated Financial Statements.
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).
† Pursuant to Item 601(a)(5) of Regulation S-K, certain schedules and similar attachments have been omitted. The registrant hereby agrees to furnish supplementally a copy of any omitted schedule or similar attachment to the SEC upon request.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
(Registrant)
Date: July 31, 2026
/s/ John C. Corbett
John C. Corbett
President and Chief Executive Officer
(Principal Executive Officer)
/s/ William E. Matthews, V
William E. Matthews, V
Senior Executive Vice President,
Chief Financial Officer
(Principal Financial Officer)
/s/ Sara G. Arana
Sara G. Arana
Executive Vice President and
Principal Accounting Officer