Regional banking company SouthState (NYSE: SSB) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 52.5% year on year to $686.9 million. Its non-GAAP profit of $2.47 per share was 8.3% above analysts’ consensus estimates.
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SouthState (SSB) Q4 CY2025 Highlights:
- Net Interest Income: $581.1 million vs analyst estimates of $574.2 million (57.2% year-on-year growth, 1.2% beat)
- Net Interest Margin: 3.9% vs analyst estimates of 3.8% (in line)
- Revenue: $686.9 million vs analyst estimates of $662.1 million (52.5% year-on-year growth, 3.7% beat)
- Efficiency Ratio: 49.7% vs analyst estimates of 52% (235 basis point beat)
- Adjusted EPS: $2.47 vs analyst estimates of $2.28 (8.3% beat)
- Tangible Book Value per Share: $56.27 vs analyst estimates of $56.01 (10.1% year-on-year growth, in line)
- Market Capitalization: $10.11 billion
Company Overview
With roots dating back to the Great Depression era of 1933, SouthState (NYSE: SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Thankfully, SouthState’s 18.7% annualized revenue growth over the last five years was exceptional. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. SouthState’s annualized revenue growth of 24.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, SouthState reported magnificent year-on-year revenue growth of 52.5%, and its $686.9 million of revenue beat Wall Street’s estimates by 3.7%.
Net interest income made up 81.4% of the company’s total revenue during the last five years, meaning SouthState barely relies on non-interest income to drive its overall growth.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
SouthState’s TBVPS grew at a solid 6.4% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 10.2% annually over the last two years from $46.33 to $56.27 per share.
Over the next 12 months, Consensus estimates call for SouthState’s TBVPS to grow by 12% to $63.02, mediocre growth rate.
Key Takeaways from SouthState’s Q4 Results
We enjoyed seeing SouthState beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $100.56 immediately following the results.
So should you invest in SouthState right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
