GICS Sector : Financial Services
SouthState Corporation operates as the bank holding company for SouthState Bank, National Association that provides a range of banking services and products to individuals and companies.It accepts checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposits, money market accounts, and other time deposits.The company also offers commercial real estate loans, residential real estate loans, commercial, and industrial loans, as well as consumer loans, including auto, boat, and personal installment loans.
SouthState Bank Corporation reported a robust third quarter 2025, with earnings per share (EPS) reaching $2.58, significantly beating estimates of $2.2, representing a 30% year-over-year increase. The company's net interest income was $600 million, up $22 million from the previous quarter, driven by a 4.06% tax-equivalent margin. The return on tangible equity stood at 20%, highlighting the bank's efficient use of capital. Revenue growth was substantial, with the company's best quarterly performance to date, nearing its record annual revenue.
Publication Date: Oct -26
The company's loan production was nearly $3.4 billion, with moderate growth observed in both loans and deposits. The loan pipeline is strong, particularly in Texas and Colorado, where loan production has increased by 67% since the first quarter. This growth is expected to continue, with the company forecasting mid-single-digit loan growth for 2026, focusing on commercial and industrial (C&I) growth. The deposit base is substantial, with approximately $90 billion of overlapping deposits in the Southeast, Texas, and Colorado, providing a foundation for future growth.
Credit metrics remain stable, with good payment performance, a slight decrease in nonaccruals, and charge-offs of 12 basis points year-to-date. The company experienced a larger charge-off in the quarter related to a supply chain finance credit, but the rest of the portfolio is stable. The credit team is forecasting charge-offs of around 10 basis points for the year, indicating a manageable credit risk environment.
The company's NIM was 4.06% for the quarter, driven by a favorable mix of assets. For the fourth quarter, NIM is expected to be in the 3.80% to 3.90% range, with accretion expected to be $40-50 million. For 2026, the company guides for a NIM around 3.80%, with an expectation of 1 to 2 basis points improvement in overall margin for every 25 basis point rate cut, although the actual impact may vary due to a deposit beta of 27-30% in a rate-cutting environment.
With a Price-to-Tangible Book Value (P/TBV) of approximately 1.02, the stock is trading near its book value. The Dividend Yield stands at 2.45%, providing a relatively attractive return for income investors. Considering the company's growth prospects, particularly in loans and its focus on organic growth, the current valuation appears reasonable. Analysts estimate revenue growth at 4.6% for the next year, which, combined with the current valuation metrics, suggests a balanced risk-return profile.
SouthState Bank (NYSE:SSB) vs. Triumph Financial (NYSE:TFIN) Head to Head Analysis
Dec -04
Edgestream Partners L.P. Trims Position in SouthState Bank Corporation $SSB
Dec -03
Charles Schwab Investment Management Inc. Has $108.36 Million Stock Position in SouthState Bank Corporation $SSB
Nov -29
Catalyst Funds Management Pty Ltd Invests $2.43 Million in SouthState Bank Corporation $SSB
Nov -20
SouthState Bank Corporation (NYSE:SSB) Given Average Recommendation of “Moderate Buy” by Brokerages
Nov -18
Is the Options Market Predicting a Spike in SSB Stock?
Nov -17
Mechanics Bancorp (NASDAQ:MCHB) vs. SouthState Bank (NYSE:SSB) Financial Survey
Nov -17
SouthState Bank Corporation $SSB Stake Lifted by Teacher Retirement System of Texas
Nov -04
SouthState Corporation's 7.53% growth in Banking and Related Activities is driven by strategic acquisitions, expansion of commercial lending, and increased deposit growth. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.
Personal banking services for individuals, including checking and savings accounts, credit cards, personal loans, and mortgages.
Financial solutions for businesses, including cash management, commercial lending, and treasury management services.
Residential mortgage lending services for individuals and families, including purchase and refinance loans.
Investment and wealth management services, including investment advice, portfolio management, and retirement planning.
Cash management and treasury services for businesses, including account management, payment processing, and fraud prevention.
Online and mobile banking services, including account access, bill pay, and mobile deposit.
SouthState Corporation operates in the banking industry, where substitutes are limited. However, fintech companies and digital banking platforms are emerging as potential substitutes, posing a moderate threat.
SouthState Corporation's customers have limited bargaining power due to the fragmented nature of the banking industry. Customers have multiple options, but the switching costs are relatively high.
SouthState Corporation's suppliers, such as technology providers and vendors, have limited bargaining power due to the company's large scale of operations and diversified supply chain.
The banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to pose a significant threat to SouthState Corporation.
The banking industry is highly competitive, with many established players competing for market share. SouthState Corporation faces intense rivalry from other regional banks and national banks.
| Value | |
|---|---|
| Debt Weight | 8.01% |
| Debt Cost | 7.66% |
| Equity Weight | 91.99% |
| Equity Cost | 7.66% |
| WACC | 7.66% |
| Leverage | 8.70% |
Value: 6.6
Growth: 7.0
Quality: 7.0
Yield: 4.0
Momentum: 7.0
Volatility: 7.3
1-Year Total Return ->
Value: 5.7
Growth: 5.4
Quality: 7.4
Yield: 5.0
Momentum: 4.5
Volatility: 7.7
1-Year Total Return ->
Value: 5.2
Growth: 7.8
Quality: 5.0
Yield: 2.0
Momentum: 7.0
Volatility: 7.3
1-Year Total Return ->
Value: 6.5
Growth: 5.2
Quality: 5.6
Yield: 7.0
Momentum: 3.5
Volatility: 6.3
1-Year Total Return ->
Value: 5.7
Growth: 5.8
Quality: 5.2
Yield: 4.0
Momentum: 6.5
Volatility: 6.7
1-Year Total Return ->
Value: 3.7
Growth: 5.9
Quality: 5.8
Yield: 5.0
Momentum: 6.0
Volatility: 6.7
1-Year Total Return ->