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 Q4 2025 earnings, with a pre-provision net revenue (PPNR) of $323 million and earnings per share (EPS) of $2.47, beating analyst estimates of $2.3. The company's net interest margin (NIM) was 3.86%, and the cost of deposits was 1.82%. The strong financial performance was driven by an 8% loan growth and 8% deposit growth in the quarter, with a loan production of $3.9 billion. The company's return on tangible common equity for the year was approximately 20%, demonstrating its ability to generate strong returns for shareholders.
Publication Date: Feb -14
The company's loan pipeline has leveled off at $5 billion, with production growth of 16% in the fourth quarter. Management expects mid- to upper single-digit loan growth in 2026, driven by the commercial and industrial (C&I) segment. The company is also investing in revenue producers, focusing on growing the front office and middle market. As John Corbett noted, the company is looking to increase commercial RMs by 10% to 15% in the next year or two, which is contained within the expense guidance.
The company's NIM is expected to remain between 3.80% to 3.90% in 2026, with interest-earning assets averaging $61 billion to $62 billion. Deposit costs are expected to be around 1.75% in the first quarter, and management guided that deposit pricing is expected to migrate lower throughout the year, with a beta of around 27% to 30%. The company's loan yields are also expected to be supported by the legacy bank's fixed-rate loans repricing in the next 12 months, with a 5.06% coupon.
With a Price-to-Tangible Book Value (P/TBV) ratio of 1.15, the stock appears to be reasonably valued. The Dividend Yield is 2.25%, providing a relatively attractive return for income investors. Analysts estimate next year's revenue growth at 6.4%, which is slightly higher than the company's historical growth rate. Given the company's strong financial performance and guidance, it is likely that the stock will continue to perform well in the near term.
The company's efficiency ratio remained below 50% for the quarter and the year, demonstrating its ability to manage expenses effectively. Management guided mid-single-digit expense growth for 2026, using the $1.407 billion 2025 expense base. The company's total payout ratio, including dividends and share repurchases, was 97% in the fourth quarter, but it's unlikely to remain that high.
SouthState Bank Corporation (NYSE:SSB) Sees Large Increase in Short Interest
Feb -17
SouthState earns 2nd highest awards for Best Bank across U.S.
Feb -12
SouthState Corporation (SSB) Just Paid Its Dividend. Here's How We Scored It
Feb -06
SouthState Bank (NYSE:SSB) vs. Central Bancompany (NASDAQ:CBC) Head to Head Survey
Feb -05
SouthState Bank Corporation (NYSE:SSB) Given Average Recommendation of “Buy” by Brokerages
Feb -01
SouthState Bank Q4 Earnings Call Highlights
Jan -25
SouthState Bank Corporation (SSB) Q4 2025 Earnings Call Transcript
Jan -23
SSB Q4 Earnings Beat on Growth in NII, Fee Revenues, Provisions Rise
Jan -23
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: 6.7
Growth: 6.9
Quality: 7.2
Yield: 4.0
Momentum: 5.0
Volatility: 7.3
1-Year Total Return ->
Value: 6.2
Growth: 5.2
Quality: 7.0
Yield: 8.0
Momentum: 2.5
Volatility: 6.7
1-Year Total Return ->
Value: 3.2
Growth: 7.8
Quality: 5.7
Yield: 2.0
Momentum: 7.0
Volatility: 7.3
1-Year Total Return ->
Value: 5.3
Growth: 5.4
Quality: 6.9
Yield: 5.0
Momentum: 2.5
Volatility: 7.7
1-Year Total Return ->
Value: 5.9
Growth: 5.8
Quality: 6.3
Yield: 4.0
Momentum: 3.5
Volatility: 7.0
1-Year Total Return ->
Value: 3.8
Growth: 5.8
Quality: 6.1
Yield: 5.0
Momentum: 5.0
Volatility: 6.7
1-Year Total Return ->