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SouthState Corporation (SSB)
NYSE:SSB
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SouthState Corporation
(NYSE:SSB)
77Outperform
SouthState Corporation (SSB) vs. S&P 500 (SPY)
Market Cap
$8.51B
Dividend Yield2.55%
Average Volume (3M)843.53K
Price to Earnings (P/E)12.0
Beta (1Y)1.18
Revenue Growth9.22%
EPS Growth7.82%
CountryUS
Employees4,986
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.97
Shares Outstanding101,364,630
10 Day Avg. Volume964,029
30 Day Avg. Volume843,532
Financial Highlights & Ratios
PEG Ratio1.54
Price to Book (P/B)N/A
Price to Sales (P/S)5.51
Price to Cash Flow (P/CF)6.60
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$123.83Price Target Upside47.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
SouthState Corporation Business Overview & Revenue Model
Company DescriptionSouthState 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. In addition, it provides debit card, mobile and funds transfer products, and treasury management services comprising merchant, automated clearing house, lock-box, remote deposit capture, and other treasury services. Further, the company offers safe deposit boxes, bank money orders, wire transfer, brokerage services, and alternative investment products, including annuities, mutual funds, and trust and asset management services; and credit cards, letters of credit, and home equity lines of credit. As of December 31, 2021, it served customers through 281 branches in Florida, South Carolina, Alabama, Georgia, North Carolina, and Virginia. SouthState Corporation also serves its customers through online, mobile, and telephone banking platforms. The company was formerly known as First Financial Holdings, Inc. and changed its name to SouthState Corporation in July 2013. SouthState Corporation was founded in 1933 and is headquartered in Winter Haven, Florida.
How the Company Makes MoneySouthState Corporation generates revenue primarily through its interest income from loans and leases, as well as non-interest income from fees and service charges. The company earns interest income by lending to individuals and businesses, including mortgage, commercial, and consumer loans. Additionally, it receives non-interest income from account maintenance fees, transaction fees, wealth management services, and other financial services. The company's earnings are also bolstered by strategic partnerships and acquisitions that expand its market presence and enhance its service offerings.
SouthState Corporation Financial Statement Overview
Summary
SouthState Corporation demonstrates strong financial health across all key areas. The income statement reflects solid revenue growth and profitability, while the balance sheet is exceptionally strong with no debt and a solid equity base. Cash flows are robust, though future improvements in free cash flow growth could further enhance financial flexibility. Overall, the company is well-positioned for continued stability and growth in the banking sector.Income Statement
SouthState Corporation shows a strong income statement with consistent revenue growth, evidenced by a 38% increase from 2022 to 2023 and a further 10% increase from 2023 to 2024. Gross profit margins have remained high, reflecting efficient cost management. The net profit margin improved from 25.4% in 2023 to 25% in 2024, indicating stable profitability despite economic challenges. However, the absence of EBITDA data limits a complete margin analysis.85
Very Positive
Balance Sheet
The balance sheet is robust with a high equity ratio of 12.7% in 2024, indicating a strong capital base. The debt-to-equity ratio is effectively zero, reflecting zero debt, which is a significant strength for financial stability. Return on equity increased from 8.9% in 2023 to 9.1% in 2024, signaling efficient use of shareholders' capital. Overall, the balance sheet positions the company well against potential economic downturns.90
Very Positive
Cash Flow
The cash flow statement reflects strong operational cash flows, with a slight decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is solid, demonstrating effective cash generation relative to net income. However, free cash flow growth was negligible, indicating stable rather than expanding cash reserves. Despite this, the cash position remains strong, supporting future growth and investment opportunities.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.14B | 1.94B | 1.56B | 1.55B | 901.62M | Gross Profit |
| 2.14B | 1.94B | 1.56B | 1.55B | 901.62M | EBIT |
| 2.12B | 0.00 | 694.72M | 604.28M | 103.97M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 534.78M | 494.31M | 496.05M | 475.54M | 120.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.85B | 5.30B | 5.88B | 5.67B | 7.94B | Total Assets |
| 46.38B | 44.90B | 43.92B | 41.96B | 37.79B | Total Debt |
| 381.22M | 481.59M | 392.27M | 327.07M | 390.18M | Net Debt |
| -417.07M | -280.85M | -156.11M | -149.59M | -4.22B | Total Liabilities |
| 40.49B | 39.37B | 38.84B | 327.07M | 390.18M | Stockholders Equity |
| 5.89B | 5.53B | 5.07B | 4.80B | 4.65B |
| Cash Flow | Free Cash Flow | |||
| 511.96M | 507.87M | 1.71B | 508.85M | 520.01M | Operating Cash Flow |
| 511.96M | 546.76M | 1.73B | 537.26M | 536.94M | Investing Cash Flow |
| -886.18M | -1.43B | -4.86B | -2.32B | 1.23B | Financing Cash Flow |
| 767.41M | 566.00M | -2.28B | 4.02B | 2.15B |
SouthState Corporation Technical Analysis
Negative
84.07
Price Trends
94.29
Negative
98.76
Negative
96.21
Negative
Market Momentum
-3.32
Positive
41.07
Neutral
45.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSB, the sentiment is Negative. The current price of 84.07 is below the 20-day moving average (MA) of 88.21, below the 50-day MA of 94.29, and below the 200-day MA of 96.21, indicating a bearish trend. The MACD of -3.32 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 45.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSB.
SouthState Corporation Risk Analysis
SouthState Corporation disclosed 70 risk factors in its most recent earnings report. SouthState Corporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SouthState Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.51B | 12.04 | 9.36% | 2.55% | 9.22% | 7.82% | |
76 Outperform | $7.83B | 15.09 | 16.86% | 1.78% | -2.75% | 11.75% | |
75 Outperform | $7.44B | 9.94 | 8.54% | 3.61% | 5.86% | -10.72% | |
71 Outperform | $10.37B | 5.54 | 38.13% | 4.22% | -35.65% | 70.23% | |
69 Neutral | $7.19B | 12.61 | 15.13% | 3.37% | 7.81% | -2.49% | |
63 Neutral | $12.75B | 9.36 | 8.64% | 84.32% | 13.82% | -3.89% | |
58 Neutral | $8.87B | 12.73 | 8.70% | 3.42% | 4.56% | -13.90% |
* Financial Sector Average
Performance Comparison
SSB
SouthState Corporation
84.07
9.26
12.38%
CBSH
Commerce Bancshares
60.02
10.32
20.76%
CFR
Cullen/Frost Bankers
111.19
5.46
5.16%
FHN
First Horizon
17.28
3.50
25.40%
GGAL
Grupo Financiero Galicia SA
60.04
34.03
130.83%
WBS
Webster Financial
44.33
0.46
1.05%
SouthState Corporation Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -14.30% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook for SouthState with strong deposit growth, successful strategic transactions, and improved net interest margin. However, challenges remain with increased non-performing assets and higher noninterest expenses.Highlights
Deposit Growth and Liquidity Improvement
Deposit growth across all regions, with customer deposits growing by 9% annualized, excluding brokered CDs. Liquidity is improving and deposit pricing is becoming more rational.
Successful Completion of Sale-Leaseback Transaction
Completed a sale-leaseback transaction on approximately 170 branches, harvesting $225 million of off-balance sheet capital with attractive cost of capital.
Regulatory Approval and Closing of Independent Financial Acquisition
Received regulatory approval for the acquisition of Independent Financial, closing earlier than expected on January 1, with conversion scheduled for Memorial Day.
Increase in Net Interest Margin (NIM)
NIM improved by 8 basis points to 3.48%. Deposit cost reduction and legacy loan repricing contributed to this improvement.
Strong Credit Performance
Net charge-offs were low at 6 basis points for the quarter. Past dues and nonperforming assets remained well-managed, with healthy reserve levels.
Lowlights
Increase in Non-Performing Assets (NPAs)
NPAs increased to 63 basis points, up 6 basis points from year-end 2023. Approximately 23% of nonperforming loans are SBA loans with a 75% guarantee.
Higher Noninterest Expenses
Noninterest expenses increased by $7 million in the quarter, reaching $250.7 million, driven by commission expenses and other operational costs.
Soft Loan Pipelines Heading into 2025
Loan pipelines started the first quarter of 2025 softer, down about 10%, although expected to pick up later in the year.
Company Guidance
During SouthState's Fourth Quarter 2024 earnings call, the company provided comprehensive guidance on various financial metrics, reflecting a robust performance and strategic maneuvers. Customer deposits grew by 9% on an annualized basis, excluding brokered CDs, contributing to a 9% increase in pre-provision net revenue (PPNR) driven by a 6% rise in total revenue. The net interest margin (NIM) improved by 8 basis points to 3.48%, aided by a 15 basis point reduction in the cost of total deposits. Noninterest income rose to $80 million, marking a $6 million increase from the prior quarter, predominantly due to gains in correspondent banking, mortgage, and wealth management services. The efficiency ratio improved by 140 basis points to 54.4%, despite a $7 million rise in noninterest expenses. On the credit front, net charge-offs remained low at 6 basis points annualized for the quarter, with a total allowance to loans exceeding 1.5%. Additionally, the company highlighted its strategic initiatives, including a sale-leaseback transaction worth approximately $225 million and the regulatory approval and closing of the Independent Financial acquisition, which is expected to contribute to future growth.SouthState Corporation Corporate Events
Financial Disclosures
SouthState Corporation to Announce Q1 2025 Earnings
Neutral
Apr 4, 2025
SouthState Corporation announced that it will release its first quarter 2025 earnings results on April 24, 2025, after the market closes. A conference call to discuss these results will be held on April 25, 2025, providing stakeholders an opportunity to gain insights into the company’s financial performance and strategic direction.
M&A TransactionsDividendsFinancial Disclosures
SouthState Corporation Reports Strong Q4 and Acquisition
Positive
Jan 23, 2025
On January 23, 2025, SouthState Corporation reported robust financial performance for the fourth quarter of 2024, with a net income of $144 million and a 9% increase in PPNR. The company also announced the successful acquisition of Independent Financial, effective January 1, 2025, and declared a quarterly dividend of $0.54 per share, payable on February 14, 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.