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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
$9.17B
Dividend Yield2.3%
Average Volume (3M)606.80K
Price to Earnings (P/E)13.3
Beta (1Y)1.19
Revenue Growth9.22%
EPS Growth7.82%
CountryUS
Employees5,070
SectorFinancial
Sector Strength81
IndustryBanking
Share Statistics
EPS (TTM)6.97
Shares Outstanding101,364,550
10 Day Avg. Volume607,469
30 Day Avg. Volume606,798
Financial Highlights & Ratios
PEG Ratio1.71
Price to Book (P/B)N/A
Price to Sales (P/S)5.54
Price to Cash Flow (P/CF)6.70
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
$152.74Price Target Upside68.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
SouthState Corporation Business Overview & Revenue Model
Company DescriptionSouthState Corporation (SSB) is a financial services company primarily engaged in providing a broad range of banking products and services. The company operates through its subsidiary, SouthState Bank, and serves individual, business, and commercial clients. Its core offerings include personal and business banking, mortgage lending, wealth management, and investment services across the southeastern United States.
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
90.44
Price Trends
100.15
Negative
102.01
Negative
94.10
Negative
Market Momentum
-2.60
Positive
27.48
Positive
9.67
Positive
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 90.44 is below the 20-day moving average (MA) of 99.43, below the 50-day MA of 100.15, and below the 200-day MA of 94.10, indicating a bearish trend. The MACD of -2.60 indicates Positive momentum. The RSI at 27.48 is Positive, neither overbought nor oversold. The STOCH value of 9.67 is Positive, 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 67 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.17B | 13.34 | 9.36% | 2.30% | 9.22% | 7.82% | |
76 Outperform | $8.14B | 14.57 | 15.13% | 2.92% | 7.81% | -2.49% | |
69 Neutral | $7.69B | 17.88 | 7.62% | 0.91% | 14.99% | -16.42% | |
69 Neutral | $2.97B | 14.46 | 5.69% | 4.67% | 13.59% | -10.62% | |
64 Neutral | $13.88B | 10.79 | 9.29% | 4.15% | 17.66% | -7.41% | |
61 Neutral | $9.24B | 13.92 | 8.70% | 3.18% | 4.56% | -13.90% | |
61 Neutral | $4.93B | 12.75 | 7.62% | 4.22% | 6.80% | 1.48% |
* Financial Sector Average
Performance Comparison
SSB
SouthState Corporation
90.49
9.94
12.34%
CFR
Cullen/Frost Bankers
121.84
17.31
16.56%
FHN
First Horizon
18.19
3.99
28.10%
PNFP
Pinnacle Financial Partners
99.58
18.11
22.23%
UBSI
United Bankshares
34.04
0.70
2.10%
WSBC
WesBanco
30.56
2.99
10.85%
SouthState Corporation Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -7.81% | 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
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.
Delistings and Listing ChangesExecutive/Board ChangesM&A Transactions
SouthState Corporation Expands Through Acquisition and Merger
Positive
Jan 2, 2025
SouthState Corporation has completed its acquisition of Independent Bank Group, Inc., expanding its operations into Texas and Colorado and increasing its asset size to approximately $65 billion. The merger also led to the appointment of three Independent Financial directors to SouthState’s board, enhancing its strategic direction and governance structure. As a result of the merger, Independent Bank Group, Inc. will cease to exist as a separate legal entity, leading to the suspension of its common stock from NASDAQ and the deregistration of its securities.
Executive/Board ChangesM&A Transactions
SouthState Corporation Appoints New Directors Amid Merger
Positive
Dec 19, 2024
SouthState Corporation’s Board has approved the appointment of three directors from Independent Bank Group, Inc., including David R. Brooks and G. Stacy Smith, as part of the merger agreement set to be completed by January 1, 2025. This strategic move is expected to enhance SouthState’s market presence in Texas and Colorado, utilizing the new directors’ expertise and experience to strengthen the company’s operational and strategic positioning.
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.