Jefferies has commenced its analysis of South State (SSB, Financial) stock, giving it a Buy rating and setting a price target of $110. This move is part of the firm's broader examination of 32 regional and mid-cap banks, where they maintain a positive perspective. Despite uncertainties surrounding tariffs, Jefferies identifies several factors that may benefit banks, including the potential for increased loan growth as the U.S. sidesteps a recession and the expansion of net interest margins due to a steeper yield curve. Additionally, the firm notes the resilience in credit metrics and the presence of excess capital, which could be used strategically for both aggressive and defensive maneuvers, alongside favorable valuations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for SouthState Corp (SSB, Financial) is $112.91 with a high estimate of $120.00 and a low estimate of $97.00. The average target implies an upside of 24.65% from the current price of $90.58. More detailed estimate data can be found on the SouthState Corp (SSB) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, SouthState Corp's (SSB, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SouthState Corp (SSB, Financial) in one year is $100.37, suggesting a upside of 10.81% from the current price of $90.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SouthState Corp (SSB) Summary page.
SSB Key Business Developments
Release Date: April 25, 2025
- Net Interest Margin (NIM): Improved to 3.85%.
- Adjusted Return on Assets: 1.38%.
- Return on Tangible Common Equity: Approximately 20%.
- PPNR per Share Growth: Increased by 25% year-over-year.
- Loan Yield: Improved to 6.25%.
- Total Revenue: $630 million.
- Non-Interest Income: $86 million.
- Non-Interest Expense (NIE): $341 million.
- Efficiency Ratio: Dropped to 50%.
- Net Charge-Offs: 4 basis points.
- Provision for Credit Losses: $8 million.
- Common Equity Tier 1 (CET1) Ratio: 11%.
- Tangible Book Value (TBV): Just above $50.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SouthState Corp (SSB, Financial) achieved a materially higher net interest margin of 3.85% due to strategic capital management moves.
- The company's adjusted return on assets reached 1.38%, and return on tangible common equity was approximately 20%.
- Asset quality remains stable with only 4 basis points in charge-offs, indicating strong credit management.
- The company's capital ratios are higher than initially modeled, providing flexibility for future strategic decisions.
- SouthState Corp (SSB) reported strong revenue in Q1, led by an improved net interest margin and effective cost management.
Negative Points
- Balance sheet growth slowed due to seasonality, economic slowdown, and stiff competition on loan pricing.
- Non-interest income of $86 million was slightly below expectations, impacting total revenue.
- The company faces uncertainty regarding the impact of tariffs on future growth trajectories.
- There is a potential risk of a widespread recession affecting the commercial real estate portfolio, particularly in industrial warehouse exposure near port cities.
- The company experienced a noisy quarter with balance sheet marks and one-time items tied to strategic moves, complicating financial analysis.
