- SouthState Corp’s net interest income for the third quarter stood at $351.5 million, slightly up by 0.3% from the previous quarter but missing the estimate of $357.8 million.
- The net interest margin (NIM) on a taxable-equivalent basis was recorded at 3.4%, below the previous quarter’s 3.44% and missing the estimated 3.46%.
- Cash and due from banks increased by 11% quarter-over-quarter to $563.9 million, while cash and cash equivalents grew by 8.5% to $1.21 billion.
- Adjusted earnings per share (EPS) improved significantly to $1.90, compared to $1.62 year-on-year, surpassing the estimated $1.64.
- Non-interest income rose 2.9% year-on-year, reaching $74.9 million, exceeding the estimate of $72.1 million.
- The tangible book value per share increased to $51.26 from $42.26 year-on-year, exceeding the estimated value of $49.74.
- The dividend payout ratio decreased to 28.8% from 31.8% year-on-year.
- Book value per share rose to $77.42, compared to $68.81 year-on-year, surpassing the estimate of $75.94.
- The net charge-offs ratio fell to 0.07% from 0.16% year-on-year, beating the estimated 0.14%.
- There was a recovery of credit losses amounting to $6.97 million, contrasting with a provision of $32.7 million the previous year and against an estimated provision of $15.6 million.
- Despite the challenges of hurricane season, SouthState demonstrated steady growth in loans, deposits, revenue, and earnings per share.
- Analyst recommendations include 5 buys, 4 holds, and no sells.
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A look at South State Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
South State Corp, a leading financial institution, is positioned favorably for long-term growth based on its comprehensive Smartkarma Smart Scores. With strong momentum and value ratings, the company is showing promising signs of continued success. The high momentum score suggests that South State is gaining traction and experiencing positive market trends, potentially leading to future price increases. Additionally, the impressive value score indicates that the company is currently undervalued, presenting an attractive opportunity for investors to capitalize on. Coupled with solid scores for growth, resilience, and dividends, South State appears well-rounded and poised for sustainable performance in the years to come.
South State Corp’s diverse range of banking services, including retail and commercial banking, mortgage lending, trust and investment services, and consumer finance loans, underpin its resilient performance and growth potential. While the company’s Smart Scores across various factors may vary, the overall outlook remains positive, reflecting a well-rounded investment opportunity. Investors looking for a company with sound fundamentals and strong market momentum may find South State an appealing choice for long-term investment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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