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SouthState Stock Rises 11.6% in 3 Months: Is It Worth Betting On?
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Key Takeaways
{\"0\":\"SouthState shares gained 11.6% in three months, beating industry and peers\' performance.\\r\\n\",\"1\":\"Fed rate cuts, NII growth, and acquisitions like Independent Bank boosted scale and margins.\",\"2\":\"Strong liquidity supports dividend hikes and buybacks, though expenses and CRE risks weigh.\"}
SouthState Corporation’s (SSB - Free Report) shares have rallied 11.6% in the past three months, outperforming the industry’s growth of 6.8%. Further, the company has performed better than its peers, Origin Bancorp, Inc. (OBK - Free Report) and Stock Yards Bancorp, Inc. (SYBT - Free Report) . Shares of Origin Bancorp have gained 1.5% whereas Stock Yards’ stock has lost 3.9% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
What’s Supporting SSB’s Performance?
Fed’s Interest Rate Cuts to Aid NII: The Federal Reserve has reduced rates by 25 basis points this month and signaled further reductions by year's end. This is likely to ease funding pressures and stabilize deposit costs for banks such as SouthState, Origin Bancorp and Stock Yards.
SouthState’s net interest income (NII) has delivered a strong five-year compound annual growth rate (CAGR) of 22.9% through 2024, and this growth has continued to improve in the first half of 2025, supported by securities restructuring and better-than-expected deposit pricing. Net interest margin (NIM), which had declined in 2024 due to elevated funding costs after expanding in 2023 on stronger yields, also improved in the first half of 2025 as the company benefited from balance sheet optimization, including a sale-leaseback transaction and investment portfolio repositioning.
Looking ahead, loan repricing, additional securities restructuring and earning asset growth are expected to sustain momentum, while further Fed rate cuts should provide additional support for both NII and NIM in the coming quarters.
Solid Organic Growth: Organic expansion remains a core strength for the company. Over the five years ended 2024, its revenues posted a robust CAGR of 21.5%, with the momentum carrying into the first half of 2025.
Looking ahead, a combination of low-cost deposits, decent loan pipelines, steady fee-based income and contributions from recent acquisitions are expected to keep driving revenue growth. Thus, the loan repricing opportunities and continued expansion into attractive markets would further support top-line performance in the coming quarters.
The Zacks Consensus Estimate for SouthState’s 2025 and 2026 revenues suggests a year-over-year increase of 51.93% and 4.76%, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Expanding Market Presence: SSB has steadily broadened its footprint through a series of acquisitions over the past several years. In January 2025, the acquisition of Independent Bank significantly boosted SSB’s scale, lifting total assets to $65.1 billion and extending the franchise into Texas and Colorado. The deal also strengthened its reach across 12 of the 15 fastest-growing U.S. Metropolitan Statistical Areas.
Earlier transactions, including Atlantic Capital in 2022 to deepen its presence in Atlanta, CenterState Bank Corporation in 2020 and Park Sterling Corporation in 2017, have steadily expanded SSB’s asset base and enhanced its competitive position in high-growth markets.
Strong Liquidity Position: SouthState maintains a sound liquidity profile, supported by strong cash balances and manageable debt levels. As of June 30, 2025, the company reported total debt of $1.2 billion, which was comfortably below its cash and cash-equivalent balance of $3.5 billion.
With solid liquidity, the company continues to demonstrate a strong commitment to shareholder returns through steady dividends and an active share repurchase program.
The company has consistently raised dividends since 2020, with the most recent hike of 11.1% announced in July 2025. The company has a payout ratio of 26% with a five-year annualized dividend growth of 3.30%. It has increased its dividends five times in the past five years, yielding 2.4%. Notably, the dividend yield of its peers, Origin Bancorp and Stock Yards, is 1.6% and 1.7%, respectively.
Dividend Yield
Image Source: Zacks Investment Research
In addition to dividends, SSB maintains a share repurchase program. In February 2025, the board authorized the repurchase of up to 3 million shares, which is set to expire on Dec. 31, 2026. As of June 30, 2025, the full authorization remained available.
Concerns Weighing on SSB
Elevated Expenses: Cost escalation remains a major concern for SouthState. Total non-interest expenses registered a CAGR of 16.6% over the five years (2019–2024), driven by higher salaries and benefits, occupancy, information services and other operating costs. The trend persisted into the first half of 2025.
Expense Trend
Image Source: Zacks Investment Research
Although management is taking measures to improve efficiency, expenses are likely to remain elevated in the near term due to ongoing expansion efforts, inflationary pressures and rising technological investments.
Loan Concentration Risks: The company’s loan portfolio is heavily concentrated in real estate. As of June 30, 2024, nearly 72.9% of loans had real estate as a primary or secondary component of collateral.
This concentration increases the company’s exposure to the commercial real estate (CRE) market. Any weakness in CRE conditions or a broader slowdown in property values could lead to higher defaults, pressuring asset quality and increasing credit provisions in the near term.
Final Thoughts on SSB Stock
SouthState’s robust NII growth, improving margins and a well-executed expansion strategy—highlighted by the transformative Independent Bank acquisition—position the bank to benefit from Fed rate cuts, loan repricing opportunities and continued market share gains. Meanwhile, its solid liquidity, consistent dividend hikes and active share repurchase program reinforce management’s confidence and provide meaningful returns to shareholders.
While rising operating expenses and commercial real estate concentration present near-term risks, SouthState’s healthy balance sheet, diversified revenue drivers, and scale advantages outweigh these concerns.
On the valuation front, the company’s 12-month trailing price-to-book (P/B) ratio of 1.15X is below the industry’s 1.88X. This indicates that its shares are trading at a discount. Notably, Origin Bancorp has a trailing P/B ratio of 0.93X while Stock Yards is trading at 2.18X.
Price-to-Book TTM
Image Source: Zacks Investment Research
Hence, with strong fundamentals, an expanding market presence, and a shareholder-friendly capital strategy, SSB remains a compelling investment for investors seeking solid long-term returns. Currently, SouthState carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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SouthState Stock Rises 11.6% in 3 Months: Is It Worth Betting On?
Key Takeaways
SouthState Corporation’s (SSB - Free Report) shares have rallied 11.6% in the past three months, outperforming the industry’s growth of 6.8%. Further, the company has performed better than its peers, Origin Bancorp, Inc. (OBK - Free Report) and Stock Yards Bancorp, Inc. (SYBT - Free Report) . Shares of Origin Bancorp have gained 1.5% whereas Stock Yards’ stock has lost 3.9% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
What’s Supporting SSB’s Performance?
Fed’s Interest Rate Cuts to Aid NII: The Federal Reserve has reduced rates by 25 basis points this month and signaled further reductions by year's end. This is likely to ease funding pressures and stabilize deposit costs for banks such as SouthState, Origin Bancorp and Stock Yards.
SouthState’s net interest income (NII) has delivered a strong five-year compound annual growth rate (CAGR) of 22.9% through 2024, and this growth has continued to improve in the first half of 2025, supported by securities restructuring and better-than-expected deposit pricing. Net interest margin (NIM), which had declined in 2024 due to elevated funding costs after expanding in 2023 on stronger yields, also improved in the first half of 2025 as the company benefited from balance sheet optimization, including a sale-leaseback transaction and investment portfolio repositioning.
Looking ahead, loan repricing, additional securities restructuring and earning asset growth are expected to sustain momentum, while further Fed rate cuts should provide additional support for both NII and NIM in the coming quarters.
Solid Organic Growth: Organic expansion remains a core strength for the company. Over the five years ended 2024, its revenues posted a robust CAGR of 21.5%, with the momentum carrying into the first half of 2025.
Looking ahead, a combination of low-cost deposits, decent loan pipelines, steady fee-based income and contributions from recent acquisitions are expected to keep driving revenue growth. Thus, the loan repricing opportunities and continued expansion into attractive markets would further support top-line performance in the coming quarters.
The Zacks Consensus Estimate for SouthState’s 2025 and 2026 revenues suggests a year-over-year increase of 51.93% and 4.76%, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Expanding Market Presence: SSB has steadily broadened its footprint through a series of acquisitions over the past several years. In January 2025, the acquisition of Independent Bank significantly boosted SSB’s scale, lifting total assets to $65.1 billion and extending the franchise into Texas and Colorado. The deal also strengthened its reach across 12 of the 15 fastest-growing U.S. Metropolitan Statistical Areas.
Earlier transactions, including Atlantic Capital in 2022 to deepen its presence in Atlanta, CenterState Bank Corporation in 2020 and Park Sterling Corporation in 2017, have steadily expanded SSB’s asset base and enhanced its competitive position in high-growth markets.
Strong Liquidity Position: SouthState maintains a sound liquidity profile, supported by strong cash balances and manageable debt levels. As of June 30, 2025, the company reported total debt of $1.2 billion, which was comfortably below its cash and cash-equivalent balance of $3.5 billion.
With solid liquidity, the company continues to demonstrate a strong commitment to shareholder returns through steady dividends and an active share repurchase program.
The company has consistently raised dividends since 2020, with the most recent hike of 11.1% announced in July 2025. The company has a payout ratio of 26% with a five-year annualized dividend growth of 3.30%. It has increased its dividends five times in the past five years, yielding 2.4%. Notably, the dividend yield of its peers, Origin Bancorp and Stock Yards, is 1.6% and 1.7%, respectively.
Dividend Yield
Image Source: Zacks Investment Research
In addition to dividends, SSB maintains a share repurchase program. In February 2025, the board authorized the repurchase of up to 3 million shares, which is set to expire on Dec. 31, 2026. As of June 30, 2025, the full authorization remained available.
Concerns Weighing on SSB
Elevated Expenses: Cost escalation remains a major concern for SouthState. Total non-interest expenses registered a CAGR of 16.6% over the five years (2019–2024), driven by higher salaries and benefits, occupancy, information services and other operating costs. The trend persisted into the first half of 2025.
Expense Trend
Image Source: Zacks Investment Research
Although management is taking measures to improve efficiency, expenses are likely to remain elevated in the near term due to ongoing expansion efforts, inflationary pressures and rising technological investments.
Loan Concentration Risks: The company’s loan portfolio is heavily concentrated in real estate. As of June 30, 2024, nearly 72.9% of loans had real estate as a primary or secondary component of collateral.
This concentration increases the company’s exposure to the commercial real estate (CRE) market. Any weakness in CRE conditions or a broader slowdown in property values could lead to higher defaults, pressuring asset quality and increasing credit provisions in the near term.
Final Thoughts on SSB Stock
SouthState’s robust NII growth, improving margins and a well-executed expansion strategy—highlighted by the transformative Independent Bank acquisition—position the bank to benefit from Fed rate cuts, loan repricing opportunities and continued market share gains. Meanwhile, its solid liquidity, consistent dividend hikes and active share repurchase program reinforce management’s confidence and provide meaningful returns to shareholders.
While rising operating expenses and commercial real estate concentration present near-term risks, SouthState’s healthy balance sheet, diversified revenue drivers, and scale advantages outweigh these concerns.
On the valuation front, the company’s 12-month trailing price-to-book (P/B) ratio of 1.15X is below the industry’s 1.88X. This indicates that its shares are trading at a discount. Notably, Origin Bancorp has a trailing P/B ratio of 0.93X while Stock Yards is trading at 2.18X.
Price-to-Book TTM
Image Source: Zacks Investment Research
Hence, with strong fundamentals, an expanding market presence, and a shareholder-friendly capital strategy, SSB remains a compelling investment for investors seeking solid long-term returns. Currently, SouthState carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.