WINTER HAVEN, Fla. - SouthState Corporation (NYSE: SSB), a financial services company with a market capitalization of $9.97 billion, has reported unaudited financial results for the fourth quarter and full year of 2024, demonstrating steady growth in key financial metrics. The company announced a net income of $144.2 million for the quarter, marking a 9% increase in pre-provision net revenue (PPNR) over the previous quarter, driven by a 6% revenue growth. According to InvestingPro analysis, the company currently trades near its Fair Value, with analysts maintaining a moderate buy consensus.
The company’s Chief Executive Officer, John C. Corbett, expressed satisfaction with the year’s performance, highlighting growth in loans and deposits, an uptick in net interest margin, and an increase in fees. Corbett also noted the prompt regulatory approval and successful closure of the IBTX acquisition on January 1, 2025, which is expected to bolster the company’s momentum into 2025. InvestingPro data shows the company maintains a "Fair" overall financial health score, with particularly strong marks in profitability metrics.
Key financial highlights from the fourth quarter of 2024 include a reported diluted earnings per share (EPS) of $1.87 and an adjusted diluted EPS of $1.93. The return on average common equity stood at 9.7%, with an adjusted return on average tangible common equity reaching 15.6%. The company also reported a net interest income of $370 million and a net interest margin of 3.48%.
The balance sheet reflected a 4% annualized increase in loans, primarily in commercial and industrial, and commercial owner-occupied real estate, with a total loan yield of 5.76%. Deposits also increased by 4% annualized, and the total deposit cost was reported at 1.75%.
SouthState completed the merger with Independent Bank Group (NASDAQ:IBTX), Inc. on January 1, 2025, and entered into an agreement on January 8, 2025, to sell branch properties and enter into triple net lease agreements with Blue Owl Real Estate Capital, LLC.
The Board of Directors declared a quarterly cash dividend of $0.54 per share, payable on February 14, 2025, to shareholders of record as of February 7, 2025. Notably, InvestingPro data reveals that SouthState has maintained dividend payments for 28 consecutive years and has raised its dividend for 13 straight years, demonstrating a strong commitment to shareholder returns. The current dividend yield stands at 2.17%, with a 3.85% dividend growth over the last twelve months. For deeper insights into SouthState’s financial health and more exclusive ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
SouthState serves over one million customers through its bank subsidiary and correspondent banking division, offering consumer, commercial, mortgage, and wealth management solutions across multiple states.
The information reported is based on a press release statement by SouthState Corporation.
In other recent news, South State (NYSE:SSB) Corporation has seen significant developments. The company has successfully completed its merger with Independent Bank (NASDAQ:INDB) Group, increasing the company’s assets to an estimated $65 billion. The merger was finalized on January 1, 2025, following the receipt of all required regulatory approvals. As a result, SouthState’s footprint has expanded in Texas and Colorado, and the board has welcomed three former Independent (LON:IOG) Financial directors.
Keefe, Bruyette & Woods (KBW) has reaffirmed South State’s Outperform rating, following a sale leaseback transaction expected to generate a $170 million gain. The transaction could potentially be 2% accretive to earnings per share (EPS) if South State capitalizes on the opportunity to restructure its bonds. South State was also selected as one of KBW’s Best Ideas for 2025, with an expectation of significant growth.
In terms of financial performance, South State Corporation reported operating EPS of $1.90, surpassing the consensus estimate of $1.65. The company’s core pre-provision net revenue (PPNR) of $183.4 million also exceeded the consensus forecast of $181.4 million. Stephens, a financial services firm, raised its price target for South State Corporation shares to $105.00, citing these earnings results.
Lastly, Truist Securities adjusted its price target for South State Corporation shares to $103 from the previous $111, while retaining a Hold rating. The firm revised its Core EPS estimates for 2024, 2025, and 2026 upwards, citing increased fees, decreased provisioning for credit losses, and reduced expenses. Piper Sandler also adjusted its stance on South State, raising its price target from $110 to $112, citing effective expense management and the potential for further loan loss reserve releases.
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