SouthState Corp enters $350M underwriting agreement

SouthState Corporation (NYSE:SSB), a $9.04 billion market cap regional bank trading at a P/E ratio of 14.44, has entered into a significant underwriting agreement, as disclosed in a recent 8-K filing with the U.S. Securities and Exchange Commission. According to InvestingPro data, the company currently appears slightly undervalued based on its Fair Value analysis. On Monday, the company signed an agreement with Morgan Stanley (NYSE:MS) & Co. LLC, Piper Sandler & Co., and Keefe, Bruyette & Woods, Inc., acting as representatives of several underwriters.

Under the terms of the agreement, SouthState Corporation agreed to sell $350 million in aggregate principal amount of its 7.000% Fixed-to-Floating Rate Subordinated Notes due 2035. This transaction is part of a registered public offering under an effective shelf registration statement. The company has demonstrated strong financial management, maintaining dividend payments for 29 consecutive years with a current yield of 2.38%.

The sale of the subordinated notes is subject to customary conditions outlined in the Underwriting Agreement. The details of the agreement are available in the Exhibit 1.1 of the 8-K filing, which is incorporated by reference into the report.

This move by SouthState Corporation is part of its broader financial strategy. The company, based in Winter Haven, Florida, is a state commercial bank operating under the South Carolina jurisdiction.

The filing also includes Exhibit 104, which contains the cover page interactive data file embedded within the Inline XBRL document. This financial instrument provides investors with an opportunity to invest in SouthState Corporation’s long-term debt securities, bearing a fixed-to-floating interest rate.

This announcement comes directly from the company’s latest SEC filing and provides investors with up-to-date information on SouthState Corporation’s financial activities. The transaction is set to impact the company’s financial structure and provide it with additional capital for its operations. With revenue growth of 13.69% over the last twelve months and nine analysts revising their earnings estimates upward, InvestingPro subscribers can access detailed analysis and additional insights through the comprehensive Pro Research Report, available exclusively on the platform.

In other recent news, South State Corporation reported a strong performance in Q1 2025, with earnings per share (EPS) of $2.15, significantly surpassing the forecasted $0.88. The company also exceeded revenue expectations, reporting $630.64 million compared to the anticipated $611.62 million. South State completed its integration with Independent Bank (NASDAQ:INDB) of Texas, which is expected to bolster its growth and profitability. Analysts from Keefe, Bruyette & Woods maintained an Outperform rating, highlighting the bank’s solid financial position and strategic initiatives. Jefferies initiated coverage with a Buy rating, citing South State’s expanding presence in Southern U.S. markets and strong credit quality. Meanwhile, Citi adjusted its price target for South State to $113 from $123, maintaining a Buy rating despite a slight underperformance following the earnings release. The bank’s net interest margin was reported at 3.85%, which exceeded guidance, and analysts anticipate its stability moving forward. Overall, South State’s strategic moves and financial metrics have garnered positive attention from multiple analyst firms.

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