South State (SSB) Stock Forecast & Price Target

SouthState Bank Corp has demonstrated promising loan production growth, with a reported $3.4 billion in loans, reflecting a quarter-over-quarter increase and a significant 67% year-to-date rise in loan production from Texas and Colorado. The bank's earnings projections for 2025 and 2026 have been positively revised, driven by stronger fee income expectations and lower credit costs, positioning it well for sustained profitability. Furthermore, the outlook for net loan growth indicates an acceleration, particularly in commercial and residential lending, enhancing the bank’s competitive stance in its operational regions.

The outlook for SouthState Bank Corp exhibits several concerning financial metrics that contribute to a negative perspective. The bank's total Purchase Accounting Adjustments (PAA) of $82.9 million, which were double the forecast, coupled with a core Net Interest Margin (NIM) of 3.48% declining 10 basis points and underperforming expectations, indicate potential pressures on profitability. Furthermore, risks associated with regulatory changes and the bank's ability to manage integration and pricing effectively may lead to increased earnings volatility, exacerbating the negative implications on SouthState Bank's financial health.