SouthState Bank Q3 adjusted profit misses estimates on higher costs, soft capital markets

Overview

• U.S. regional bank's Q3 adjusted net income missed analyst expectations

• Loans and deposits each grew at a 9% annualized rate in Q3

• Company repurchased 250,000 shares during the quarter

Outlook

• Company did not provide specific guidance for future quarters or the full year in the press release

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co said loans and deposits each grew at a 9% annualized rate, with growth broad-based across geographies and business lines, attributed to banker hiring

• HIGHER COMPENSATION COSTS - Noninterest expense rose due to increased salaries and benefits, driven by merit increases, banker hiring, higher incentive accruals, and lower deferred loan costs

• SOFTER CAPITAL MARKETS ACTIVITY - Co said capital markets activity softened as treasury yields rose

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for SouthState Bank Corp is $120.00, about 16.9% above its October 20 closing price of $102.62

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

• Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

• Oct 20 - Commerce Bancshares Q3 EPS beats, helped by loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)