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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $2.30 | ||
Q3 Adjusted Net Income | Miss | $223.80 mln | $232.65 mln (12 Analysts) |
Q3 Net Income | $223.80 mln | ||
Q3 Net Interest Income | $591.52 mln | ||
Q3 Credit Loss Provision | $20.35 mln |
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
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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.)