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

SouthState Bank

Wed 21:16

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: ID:nPn1sZS4ta

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

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.)