| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 59.95 | -41 |
| Intrinsic value (DCF) | 530.26 | 418 |
| Graham-Dodd Method | 55.02 | -46 |
| Graham Formula | 118.66 | 16 |
SouthState Corporation (NASDAQ: SSB) is a leading regional bank holding company operating primarily in the Southeastern U.S., with a strong presence in Florida, South Carolina, Alabama, Georgia, North Carolina, and Virginia. Founded in 1933 and headquartered in Winter Haven, Florida, SouthState Bank provides a comprehensive suite of financial services, including commercial and consumer banking, treasury management, wealth management, and digital banking solutions. The bank serves individuals, businesses, and institutions through its network of 281 branches and robust online and mobile platforms. SouthState differentiates itself through a relationship-driven approach, deep regional expertise, and a diversified loan portfolio spanning commercial real estate, residential mortgages, and consumer lending. With a market capitalization of approximately $8.9 billion, SouthState has demonstrated resilience and growth in the competitive regional banking sector, supported by strategic acquisitions and organic expansion. The bank's focus on high-growth Southeastern markets positions it well to capitalize on demographic and economic trends in one of the nation's fastest-growing regions.
SouthState Corporation presents an attractive investment opportunity for investors seeking exposure to high-growth Southeastern U.S. markets through a well-capitalized regional bank. The company benefits from a diversified revenue stream, strong asset quality, and a proven acquisition strategy that has driven consistent growth. With a beta of 0.736, SSB offers relatively lower volatility compared to broader financial sector peers. The bank's solid fundamentals are reflected in its $534.8 million net income and $6.97 diluted EPS for the latest reporting period, supported by $2.14 billion in revenue. While the regional banking sector faces challenges from interest rate volatility and economic uncertainty, SouthState's conservative underwriting standards and strong capital position (with $798.3 million in cash and equivalents) provide downside protection. The 2.16% dividend yield adds to total return potential. Key risks include exposure to commercial real estate markets and potential margin compression in a changing rate environment.
SouthState Corporation competes in the crowded Southeastern U.S. regional banking market, where it has carved out a strong position through a combination of organic growth and strategic acquisitions. The bank's competitive advantages include its deep regional knowledge, diversified business mix, and strong commercial banking capabilities. Unlike many regional peers focused solely on retail banking, SouthState has developed meaningful expertise in commercial lending (particularly in CRE and C&I loans) and treasury services, which provide higher margins and deeper customer relationships. The bank's multi-state footprint across high-growth Southeastern markets provides geographic diversification and reduces concentration risk. SouthState's digital capabilities, while not industry-leading, are sufficiently robust to serve its predominantly relationship-based customer base. The bank's conservative credit culture and strong underwriting standards have resulted in consistently lower non-performing assets compared to regional peers. However, SouthState faces intensifying competition from both larger national banks (with greater scale and technology resources) and smaller community banks (with more localized focus). The bank's M&A experience gives it an advantage in consolidation opportunities, but integration risks remain. Pricing pressure on deposits and loans in the current rate environment presents ongoing challenges to net interest margin.