South State Bank (NYSE:SSB) has reached a new 52-week high, with its shares trading at $93.96. This milestone reflects the strong performance of the bank over the past year, marking a significant increase in its stock value. The 52-week high of $93.96 is a testament to the bank's resilience and adaptability in a challenging economic environment. Over the past year, First Financial , the parent company of SSB, has seen a substantial change in its stock value, with a 24.87% increase. This positive trend indicates a robust financial position and a promising outlook for the bank.
In other recent news, SouthState Corporation has been in the spotlight due to various developments. The banking company's shares have seen adjustments in their target prices by financial services firms Piper Sandler and Keefe, Bruyette & Woods. Piper Sandler recently raised the price target from $95.00 to $98.00, maintaining an Overweight rating on the stock, but later reduced it to $95.00. The firm's projections suggest a robust return on assets (ROA) of approximately 1.33%, a return on equity (ROE) of 10.25%, and a return on tangible common equity (ROTCE) of 15.35%.
Simultaneously, Keefe, Bruyette & Woods raised its stock price target for SouthState to $95.00, up from the previous target of $92.00. The firm maintained its Outperform rating on the bank's shares, indicating confidence in SouthState's financial performance and growth trajectory. Both firms' adjustments were based on updated earnings per share (EPS) estimates for the upcoming years, reflecting a strong earnings outlook.
In a significant development, SouthState Corporation announced a definitive all-stock merger with Independent Bank Group (NASDAQ:IBTX), Inc., valued at approximately $2 billion. This merger is expected to result in a combined entity with pro forma total assets of $65 billion, deposits of $55 billion, and gross loans of $48 billion, along with a market capitalization of around $8.2 billion. The deal is expected to close by the end of the first quarter of 2025, subject to regulatory approvals and approval by shareholders of both companies.
Furthermore, SouthState Corporation reported steady growth in the first quarter of 2024, with results aligning with the company's guidance. Despite a slight dip in net interest margin (NIM), which hit the lower end of the guidance range at 3.41%, SouthState expects it to stabilize moving forward. The bank's capital ratios stand out, being on the higher end compared to peers, and have shown consistent growth over the past year. Fee income saw a rise due to better performance in mortgage banking and wealth management.
InvestingPro Insights
As South State Bank (SSB) celebrates its new 52-week high, investors are closely monitoring its financial metrics and market performance. According to InvestingPro data, SSB has a market capitalization of $7.12 billion and is trading with a price-to-earnings (P/E) ratio of 15.12, which adjusts slightly to 14.99 when considering the last twelve months as of Q1 2024. This demonstrates a reasonable valuation in the current market. Moreover, the bank has exhibited strong returns, with a 1-month price total return of 25.45% and a 3-month total return of 17.18%, highlighting its recent momentum.
An InvestingPro Tip that stands out for SSB is the bank's commendable history of raising its dividend for 28 consecutive years, showcasing its commitment to delivering shareholder value. Additionally, the stock's recent performance has been strong, with a one-month return that is particularly impressive. For those interested in exploring further insights and tips, InvestingPro offers additional guidance and analysis. There are 6 more InvestingPro Tips available for SSB, which can be accessed at: https://www.investing.com/pro/SSB. For those looking to delve deeper into investment research, using the coupon code PRONEWS24 can provide up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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