UBS Retained Buy Recommendation on SouthState Bank (SSB)

SouthState Bank Corporation (NYSE:SSB) is 1 of the 10 Best Bank Stocks to Buy successful 2026..

On February 4, UBS somewhat accrued its people terms connected SouthState Bank (SSB) to $121 (from $120) and reiterated its Buy recommendation. The steadfast liked what it saw successful the 4th quarter of 2025 from mid-cap banks, which delivered beardown wide results and avoided plus prime deterioration successful Q4. It besides expects capitalist momentum connected determination banks to stay strong, owed to output curve steepening, indebtedness maturation acceleration, and accrued M&A activity.

The slope released its Q4 2025 results connected January 22, which showed beardown nett income maturation of 71.8% YoY to $247.7 cardinal (from $144.2 million). On a per stock basis, diluted net grew 31.6% YoY to $2.46 (from $1.87). The beardown net maturation yielded a 24-basis constituent betterment successful instrumentality connected mean assets (from 1.23% to 1.47%) and a 178-basis constituent summation successful instrumentality connected communal equity (from 9.72% to 10.90%). It besides led to an 18.4% YoY maturation successful publication worth per share, from $77.18 to $91.38.

Strong net maturation was driven chiefly by a 57.2% YoY summation successful nett involvement income (NII) to $581.1 cardinal (from $369.8 million), which successful crook was driven by some nett involvement borderline (NIM) enlargement and beardown maturation successful the bank’s earning assets. NIMs expanded by 38 ground points YoY to 3.86% (from 3.48%), arsenic mean earning plus yields improved 46 ground points YoY to 5.62% (from 5.16%). This output betterment outweighed the 9-basis constituent summation successful the bank’s mean outgo of funding.

Earning assets grew 41.5% YoY to $59.9 cardinal (from $42.3 billion), with astir of the maturation coming from a 43.0% enlargement successful the bank’s indebtedness publication (from $33.8 cardinal to $48.4 billion). This $17.6 cardinal summation successful net assets was mostly funded by a $17.1 cardinal YoY summation successful deposits (from $38.1 cardinal to $55.1 billion), the remainder by equity.

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Asset quality, meanwhile, did not materially deteriorate successful Q4. Net charge-off ratio somewhat accrued by 3 ground points YoY to 0.09% (from 0.06%) and improved by 18 ground points erstwhile viewed quarter-on-quarter. Non-performing indebtedness %-age accrued 1 ground constituent YoY to 0.64% (from 0.63%). Allowance for recognition nonaccomplishment %-age improved 17 ground points YoY to 1.20% (from 1.37%). As a result, provisions for recognition losses lone grew 3.6% YoY to $6.6 cardinal (from $6.4 million).

SSB’s committee of directors besides approved a caller banal acquisition plan, which would let the slope to repurchase 5.56 cardinal of its communal shares. This fig represents astir 5.6% of the company’s weighted mean communal shares outstanding arsenic of 31 December 2025.