SSB - SouthState Bank Keeping Its Foot Firmly On The Accelerator
2024-06-28 12:53:10 ET
Summary
- SouthState continues to aggressively pursue growth across the Southeastern U.S., and the acquisition of Independent Bank gives the company a foothold in the attractive Texas market.
- IBTX will give SouthState some attractive growth leverage, and long-term funding and margin improvement opportunities, but a retail and office-heavy portfolio is a near-term risk.
- I expected around 7% core earnings growth from SouthState before the deal, supporting a fair value in the low-$80's, and I think IBTX will be a value-adding deal over time.
If the ups and downs of growth-oriented banks aren’t for you, you’re not going to like SouthState ( SSB ) all that much. Between competitive hire-aways and M&A, SouthState management has made it clear that they see a real opportunity in building the bank’s presence across the fast-growing Southeast, and they’re willing to pay the price in the short term to realize the long-term benefits of meaningful share in some of the most attractive banking markets in the United States....
SouthState Bank Keeping Its Foot Firmly On The Accelerator