UBS Retained Buy Recommendation on SouthState Bank (SSB)

Core Viewpoint - SouthState Bank Corporation (SSB) is recognized as one of the top bank stocks to consider for investment in 2026, with a positive outlook from UBS following strong Q4 2025 results [1][2]. Financial Performance - SSB reported a significant net income growth of 71.8% year-over-year (YoY) in Q4 2025, reaching $247.7 million, up from $144.2 million [3]. - Diluted earnings per share increased by 31.6% YoY to $2.46, compared to $1.87 in the previous year [3]. - Return on average assets improved by 24 basis points YoY to 1.47%, while return on common equity rose by 178 basis points YoY to 10.90% [3]. Revenue Drivers - The strong earnings growth was primarily fueled by a 57.2% YoY increase in net interest income (NII), totaling $581.1 million, up from $369.8 million [4]. - Net interest margin (NIM) expanded by 38 basis points YoY to 3.86%, with average earning asset yields improving by 46 basis points YoY to 5.62% [4]. Asset Growth - Earning assets grew by 41.5% YoY to $59.9 billion, with a notable 43.0% expansion in the loan book, increasing from $33.8 billion to $48.4 billion [5]. - This growth in earning assets was primarily funded by a $17.1 billion YoY increase in deposits, rising from $38.1 billion to $55.1 billion [5]. Asset Quality - Asset quality remained stable, with a slight increase in the net charge-off ratio to 0.09% YoY, while the allowance for credit loss percentage improved to 1.20% [6]. - Provisions for credit losses grew modestly by 3.6% YoY to $6.6 million [6]. Shareholder Actions - The board of directors approved a new stock purchase plan, allowing the repurchase of 5.56 million common shares, approximately 5.6% of the company's weighted average common shares outstanding as of December 31, 2025 [7].