South State (SSB) PT Lowered to $123 at Citi

Citi analyst Benjamin Gerlinger lowered the price target on South State (NYSE: SSB) to $123.00 (from $128.00) while maintaining a Buy rating.

The analyst comments "Following late last’s week’s securities restructuring announcement, we are refreshing our model. Recall, last week SSB announced the completion of its pending branch sale-leaseback transaction, resulting in pre-tax gain of approximately $229 million, in addition to a securities restructuring (at roughly the same amount). Prior guidance indicated NIM to be 3.60% to 3.70% in the first quarter (we model 3.66%) – coupled with a full quarter impact of any securities restructuring would likely add 5bps to 2Q, 3Q, 4Q25 – with SSB planning to exit 2025 in the 3.75% to 3.85% NIM range (we model 3.79% in 4Q25). While minor, our refreshed modeling also includes a modestly lower deposit funding cost for future quarters. Fundamentally, we have been impressed by SSB’s ability to continue to lower promo-CD rates, down 20bps YTD (see here) – the highest level of rate compression among our regional bank coverage in 2025."

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