Red Spruce Capital’s Exit from SouthState Bank: A Closer Look
On October 6, 2025, Red Spruce Capital, LLC made a notable move in the financial markets by fully liquidating its position in SouthState Bank (SSB). According to an SEC filing, this transaction involved 35,244 shares and amounted to an estimated $3.24 million based on the average pricing for the quarter ending September 30, 2025. As a result, Red Spruce Capital now reports a complete exit from this investment, reflecting a strategic shift in its portfolio.
What Happened
The SEC filing dated October 6 indicates a definitive decision by Red Spruce Capital to sell all its shares in SouthState Bank. This 100% liquidation of holdings signifies a bold move, as the fund has now reduced its stake in SSB to 0%. This quarter saw market activity indicating not only the sale but also raised questions about future strategies, given that Red Spruce Capital’s current position in SouthState Bank will no longer contribute to their overall assets under management (AUM).
What Else to Know
With the exit from SouthState Bank, it’s important to note that this position now represents 0% of Red Spruce Capital’s 13F AUM as of September 30, 2025. Their portfolio has shifted toward other significant entities, with top holdings as follows:
- NASDAQ:GOOGL: $15.1 million (6.2% of AUM)
- NASDAQ:BSCQ: $12.24 million (5.1% of AUM)
- NYSE:ABBV: $10.28 million (4.3% of AUM)
- NASDAQ:BSCR: $9.91 million (4.1% of AUM)
- NASDAQ:AVGO: $8.97 million (3.7% of AUM)
As of October 3, 2025, shares of SouthState Bank were trading at $99.37, reflecting a 5.0% increase year-over-year, although it has underperformed relative to the S&P 500 by approximately 9.58 percentage points during the same timeframe.
Company Overview
SouthState Corporation operates as a regional bank holding company in the Southeastern United States. It provides a comprehensive suite of banking products that includes checking and savings accounts, commercial and residential loans, consumer lending, debit and credit cards, treasury management, and investment solutions. The company maintains a robust branch network and digital channels to serve its customer base effectively.
As of December 31, 2021, SouthState had 281 branches, catering to individuals, small businesses, and commercial clients across key markets in Florida, South Carolina, Alabama, Georgia, North Carolina, and Virginia. Their diversified business model allows them to adapt to varying market demands, making them a significant player in the regional banking sector.
Company Snapshot
Here’s a brief snapshot of SouthState’s financial metrics:
- Revenue (TTM): $2.84 billion
- Net Income (TTM): $591.66 million
- Dividend Yield: 2.19%
- Price (as of market close October 3, 2025): $99.37
These metrics highlight SouthState’s solid performance and potential for continued growth in a competitive environment.
Foolish Take
Earlier in the year, SouthState Bank expanded its asset base significantly by acquiring the Independent Bank Group in an all-stock deal valued at approximately $2 billion. This merger has increased SouthState’s total assets to roughly $65 billion. Despite the dilution from issuing new shares, the bank has been proactive in raising its dividends by an impressive 11%. With a current earnings per share of $6.73, SouthState comfortably meets its annual dividend obligation of $2.40.
For 14 consecutive years, SouthState has increased its dividend payouts, boasting an astounding 131% rise over the past decade. Although the yield at 2.4% may not initially appear compelling, the bank’s steadily rising dividend could offer substantial passive income for investors in the long run.
Glossary
To further understand the context, here are some key definitions:
- 13F assets under management (AUM): The total value of securities an institutional investment manager reports in quarterly SEC Form 13F filings.
- Liquidated: The complete sell-off of an investment position, reducing the holding to zero.
- Dividend yield: The annual dividend income expressed as a percentage of the current share price.
- Branch network: The physical locations operated by a bank.
- Regional bank holding company: A corporation that owns or controls one or more banks primarily operating in a specific geographic area.
- TTM: The 12-month period ending with the most recent quarterly report.
This detailed picture not only provides insight into Red Spruce Capital’s strategic decisions but also underlines the positioning and potential of SouthState Bank in the evolving financial landscape.
