StockStory Flags Three Banks for Slowing Growth and Profitability

StockStory says it sees risks at SouthState, Community Financial System and First Citizens BancShares, citing concerns about growth, costs and profitability. The publisher noted that banking stocks gained 7.8% over the past six months, trailing the S&P 500’s 21.1% rise.

For SouthState, StockStory cited estimated net interest income growth of 3.4% over the next 12 months. It also pointed to an expected 2.6 percentage-point increase in the efficiency ratio, which measures expenses against revenue.

Community Financial System’s annual net interest income growth was 7.5% over the past five years, below what StockStory described as typical for a banking firm. The publisher also cited annual earnings-per-share growth of 4% and a 1.4% annual decline in tangible book value per share over that period.

At First Citizens, sales fell 2.9% annually over the past two years, according to the article. StockStory also highlighted a 63.1-basis-point decline in net interest margin and falling earnings per share over the same period.