SouthPoint Bancshares, Inc. (SOUB) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
SouthPoint Bancshares, Inc. (SOUB) trades at $10.20 with AI Score 44/100 (Grade C). SouthPoint Bancshares, Inc. operates as a community bank in central Alabama, offering a range of financial products and services. Market cap: $30.3M, Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 17, 2026Analyst Coverage for SOUB: SOUB does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SOUB against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SOUB: this read rests on a single discipline (MoonshotScore) — the other council disciplines have no scored data yet.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
SouthPoint Bancshares, Inc. (SOUB) Financial Services Profile
SouthPoint Bancshares, Inc. is a regional bank serving central Alabama with a focus on commercial and retail banking. Operating five branches and a mortgage division, the bank offers traditional banking services and wealth management, but currently exhibits a negative profit margin, setting it apart from larger competitors in a consolidating industry.
What Is the Investment Thesis for SOUB?
SouthPoint Bancshares, Inc. presents a high-risk, high-reward investment opportunity. The company's negative profit margin of -60.6% raises concerns about its operational efficiency and profitability. Growth catalysts include potential expansion within Alabama and increased adoption of digital banking services. However, the company's small market capitalization of $30.3M and OTC listing introduce liquidity and regulatory risks. Investors should closely monitor the company's efforts to improve profitability and manage its cost structure. The low beta of 0.24 suggests lower volatility compared to the broader market, but does not mitigate the fundamental challenges facing the company. Successful execution of its growth strategies and improved financial performance are critical for realizing value.
Based on FMP financials and quantitative analysis
SOUB Key Highlights
Market capitalization of $30.3M indicates a small-cap company with potential for growth but also higher risk.
- Negative profit margin of -60.6% signals significant challenges in achieving profitability and operational efficiency.
- Gross margin of 54.4% suggests a reasonable level of efficiency in generating revenue from its core banking activities.
- Beta of 0.24 indicates lower volatility compared to the overall market, which may appeal to risk-averse investors.
- Absence of dividend yield reflects the company's current focus on reinvesting earnings to drive growth and improve financial stability.
Who Are SOUB's Competitors?
SOUB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BCOW 1895 Bancorp of Wisconsin, Inc. | $17.74 | +0.15% | $91.3M | 50 |
| BSFO Bank of San Francisco | $43.80 | +0.00% | $95.8M | 52 |
| CIWV Citizens Financial Corp. | $48.00 | +0.00% | $81.6M | 51 |
| CMHF Community Heritage Financial, Inc. | $41.25 | +0.00% | $92.9M | 49 |
| FBTT First Bankers Trustshares, Inc. | $29.50 | +3.51% | $88.7M | 47 |
| HWBK Hawthorn Bancshares, Inc. | $39.44 | +0.19% | $272M | 92 |
| FRAF Franklin Financial Services Corporation | $62.10 | +0.40% | $279M | 92 |
| FUNC First United Corporation | $43.35 | -0.55% | $280M | 92 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SOUB's Key Strengths?
Established presence in central Alabama.
- Comprehensive range of banking products and services.
- Full-service mortgage division.
- Experienced management team.
What Are SOUB's Weaknesses?
Negative profit margin.
- Small market capitalization.
- Limited geographic reach.
- OTC listing.
What Could Drive SOUB Stock Higher?
Expansion of digital banking services to attract new customers and improve efficiency.
- Potential acquisitions of smaller community banks in Alabama to increase market share.
- Efforts to improve operational efficiency and reduce costs.
- Launch of new wealth management products and services to generate fee income.
What Are the Key Risks for SOUB?
Financial-distress signal — its Altman Z-Score of 0.04 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-33.8%) — the business is not currently generating profit on shareholder capital.
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Negative profit margin and challenges in achieving profitability.
- Economic downturn in Alabama impacting loan demand and credit quality.
- Competition from larger banks and fintech companies.
- Increasing regulatory scrutiny and compliance costs.
- Limited liquidity due to OTC listing.
What Are the Growth Opportunities for SOUB?
- Expansion within Alabama: SouthPoint Bancshares can expand its presence within Alabama by opening new branches or acquiring smaller community banks. The Alabama banking market is moderately fragmented, offering opportunities for strategic acquisitions. Expanding into underserved markets within the state could drive deposit and loan growth. This expansion could increase market share and brand recognition, leading to higher profitability. Timeline: 2-3 years.
- Increased Adoption of Digital Banking: Investing in and promoting digital banking services can attract younger customers and improve operational efficiency. Mobile banking, online account management, and digital payment solutions are increasingly important for customer acquisition and retention. Enhancing digital capabilities can reduce operating costs and improve customer satisfaction. Timeline: Ongoing.
- Focus on Small Business Lending: SouthPoint Bancshares can capitalize on the demand for small business loans in its target market. Small businesses often struggle to access capital from larger banks, creating an opportunity for community banks to fill this gap. Offering tailored loan products and personalized service can attract small business customers. Timeline: Ongoing.
- Wealth Management Services: Expanding wealth management services can generate fee income and diversify revenue streams. Offering financial planning, investment management, and trust services can attract high-net-worth individuals and families. This expansion can improve profitability and customer loyalty. Timeline: 1-2 years.
- Strategic Partnerships: Forming strategic partnerships with local businesses and community organizations can enhance brand awareness and customer acquisition. Collaborating with real estate developers, chambers of commerce, and non-profit organizations can drive loan and deposit growth. These partnerships can create a strong local presence and build customer relationships. Timeline: Ongoing.
What Are SOUB's Competitive Advantages?
- Local market expertise and relationships in central Alabama.
- Personalized customer service.
- Established branch network within its target market.
What Does SOUB Do?
SouthPoint Bancshares, Inc., operating through its subsidiary SouthPoint Bank, was founded in 2005 and is headquartered in Birmingham, Alabama. The bank provides a comprehensive suite of banking products and services to individuals and businesses throughout central Alabama. Its offerings include checking, savings, money market, and IRA accounts, as well as certificates of deposit. SouthPoint Bank also provides a variety of lending options, including commercial, residential, consumer, small business administration (SBA), and home equity loans. The bank further supports its customers with debit and credit cards, wealth and treasury management services, remote deposit, mobile and online banking, and bill pay services. SouthPoint Bancshares operates five branches located in Birmingham, Vestavia Hills, Gardendale, Trussville, and Wilsonville. In addition to its branch network, the company operates a full-service mortgage division with six branches across Alabama, expanding its reach and service capabilities within the state. SouthPoint Bancshares focuses on building relationships with its customers and supporting the local communities it serves.
What Products and Services Does SOUB Offer?
- Accepts deposits from individuals and businesses through checking, savings, money market, and IRA accounts.
- Offers commercial, residential, consumer, SBA, and home equity loans.
- Provides home mortgage services.
- Issues debit and credit cards.
- Offers wealth and treasury management services.
- Provides remote deposit, mobile and online banking, and bill pay services.
How Does SOUB Make Money?
- Generates revenue from interest income on loans.
- Earns fee income from services such as wealth management, debit card transactions, and account maintenance.
- Manages risk through underwriting standards and diversification of loan portfolio.
What Industry Does SOUB Operate In?
SouthPoint Bancshares operates within the competitive regional banking sector. This sector is characterized by ongoing consolidation, increasing regulatory scrutiny, and the need for technological adaptation. The regional banking industry is experiencing increased competition from larger national banks and fintech companies. SouthPoint Bancshares, with its focus on community banking in central Alabama, must differentiate itself through personalized service and local market expertise. The industry is also influenced by interest rate fluctuations and economic conditions, which impact lending and deposit activities.
Who Are SOUB's Key Customers?
- Individuals and families in central Alabama.
- Small businesses in the region.
- Commercial clients seeking financing and banking services.
Key Financial Metrics
Return on equity for SouthPoint Bancshares, Inc. stands at -33.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.1%, showing how much profit it generates from its asset base. Its free cash flow yield is 85.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -92.2%, the inverse of the P/E and a quick read on earnings relative to price.
SouthPoint Bancshares, Inc. (SOUB) Valuation Context
Valued at $30.3M, SOUB is classified as a micro-cap stock. Relative to its peer group, SOUB's quantitative score of 44/100 is roughly in line with the peer average of 50/100.
Company Profile
SouthPoint Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Birmingham, US. The company is led by CEO J. Stephen Smith. SOUB has traded publicly since 2024.
Financial Health
SouthPoint Bancshares, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 0.04 places it in the distress zone, a signal of elevated financial risk.
SOUB Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
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Bear Case
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AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
SOUB Latest News
No recent news available for SOUB.
SOUB Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SOUB.
Price Targets
Wall Street price target analysis for SOUB.
SOUB MoonshotScore
What does this score mean?
The MoonshotScore rates SOUB 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: James Stephen Smith
CEO
James Stephen Smith serves as the CEO of SouthPoint Bancshares, Inc. His background encompasses extensive experience in the banking and financial services industry, with a focus on community banking and strategic growth. Smith has held various leadership positions throughout his career, demonstrating expertise in commercial lending, risk management, and regulatory compliance. He is actively involved in community development initiatives and holds board positions in local organizations. Smith's leadership is focused on driving sustainable growth and enhancing shareholder value.
Track Record: Under James Stephen Smith's leadership, SouthPoint Bancshares has focused on expanding its presence within central Alabama and enhancing its digital banking capabilities. Key milestones include the opening of new branch locations and the implementation of mobile banking solutions. Smith has also overseen efforts to improve operational efficiency and manage credit risk. However, the company's negative profit margin remains a significant challenge.
SOUB OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that SouthPoint Bancshares may not meet the minimum financial standards or disclosure requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may have limited financial reporting and may not be subject to the same level of regulatory oversight as companies listed on major exchanges like the NYSE or NASDAQ. Investing in companies on the OTC Other tier carries higher risks due to the potential for limited information and liquidity.
- OTC Tier: OTC Other
- Limited financial disclosure increases information asymmetry.
- Lower liquidity can lead to price volatility.
- Higher potential for fraud or manipulation.
- OTC Other listing indicates potential regulatory or financial concerns.
- Limited analyst coverage and institutional interest.
- Verify the company's financial statements and SEC filings (if any).
- Research the background and experience of the management team.
- Assess the company's business model and competitive landscape.
- Evaluate the company's capital structure and debt levels.
- Review any legal or regulatory issues facing the company.
- Monitor trading volume and bid-ask spreads.
- Consult with a financial advisor.
- Established presence in central Alabama.
- Operating history since 2005.
- Member of FDIC.
- Physical branch locations.
- Website and online banking services.
SouthPoint Bancshares, Inc. Financial Services Stock: Key Questions Answered
What does the AI Score mean for SOUB?
SOUB holds an AI Score of 44/100 (Grade: C). This is an educational research signal, not a buy or sell recommendation. SouthPoint Bancshares, Inc. operates as a community bank in central Alabama, offering a range of financial products and services. The company focuses on commercial and retail banking with a network …
What does SouthPoint Bancshares, Inc. do?
SouthPoint Bancshares, Inc., through its subsidiary SouthPoint Bank, provides a range of banking and financial services to individuals and businesses in central Alabama. These services include deposit accounts, loans, and wealth management. The bank operates five branches and a mortgage division, focusing on building relationships with local customers and supporting the communities it serves.
What do analysts say about SOUB stock?
There is currently limited analyst coverage on SouthPoint Bancshares, Inc. due to its small market capitalization and OTC listing. Investors should conduct their own due diligence and carefully evaluate the company's financial performance, growth prospects, and risk factors. Key valuation metrics to consider include price-to-book ratio and price-to-earnings ratio (if the company achieves profitability).
What are the main risks for SOUB?
The main risks for SouthPoint Bancshares, Inc. include its negative profit margin, which raises concerns about its financial sustainability. Competition from larger banks and fintech companies poses a threat to its market share. Economic conditions in Alabama can impact loan demand and credit quality. Increasing regulatory scrutiny and compliance costs can strain its resources.
What regulatory challenges does SouthPoint Bancshares, Inc. face?
SouthPoint Bancshares, Inc. faces regulatory challenges common to the banking industry, including compliance with federal and state banking regulations, capital requirements, and consumer protection laws. The company must adhere to regulations set forth by the Federal Deposit Insurance Corporation (FDIC) and other regulatory bodies. Compliance costs can be significant, particularly for smaller banks.
How does SouthPoint Bancshares, Inc. make money in financial services?
SouthPoint Bancshares, Inc. generates revenue primarily through interest income on loans. The bank also earns fee income from services such as wealth management, debit card transactions, and account maintenance. Interest income is driven by the difference between the interest rates charged on loans and the interest rates paid on deposits. Fee income provides a more stable and diversified revenue stream.
What are the key factors to evaluate for SOUB?
SouthPoint Bancshares, Inc. (SOUB) holds an AI score of 44/100 (low). presents a high-risk, high-reward investment opportunity. Not financial advice.
How frequently does SOUB data refresh on this page?
SOUB's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven SOUB's recent stock price performance?
SouthPoint Bancshares, Inc. (SOUB) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established presence in central Alabama. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited analyst coverage and financial disclosure for OTC-listed companies.
- Financial data based on available information and may be subject to change.