WINTER
HAVEN, Fla., April 27,
2023 /PRNewswire/ -- SouthState Corporation (NASDAQ:
SSB) today released its unaudited results of operations and other
financial information for the three-month period ended March 31, 2023.
"SouthState's first quarter results demonstrate the resilience
of our franchise", said John C.
Corbett, Chief Executive Officer. "In a turbulent
macro environment, we delivered growth in loans, deposits,
liquidity, and capital ratios. Furthermore, earnings per
share increased 32% from the same period last year. Looking
ahead, SouthState is positioned to be opportunistic as the economic
cycle unfolds."
Highlights of the first quarter of 2023 include:
Returns
- Reported Diluted Earnings per Share ("EPS") of $1.83; Adjusted Diluted EPS (Non-GAAP) of
$1.93
- Net Income of $139.9 million;
Adjusted Net Income (Non-GAAP) of $147.2
million
- Return on Average Common Equity of 11.0% and Return on Average
Tangible Common Equity (Non-GAAP) of 18.8%; Adjusted Return on
Average Tangible Common Equity (Non-GAAP) of 19.8%*
- Return on Average Assets ("ROAA") of 1.29%; Adjusted ROAA
(Non-GAAP) of 1.35%*
- Pre-Provision Net Revenue ("PPNR") per weighted average diluted
share (Non-GAAP) of $2.90, up 62%
from $1.79 a year ago
- Book Value per Share of $69.19
increased by $2.15 per share compared
to the prior quarter
- Tangible Book Value ("TBV") per Share (Non-GAAP) of
$42.40, up 6% from the prior
quarter
∗ Annualized percentages
Performance
- Net Interest Income of $381
million; Core Net Interest Income (excluding loan accretion
and deferred fees on PPP) (Non-GAAP) decreased $15 million from prior quarter
- Net Interest Margin ("NIM"), non-tax equivalent and tax
equivalent (Non-GAAP) of 3.92% and 3.93%, respectively, up 1.17%
and 1.16%, respectively, from the first quarter of 2022
- Noninterest Income of $71
million, up $8 million
compared to the prior quarter; Noninterest Income represented 0.66%
of average assets for the first quarter of 2023
- Efficiency Ratio of 51%; Adjusted Efficiency Ratio (Non-GAAP)
of 49%
- $33.1 million Provision for
Credit Losses ("PCL"), including provision for unfunded
commitments, driven by moderate changes in economic forecasts and
loan growth, in spite of net loan recoveries and only $1.0 million in total net charge-offs (including
DDA charge-offs)
Balance Sheet
- Loans increased $519 million, or
7% annualized, led by consumer real estate; ending loan to deposit
ratio of 84%
- Deposits increased $51 million,
or 1% annualized as brokered CDs increased $1.2 billion, offset by a $400 million decline in public funds due to
expected first quarter seasonality; excluding brokered CDs,
deposits declined $1.2 billion from
prior quarter
- Total deposit cost was 0.63%, up 42 basis points from prior
quarter
- Total cash and cash equivalents increased $684 million to $2.0
billion at the end of the current quarter
- Other borrowings increased $900
million due to FHLB advances outstanding as of current
quarter-end
- Strong capital position with Tangible Common Equity, Total
Risk-Based Capital, and Tier 1 Leverage ratios of 7.5%, 13.3% and
9.1%, respectively†
† Preliminary
Subsequent Events
- The Board of Directors of the Company declared a quarterly cash
dividend on its common stock of $0.50
per share, payable on May 19, 2023 to
shareholders of record as of May 12,
2023
Financial Performance
|
|
Three Months
Ended
|
|
(Dollars in
thousands, except per share data)
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
INCOME
STATEMENT
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees (1)
|
|
$
|
393,366
|
|
$
|
359,552
|
|
$
|
312,856
|
|
$
|
272,000
|
|
$
|
233,617
|
|
Investment
securities, trading securities, federal funds sold and
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchased under
agreements to resell (8)
|
|
|
57,043
|
|
|
64,337
|
|
|
63,476
|
|
|
54,333
|
|
|
36,854
|
|
Total interest
income
|
|
|
450,409
|
|
|
423,889
|
|
|
376,332
|
|
|
326,333
|
|
|
270,471
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
(8)
|
|
|
55,942
|
|
|
19,945
|
|
|
7,534
|
|
|
4,914
|
|
|
4,591
|
|
Federal
funds purchased, securities sold under agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to repurchase, and
other borrowings
|
|
|
13,204
|
|
|
7,940
|
|
|
6,464
|
|
|
5,604
|
|
|
4,362
|
|
Total interest
expense
|
|
|
69,146
|
|
|
27,885
|
|
|
13,998
|
|
|
10,518
|
|
|
8,953
|
|
Net interest income
(8)
|
|
|
381,263
|
|
|
396,004
|
|
|
362,334
|
|
|
315,815
|
|
|
261,518
|
|
Provision
(recovery) for credit losses
|
|
|
33,091
|
|
|
47,142
|
|
|
23,876
|
|
|
19,286
|
|
|
(8,449)
|
|
Net interest income
after provision (recovery) for credit losses
|
|
|
348,172
|
|
|
348,862
|
|
|
338,458
|
|
|
296,529
|
|
|
269,967
|
|
Noninterest income
(8)
|
|
|
71,355
|
|
|
63,392
|
|
|
73,053
|
|
|
86,756
|
|
|
86,046
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expense
|
|
|
231,093
|
|
|
227,957
|
|
|
226,754
|
|
|
225,779
|
|
|
218,324
|
|
Merger, branch
consolidation and severance related expense
|
|
|
9,412
|
|
|
1,542
|
|
|
13,679
|
|
|
5,390
|
|
|
10,276
|
|
Total noninterest
expense
|
|
|
240,505
|
|
|
229,499
|
|
|
240,433
|
|
|
231,169
|
|
|
228,600
|
|
Income before
provision for income taxes
|
|
|
179,022
|
|
|
182,755
|
|
|
171,078
|
|
|
152,116
|
|
|
127,413
|
|
Income taxes
provision
|
|
|
39,096
|
|
|
39,253
|
|
|
38,035
|
|
|
32,941
|
|
|
27,084
|
|
Net
income
|
|
$
|
139,926
|
|
$
|
143,502
|
|
$
|
133,043
|
|
$
|
119,175
|
|
$
|
100,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
139,926
|
|
$
|
143,502
|
|
$
|
133,043
|
|
$
|
119,175
|
|
$
|
100,329
|
|
Securities gains, net
of tax
|
|
|
(35)
|
|
|
—
|
|
|
(24)
|
|
|
—
|
|
|
—
|
|
Initial provision for
credit losses - NonPCD loans and UFC from ACBI, net of
tax
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,492
|
|
Merger, branch
consolidation and severance related expense, net of tax
|
|
|
7,356
|
|
|
1,211
|
|
|
10,638
|
|
|
4,223
|
|
|
8,092
|
|
Adjusted net income
(non-GAAP)
|
|
$
|
147,247
|
|
$
|
144,713
|
|
$
|
143,657
|
|
$
|
123,398
|
|
$
|
121,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
|
1.84
|
|
$
|
1.90
|
|
$
|
1.76
|
|
$
|
1.58
|
|
$
|
1.40
|
|
Diluted
earnings per common share
|
|
$
|
1.83
|
|
$
|
1.88
|
|
$
|
1.75
|
|
$
|
1.57
|
|
$
|
1.39
|
|
Adjusted
net income per common share - Basic (non-GAAP) (2)
|
|
$
|
1.94
|
|
$
|
1.91
|
|
$
|
1.90
|
|
$
|
1.64
|
|
$
|
1.71
|
|
Adjusted
net income per common share - Diluted (non-GAAP) (2)
|
|
$
|
1.93
|
|
$
|
1.90
|
|
$
|
1.89
|
|
$
|
1.62
|
|
$
|
1.69
|
|
Dividends
per common share
|
|
$
|
0.50
|
|
$
|
0.50
|
|
$
|
0.50
|
|
$
|
0.49
|
|
$
|
0.49
|
|
Basic
weighted-average common shares outstanding
|
|
|
75,902,440
|
|
|
75,639,640
|
|
|
75,605,960
|
|
|
75,461,157
|
|
|
71,447,429
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,388,954
|
|
|
76,326,777
|
|
|
76,182,131
|
|
|
76,094,198
|
|
|
72,110,746
|
|
Effective
tax rate
|
|
|
21.84 %
|
|
|
21.48 %
|
|
|
22.23 %
|
|
|
21.66 %
|
|
|
21.26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance and Capital Ratios
|
|
Three Months
Ended
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized) (8)
|
|
|
1.29
|
%
|
|
1.28
|
%
|
|
1.17
|
%
|
|
1.05
|
%
|
|
0.95
|
%
|
|
Adjusted return on
average assets (annualized) (non-GAAP) (2) (8)
|
|
|
1.35
|
%
|
|
1.29
|
%
|
|
1.27
|
%
|
|
1.09
|
%
|
|
1.15
|
%
|
|
Return on average
common equity (annualized)
|
|
|
10.96
|
%
|
|
11.41
|
%
|
|
10.31
|
%
|
|
9.36
|
%
|
|
8.24
|
%
|
|
Adjusted return on
average common equity (annualized) (non-GAAP) (2)
|
|
|
11.53
|
%
|
|
11.50
|
%
|
|
11.13
|
%
|
|
9.69
|
%
|
|
10.01
|
%
|
|
Return on average
tangible common equity (annualized) (non-GAAP) (3)
|
|
|
18.81
|
%
|
|
20.17
|
%
|
|
17.99
|
%
|
|
16.59
|
%
|
|
13.97
|
%
|
|
Adjusted return on
average tangible common equity (annualized) (non-GAAP) (2)
(3)
|
|
|
19.75
|
%
|
|
20.33
|
%
|
|
19.36
|
%
|
|
17.15
|
%
|
|
16.79
|
%
|
|
Efficiency ratio (tax
equivalent)
|
|
|
51.41
|
%
|
|
47.96
|
%
|
|
53.14
|
%
|
|
54.92
|
%
|
|
62.99
|
%
|
|
Adjusted efficiency
ratio (non-GAAP) (4)
|
|
|
49.34
|
%
|
|
47.63
|
%
|
|
50.02
|
%
|
|
53.59
|
%
|
|
60.05
|
%
|
|
Dividend payout ratio
(5)
|
|
|
27.09
|
%
|
|
26.40
|
%
|
|
28.44
|
%
|
|
31.03
|
%
|
|
33.71
|
%
|
|
Book value per common
share
|
|
$
|
69.19
|
|
$
|
67.04
|
|
$
|
65.03
|
|
$
|
66.64
|
|
$
|
68.30
|
|
|
Tangible book value per
common share (non-GAAP) (3)
|
|
$
|
42.40
|
|
$
|
40.09
|
|
$
|
37.97
|
|
$
|
39.47
|
|
$
|
41.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
(8)
|
|
|
11.7
|
%
|
|
11.6
|
%
|
|
11.1
|
%
|
|
11.0
|
%
|
|
11.2
|
%
|
|
Tangible
equity-to-tangible assets (non-GAAP) (3) (8)
|
|
|
7.5
|
%
|
|
7.2
|
%
|
|
6.8
|
%
|
|
6.8
|
%
|
|
7.1
|
%
|
|
Tier 1 leverage (6) (8)
*
|
|
|
9.1
|
%
|
|
8.7
|
%
|
|
8.4
|
%
|
|
8.0
|
%
|
|
8.5
|
%
|
|
Tier 1 common equity
(6) (8) *
|
|
|
11.1
|
%
|
|
11.0
|
%
|
|
11.0
|
%
|
|
11.1
|
%
|
|
11.4
|
%
|
|
Tier 1 risk-based
capital (6) (8) *
|
|
|
11.1
|
%
|
|
11.0
|
%
|
|
11.0
|
%
|
|
11.1
|
%
|
|
11.4
|
%
|
|
Total risk-based
capital (6) (8) *
|
|
|
13.3
|
%
|
|
13.0
|
%
|
|
13.0
|
%
|
|
13.0
|
%
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
|
Ending
Balance
|
|
(Dollars in
thousands, except per share and share data)
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
BALANCE
SHEET
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
$
|
558,158
|
|
$
|
548,387
|
|
$
|
394,794
|
|
$
|
561,516
|
|
$
|
588,372
|
|
Federal
funds sold and interest-earning deposits with banks (8)
|
|
|
1,438,504
|
|
|
764,176
|
|
|
2,529,415
|
|
|
4,259,490
|
|
|
5,604,419
|
|
Cash and cash
equivalents
|
|
|
1,996,662
|
|
|
1,312,563
|
|
|
2,924,209
|
|
|
4,821,006
|
|
|
6,192,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities, at
fair value
|
|
|
16,039
|
|
|
31,263
|
|
|
51,940
|
|
|
88,088
|
|
|
74,234
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
held to maturity
|
|
|
2,636,673
|
|
|
2,683,241
|
|
|
2,738,178
|
|
|
2,806,465
|
|
|
2,827,769
|
|
Securities
available for sale, at fair value
|
|
|
5,159,999
|
|
|
5,326,822
|
|
|
5,369,610
|
|
|
5,666,008
|
|
|
5,924,206
|
|
Other
investments
|
|
|
217,991
|
|
|
179,717
|
|
|
179,755
|
|
|
179,815
|
|
|
179,258
|
|
Total investment securities
|
|
|
8,014,663
|
|
|
8,189,780
|
|
|
8,287,543
|
|
|
8,652,288
|
|
|
8,931,233
|
|
Loans held for
sale
|
|
|
27,289
|
|
|
28,968
|
|
|
34,477
|
|
|
73,880
|
|
|
130,376
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased credit
deteriorated
|
|
|
1,325,400
|
|
|
1,429,731
|
|
|
1,544,562
|
|
|
1,707,592
|
|
|
1,939,033
|
|
Purchased non-credit
deteriorated
|
|
|
5,620,290
|
|
|
5,943,092
|
|
|
6,365,175
|
|
|
6,908,234
|
|
|
7,633,824
|
|
Non-acquired
|
|
|
23,750,452
|
|
|
22,805,039
|
|
|
20,926,566
|
|
|
19,319,440
|
|
|
16,983,570
|
|
Less
allowance for credit losses
|
|
|
(370,645)
|
|
|
(356,444)
|
|
|
(324,398)
|
|
|
(319,708)
|
|
|
(300,396)
|
|
Loans, net
|
|
|
30,325,497
|
|
|
29,821,418
|
|
|
28,511,905
|
|
|
27,615,558
|
|
|
26,256,031
|
|
Other real estate owned
("OREO")
|
|
|
3,473
|
|
|
1,023
|
|
|
2,160
|
|
|
1,431
|
|
|
3,290
|
|
Premises and equipment,
net
|
|
|
517,146
|
|
|
520,635
|
|
|
531,160
|
|
|
562,781
|
|
|
568,332
|
|
Bank owned life
insurance
|
|
|
967,750
|
|
|
964,708
|
|
|
960,052
|
|
|
953,970
|
|
|
942,922
|
|
Mortgage servicing
rights
|
|
|
85,406
|
|
|
86,610
|
|
|
90,459
|
|
|
87,463
|
|
|
83,339
|
|
Core deposit and other
intangibles
|
|
|
109,603
|
|
|
116,450
|
|
|
125,390
|
|
|
132,694
|
|
|
140,364
|
|
Goodwill
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
1,922,525
|
|
|
1,922,525
|
|
|
1,924,024
|
|
Other assets
(8)
|
|
|
937,193
|
|
|
922,172
|
|
|
980,557
|
|
|
854,506
|
|
|
829,786
|
|
Total assets
|
|
$
|
44,923,827
|
|
$
|
43,918,696
|
|
$
|
44,422,377
|
|
$
|
45,766,190
|
|
$
|
46,076,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
12,422,583
|
|
$
|
13,168,656
|
|
$
|
13,660,244
|
|
$
|
14,337,018
|
|
$
|
14,052,332
|
|
Interest-bearing (8)
|
|
|
23,979,009
|
|
|
23,181,967
|
|
|
23,249,545
|
|
|
24,097,601
|
|
|
24,598,679
|
|
Total deposits
|
|
|
36,401,592
|
|
|
36,350,623
|
|
|
36,909,789
|
|
|
38,434,619
|
|
|
38,651,011
|
|
Federal funds purchased
and securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under
agreements to repurchase
|
|
|
544,108
|
|
|
556,417
|
|
|
557,802
|
|
|
669,999
|
|
|
770,409
|
|
Other
borrowings
|
|
|
1,292,182
|
|
|
392,275
|
|
|
392,368
|
|
|
392,460
|
|
|
405,553
|
|
Reserve for unfunded
commitments
|
|
|
85,068
|
|
|
67,215
|
|
|
52,991
|
|
|
32,543
|
|
|
30,368
|
|
Other liabilities
(8)
|
|
|
1,351,873
|
|
|
1,477,239
|
|
|
1,588,241
|
|
|
1,196,144
|
|
|
1,044,973
|
|
Total liabilities
|
|
|
39,674,823
|
|
|
38,843,769
|
|
|
39,501,191
|
|
|
40,725,765
|
|
|
40,902,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock - $2.50 par value; authorized 160,000,000 shares
|
|
|
189,649
|
|
|
189,261
|
|
|
189,191
|
|
|
189,103
|
|
|
189,403
|
|
Surplus
|
|
|
4,224,503
|
|
|
4,215,712
|
|
|
4,207,040
|
|
|
4,195,976
|
|
|
4,214,897
|
|
Retained
earnings
|
|
|
1,448,636
|
|
|
1,347,042
|
|
|
1,241,413
|
|
|
1,146,230
|
|
|
1,064,064
|
|
Accumulated other comprehensive loss
|
|
|
(613,784)
|
|
|
(677,088)
|
|
|
(716,458)
|
|
|
(490,884)
|
|
|
(293,956)
|
|
Total shareholders' equity
|
|
|
5,249,004
|
|
|
5,074,927
|
|
|
4,921,186
|
|
|
5,040,425
|
|
|
5,174,408
|
|
Total liabilities and shareholders' equity
|
|
$
|
44,923,827
|
|
$
|
43,918,696
|
|
$
|
44,422,377
|
|
$
|
45,766,190
|
|
$
|
46,076,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
|
|
75,859,665
|
|
|
75,704,563
|
|
|
75,676,445
|
|
|
75,641,322
|
|
|
75,761,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income and Margin
|
|
Three Months
Ended
|
|
|
|
Mar. 31,
2023
|
|
Dec. 31,
2022
|
|
Mar. 31,
2022
|
|
(Dollars in
thousands)
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
YIELD
ANALYSIS
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
interest-earning deposits with banks (8)
|
|
$
|
759,239
|
|
$
|
8,921
|
|
4.77 %
|
|
$
|
1,849,877
|
|
$
|
16,491
|
|
3.54 %
|
|
$
|
5,715,785
|
|
$
|
2,859
|
|
0.20 %
|
|
Investment
securities
|
|
|
8,232,582
|
|
|
48,122
|
|
2.37 %
|
|
|
8,286,894
|
|
|
47,846
|
|
2.29 %
|
|
|
7,895,281
|
|
|
33,995
|
|
1.75 %
|
|
Loans held for
sale
|
|
|
23,123
|
|
|
402
|
|
7.05 %
|
|
|
25,633
|
|
|
401
|
|
6.21 %
|
|
|
110,542
|
|
|
869
|
|
3.19 %
|
|
Total loans, excluding
PPP
|
|
|
30,384,754
|
|
|
392,941
|
|
5.24 %
|
|
|
29,480,843
|
|
|
359,120
|
|
4.83 %
|
|
|
24,675,512
|
|
|
231,373
|
|
3.80 %
|
|
Total PPP
loans
|
|
|
9,642
|
|
|
23
|
|
0.97 %
|
|
|
12,489
|
|
|
31
|
|
0.98 %
|
|
|
167,541
|
|
|
1,375
|
|
3.33 %
|
|
Total loans held for
investment
|
|
|
30,394,396
|
|
|
392,964
|
|
5.24 %
|
|
|
29,493,332
|
|
|
359,151
|
|
4.83 %
|
|
|
24,843,053
|
|
|
232,748
|
|
3.80 %
|
|
Total interest-earning
assets (8)
|
|
|
39,409,340
|
|
|
450,409
|
|
4.64 %
|
|
|
39,655,736
|
|
|
423,889
|
|
4.24 %
|
|
|
38,564,661
|
|
|
270,471
|
|
2.84 %
|
|
Noninterest-earning
assets (8)
|
|
|
4,695,138
|
|
|
|
|
|
|
|
4,774,158
|
|
|
|
|
|
|
|
4,342,607
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
44,104,478
|
|
|
|
|
|
|
$
|
44,429,894
|
|
|
|
|
|
|
$
|
42,907,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities ("IBL"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money
market accounts (8)
|
|
$
|
16,874,909
|
|
$
|
40,516
|
|
0.97 %
|
|
$
|
17,044,865
|
|
$
|
16,901
|
|
0.39 %
|
|
$
|
17,471,805
|
|
$
|
2,180
|
|
0.05 %
|
|
Savings
deposits
|
|
|
3,298,221
|
|
|
1,756
|
|
0.22 %
|
|
|
3,536,330
|
|
|
1,021
|
|
0.11 %
|
|
|
3,408,129
|
|
|
130
|
|
0.02 %
|
|
Certificates and other
time deposits
|
|
|
3,114,354
|
|
|
13,670
|
|
1.78 %
|
|
|
2,444,361
|
|
|
2,023
|
|
0.33 %
|
|
|
2,848,829
|
|
|
2,281
|
|
0.32 %
|
|
Federal funds
purchased
|
|
|
193,259
|
|
|
2,187
|
|
4.59 %
|
|
|
186,232
|
|
|
1,694
|
|
3.61 %
|
|
|
354,899
|
|
|
111
|
|
0.13 %
|
|
Repurchase
agreements
|
|
|
373,563
|
|
|
666
|
|
0.72 %
|
|
|
363,336
|
|
|
253
|
|
0.28 %
|
|
|
438,258
|
|
|
158
|
|
0.15 %
|
|
Other
borrowings
|
|
|
785,571
|
|
|
10,351
|
|
5.34 %
|
|
|
435,806
|
|
|
5,993
|
|
5.46 %
|
|
|
354,133
|
|
|
4,093
|
|
4.69 %
|
|
Total interest-bearing
liabilities (8)
|
|
|
24,639,877
|
|
|
69,146
|
|
1.14 %
|
|
|
24,010,930
|
|
|
27,885
|
|
0.46 %
|
|
|
24,876,053
|
|
|
8,953
|
|
0.15 %
|
|
Noninterest-bearing
liabilities ("Non-IBL") (8)
|
|
|
14,287,553
|
|
|
|
|
|
|
|
15,427,380
|
|
|
|
|
|
|
|
13,094,050
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
5,177,048
|
|
|
|
|
|
|
|
4,991,584
|
|
|
|
|
|
|
|
4,937,165
|
|
|
|
|
|
|
Total Non-IBL and
shareholders' equity
|
|
|
19,464,601
|
|
|
|
|
|
|
|
20,418,964
|
|
|
|
|
|
|
|
18,031,215
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
44,104,478
|
|
|
|
|
|
|
$
|
44,429,894
|
|
|
|
|
|
|
$
|
42,907,268
|
|
|
|
|
|
|
Net Interest Income
and Margin (Non-Tax Equivalent) (8)
|
|
|
|
|
$
|
381,263
|
|
3.92 %
|
|
|
|
|
$
|
396,004
|
|
3.96 %
|
|
|
|
|
$
|
261,518
|
|
2.75 %
|
|
Net Interest Margin
(Tax Equivalent) (non-GAAP) (8)
|
|
|
|
|
|
|
|
3.93 %
|
|
|
|
|
|
|
|
3.99 %
|
|
|
|
|
|
|
|
2.77 %
|
|
Total Deposit Cost
(without Debt and Other Borrowings)
|
|
|
|
|
|
|
|
0.63 %
|
|
|
|
|
|
|
|
0.21 %
|
|
|
|
|
|
|
|
0.05 %
|
|
Overall Cost of
Funds (including Demand Deposits)
|
|
|
|
|
|
|
|
0.75 %
|
|
|
|
|
|
|
|
0.29 %
|
|
|
|
|
|
|
|
0.10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accretion on
Acquired Loans (1)
|
|
|
|
|
$
|
7,398
|
|
|
|
|
|
|
$
|
7,350
|
|
|
|
|
|
|
$
|
6,741
|
|
|
|
Total Deferred Fees
on PPP Loans
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
$
|
983
|
|
|
|
Tax Equivalent
("TE") Adjustment
|
|
|
|
|
$
|
1,020
|
|
|
|
|
|
|
$
|
2,397
|
|
|
|
|
|
|
$
|
1,885
|
|
|
|
|
(1) The remaining
loan discount on acquired loans to be accreted into loan interest
income totals $64.7 million as of March 31, 2023.
|
|
Noninterest Income and Expense
|
|
Three Months
Ended
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
(Dollars in
thousands)
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on
deposit accounts
|
|
$
|
29,859
|
|
$
|
33,612
|
|
$
|
30,327
|
|
$
|
32,862
|
|
$
|
28,009
|
|
Mortgage
banking income (loss)
|
|
|
4,332
|
|
|
(545)
|
|
|
2,262
|
|
|
5,480
|
|
|
10,594
|
|
Trust and
investment services income
|
|
|
9,937
|
|
|
9,867
|
|
|
9,603
|
|
|
9,831
|
|
|
9,718
|
|
Securities
gains, net
|
|
|
45
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
Correspondent banking and capital market income (8)
|
|
|
21,956
|
|
|
16,760
|
|
|
20,552
|
|
|
27,604
|
|
|
27,994
|
|
Expense on
centrally-cleared variation margin (8)
|
|
|
(8,362)
|
|
|
(8,451)
|
|
|
(4,125)
|
|
|
(1,536)
|
|
|
(44)
|
|
Total
Correspondent banking and capital market income (8)
|
|
|
13,594
|
|
|
8,309
|
|
|
16,427
|
|
|
26,068
|
|
|
27,950
|
|
Bank owned
life insurance income
|
|
|
6,813
|
|
|
6,723
|
|
|
6,082
|
|
|
6,246
|
|
|
5,260
|
|
Other
|
|
|
6,775
|
|
|
5,426
|
|
|
8,322
|
|
|
6,269
|
|
|
4,515
|
|
Total Noninterest Income (8)
|
|
$
|
71,355
|
|
$
|
63,392
|
|
$
|
73,053
|
|
$
|
86,756
|
|
$
|
86,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
$
|
144,060
|
|
$
|
140,440
|
|
$
|
139,554
|
|
$
|
137,037
|
|
$
|
137,673
|
|
Occupancy
expense
|
|
|
21,533
|
|
|
22,412
|
|
|
22,490
|
|
|
22,759
|
|
|
21,840
|
|
Information services expense
|
|
|
19,925
|
|
|
19,847
|
|
|
20,714
|
|
|
19,947
|
|
|
19,193
|
|
OREO and
loan related expense (income)
|
|
|
169
|
|
|
78
|
|
|
532
|
|
|
(3)
|
|
|
(238)
|
|
Business
development and staff related
|
|
|
5,957
|
|
|
5,851
|
|
|
5,090
|
|
|
4,916
|
|
|
4,276
|
|
Amortization of intangibles
|
|
|
7,299
|
|
|
8,027
|
|
|
7,837
|
|
|
8,847
|
|
|
8,494
|
|
Professional fees
|
|
|
3,702
|
|
|
3,756
|
|
|
3,495
|
|
|
4,331
|
|
|
3,749
|
|
Supplies
and printing expense
|
|
|
2,640
|
|
|
2,411
|
|
|
2,621
|
|
|
2,400
|
|
|
2,189
|
|
FDIC
assessment and other regulatory charges
|
|
|
6,294
|
|
|
6,589
|
|
|
6,300
|
|
|
5,332
|
|
|
4,812
|
|
Advertising and marketing
|
|
|
2,118
|
|
|
2,669
|
|
|
2,170
|
|
|
2,286
|
|
|
1,763
|
|
Other
operating expenses
|
|
|
17,396
|
|
|
15,877
|
|
|
15,951
|
|
|
17,927
|
|
|
14,573
|
|
Merger,
branch consolidation and severance related expense *
|
|
|
9,412
|
|
|
1,542
|
|
|
13,679
|
|
|
5,390
|
|
|
10,276
|
|
Total Noninterest Expense
|
|
$
|
240,505
|
|
$
|
229,499
|
|
$
|
240,433
|
|
$
|
231,169
|
|
$
|
228,600
|
|
|
* During the
current quarter, the Company recorded $8.1 million in severance
payments, which are included in the Merger, branch consolidation
and severance related expense in the table above.
|
|
Loans and Deposits
The following table presents a summary of the loan portfolio by
type (dollars in thousands):
|
|
Ending
Balance
|
|
(Dollars in
thousands)
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
LOAN
PORTFOLIO
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Construction and land
development * †
|
|
$
|
2,749,290
|
|
$
|
2,860,360
|
|
$
|
2,550,552
|
|
$
|
2,527,062
|
|
$
|
2,316,313
|
|
Investor commercial
real estate*
|
|
|
8,957,507
|
|
|
8,769,201
|
|
|
8,641,316
|
|
|
8,393,630
|
|
|
8,158,457
|
|
Commercial owner
occupied real estate
|
|
|
5,522,514
|
|
|
5,460,193
|
|
|
5,426,216
|
|
|
5,421,725
|
|
|
5,346,583
|
|
Commercial and
industrial
|
|
|
5,321,306
|
|
|
5,313,483
|
|
|
4,977,737
|
|
|
4,807,528
|
|
|
4,566,641
|
|
Consumer real estate
*
|
|
|
6,860,831
|
|
|
6,475,210
|
|
|
5,977,120
|
|
|
5,505,531
|
|
|
4,988,736
|
|
Consumer/other
|
|
|
1,284,694
|
|
|
1,299,415
|
|
|
1,263,362
|
|
|
1,279,790
|
|
|
1,179,697
|
|
Total
loans
|
|
$
|
30,696,142
|
|
$
|
30,177,862
|
|
$
|
28,836,303
|
|
$
|
27,935,266
|
|
$
|
26,556,427
|
|
|
* Single family home
construction-to-permanent loans originated by the Company's
mortgage banking division are included in construction and land
development category until completion.
Investor commercial real estate loans include commercial non-owner
occupied real estate and other income producing property.
Consumer real estate includes consumer owner occupied
real estate and home equity loans.
|
|
† Includes single
family home construction-to-permanent loans of $893.7 million,
$904.1 million, $881.3 million, $795.7 million, and $733.7 million
for the quarters ended March 31, 2023,
December 31, 2022, September 30, 2022, June 30, 2022, and March 31,
2022, respectively.
|
|
|
|
Ending
Balance
|
|
(Dollars in
thousands)
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
DEPOSITS
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Noninterest-bearing
checking
|
|
$
|
12,422,583
|
|
$
|
13,168,656
|
|
$
|
13,660,244
|
|
$
|
14,337,018
|
|
$
|
14,052,332
|
|
Interest-bearing
checking
|
|
|
8,316,023
|
|
|
8,955,519
|
|
|
8,741,447
|
|
|
8,953,332
|
|
|
9,275,208
|
|
Savings
|
|
|
3,156,214
|
|
|
3,464,351
|
|
|
3,602,560
|
|
|
3,616,819
|
|
|
3,479,743
|
|
Money market
(8)
|
|
|
8,388,275
|
|
|
8,342,111
|
|
|
8,369,826
|
|
|
8,823,025
|
|
|
9,015,186
|
|
Time
deposits
|
|
|
4,118,497
|
|
|
2,419,986
|
|
|
2,535,712
|
|
|
2,704,425
|
|
|
2,828,542
|
|
Total Deposits
(8)
|
|
$
|
36,401,592
|
|
$
|
36,350,623
|
|
$
|
36,909,789
|
|
$
|
38,434,619
|
|
$
|
38,651,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Deposits
(excludes Time Deposits) (8)
|
|
$
|
32,283,095
|
|
$
|
33,930,637
|
|
$
|
34,374,077
|
|
$
|
35,730,194
|
|
$
|
35,822,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
|
|
Ending
Balance
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
(Dollars in
thousands)
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
NONPERFORMING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
$
|
68,176
|
|
$
|
44,671
|
|
$
|
34,374
|
|
$
|
20,716
|
|
$
|
19,582
|
|
Accruing loans past due
90 days or more
|
|
|
2,667
|
|
|
2,358
|
|
|
2,358
|
|
|
1,371
|
|
|
22,818
|
|
Non-acquired OREO and
other nonperforming assets
|
|
|
186
|
|
|
245
|
|
|
114
|
|
|
93
|
|
|
464
|
|
Total non-acquired
nonperforming assets
|
|
|
71,029
|
|
|
47,274
|
|
|
36,846
|
|
|
22,180
|
|
|
42,864
|
|
Acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
|
52,795
|
|
|
59,554
|
|
|
61,866
|
|
|
63,526
|
|
|
59,267
|
|
Accruing loans past due
90 days or more
|
|
|
983
|
|
|
1,992
|
|
|
1,430
|
|
|
4,418
|
|
|
12,768
|
|
Acquired OREO and other
nonperforming assets
|
|
|
3,446
|
|
|
922
|
|
|
2,234
|
|
|
1,577
|
|
|
3,118
|
|
Total acquired
nonperforming assets
|
|
|
57,224
|
|
|
62,468
|
|
|
65,530
|
|
|
69,521
|
|
|
75,153
|
|
Total nonperforming
assets
|
|
$
|
128,253
|
|
$
|
109,742
|
|
$
|
102,376
|
|
$
|
91,701
|
|
$
|
118,017
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
ASSET QUALITY
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percentage of loans
|
|
|
1.21 %
|
|
|
1.18 %
|
|
|
1.12 %
|
|
|
1.14 %
|
|
|
1.13 %
|
|
Allowance for credit
losses, including reserve for unfunded commitments, as a percentage
of loans
|
|
|
1.48 %
|
|
|
1.40 %
|
|
|
1.31 %
|
|
|
1.26 %
|
|
|
1.25 %
|
|
Allowance for credit
losses as a percentage of nonperforming loans
|
|
|
297.42 %
|
|
|
328.29 %
|
|
|
324.30 %
|
|
|
355.11 %
|
|
|
262.50 %
|
|
Net charge-offs
(recoveries) as a percentage of average loans
(annualized)
|
|
|
0.01 %
|
|
|
0.01 %
|
|
|
(0.02) %
|
|
|
0.03 %
|
|
|
0.04 %
|
|
Total nonperforming
assets as a percentage of total assets
|
|
|
0.29 %
|
|
|
0.25 %
|
|
|
0.23 %
|
|
|
0.20 %
|
|
|
0.26 %
|
|
Nonperforming loans as
a percentage of period end loans
|
|
|
0.41 %
|
|
|
0.36 %
|
|
|
0.35 %
|
|
|
0.32 %
|
|
|
0.43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Expected Credit Losses ("CECL")
Below is a table showing the roll forward of the ACL and UFC for
the first quarter of 2023:
|
|
Allowance for Credit
Losses ("ACL and UFC")
|
|
|
|
NonPCD
ACL
|
|
PCD
ACL
|
|
Total
ACL
|
|
UFC
|
|
Ending balance
12/31/2022
|
|
$
|
309,606
|
|
$
|
46,838
|
|
$
|
356,444
|
|
$
|
67,215
|
|
Charge offs
|
|
|
(3,858)
|
|
|
—
|
|
|
(3,858)
|
|
|
—
|
|
Acquired charge
offs
|
|
|
(658)
|
|
|
(111)
|
|
|
(769)
|
|
|
—
|
|
Recoveries
|
|
|
1,555
|
|
|
—
|
|
|
1,555
|
|
|
—
|
|
Acquired
recoveries
|
|
|
772
|
|
|
1,262
|
|
|
2,034
|
|
|
—
|
|
Provision (recovery)
for credit losses
|
|
|
20,498
|
|
|
(5,259)
|
|
|
15,239
|
|
|
17,853
|
|
Ending balance
3/31/2023
|
|
$
|
327,915
|
|
$
|
42,730
|
|
$
|
370,645
|
|
$
|
85,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end loans
(includes PPP Loans)
|
|
$
|
29,370,742
|
|
$
|
1,325,400
|
|
$
|
30,696,142
|
|
|
N/A
|
|
Allowance for Credit
Losses to Loans (includes PPP Loans)
|
|
|
1.12 %
|
|
|
3.22 %
|
|
|
1.21 %
|
|
|
N/A
|
|
Period end loans
(excludes PPP Loans)
|
|
$
|
29,361,548
|
|
$
|
1,325,400
|
|
$
|
30,686,948
|
|
|
N/A
|
|
Allowance for Credit
Losses to Loans (excludes PPP Loans)
|
|
|
1.12 %
|
|
|
3.22 %
|
|
|
1.21 %
|
|
|
N/A
|
|
Unfunded commitments
(off balance sheet) *
|
|
|
|
|
|
|
|
|
|
|
$
|
10,089,388
|
|
Reserve to unfunded
commitments (off balance sheet)
|
|
|
|
|
|
|
|
|
|
|
|
0.84 %
|
|
|
* Unfunded
commitments exclude unconditionally cancelable commitments and
letters of credit.
|
|
Conference Call
The Company will host a conference call to discuss its first
quarter results at 9:00 a.m. Eastern
Time on April 28, 2023.
Callers wishing to participate may call toll-free by dialing
833-470-1428. The number for international participants is
(929) 526-1599. The conference ID number is 991051.
Alternatively, individuals may listen to the live
webcast of the presentation by visiting SouthStateBank.com.
An audio replay of the live webcast is expected to be
available by the evening of April 28,
2023 on the Investor Relations section
of SouthStateBank.com.
SouthState Corporation is a financial services company
headquartered in Winter Haven,
Florida. SouthState Bank, N.A., the Company's
nationally chartered bank subsidiary, provides consumer,
commercial, mortgage and wealth management solutions to more than
one million customers throughout Florida, Alabama, Georgia, the Carolinas and Virginia. The
Bank also serves clients coast to coast through its correspondent
banking division. Additional information is available
at SouthStateBank.com.
Non-GAAP Measures
Statements included in this press release include non-GAAP
measures and should be read along with the accompanying tables that
provide a reconciliation of non-GAAP measures to GAAP
measures. Although other companies may use calculation
methods that differ from those used by SouthState for non-GAAP
measures, Management believes that these non-GAAP measures provide
additional useful information, which allows readers to evaluate the
ongoing performance of the Company. Non-GAAP measures should
not be considered as an alternative to any measure of performance
or financial condition as promulgated under GAAP, and investors
should consider the company's performance and financial condition
as reported under GAAP and all other relevant information when
assessing the performance or financial condition of the
company. Non-GAAP measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the company's results or financial
condition as reported under GAAP.
(Dollars and shares
in thousands, except per share data)
|
|
Three Months
Ended
|
|
PRE-PROVISION NET
REVENUE ("PPNR") (NON-GAAP)
|
|
Mar. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Sep. 30,
2022
|
|
|
Jun. 30,
2022
|
|
|
Mar. 31,
2022
|
|
Net income
(GAAP)
|
|
$
|
139,926
|
|
|
$
|
143,502
|
|
|
$
|
133,043
|
|
|
$
|
119,175
|
|
|
$
|
100,329
|
|
Provision (recovery)
for credit losses
|
|
|
33,091
|
|
|
|
47,142
|
|
|
|
23,876
|
|
|
|
19,286
|
|
|
|
(8,449)
|
|
Tax
provision
|
|
|
39,096
|
|
|
|
39,253
|
|
|
|
38,035
|
|
|
|
32,941
|
|
|
|
27,084
|
|
Merger, branch
consolidation and severance related expense
|
|
|
9,412
|
|
|
|
1,542
|
|
|
|
13,679
|
|
|
|
5,390
|
|
|
|
10,276
|
|
Securities
gains
|
|
|
(45)
|
|
|
|
—
|
|
|
|
(30)
|
|
|
|
—
|
|
|
|
—
|
|
Pre-provision net
revenue (PPNR) (Non-GAAP)
|
|
$
|
221,480
|
|
|
$
|
231,439
|
|
|
$
|
208,603
|
|
|
$
|
176,792
|
|
|
$
|
129,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average asset balance
(GAAP)
|
|
$
|
44,104,478
|
|
|
$
|
44,429,894
|
|
|
$
|
44,985,713
|
|
|
$
|
45,576,742
|
|
|
$
|
42,907,268
|
|
PPNR
ROAA
|
|
|
2.04
|
%
|
|
|
2.07
|
%
|
|
|
1.84
|
%
|
|
|
1.56
|
%
|
|
|
1.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,389
|
|
|
|
76,327
|
|
|
|
76,182
|
|
|
|
76,094
|
|
|
|
72,111
|
|
PPNR per
weighted-average common shares outstanding
|
|
$
|
2.90
|
|
|
$
|
3.03
|
|
|
$
|
2.74
|
|
|
$
|
2.32
|
|
|
$
|
1.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Three Months
Ended
|
|
CORE NET INTEREST
INCOME (NON-GAAP)
|
|
Mar. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Sep. 30,
2022
|
|
|
Jun. 30,
2022
|
|
|
Mar. 31,
2022
|
|
Net interest income
(GAAP) (8)
|
|
$
|
381,263
|
|
|
$
|
396,004
|
|
|
$
|
362,334
|
|
|
$
|
315,815
|
|
|
$
|
261,518
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accretion on
acquired loans
|
|
|
7,398
|
|
|
|
7,350
|
|
|
|
9,550
|
|
|
|
12,770
|
|
|
|
6,741
|
|
Total deferred fees on
PPP loans
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
|
983
|
|
Core net interest
income (Non-GAAP)
|
|
$
|
373,865
|
|
|
$
|
388,654
|
|
|
$
|
352,784
|
|
|
$
|
303,037
|
|
|
$
|
253,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN
("NIM"), TAX EQUIVALENT (NON-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) (8)
|
|
$
|
381,263
|
|
|
$
|
396,004
|
|
|
$
|
362,334
|
|
|
$
|
315,815
|
|
|
$
|
261,518
|
|
Total average
interest-earning assets (8)
|
|
|
39,409,340
|
|
|
|
39,655,736
|
|
|
|
40,451,174
|
|
|
|
40,899,365
|
|
|
|
38,564,661
|
|
NIM, non-tax
equivalent (8)
|
|
|
3.92
|
%
|
|
|
3.96
|
%
|
|
|
3.55
|
%
|
|
|
3.10
|
%
|
|
|
2.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment (included in NIM, tax equivalent)
|
|
|
1,020
|
|
|
|
2,397
|
|
|
|
2,345
|
|
|
|
2,249
|
|
|
|
1,885
|
|
Net interest income,
tax equivalent (Non-GAAP) (8)
|
|
$
|
382,283
|
|
|
$
|
398,401
|
|
|
$
|
364,679
|
|
|
$
|
318,064
|
|
|
$
|
263,403
|
|
NIM, tax equivalent
(Non-GAAP) (8)
|
|
|
3.93
|
%
|
|
|
3.99
|
%
|
|
|
3.58
|
%
|
|
|
3.12
|
%
|
|
|
2.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
(Dollars in
thousands, except per share data)
|
|
Mar.
31,
|
|
|
Dec.
31,
|
|
|
Sep.
30,
|
|
|
Jun.
30,
|
|
|
Mar.
31,
|
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
Adjusted Net Income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
139,926
|
|
|
$
|
143,502
|
|
|
$
|
133,043
|
|
|
$
|
119,175
|
|
|
$
|
100,329
|
|
Securities gains, net
of tax
|
|
|
(35)
|
|
|
|
—
|
|
|
|
(24)
|
|
|
|
—
|
|
|
|
—
|
|
PCL - NonPCD loans and
UFC, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,492
|
|
Merger, branch
consolidation and severance related expense, net of tax
|
|
|
7,356
|
|
|
|
1,211
|
|
|
|
10,638
|
|
|
|
4,223
|
|
|
|
8,092
|
|
Adjusted net income
(non-GAAP)
|
|
$
|
147,247
|
|
|
$
|
144,713
|
|
|
$
|
143,657
|
|
|
$
|
123,398
|
|
|
$
|
121,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Basic (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic (GAAP)
|
|
$
|
1.84
|
|
|
$
|
1.90
|
|
|
$
|
1.76
|
|
|
$
|
1.58
|
|
|
$
|
1.40
|
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
—
|
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.19
|
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.10
|
|
|
|
0.01
|
|
|
|
0.14
|
|
|
|
0.06
|
|
|
|
0.12
|
|
Adjusted net income
per common share - Basic (non-GAAP)
|
|
$
|
1.94
|
|
|
$
|
1.91
|
|
|
$
|
1.90
|
|
|
$
|
1.64
|
|
|
$
|
1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Diluted (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Diluted (GAAP)
|
|
$
|
1.83
|
|
|
$
|
1.88
|
|
|
$
|
1.75
|
|
|
$
|
1.57
|
|
|
$
|
1.39
|
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
—
|
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.19
|
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.10
|
|
|
|
0.02
|
|
|
|
0.14
|
|
|
|
0.05
|
|
|
|
0.11
|
|
Adjusted net income
per common share - Diluted (non-GAAP)
|
|
$
|
1.93
|
|
|
$
|
1.90
|
|
|
$
|
1.89
|
|
|
$
|
1.62
|
|
|
$
|
1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Assets (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (GAAP) (8)
|
|
|
1.29
|
%
|
|
|
1.28
|
%
|
|
|
1.17
|
%
|
|
|
1.05
|
%
|
|
|
0.95
|
%
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.13
|
%
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.06
|
%
|
|
|
0.01
|
%
|
|
|
0.10
|
%
|
|
|
0.04
|
%
|
|
|
0.07
|
%
|
Adjusted return on
average assets (non-GAAP) (8)
|
|
|
1.35
|
%
|
|
|
1.29
|
%
|
|
|
1.27
|
%
|
|
|
1.09
|
%
|
|
|
1.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Equity (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
10.96
|
%
|
|
|
11.41
|
%
|
|
|
10.31
|
%
|
|
|
9.36
|
%
|
|
|
8.24
|
%
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
1.11
|
%
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.57
|
%
|
|
|
0.09
|
%
|
|
|
0.82
|
%
|
|
|
0.33
|
%
|
|
|
0.66
|
%
|
Adjusted return on
average common equity (non-GAAP)
|
|
|
11.53
|
%
|
|
|
11.50
|
%
|
|
|
11.13
|
%
|
|
|
9.69
|
%
|
|
|
10.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Tangible Equity (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
10.96
|
%
|
|
|
11.41
|
%
|
|
|
10.31
|
%
|
|
|
9.36
|
%
|
|
|
8.24
|
%
|
Effect to adjust for
intangible assets
|
|
|
7.85
|
%
|
|
|
8.76
|
%
|
|
|
7.68
|
%
|
|
|
7.23
|
%
|
|
|
5.73
|
%
|
Return on average
tangible equity (non-GAAP)
|
|
|
18.81
|
%
|
|
|
20.17
|
%
|
|
|
17.99
|
%
|
|
|
16.59
|
%
|
|
|
13.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Tangible Equity (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
10.96
|
%
|
|
|
11.41
|
%
|
|
|
10.31
|
%
|
|
|
9.36
|
%
|
|
|
8.24
|
%
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
1.11
|
%
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.58
|
%
|
|
|
0.10
|
%
|
|
|
0.82
|
%
|
|
|
0.33
|
%
|
|
|
0.66
|
%
|
Effect to adjust for
intangible assets
|
|
|
8.21
|
%
|
|
|
8.82
|
%
|
|
|
8.23
|
%
|
|
|
7.46
|
%
|
|
|
6.78
|
%
|
Adjusted return on
average common tangible equity (non-GAAP)
|
|
|
19.75
|
%
|
|
|
20.33
|
%
|
|
|
19.36
|
%
|
|
|
17.15
|
%
|
|
|
16.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Efficiency
Ratio (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
51.41
|
%
|
|
|
47.96
|
%
|
|
|
53.14
|
%
|
|
|
54.92
|
%
|
|
|
62.99
|
%
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
(2.07)
|
%
|
|
|
(0.33)
|
%
|
|
|
(3.12)
|
%
|
|
|
(1.33)
|
%
|
|
|
(2.94)
|
%
|
Adjusted efficiency
ratio
|
|
|
49.34
|
%
|
|
|
47.63
|
%
|
|
|
50.02
|
%
|
|
|
53.59
|
%
|
|
|
60.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Common Share (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP)
|
|
$
|
69.19
|
|
|
$
|
67.04
|
|
|
$
|
65.03
|
|
|
$
|
66.64
|
|
|
$
|
68.30
|
|
Effect to adjust for
intangible assets
|
|
|
(26.79)
|
|
|
|
(26.95)
|
|
|
|
(27.06)
|
|
|
|
(27.17)
|
|
|
|
(27.25)
|
|
Tangible book value
per common share (non-GAAP)
|
|
$
|
42.40
|
|
|
$
|
40.09
|
|
|
$
|
37.97
|
|
|
$
|
39.47
|
|
|
$
|
41.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity-to-Tangible Assets (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets (GAAP)
(8)
|
|
|
11.68
|
%
|
|
|
11.56
|
%
|
|
|
11.08
|
%
|
|
|
11.01
|
%
|
|
|
11.23
|
%
|
Effect to adjust for
intangible assets
|
|
|
(4.18)
|
%
|
|
|
(4.31)
|
%
|
|
|
(4.30)
|
%
|
|
|
(4.18)
|
%
|
|
|
(4.16)
|
%
|
Tangible
equity-to-tangible assets (non-GAAP) (8)
|
|
|
7.50
|
%
|
|
|
7.25
|
%
|
|
|
6.78
|
%
|
|
|
6.83
|
%
|
|
|
7.07
|
%
|
|
Certain prior period information has been reclassified to
conform to the current period presentation, and these
reclassifications had no impact on net income or equity as
previously reported.
Footnotes to
tables:
|
|
(1)
|
Includes loan
accretion (interest) income related to the discount on acquired
loans of $7.4 million, $7.3 million, $9.6 million, $12.8 million,
and $6.7 million during the quarters ended March 31, 2023, December
31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022,
respectively.
|
(2)
|
Adjusted earnings,
adjusted return on average assets, adjusted EPS, and adjusted
return on average equity are non-GAAP measures and exclude the
gains or losses on sales of securities, merger, branch
consolidation and severance related expense, and initial PCL on
nonPCD loans and unfunded commitments from acquisitions.
Management believes that non-GAAP adjusted measures provide
additional useful information that allows readers to evaluate the
ongoing performance of the company. Non-GAAP measures should
not be considered as an alternative to any measure of performance
or financial condition as promulgated under GAAP, and investors
should consider the company's performance and financial condition
as reported under GAAP and all other relevant information when
assessing the performance or financial condition of the
company. Non-GAAP measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the company's results or financial
condition as reported under GAAP. Adjusted earnings and the
related adjusted return measures (non-GAAP) exclude the following
from net income (GAAP) on an after-tax basis: (a) pre-tax merger,
branch consolidation and severance related expense of $9.4 million,
$1.5 million, $13.7 million, $5.4 million, and $10.3 million, for
the quarters ended March 31, 2023, December 31, 2022, September 30,
2022, June 30, 2022, and March 31, 2022, respectively; (b) net
securities gains of $45,000 and $30,000 for the quarters ended
March 31, 2023 and September 30, 2022, respectively; and (c)
initial PCL on nonPCD loans and unfunded commitments acquired from
ACBI of $17.1 million for the quarter ended March 31,
2022.
|
(3)
|
The tangible measures
are non-GAAP measures and exclude the effect of period end or
average balance of intangible assets. The tangible returns on
equity and common equity measures also add back the after-tax
amortization of intangibles to GAAP basis net income.
Management believes that these non-GAAP tangible measures provide
additional useful information, particularly since these measures
are widely used by industry analysts for companies with prior
merger and acquisition activities. Non-GAAP measures should
not be considered as an alternative to any measure of performance
or financial condition as promulgated under GAAP, and investors
should consider the company's performance and financial condition
as reported under GAAP and all other relevant information when
assessing the performance or financial condition of the
company. Non-GAAP measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the company's results or financial
condition as reported under GAAP. The sections titled
"Reconciliation of Non-GAAP to GAAP" provide tables that reconcile
non-GAAP measures to GAAP.
|
(4)
|
Adjusted efficiency
ratio is calculated by taking the noninterest expense excluding
merger, branch consolidation and severance related expense and
amortization of intangible assets, divided by net interest income
and noninterest income excluding securities gains (losses). The
pre-tax amortization expenses of intangible assets were $7.3
million, $8.0 million, $7.8 million, $8.8 million, and $8.5 million
for the quarters ended March 31, 2023, December 31, 2022, September
30, 2022, June 30, 2022, and March 31, 2022,
respectively.
|
(5)
|
The dividend payout
ratio is calculated by dividing total dividends paid during the
period by the total net income for the same period.
|
(6)
|
March 31, 2023
ratios are estimated and may be subject to change pending the final
filing of the FR Y-9C; all other periods are presented as
filed.
|
(7)
|
Loan data excludes
mortgage loans held for sale.
|
(8)
|
During the fourth
quarter of 2022, the Company determined the variation margin
payments for its interest rate swaps centrally cleared through
London Clearing House ("LCH") and Chicago Mercantile Exchange
("CME") met the legal characteristics of daily settlements of the
derivatives rather than collateral. As a result, the
variation margin payment and the related derivative instruments are
considered a single unit of account for accounting and financial
reporting purposes. Depending on the net position, the fair value
of the single unit of account is reported in other assets or other
liabilities on the consolidated balance sheets, as opposed to
interest-earning deposits or interest-bearing deposits. In
addition, the expense or income attributable to the variation
margin payments for the centrally cleared swaps is reported in
noninterest income, specifically within correspondent and capital
markets income, as opposed to interest income or interest expense.
The daily settlement of the derivative exposure does not change or
reset the contractual terms of the instrument. The table
below discloses the net change in all the balance sheet and income
statement line items, as well as performance metrics, impacted by
the correction from collateralize-to-market to settle-to-market
accounting treatment for prior periods. There was no impact
to net income or equity as previously reported.
|
|
|
Three Months
Ended
|
|
(Dollars in
thousands)
|
|
Sep.
30,
|
|
|
Jun.
30,
|
|
|
Mar.
31,
|
|
INCOME
STATEMENT
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
interest income on federal funds sold and
interest-earning
|
|
|
|
|
|
|
|
|
|
|
|
|
deposits with banks
|
|
$
|
1,522
|
|
|
$
|
674
|
|
|
$
|
7
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
interest expense on money market deposits
|
|
|
(2,603)
|
|
|
|
(862)
|
|
|
|
(37)
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effect
to net interest income
|
|
$
|
4,125
|
|
|
$
|
1,536
|
|
|
$
|
44
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
correspondent banking and capital market income
|
|
$
|
(4,125)
|
|
|
$
|
(1,536)
|
|
|
$
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
federal funds sold and interest-earning deposits with
banks
|
|
$
|
114,514
|
|
|
$
|
98,907
|
|
|
$
|
160,185
|
|
Effect to
other assets
|
|
|
(870,746)
|
|
|
|
(540,139)
|
|
|
|
(285,004)
|
|
Net effect
to total assets
|
|
$
|
(756,232)
|
|
|
$
|
(441,232)
|
|
|
$
|
(124,819)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
money market deposits
|
|
$
|
(756,232)
|
|
|
$
|
(441,232)
|
|
|
$
|
(124,819)
|
|
Net effect
to total liabilities
|
|
$
|
(756,232)
|
|
|
$
|
(441,232)
|
|
|
$
|
(124,819)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
federal funds sold and interest-earning deposits with
banks
|
|
$
|
210,108
|
|
|
$
|
211,970
|
|
|
$
|
37,638
|
|
Noninterest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
noninterest-earning assets
|
|
|
(569,329)
|
|
|
|
(483,017)
|
|
|
|
(76,702)
|
|
Net effect
to total average assets
|
|
$
|
(359,221)
|
|
|
$
|
(271,047)
|
|
|
$
|
(39,064)
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
transaction and money market accounts
|
|
$
|
(359,221)
|
|
|
$
|
(271,047)
|
|
|
$
|
(1,387)
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
Non-IBL
|
|
|
—
|
|
|
|
—
|
|
|
|
(37,677)
|
|
Net effect
to total average liabilities
|
|
$
|
(359,221)
|
|
|
$
|
(271,047)
|
|
|
$
|
(39,064)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Sep.
30,
|
|
|
Jun.
30,
|
|
|
Mar.
31,
|
|
YIELD
ANALYSIS
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
federal funds sold and interest-earning deposits with
banks
|
|
|
0.05
|
%
|
|
|
0.03
|
%
|
|
|
—
|
%
|
Effect to
total interest-earning assets
|
|
|
(0.01)
|
%
|
|
|
(0.01)
|
%
|
|
|
(0.01)
|
%
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
transaction and money market accounts
|
|
|
(0.06)
|
%
|
|
|
(0.01)
|
%
|
|
|
0.00
|
%
|
Effect to
total interest-bearing liabilities
|
|
|
(0.04)
|
%
|
|
|
(0.01)
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effect
to NIM
|
|
|
0.02
|
%
|
|
|
0.00
|
%
|
|
|
—
|
%
|
Net effect
to NIM, TE (non-GAAP)
|
|
|
0.03
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to return on
average assets (annualized)
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
—
|
%
|
Effect to adjusted
return on average assets (annualized) (non-GAAP) (2)
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect to
equity-to-assets
|
|
|
0.2
|
%
|
|
|
0.1
|
%
|
|
|
—
|
%
|
Effect to tangible
equity-to-tangible assets (non-GAAP) (3)
|
|
|
0.1
|
%
|
|
|
—
|
%
|
|
|
0.1
|
%
|
Effect to Tier 1
leverage
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
|
|
—
|
%
|
Effect to Tier 1 common
equity
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
Effect to Tier 1
risk-based capital
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
Effect to Total
risk-based capital
|
|
|
0.1
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cautionary Statement Regarding Forward Looking
Statements
Statements included in this communication, which are not
historical in nature are intended to be, and are hereby identified
as, forward-looking statements for purposes of the safe harbor
provided by Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements are based on, among other things, management's beliefs,
assumptions, current expectations, estimates and projections about
the financial services industry, the economy and SouthState. Words
and phrases such as "may," "approximately," "continue," "should,"
"expects," "projects," "anticipates," "is likely," "look ahead,"
"look forward," "believes," "will," "intends," "estimates,"
"strategy," "plan," "could," "potential," "possible" and variations
of such words and similar expressions are intended to identify such
forward-looking statements.
SouthState cautions readers that forward-looking statements are
subject to certain risks, uncertainties and assumptions that are
difficult to predict with regard to, among other things, timing,
extent, likelihood and degree of occurrence, which could cause
actual results to differ materially from anticipated results. Such
risks, uncertainties and assumptions, include, among others, the
following: (1) economic downturn risk, potentially resulting in
deterioration in the credit markets, inflation, greater than
expected noninterest expenses, excessive loan losses and other
negative consequences, which risks could be exacerbated by
potential negative economic developments resulting from federal
spending cuts and/or one or more federal budget-related impasses or
actions; (2) interest rate risk primarily resulting from the
interest rate environment, the number and pace of interest rate
increases, and their impact on the Bank's earnings, including from
the correspondent and mortgage divisions, housing demand, the
market value of the bank's loan and securities portfolios, and the
market value of SouthState's equity; (3) volatility in the
financial services industry (including failures or rumors of
failures of other depositor institutions), along with actions taken
by governmental agencies to address such turmoil, could affect the
ability of depository institutions, including us, to attract and
retain depositors and to borrow or raise capital (4) risks related
to the merger and integration of SouthState and Atlantic Capital
including, among others, (i) the risk that the cost savings and any
revenue synergies from the merger may not be fully realized or may
take longer than anticipated to be realized, (ii) the risk that the
integration of Atlantic Capital's operations into SouthState's
operations will be more costly or difficult than expected or that
the parties are otherwise unable to successfully integrate Atlantic
Capital's businesses into SouthState's businesses, (iii) the amount
of the costs, fees, expenses and charges related to the merger, and
(iv) reputational risk and the reaction of each company's
customers, suppliers, employees or other business partners to the
merger; (5) risks relating to the continued impact of the Covid19
pandemic on the Company, including to efficiencies and the control
environment due to the changing work environment; (6) the impact of
increasing digitization of the banking industry and movement of
customers to on-line platforms, and the possible impact on the
Bank's results of operations, customer base, expenses, suppliers
and operations; (7) controls and procedures risk, including the
potential failure or circumvention of our controls and procedures
or failure to comply with regulations related to controls and
procedures; (8) potential deterioration in real estate values; (9)
the impact of competition with other financial institutions,
including deposit and loan pricing pressures and the resulting
impact, including as a result of compression to net interest
margin; (10) risks relating to the ability to retain our culture
and attract and retain qualified people; (11) credit risks
associated with an obligor's failure to meet the terms of any
contract with the Bank or otherwise fail to perform as agreed under
the terms of any loan-related document; (12) risks related to the
ability of the Company to pursue its strategic plans which depend
upon certain growth goals in our lines of business; (13) liquidity
risk affecting the Bank's ability to meet its obligations when they
come due; (14) risks associated with an anticipated increase in
SouthState's investment securities portfolio, including risks
associated with acquiring and holding investment securities or
potentially determining that the amount of investment securities
SouthState desires to acquire are not available on terms acceptable
to SouthState; (15) unexpected outflows of uninsured deposits may
require us to sell investment securities at a loss; (16) the loss
of value of our investment portfolio could negatively impact market
perceptions of us and could lead to deposit withdrawals; (17) price
risk focusing on changes in market factors that may affect the
value of traded instruments in "mark-to-market" portfolios; (18)
transaction risk arising from problems with service or product
delivery; (19) compliance risk involving risk to earnings or
capital resulting from violations of or nonconformance with laws,
rules, regulations, prescribed practices, or ethical standards;
(20) regulatory change risk resulting from new laws, rules,
regulations, accounting principles, proscribed practices or ethical
standards, including, without limitation, the possibility that
regulatory agencies may require higher levels of capital above the
current regulatory-mandated minimums and including the impact of
special FDIC assessments, the Consumer Financial Protection Bureau
regulations, and the possibility of changes in accounting
standards, policies, principles and practices; (21) strategic risk
resulting from adverse business decisions or improper
implementation of business decisions; (22) reputation risk that
adversely affects earnings or capital arising from negative public
opinion including the effects of social media on market perceptions
of us and banks generally; (23) cybersecurity risk related to the
dependence of SouthState on internal computer systems and the
technology of outside service providers, as well as the potential
impacts of internal or external security breaches, which may
subject the company to potential business disruptions or financial
losses resulting from deliberate attacks or unintentional events;
(24) reputational and operational risks associated with
environment, social and governance (ESG) matters, including the
impact of recently issued proposed regulatory guidance and
regulation relating to climate change; (25) greater than expected
noninterest expenses; (26) excessive loan losses; (27) potential
deposit attrition, higher than expected costs, customer loss and
business disruption associated with the Atlantic Capital
integration, and potential difficulties in maintaining
relationships with key personnel; (28) reputational risk and
possible higher than estimated reduced revenue from announced
changes in the Bank's consumer overdraft programs; (29) the risks
of fluctuations in market prices for SouthState common stock that
may or may not reflect economic condition or performance of
SouthState; (30) the payment of dividends on SouthState common
stock, which is subject to legal and regulatory limitations as well
as the discretion of the board of directors of SouthState,
SouthState's performance and other factors; (31) ownership dilution
risk associated with potential acquisitions in which SouthState's
stock may be issued as consideration for an acquired company; (32)
operational, technological, cultural, regulatory, legal, credit and
other risks associated with the exploration, consummation and
integration of potential future acquisitions, whether involving
stock or cash consideration; (33) major catastrophes such as
hurricanes, tornados, earthquakes, floods or other natural or human
disasters, including infectious disease outbreaks, and the related
disruption to local, regional and global economic activity and
financial markets, and the impact that any of the foregoing may
have on SouthState and its customers and other constituencies; (34)
terrorist activities risk that results in loss of consumer
confidence and economic disruptions; and (35) other factors that
may affect future results of SouthState, as disclosed in
SouthState's Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, and Current Reports on Form 8-K, filed by SouthState with the
U.S. Securities and Exchange Commission ("SEC") and available on
the SEC's website at http://www.sec.gov, any of which could cause
actual results to differ materially from future results expressed,
implied or otherwise anticipated by such forward-looking
statements.
All forward-looking statements speak only as of the date they
are made and are based on information available at that time.
SouthState does not undertake any obligation to update or otherwise
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by
federal securities laws. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance on such statements.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/southstate-corporation-reports-first-quarter-2023-results-declares-quarterly-cash-dividend-301810079.html
SOURCE SouthState Corporation