WINTER
HAVEN, Fla., April 25,
2024 /PRNewswire/ -- SouthState Corporation
(NYSE: SSB) today released its unaudited results of operations and
other financial information for the three-month period ended
March 31, 2024.
"In the midst of a transition year for the US economy,
SouthState produced first quarter revenue and earnings per share in
line with our guidance," commented John C.
Corbett, SouthState's Chief Executive Officer. "Loans
and deposits grew in the low-single digit percent range and asset
quality remains stable with strong reserves. Our markets are
resilient, and people are migrating to the South as an attractive
place to live and grow a business."
Highlights of the first quarter of 2024 include:
Returns
- Reported Diluted Earnings per Share ("EPS") of $1.50; Adjusted Diluted EPS (Non-GAAP) of
$1.58
- Net Income of $115.1 million;
Adjusted Net Income (Non-GAAP) of $121.3
million
- Return on Average Common Equity of 8.4%; Return on Average
Tangible Common Equity (Non-GAAP) of 13.6% and Adjusted Return on
Average Tangible Common Equity (Non-GAAP) of 14.4%*
- Return on Average Assets ("ROAA") of 1.03% and Adjusted ROAA
(Non-GAAP) of 1.08%*
- Pre-Provision Net Revenue ("PPNR") per Weighted Average Diluted
Share (Non-GAAP) of $2.28
- Book Value per Share of $72.82;
Tangible Book Value ("TBV") per Share (Non-GAAP) of $46.48
∗ Annualized percentages
Performance
- Net Interest Income of $344
million; Core Net Interest Income (excluding loan accretion)
(Non-GAAP) of $340 million
- Net Interest Margin ("NIM"), non-tax equivalent of 3.40% and
tax equivalent (Non-GAAP) of 3.41%
- Net charge-offs of $2.7 million,
or 0.03% annualized; $12.7 million
Provision for Credit Losses ("PCL"), including release for unfunded
commitments; total allowance for credit losses ("ACL") plus reserve
for unfunded commitments of 1.60%
- Noninterest Income of $72
million; Noninterest Income represented 0.64% of average
assets for the first quarter of 2024
- Recorded FDIC special assessment expense of $3.9 million
- Efficiency Ratio of 58% and Adjusted Efficiency Ratio
(Non-GAAP) of 56%
Balance Sheet
- Loans increased $279 million, or
3% annualized, led by consumer real estate; ending loan to deposit
ratio of 88%
- Deposits increased $130 million,
or 1% annualized
- Total deposit cost of 1.74%, up 0.14% from prior quarter,
resulting in a 33% cycle-to-date beta
- Repurchased a total of 100,000 shares during 1Q 2024 at a
weighted average price of $79.85
- Strong capital position with Tangible Common Equity, Total
Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity
ratios of 8.2%, 14.4%, 9.6%, and 11.9%, respectively†
† Preliminary
Subsequent Events
- The Board of Directors of the Company declared a quarterly cash
dividend on its common stock of $0.52
per share, payable on May 17, 2024 to
shareholders of record as of May 10,
2024
Financial Performance
|
|
Three Months
Ended
|
|
|
(Dollars in
thousands, except per share data)
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
INCOME
STATEMENT
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees (1)
|
|
$
|
463,688
|
|
$
|
459,880
|
|
$
|
443,805
|
|
$
|
419,355
|
|
$
|
393,366
|
|
|
Investment
securities, trading securities, federal funds sold and
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchased under
agreements to resell
|
|
|
53,567
|
|
|
55,555
|
|
|
56,704
|
|
|
58,698
|
|
|
57,043
|
|
|
Total interest
income
|
|
|
517,255
|
|
|
515,435
|
|
|
500,509
|
|
|
478,053
|
|
|
450,409
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
160,162
|
|
|
149,584
|
|
|
133,944
|
|
|
100,787
|
|
|
55,942
|
|
|
Federal
funds purchased, securities sold under agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to repurchase, and
other borrowings
|
|
|
13,157
|
|
|
11,620
|
|
|
11,194
|
|
|
15,523
|
|
|
13,204
|
|
|
Total interest
expense
|
|
|
173,319
|
|
|
161,204
|
|
|
145,138
|
|
|
116,310
|
|
|
69,146
|
|
|
Net Interest
Income
|
|
|
343,936
|
|
|
354,231
|
|
|
355,371
|
|
|
361,743
|
|
|
381,263
|
|
|
Provision for
credit losses
|
|
|
12,686
|
|
|
9,893
|
|
|
32,709
|
|
|
38,389
|
|
|
33,091
|
|
|
Net Interest Income
after Provision for Credit Losses
|
|
|
331,250
|
|
|
344,338
|
|
|
322,662
|
|
|
323,354
|
|
|
348,172
|
|
|
Noninterest
Income
|
|
|
71,558
|
|
|
65,489
|
|
|
72,848
|
|
|
77,214
|
|
|
71,355
|
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expense
|
|
|
240,923
|
|
|
245,774
|
|
|
238,042
|
|
|
240,818
|
|
|
231,093
|
|
|
Merger, branch
consolidation, severance related and other expense (8)
|
|
|
4,513
|
|
|
1,778
|
|
|
164
|
|
|
1,808
|
|
|
9,412
|
|
|
FDIC special
assessment
|
|
|
3,854
|
|
|
25,691
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total noninterest
expense
|
|
|
249,290
|
|
|
273,243
|
|
|
238,206
|
|
|
242,626
|
|
|
240,505
|
|
|
Income before Income
Taxes Provision
|
|
|
153,518
|
|
|
136,584
|
|
|
157,304
|
|
|
157,942
|
|
|
179,022
|
|
|
Income taxes
provision
|
|
|
38,462
|
|
|
29,793
|
|
|
33,160
|
|
|
34,495
|
|
|
39,096
|
|
|
Net
Income
|
|
$
|
115,056
|
|
$
|
106,791
|
|
$
|
124,144
|
|
$
|
123,447
|
|
$
|
139,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(GAAP)
|
|
$
|
115,056
|
|
$
|
106,791
|
|
$
|
124,144
|
|
$
|
123,447
|
|
$
|
139,926
|
|
|
Securities losses
(gains), net of tax
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(35)
|
|
|
Merger, branch
consolidation, severance related and other expense, net of tax
(8)
|
|
|
3,382
|
|
|
1,391
|
|
|
130
|
|
|
1,414
|
|
|
7,356
|
|
|
FDIC special
assessment, net of tax
|
|
|
2,888
|
|
|
20,087
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted Net Income
(non-GAAP)
|
|
$
|
121,326
|
|
$
|
128,271
|
|
$
|
124,274
|
|
$
|
124,861
|
|
$
|
147,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
|
1.51
|
|
$
|
1.40
|
|
$
|
1.63
|
|
$
|
1.62
|
|
$
|
1.84
|
|
|
Diluted
earnings per common share
|
|
$
|
1.50
|
|
$
|
1.39
|
|
$
|
1.62
|
|
$
|
1.62
|
|
$
|
1.83
|
|
|
Adjusted
net income per common share - Basic (non-GAAP) (2)
|
|
$
|
1.59
|
|
$
|
1.69
|
|
$
|
1.63
|
|
$
|
1.64
|
|
$
|
1.94
|
|
|
Adjusted
net income per common share - Diluted (non-GAAP) (2)
|
|
$
|
1.58
|
|
$
|
1.67
|
|
$
|
1.62
|
|
$
|
1.63
|
|
$
|
1.93
|
|
|
Dividends
per common share
|
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.50
|
|
$
|
0.50
|
|
|
Basic
weighted-average common shares outstanding
|
|
|
76,301,411
|
|
|
76,100,187
|
|
|
76,139,170
|
|
|
76,057,977
|
|
|
75,902,440
|
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,660,081
|
|
|
76,634,100
|
|
|
76,571,430
|
|
|
76,417,537
|
|
|
76,388,954
|
|
|
Effective
tax rate
|
|
|
25.05 %
|
|
|
21.81 %
|
|
|
21.08 %
|
|
|
21.84 %
|
|
|
21.84 %
|
|
Performance and Capital Ratios
|
|
Three Months
Ended
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
1.03
|
%
|
|
0.94
|
%
|
|
1.10
|
%
|
|
1.11
|
%
|
|
1.29
|
%
|
|
|
Adjusted return on
average assets (annualized) (non-GAAP) (2)
|
|
|
1.08
|
%
|
|
1.13
|
%
|
|
1.10
|
%
|
|
1.12
|
%
|
|
1.35
|
%
|
|
|
Return on average
common equity (annualized)
|
|
|
8.36
|
%
|
|
7.99
|
%
|
|
9.24
|
%
|
|
9.34
|
%
|
|
10.96
|
%
|
|
|
Adjusted return on
average common equity (annualized) (non-GAAP) (2)
|
|
|
8.81
|
%
|
|
9.60
|
%
|
|
9.25
|
%
|
|
9.45
|
%
|
|
11.53
|
%
|
|
|
Return on average
tangible common equity (annualized) (non-GAAP) (3)
|
|
|
13.63
|
%
|
|
13.53
|
%
|
|
15.52
|
%
|
|
15.81
|
%
|
|
18.81
|
%
|
|
|
Adjusted return on
average tangible common equity (annualized) (non-GAAP) (2)
(3)
|
|
|
14.35
|
%
|
|
16.12
|
%
|
|
15.54
|
%
|
|
15.98
|
%
|
|
19.75
|
%
|
|
|
Efficiency ratio (tax
equivalent)
|
|
|
58.48
|
%
|
|
63.43
|
%
|
|
54.00
|
%
|
|
53.59
|
%
|
|
51.41
|
%
|
|
|
Adjusted efficiency
ratio (non-GAAP) (4)
|
|
|
56.47
|
%
|
|
56.89
|
%
|
|
53.96
|
%
|
|
53.18
|
%
|
|
49.34
|
%
|
|
|
Dividend payout ratio
(5)
|
|
|
34.42
|
%
|
|
37.01
|
%
|
|
31.84
|
%
|
|
30.75
|
%
|
|
27.09
|
%
|
|
|
Book value per common
share
|
|
$
|
72.82
|
|
$
|
72.78
|
|
$
|
68.81
|
|
$
|
69.61
|
|
$
|
69.19
|
|
|
|
Tangible book value per
common share (non-GAAP) (3)
|
|
$
|
46.48
|
|
$
|
46.32
|
|
$
|
42.26
|
|
$
|
42.96
|
|
$
|
42.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
|
|
|
12.3
|
%
|
|
12.3
|
%
|
|
11.6
|
%
|
|
11.8
|
%
|
|
11.7
|
%
|
|
|
Tangible
equity-to-tangible assets (non-GAAP) (3)
|
|
|
8.2
|
%
|
|
8.2
|
%
|
|
7.5
|
%
|
|
7.6
|
%
|
|
7.5
|
%
|
|
|
Tier 1 leverage
(6)
|
|
|
9.6
|
%
|
|
9.4
|
%
|
|
9.3
|
%
|
|
9.2
|
%
|
|
9.1
|
%
|
|
|
Tier 1 common equity
(6)
|
|
|
11.9
|
%
|
|
11.8
|
%
|
|
11.5
|
%
|
|
11.3
|
%
|
|
11.1
|
%
|
|
|
Tier 1 risk-based
capital (6)
|
|
|
11.9
|
%
|
|
11.8
|
%
|
|
11.5
|
%
|
|
11.3
|
%
|
|
11.1
|
%
|
|
|
Total risk-based
capital (6)
|
|
|
14.4
|
%
|
|
14.1
|
%
|
|
13.8
|
%
|
|
13.5
|
%
|
|
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
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
$
|
478,271
|
|
$
|
510,922
|
|
$
|
514,917
|
|
$
|
552,900
|
|
$
|
558,158
|
|
|
Federal
funds sold and interest-earning deposits with banks
|
|
|
731,186
|
|
|
487,955
|
|
|
814,220
|
|
|
960,849
|
|
|
1,438,504
|
|
|
Cash and cash
equivalents
|
|
|
1,209,457
|
|
|
998,877
|
|
|
1,329,137
|
|
|
1,513,749
|
|
|
1,996,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities, at
fair value
|
|
|
66,188
|
|
|
31,321
|
|
|
114,154
|
|
|
56,580
|
|
|
16,039
|
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
held to maturity
|
|
|
2,446,589
|
|
|
2,487,440
|
|
|
2,533,713
|
|
|
2,585,155
|
|
|
2,636,673
|
|
|
Securities
available for sale, at fair value
|
|
|
4,598,400
|
|
|
4,784,388
|
|
|
4,623,618
|
|
|
4,949,334
|
|
|
5,159,999
|
|
|
Other
investments
|
|
|
187,285
|
|
|
192,043
|
|
|
187,152
|
|
|
196,728
|
|
|
217,991
|
|
|
Total investment securities
|
|
|
7,232,274
|
|
|
7,463,871
|
|
|
7,344,483
|
|
|
7,731,217
|
|
|
8,014,663
|
|
|
Loans held for
sale
|
|
|
56,553
|
|
|
50,888
|
|
|
27,443
|
|
|
42,951
|
|
|
27,289
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased credit
deteriorated
|
|
|
1,031,283
|
|
|
1,108,813
|
|
|
1,171,543
|
|
|
1,269,983
|
|
|
1,325,400
|
|
|
Purchased non-credit
deteriorated
|
|
|
4,534,583
|
|
|
4,796,913
|
|
|
5,064,254
|
|
|
5,275,913
|
|
|
5,620,290
|
|
|
Non-acquired
|
|
|
27,101,444
|
|
|
26,482,763
|
|
|
25,780,875
|
|
|
24,990,889
|
|
|
23,750,452
|
|
|
Less
allowance for credit losses
|
|
|
(469,654)
|
|
|
(456,573)
|
|
|
(447,956)
|
|
|
(427,392)
|
|
|
(370,645)
|
|
|
Loans, net
|
|
|
32,197,656
|
|
|
31,931,916
|
|
|
31,568,716
|
|
|
31,109,393
|
|
|
30,325,497
|
|
|
Premises and equipment,
net
|
|
|
512,635
|
|
|
519,197
|
|
|
516,583
|
|
|
518,353
|
|
|
517,146
|
|
|
Bank owned life
insurance
|
|
|
997,562
|
|
|
991,454
|
|
|
984,881
|
|
|
979,494
|
|
|
967,750
|
|
|
Mortgage servicing
rights
|
|
|
87,970
|
|
|
85,164
|
|
|
89,476
|
|
|
87,539
|
|
|
85,406
|
|
|
Core deposit and other
intangibles
|
|
|
83,193
|
|
|
88,776
|
|
|
95,094
|
|
|
102,256
|
|
|
109,603
|
|
|
Goodwill
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
Other assets
|
|
|
778,244
|
|
|
817,454
|
|
|
996,055
|
|
|
875,694
|
|
|
940,666
|
|
|
Total assets
|
|
$
|
45,144,838
|
|
$
|
44,902,024
|
|
$
|
44,989,128
|
|
$
|
44,940,332
|
|
$
|
44,923,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
10,546,410
|
|
$
|
10,649,274
|
|
$
|
11,158,431
|
|
$
|
11,489,483
|
|
$
|
12,422,583
|
|
|
Interest-bearing
|
|
|
26,632,024
|
|
|
26,399,635
|
|
|
25,776,767
|
|
|
25,252,395
|
|
|
23,979,009
|
|
|
Total deposits
|
|
|
37,178,434
|
|
|
37,048,909
|
|
|
36,935,198
|
|
|
36,741,878
|
|
|
36,401,592
|
|
|
Federal funds purchased
and securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under
agreements to repurchase
|
|
|
554,691
|
|
|
489,185
|
|
|
513,304
|
|
|
581,446
|
|
|
544,108
|
|
|
Other
borrowings
|
|
|
391,812
|
|
|
491,904
|
|
|
391,997
|
|
|
792,090
|
|
|
1,292,182
|
|
|
Reserve for unfunded
commitments
|
|
|
53,229
|
|
|
56,303
|
|
|
62,347
|
|
|
63,399
|
|
|
85,068
|
|
|
Other
liabilities
|
|
|
1,419,663
|
|
|
1,282,625
|
|
|
1,855,295
|
|
|
1,471,509
|
|
|
1,351,873
|
|
|
Total liabilities
|
|
|
39,597,829
|
|
|
39,368,926
|
|
|
39,758,141
|
|
|
39,650,322
|
|
|
39,674,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock - $2.50 par value; authorized 160,000,000 shares
|
|
|
190,443
|
|
|
190,055
|
|
|
190,043
|
|
|
189,990
|
|
|
189,649
|
|
|
Surplus
|
|
|
4,230,345
|
|
|
4,240,413
|
|
|
4,238,753
|
|
|
4,228,910
|
|
|
4,224,503
|
|
|
Retained
earnings
|
|
|
1,749,215
|
|
|
1,685,166
|
|
|
1,618,080
|
|
|
1,533,508
|
|
|
1,448,636
|
|
|
Accumulated other comprehensive loss
|
|
|
(622,994)
|
|
|
(582,536)
|
|
|
(815,889)
|
|
|
(662,398)
|
|
|
(613,784)
|
|
|
Total shareholders' equity
|
|
|
5,547,009
|
|
|
5,533,098
|
|
|
5,230,987
|
|
|
5,290,010
|
|
|
5,249,004
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
45,144,838
|
|
$
|
44,902,024
|
|
$
|
44,989,128
|
|
$
|
44,940,332
|
|
$
|
44,923,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
|
|
76,177,163
|
|
|
76,022,039
|
|
|
76,017,366
|
|
|
75,995,979
|
|
|
75,859,665
|
|
Net Interest Income and Margin
|
|
Three Months
Ended
|
|
|
|
Mar. 31,
2024
|
|
Dec. 31,
2023
|
|
Mar. 31,
2023
|
|
|
(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
|
|
$
|
668,349
|
|
$
|
8,254
|
|
4.97 %
|
|
$
|
814,244
|
|
$
|
10,029
|
|
4.89 %
|
|
$
|
759,239
|
|
$
|
8,921
|
|
4.77 %
|
|
|
Investment
securities
|
|
|
7,465,735
|
|
|
45,313
|
|
2.44 %
|
|
|
7,382,800
|
|
|
45,526
|
|
2.45 %
|
|
|
8,232,582
|
|
|
48,122
|
|
2.37 %
|
|
|
Loans held for
sale
|
|
|
42,872
|
|
|
681
|
|
6.39 %
|
|
|
28,878
|
|
|
552
|
|
7.58 %
|
|
|
23,123
|
|
|
402
|
|
7.05 %
|
|
|
Total loans held for
investment
|
|
|
32,480,220
|
|
|
463,007
|
|
5.73 %
|
|
|
32,239,455
|
|
|
459,328
|
|
5.65 %
|
|
|
30,394,396
|
|
|
392,964
|
|
5.24 %
|
|
|
Total interest-earning
assets
|
|
|
40,657,176
|
|
|
517,255
|
|
5.12 %
|
|
|
40,465,377
|
|
|
515,435
|
|
5.05 %
|
|
|
39,409,340
|
|
|
450,409
|
|
4.64 %
|
|
|
Noninterest-earning
assets
|
|
|
4,353,987
|
|
|
|
|
|
|
|
4,572,255
|
|
|
|
|
|
|
|
4,695,138
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
45,011,163
|
|
|
|
|
|
|
$
|
45,037,632
|
|
|
|
|
|
|
$
|
44,104,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities ("IBL"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money
market accounts
|
|
$
|
19,544,019
|
|
$
|
117,292
|
|
2.41 %
|
|
$
|
18,957,647
|
|
$
|
107,994
|
|
2.26 %
|
|
$
|
16,874,909
|
|
$
|
40,516
|
|
0.97 %
|
|
|
Savings
deposits
|
|
|
2,589,251
|
|
|
1,818
|
|
0.28 %
|
|
|
2,680,065
|
|
|
1,888
|
|
0.28 %
|
|
|
3,298,221
|
|
|
1,756
|
|
0.22 %
|
|
|
Certificates and other
time deposits
|
|
|
4,282,749
|
|
|
41,052
|
|
3.86 %
|
|
|
4,294,555
|
|
|
39,702
|
|
3.67 %
|
|
|
3,114,354
|
|
|
13,670
|
|
1.78 %
|
|
|
Federal funds
purchased
|
|
|
256,506
|
|
|
3,369
|
|
5.28 %
|
|
|
256,672
|
|
|
3,453
|
|
5.34 %
|
|
|
193,259
|
|
|
2,187
|
|
4.59 %
|
|
|
Repurchase
agreements
|
|
|
280,674
|
|
|
1,358
|
|
1.95 %
|
|
|
265,839
|
|
|
1,458
|
|
2.18 %
|
|
|
373,563
|
|
|
666
|
|
0.72 %
|
|
|
Other
borrowings
|
|
|
563,848
|
|
|
8,430
|
|
6.01 %
|
|
|
438,701
|
|
|
6,709
|
|
6.07 %
|
|
|
785,571
|
|
|
10,351
|
|
5.34 %
|
|
|
Total interest-bearing
liabilities
|
|
|
27,517,047
|
|
|
173,319
|
|
2.53 %
|
|
|
26,893,479
|
|
|
161,204
|
|
2.38 %
|
|
|
24,639,877
|
|
|
69,146
|
|
1.14 %
|
|
|
Noninterest-bearing
liabilities ("Non-IBL")
|
|
|
11,957,565
|
|
|
|
|
|
|
|
12,844,262
|
|
|
|
|
|
|
|
14,287,553
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
5,536,551
|
|
|
|
|
|
|
|
5,299,891
|
|
|
|
|
|
|
|
5,177,048
|
|
|
|
|
|
|
|
Total Non-IBL and
shareholders' equity
|
|
|
17,494,116
|
|
|
|
|
|
|
|
18,144,153
|
|
|
|
|
|
|
|
19,464,601
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
45,011,163
|
|
|
|
|
|
|
$
|
45,037,632
|
|
|
|
|
|
|
$
|
44,104,478
|
|
|
|
|
|
|
|
Net Interest Income
and Margin (Non-Tax Equivalent)
|
|
|
|
|
$
|
343,936
|
|
3.40 %
|
|
|
|
|
$
|
354,231
|
|
3.47 %
|
|
|
|
|
$
|
381,263
|
|
3.92 %
|
|
|
Net Interest Margin
(Tax Equivalent) (non-GAAP)
|
|
|
|
|
|
|
|
3.41 %
|
|
|
|
|
|
|
|
3.48 %
|
|
|
|
|
|
|
|
3.93 %
|
|
|
Total Deposit Cost
(without Debt and Other Borrowings)
|
|
|
|
|
|
|
|
1.74 %
|
|
|
|
|
|
|
|
1.60 %
|
|
|
|
|
|
|
|
0.63 %
|
|
|
Overall Cost of
Funds (including Demand Deposits)
|
|
|
|
|
|
|
|
1.83 %
|
|
|
|
|
|
|
|
1.69 %
|
|
|
|
|
|
|
|
0.75 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accretion on
Acquired Loans (1)
|
|
|
|
|
$
|
4,287
|
|
|
|
|
|
|
$
|
3,870
|
|
|
|
|
|
|
$
|
7,398
|
|
|
|
|
Tax Equivalent
("TE") Adjustment
|
|
|
|
|
$
|
528
|
|
|
|
|
|
|
$
|
659
|
|
|
|
|
|
|
$
|
1,020
|
|
|
|
|
|
|
•
|
The remaining loan
discount on acquired loans to be accreted into loan interest income
totals $47.0 million as of March 31, 2024.
|
Noninterest Income and Expense
|
|
Three Months
Ended
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
(Dollars in
thousands)
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on
deposit accounts
|
|
$
|
33,145
|
|
$
|
33,225
|
|
$
|
32,830
|
|
$
|
33,101
|
|
$
|
29,859
|
|
|
Mortgage
banking income
|
|
|
6,169
|
|
|
2,191
|
|
|
2,478
|
|
|
4,354
|
|
|
4,332
|
|
|
Trust and
investment services income
|
|
|
10,391
|
|
|
10,131
|
|
|
9,556
|
|
|
9,823
|
|
|
9,937
|
|
|
Securities
(losses) gains, net
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
Correspondent banking and capital markets income
|
|
|
14,591
|
|
|
16,081
|
|
|
24,808
|
|
|
27,734
|
|
|
21,956
|
|
|
Expense on
centrally-cleared variation margin
|
|
|
(10,280)
|
|
|
(12,677)
|
|
|
(11,892)
|
|
|
(8,547)
|
|
|
(8,362)
|
|
|
Total
correspondent banking and capital markets income
|
|
|
4,311
|
|
|
3,404
|
|
|
12,916
|
|
|
19,187
|
|
|
13,594
|
|
|
Bank owned
life insurance income
|
|
|
6,892
|
|
|
6,567
|
|
|
7,039
|
|
|
6,271
|
|
|
6,813
|
|
|
Other
|
|
|
10,650
|
|
|
9,973
|
|
|
8,029
|
|
|
4,478
|
|
|
6,775
|
|
|
Total Noninterest Income
|
|
$
|
71,558
|
|
$
|
65,489
|
|
$
|
72,848
|
|
$
|
77,214
|
|
$
|
71,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
$
|
150,453
|
|
$
|
145,850
|
|
$
|
146,146
|
|
$
|
147,342
|
|
$
|
144,060
|
|
|
Occupancy
expense
|
|
|
22,577
|
|
|
22,715
|
|
|
22,251
|
|
|
22,196
|
|
|
21,533
|
|
|
Information services expense
|
|
|
22,353
|
|
|
22,000
|
|
|
21,428
|
|
|
21,119
|
|
|
19,925
|
|
|
OREO and
loan related expense (income)
|
|
|
606
|
|
|
948
|
|
|
613
|
|
|
(14)
|
|
|
169
|
|
|
Business
development and staff related
|
|
|
5,799
|
|
|
7,492
|
|
|
5,995
|
|
|
6,672
|
|
|
5,957
|
|
|
Amortization of intangibles
|
|
|
5,998
|
|
|
6,615
|
|
|
6,616
|
|
|
7,028
|
|
|
7,299
|
|
|
Professional fees
|
|
|
3,115
|
|
|
7,025
|
|
|
3,456
|
|
|
4,364
|
|
|
3,702
|
|
|
Supplies
and printing expense
|
|
|
2,540
|
|
|
2,761
|
|
|
2,623
|
|
|
2,554
|
|
|
2,640
|
|
|
FDIC
assessment and other regulatory charges
|
|
|
8,534
|
|
|
8,325
|
|
|
8,632
|
|
|
9,819
|
|
|
6,294
|
|
|
Advertising and marketing
|
|
|
1,984
|
|
|
2,826
|
|
|
3,009
|
|
|
1,521
|
|
|
2,118
|
|
|
Other
operating expenses
|
|
|
16,964
|
|
|
19,217
|
|
|
17,273
|
|
|
18,217
|
|
|
17,396
|
|
|
Merger,
branch consolidation, severance related and other expense
(8)
|
|
|
4,513
|
|
|
1,778
|
|
|
164
|
|
|
1,808
|
|
|
9,412
|
|
|
FDIC
special assessment
|
|
|
3,854
|
|
|
25,691
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total Noninterest Expense
|
|
$
|
249,290
|
|
$
|
273,243
|
|
$
|
238,206
|
|
$
|
242,626
|
|
$
|
240,505
|
|
Loans and Deposits
The following table presents a summary of the loan portfolio by
type:
|
|
Ending
Balance
|
|
|
(Dollars in
thousands)
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
LOAN PORTFOLIO
(7)
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
Construction and land
development * †
|
|
$
|
2,437,343
|
|
$
|
2,923,514
|
|
$
|
2,776,241
|
|
$
|
2,817,125
|
|
$
|
2,749,290
|
|
|
Investor commercial
real estate*
|
|
|
9,752,529
|
|
|
9,227,968
|
|
|
9,372,683
|
|
|
9,187,948
|
|
|
8,957,507
|
|
|
Commercial owner
occupied real estate
|
|
|
5,511,855
|
|
|
5,497,671
|
|
|
5,539,097
|
|
|
5,585,951
|
|
|
5,522,514
|
|
|
Commercial and
industrial
|
|
|
5,544,131
|
|
|
5,504,539
|
|
|
5,458,229
|
|
|
5,378,294
|
|
|
5,321,306
|
|
|
Consumer real estate
*
|
|
|
8,223,066
|
|
|
7,993,450
|
|
|
7,608,145
|
|
|
7,275,495
|
|
|
6,860,831
|
|
|
Consumer/other
|
|
|
1,198,386
|
|
|
1,241,347
|
|
|
1,262,277
|
|
|
1,291,972
|
|
|
1,284,694
|
|
|
Total
Loans
|
|
$
|
32,667,310
|
|
$
|
32,388,489
|
|
$
|
32,016,672
|
|
$
|
31,536,785
|
|
$
|
30,696,142
|
|
|
|
|
*
|
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 $623.9 million, $715.5
million, $863.1 million, $928.4 million, and $893.7 million for the
quarters ended March 31, 2024, December 31, 2023, September 30,
2023, June 30, 2023, and March 31, 2023, respectively.
|
|
|
|
|
Ending
Balance
|
|
|
(Dollars in
thousands)
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
DEPOSITS
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
Noninterest-bearing
checking
|
|
$
|
10,546,410
|
|
$
|
10,649,274
|
|
$
|
11,158,431
|
|
$
|
11,489,483
|
|
$
|
12,422,583
|
|
|
Interest-bearing
checking
|
|
|
7,898,835
|
|
|
7,978,799
|
|
|
7,806,243
|
|
|
8,185,609
|
|
|
8,316,023
|
|
|
Savings
|
|
|
2,557,203
|
|
|
2,632,212
|
|
|
2,760,166
|
|
|
2,931,320
|
|
|
3,156,214
|
|
|
Money market
|
|
|
11,895,385
|
|
|
11,538,671
|
|
|
10,756,431
|
|
|
9,710,032
|
|
|
8,388,275
|
|
|
Time
deposits
|
|
|
4,280,601
|
|
|
4,249,953
|
|
|
4,453,927
|
|
|
4,425,434
|
|
|
4,118,497
|
|
|
Total
Deposits
|
|
$
|
37,178,434
|
|
$
|
37,048,909
|
|
$
|
36,935,198
|
|
$
|
36,741,878
|
|
$
|
36,401,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Deposits
(excludes Time Deposits)
|
|
$
|
32,897,833
|
|
$
|
32,798,956
|
|
$
|
32,481,271
|
|
$
|
32,316,444
|
|
$
|
32,283,095
|
|
Asset Quality
|
|
Ending
Balance
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
(Dollars in
thousands)
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
NONPERFORMING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
$
|
106,189
|
|
$
|
110,467
|
|
$
|
105,856
|
|
$
|
104,772
|
|
$
|
68,176
|
|
|
Accruing loans past due
90 days or more
|
|
|
2,497
|
|
|
11,305
|
|
|
783
|
|
|
3,620
|
|
|
2,667
|
|
|
Non-acquired OREO and
other nonperforming assets
|
|
|
1,589
|
|
|
711
|
|
|
449
|
|
|
227
|
|
|
186
|
|
|
Total
non-acquired nonperforming assets
|
|
|
110,275
|
|
|
122,483
|
|
|
107,088
|
|
|
108,619
|
|
|
71,029
|
|
|
Acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
|
63,451
|
|
|
59,755
|
|
|
57,464
|
|
|
60,734
|
|
|
52,795
|
|
|
Accruing loans past due
90 days or more
|
|
|
135
|
|
|
1,174
|
|
|
1,821
|
|
|
571
|
|
|
983
|
|
|
Acquired OREO and other
nonperforming assets
|
|
|
655
|
|
|
712
|
|
|
378
|
|
|
981
|
|
|
3,446
|
|
|
Total acquired
nonperforming assets
|
|
|
64,241
|
|
|
61,641
|
|
|
59,663
|
|
|
62,286
|
|
|
57,224
|
|
|
Total nonperforming
assets
|
|
$
|
174,516
|
|
$
|
184,124
|
|
$
|
166,751
|
|
$
|
170,905
|
|
$
|
128,253
|
|
|
|
Three Months
Ended
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
ASSET QUALITY RATIOS
(7):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percentage of loans
|
|
|
1.44 %
|
|
|
1.41 %
|
|
|
1.40 %
|
|
|
1.36 %
|
|
|
1.21 %
|
|
|
Allowance for credit
losses, including reserve for unfunded commitments, as a percentage
of loans
|
|
|
1.60 %
|
|
|
1.58 %
|
|
|
1.59 %
|
|
|
1.56 %
|
|
|
1.48 %
|
|
|
Allowance for credit
losses as a percentage of nonperforming loans
|
|
|
272.62 %
|
|
|
249.90 %
|
|
|
269.98 %
|
|
|
251.86 %
|
|
|
297.42 %
|
|
|
Net charge-offs as a
percentage of average loans (annualized)
|
|
|
0.03 %
|
|
|
0.09 %
|
|
|
0.16 %
|
|
|
0.04 %
|
|
|
0.01 %
|
|
|
Total nonperforming
assets as a percentage of total assets
|
|
|
0.39 %
|
|
|
0.41 %
|
|
|
0.37 %
|
|
|
0.38 %
|
|
|
0.29 %
|
|
|
Nonperforming loans as
a percentage of period end loans
|
|
|
0.53 %
|
|
|
0.56 %
|
|
|
0.52 %
|
|
|
0.54 %
|
|
|
0.41 %
|
|
Current Expected Credit Losses ("CECL")
Below is a table showing the roll forward of the ACL and UFC for
the first quarter of 2024:
|
|
Allowance for Credit
Losses ("ACL and UFC")
|
|
|
(Dollars in
thousands)
|
|
NonPCD
ACL
|
|
PCD
ACL
|
|
Total
ACL
|
|
UFC
|
|
|
Ending balance
12/31/2023
|
|
$
|
423,876
|
|
$
|
32,697
|
|
$
|
456,573
|
|
$
|
56,303
|
|
|
Charge offs
|
|
|
(4,829)
|
|
|
—
|
|
|
(4,829)
|
|
|
—
|
|
|
Acquired charge
offs
|
|
|
(2,889)
|
|
|
(222)
|
|
|
(3,111)
|
|
|
—
|
|
|
Recoveries
|
|
|
2,703
|
|
|
—
|
|
|
2,703
|
|
|
—
|
|
|
Acquired
recoveries
|
|
|
272
|
|
|
2,286
|
|
|
2,558
|
|
|
—
|
|
|
Provision (recovery)
for credit losses
|
|
|
20,055
|
|
|
(4,295)
|
|
|
15,760
|
|
|
(3,074)
|
|
|
Ending balance
3/31/2024
|
|
$
|
439,188
|
|
$
|
30,466
|
|
$
|
469,654
|
|
$
|
53,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end
loans
|
|
$
|
31,636,027
|
|
$
|
1,031,283
|
|
$
|
32,667,310
|
|
|
N/A
|
|
|
Allowance for Credit
Losses to Loans
|
|
|
1.39 %
|
|
|
2.95 %
|
|
|
1.44 %
|
|
|
N/A
|
|
|
Unfunded commitments
(off balance sheet) *
|
|
|
|
|
|
|
|
|
|
|
$
|
8,160,594
|
|
|
Reserve to unfunded
commitments (off balance sheet)
|
|
|
|
|
|
|
|
|
|
|
|
0.65 %
|
|
|
|
|
*
|
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 26, 2024.
Callers wishing to participate may call toll-free by dialing
(888) 350-3899 within the US and (646) 960-0343 for all other
locations. The numbers for international participants are
listed at https://events.q4irportal.com/custom/access/2324/.
The conference ID number is 4200408.
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 26, 2024 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,
2024
|
|
|
Dec. 31,
2023
|
|
|
Sep. 30,
2023
|
|
|
Jun. 30,
2023
|
|
|
Mar. 31,
2023
|
|
|
Net income
(GAAP)
|
|
$
|
115,056
|
|
|
$
|
106,791
|
|
|
$
|
124,144
|
|
|
$
|
123,447
|
|
|
$
|
139,926
|
|
|
Provision for credit
losses
|
|
|
12,686
|
|
|
|
9,893
|
|
|
|
32,709
|
|
|
|
38,389
|
|
|
|
33,091
|
|
|
Tax
provision
|
|
|
38,462
|
|
|
|
29,793
|
|
|
|
33,160
|
|
|
|
34,495
|
|
|
|
39,096
|
|
|
Merger, branch
consolidation, severance related and other expense (8)
|
|
|
4,513
|
|
|
|
1,778
|
|
|
|
164
|
|
|
|
1,808
|
|
|
|
9,412
|
|
|
FDIC special
assessment
|
|
|
3,854
|
|
|
|
25,691
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Securities losses
(gains)
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(45)
|
|
|
Pre-provision
net revenue (PPNR) (Non-GAAP)
|
|
$
|
174,571
|
|
|
$
|
173,948
|
|
|
$
|
190,177
|
|
|
$
|
198,139
|
|
|
$
|
221,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average asset balance
(GAAP)
|
|
$
|
45,011,163
|
|
|
$
|
45,037,632
|
|
|
$
|
44,841,319
|
|
|
$
|
44,628,124
|
|
|
$
|
44,104,478
|
|
|
PPNR
ROAA
|
|
|
1.56
|
%
|
|
|
1.53
|
%
|
|
|
1.68
|
%
|
|
|
1.78
|
%
|
|
|
2.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,660
|
|
|
|
76,634
|
|
|
|
76,571
|
|
|
|
76,418
|
|
|
|
76,389
|
|
|
PPNR per
weighted-average common shares outstanding
|
|
$
|
2.28
|
|
|
$
|
2.27
|
|
|
$
|
2.48
|
|
|
$
|
2.59
|
|
|
$
|
2.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Three Months
Ended
|
|
|
CORE NET INTEREST
INCOME (NON-GAAP)
|
|
Mar. 31,
2024
|
|
|
Dec. 31,
2023
|
|
|
Sep. 30,
2023
|
|
|
Jun. 30,
2023
|
|
|
Mar. 31,
2023
|
|
|
Net interest income
(GAAP)
|
|
$
|
343,936
|
|
|
$
|
354,231
|
|
|
$
|
355,371
|
|
|
$
|
361,743
|
|
|
$
|
381,263
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accretion
on acquired loans
|
|
|
4,287
|
|
|
|
3,870
|
|
|
|
4,053
|
|
|
|
5,481
|
|
|
|
7,398
|
|
|
Core net
interest income (Non-GAAP)
|
|
$
|
339,649
|
|
|
$
|
350,361
|
|
|
$
|
351,318
|
|
|
$
|
356,262
|
|
|
$
|
373,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN
("NIM"), TE (NON-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
$
|
343,936
|
|
|
$
|
354,231
|
|
|
$
|
355,371
|
|
|
$
|
361,743
|
|
|
$
|
381,263
|
|
|
Total average
interest-earning assets
|
|
|
40,657,176
|
|
|
|
40,465,377
|
|
|
|
40,376,380
|
|
|
|
40,127,836
|
|
|
|
39,409,340
|
|
|
NIM, non-tax
equivalent
|
|
|
3.40
|
%
|
|
|
3.47
|
%
|
|
|
3.49
|
%
|
|
|
3.62
|
%
|
|
|
3.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment (included in NIM, TE)
|
|
|
528
|
|
|
|
659
|
|
|
|
646
|
|
|
|
698
|
|
|
|
1,020
|
|
|
Net interest
income, tax equivalent (Non-GAAP)
|
|
$
|
344,464
|
|
|
$
|
354,890
|
|
|
$
|
356,017
|
|
|
$
|
362,441
|
|
|
$
|
382,283
|
|
|
NIM, TE
(Non-GAAP)
|
|
|
3.41
|
%
|
|
|
3.48
|
%
|
|
|
3.50
|
%
|
|
|
3.62
|
%
|
|
|
3.93
|
%
|
|
|
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
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
2023
|
|
|
2023
|
|
|
Adjusted Net Income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
115,056
|
|
|
$
|
106,791
|
|
|
$
|
124,144
|
|
|
$
|
123,447
|
|
|
$
|
139,926
|
|
|
Securities losses
(gains), net of tax
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(35)
|
|
|
Merger, branch
consolidation, severance related and other expense, net of tax
(8)
|
|
|
3,382
|
|
|
|
1,391
|
|
|
|
130
|
|
|
|
1,414
|
|
|
|
7,356
|
|
|
FDIC special
assessment, net of tax
|
|
|
2,888
|
|
|
|
20,087
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Adjusted net
income (non-GAAP)
|
|
$
|
121,326
|
|
|
$
|
128,271
|
|
|
$
|
124,274
|
|
|
$
|
124,861
|
|
|
$
|
147,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Basic (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic (GAAP)
|
|
$
|
1.51
|
|
|
$
|
1.40
|
|
|
$
|
1.63
|
|
|
$
|
1.62
|
|
|
$
|
1.84
|
|
|
Effect to adjust for
securities losses (gains), net of tax
|
|
|
—
|
|
|
|
0.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
Effect to adjust for
merger, branch consolidation, severance related and other expense,
net of tax (8)
|
|
|
0.04
|
|
|
|
0.03
|
|
|
|
0.00
|
|
|
|
0.02
|
|
|
|
0.10
|
|
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.04
|
|
|
|
0.26
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Adjusted net
income per common share - Basic (non-GAAP)
|
|
$
|
1.59
|
|
|
$
|
1.69
|
|
|
$
|
1.63
|
|
|
$
|
1.64
|
|
|
$
|
1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Diluted (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Diluted (GAAP)
|
|
$
|
1.50
|
|
|
$
|
1.39
|
|
|
$
|
1.62
|
|
|
$
|
1.62
|
|
|
$
|
1.83
|
|
|
Effect to adjust for
securities losses (gains), net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
Effect to adjust for
merger, branch consolidation, severance related and other expense,
net of tax (8)
|
|
|
0.04
|
|
|
|
0.02
|
|
|
|
0.00
|
|
|
|
0.01
|
|
|
|
0.10
|
|
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.04
|
|
|
|
0.26
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Adjusted net
income per common share - Diluted (non-GAAP)
|
|
$
|
1.58
|
|
|
$
|
1.67
|
|
|
$
|
1.62
|
|
|
$
|
1.63
|
|
|
$
|
1.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Assets (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (GAAP)
|
|
|
1.03
|
%
|
|
|
0.94
|
%
|
|
|
1.10
|
%
|
|
|
1.11
|
%
|
|
|
1.29
|
%
|
|
Effect to adjust for
securities losses (gains), net of tax
|
|
|
—
|
%
|
|
|
0.00
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
Effect to adjust for
merger, branch consolidation, severance related and other expense,
net of tax (8)
|
|
|
0.02
|
%
|
|
|
0.01
|
%
|
|
|
—
|
%
|
|
|
0.01
|
%
|
|
|
0.06
|
%
|
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.03
|
%
|
|
|
0.18
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Adjusted return
on average assets (non-GAAP)
|
|
|
1.08
|
%
|
|
|
1.13
|
%
|
|
|
1.10
|
%
|
|
|
1.12
|
%
|
|
|
1.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Equity (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
8.36
|
%
|
|
|
7.99
|
%
|
|
|
9.24
|
%
|
|
|
9.34
|
%
|
|
|
10.96
|
%
|
|
Effect to adjust for
securities losses (gains), net of tax
|
|
|
—
|
%
|
|
|
0.00
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
Effect to adjust for
merger, branch consolidation, severance related and other expense,
net of tax (8)
|
|
|
0.24
|
%
|
|
|
0.11
|
%
|
|
|
0.01
|
%
|
|
|
0.11
|
%
|
|
|
0.57
|
%
|
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.21
|
%
|
|
|
1.50
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Adjusted return
on average common equity (non-GAAP)
|
|
|
8.81
|
%
|
|
|
9.60
|
%
|
|
|
9.25
|
%
|
|
|
9.45
|
%
|
|
|
11.53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Tangible Equity (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
8.36
|
%
|
|
|
7.99
|
%
|
|
|
9.24
|
%
|
|
|
9.34
|
%
|
|
|
10.96
|
%
|
|
Effect to adjust for
intangible assets
|
|
|
5.27
|
%
|
|
|
5.54
|
%
|
|
|
6.28
|
%
|
|
|
6.47
|
%
|
|
|
7.85
|
%
|
|
Return on
average tangible equity (non-GAAP)
|
|
|
13.63
|
%
|
|
|
13.53
|
%
|
|
|
15.52
|
%
|
|
|
15.81
|
%
|
|
|
18.81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Tangible Equity (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
8.36
|
%
|
|
|
7.99
|
%
|
|
|
9.24
|
%
|
|
|
9.34
|
%
|
|
|
10.96
|
%
|
|
Effect to adjust for
securities losses (gains), net of tax
|
|
|
—
|
%
|
|
|
0.00
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
Effect to adjust for
merger, branch consolidation, severance related and other expense,
net of tax (8)
|
|
|
0.25
|
%
|
|
|
0.10
|
%
|
|
|
0.01
|
%
|
|
|
0.11
|
%
|
|
|
0.58
|
%
|
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.21
|
%
|
|
|
1.50
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
intangible assets, net of tax
|
|
|
5.53
|
%
|
|
|
6.53
|
%
|
|
|
6.29
|
%
|
|
|
6.53
|
%
|
|
|
8.21
|
%
|
|
Adjusted return
on average common tangible equity (non-GAAP)
|
|
|
14.35
|
%
|
|
|
16.12
|
%
|
|
|
15.54
|
%
|
|
|
15.98
|
%
|
|
|
19.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Efficiency
Ratio (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
58.48
|
%
|
|
|
63.43
|
%
|
|
|
54.00
|
%
|
|
|
53.59
|
%
|
|
|
51.41
|
%
|
|
Effect to adjust for
merger, branch consolidation, severance related and other expense
(8)
|
|
|
(1.08)
|
%
|
|
|
(0.43)
|
%
|
|
|
(0.04)
|
%
|
|
|
(0.41)
|
%
|
|
|
(2.07)
|
%
|
|
Effect to adjust for
FDIC special assessment
|
|
|
(0.93)
|
%
|
|
|
(6.11)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Adjusted
efficiency ratio
|
|
|
56.47
|
%
|
|
|
56.89
|
%
|
|
|
53.96
|
%
|
|
|
53.18
|
%
|
|
|
49.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Common Share (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP)
|
|
$
|
72.82
|
|
|
$
|
72.78
|
|
|
$
|
68.81
|
|
|
$
|
69.61
|
|
|
$
|
69.19
|
|
|
Effect to adjust for
intangible assets
|
|
|
(26.34)
|
|
|
|
(26.46)
|
|
|
|
(26.55)
|
|
|
|
(26.65)
|
|
|
|
(26.79)
|
|
|
Tangible book
value per common share (non-GAAP)
|
|
$
|
46.48
|
|
|
$
|
46.32
|
|
|
$
|
42.26
|
|
|
$
|
42.96
|
|
|
$
|
42.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity-to-Tangible Assets (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
(GAAP)
|
|
|
12.29
|
%
|
|
|
12.32
|
%
|
|
|
11.63
|
%
|
|
|
11.77
|
%
|
|
|
11.68
|
%
|
|
Effect to adjust for
intangible assets
|
|
|
(4.08)
|
%
|
|
|
(4.11)
|
%
|
|
|
(4.15)
|
%
|
|
|
(4.16)
|
%
|
|
|
(4.18)
|
%
|
|
Tangible
equity-to-tangible assets (non-GAAP)
|
|
|
8.21
|
%
|
|
|
8.21
|
%
|
|
|
7.48
|
%
|
|
|
7.61
|
%
|
|
|
7.50
|
%
|
|
Footnotes to
tables:
|
|
(1)
|
Includes loan accretion
(interest) income related to the discount on acquired loans of $4.3
million, $3.9 million, $4.1 million, $5.5 million, and $7.4 million
during the quarters ended March 31, 2024, December 31, 2023,
September 30, 2023, June 30, 2023, and March 31, 2023,
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, severance related and other expense, and FDIC
special assessments. 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, severance related and
other expense of $4.5 million, $1.8 million, $164,000, $1.8
million, and $9.4 million for the quarters ended March 31, 2024,
December 31, 2023, September 30, 2023, June 30, 2023, and March 31,
2023, respectively; (b) pre-tax net securities (losses) gains of
$(2,000) and $45,000 for the quarters ended December 31, 2023 and
March 31, 2023, respectively; and (c) pre-tax FDIC special
assessment of $3.9 million and $25.7 million for the quarters ended
March 31, 2024 and December 31, 2023, respectively.
|
|
(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 GAAP to Non-GAAP" provide tables that reconcile
GAAP measures to non-GAAP.
|
|
(4)
|
Adjusted efficiency
ratio is calculated by taking the noninterest expense excluding
merger, branch consolidation, severance related and other expense,
FDIC special assessment 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 $6.0 million, $6.6 million, $6.6 million,
$7.0 million, and $7.3 million for the quarters ended March 31,
2024, December 31, 2023, September 30, 2023, June 30, 2023, and
March 31, 2023, 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, 2024 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)
|
Includes pre-tax cyber
incident costs of $4.4 million for the quarter ended March 31,
2024.
|
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) risks related to the ability of the Company to pursue
its strategic plans which depend upon certain growth goals in our
lines of business; (3) risks relating to the ability to retain our
culture and attract and retain qualified people, which could be
exacerbated by the continuing work from remote environment; (4)
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; (5) interest
rate risk primarily resulting from our inability to effectively
manage the risk, 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; (6) a decrease in our net
interest income due to the interest rate environment; (7) liquidity
risk affecting the Bank's ability to meet its obligations when they
come due; (8) unexpected outflows of uninsured deposits may require
us to sell investment securities at a loss; (9) potential
deterioration in real estate values; (10) the loss of value of our
investment portfolio could negatively impact market perceptions of
us and could lead to deposit withdrawals; (11) price risk focusing
on changes in market factors that may affect the value of traded
instruments in "mark-to-market" portfolios; (12) transaction risk
arising from problems with service or product delivery; (13) 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; (14) 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; (15) volatility in the financial services
industry (including failures or rumors of failures of other
depository 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; (16) 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; (17) compliance risk
involving risk to earnings or capital resulting from violations of
or nonconformance with laws, rules, regulations, prescribed
practices, or ethical standards, and contractual obligations
regarding data privacy and cybersecurity; (18) 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 or other guidance, and the possibility of changes in
accounting standards, policies, principles and practices; (19)
strategic risk resulting from adverse business decisions or
improper implementation of business decisions; (20) 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; (21) 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; (22) reputational and operational risks associated with
environment, social and governance (ESG) matters, including the
impact of changes in federal and state laws, regulations and
guidance relating to climate change; (23) excessive loan losses;
(24) reputational risk and possible higher than estimated reduced
revenue from previously announced or proposed regulatory changes in
the Bank's consumer programs and products; (25) 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; (26) catastrophic events such as hurricanes,
tornados, earthquakes, floods or other natural or human disasters,
including public health crises and infectious disease outbreaks, as
well as any government actions in response to such events, 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; (27)
geopolitical risk from terrorist activities and armed conflicts
that may result in economic and supply disruptions, and loss of
market and consumer confidence; (28) the risks of fluctuations in
market prices for SouthState common stock that may or may not
reflect economic condition or performance of SouthState; (29) 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; (30) ownership dilution risk associated with
potential acquisitions in which SouthState's stock may be issued as
consideration for an acquired company; and (31) 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.
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SOURCE SouthState Corporation