Southstate Bank Corporation · NYSE:SSB
Southstate Bank — South State — Q2 2019 Earnings Presentation
13 slides from Southstate Bank's earnings presentation, Jul 30, 2019
Slide 1: Earnings Call 2Q2019
1 Earnings Call 2Q2019 Tuesday, July 30,2019
Slide 2: Forward Looking Statements
2 2 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 Secur
Slide 3: Longer-term Targets
3 3 Loan Growth 5 - 10% Expense Growth 0 - 3% Efficiency Ratio 56 - 57% Capital TCE / TA 8-9% Dividend Payout Range 30 – 35% Longer-term Targets ROTCE 16 - 18%
Slide 4: 2Q Highlights
4 4 2Q 19 Highlights *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses, FHLB pre-payment expense, and Pension Plan termination. GAAP Adjusted* Net Income (millions) $41.46 $49.40 EPS $1.17 $1.40 Return on A
Slide 5: Net Interest Margin and Net Interest Income
5 5 Net Interest Margin 4.14% 4.04% 3.98% 3.92% 3.82% $115.9 $115.6 $116.5 $114.1 $118.0 $129.6 $128.3 $126.4 $123.3 $127.2 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Net Interest Margin NII - Excluding Accretion Net Interest Income Dollars in millions
Slide 6: Average Interest Earning Assets
6 6 Average Interest Earning Assets Dollars in millions Quarterly Averages Assets % of Earning Assets 1Q 19 % of Earning Assets 2Q 19 Change Short-Term Investments 1.9% $ 249 4.5% $ 602 $ 353 Investment Securities 11.9 1,515 12.1 1,621 106 Loans – Acquired 23.0 2,947 20.1 2,695 (252) Loans – Non-acq
Slide 7: Accretable Yield and Accretion / Total Interest Income
7 7 Dollars in millions Accretable Yield 18.4% 12.5% 10.3% 6.4% 6.1% 5% 10% 15% 20% 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 Accretion / Total Interest Income 2Q 2019 (Yields Annualized) Income Statement Contractual Interest Accretion Total Income Contractual Yield Total Yield Acquired Credit Im
Slide 8: Acquired Loan Portfolio
8 8 Acquired Loan Portfolio As of June 30, 2019 Acquired Loans UPB Discount Carrying Value Accretable Yield / Disc Credit Impaired $ 473.7 (A) ($53.8) $ 419.9 (B) $100.6 Non-Credit Impaired 2,207.1 (26.8) 2,180.3 26.8 Total $ 2,680.8 ($80.6) $ 2,600.2 $127.4 (A) Represents total loan discount made u
Slide 9: 2nd Quarter 2019 Highlights: Noninterest Income
9 9 2nd Quarter 2019 Highlights In millions; *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses, FHLB pre-payment expense, and Pension Plan termination. Noninterest Income 1Q 2019 2Q 2019 Net Change Fees on
Slide 10: 2nd Quarter 2019 Highlights: Noninterest Expense
10 10 2nd Quarter 2019 Highlights In millions; *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses, FHLB pre-payment expense, and Pension Plan termination. Noninterest Expense 1Q 2019 2Q 2019 Net Change Salar
Slide 11: Efficiency Ratio
11 11 65.6% 62.3% 59.4% 63.2% 66.9% 57.3% 59.5% 59.4% 62.5% 59.8% 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 Efficiency Ratio Adjusted* Efficiency Ratio Efficiency Ratio * Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, and securities gains or l
Slide 12: Tangible Book Value
12 12 Tangible Book Value $34.64 $35.37 $36.30 $37.15 $37.85 $32.00 $34.00 $36.00 $38.00 $40.00 2Q18 3Q18 4Q18 1Q19 2Q19
Slide 13: Share Repurchase Activity
13 13 1Q19 • 500,000 shares • $66.53 per share average • $33.3 million 2Q19 • 641,200 shares • $73.13 per share average • $46.9 million 3Q19 to date • 594,400 shares • $75.08 per share average • $44.6 million 2019 Total • 1,735,600 shares • $71.90 per share average • $124.8 million 2019 - Forward •